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Message: Philip O’Quigley's Presentation

"If the "conventional" structures don't show a vast quantity of oil and gas - how will this impact Hess's decision to drill or drop??"

Well I'll speculate for discussion's sake. In the US, the abundance of NG put downward pressure on prices to unprofitable levels. This caused many companies to flare off their NG. But why would they do this? Answer, OIL! The presence of oil in shale formations is a key driver for profitability. Once the area is fracked, NG within the rock formation quickly depletes. However, if oil exists throughout the rock formation, as the core samples indicate, simply over pressurizing the well with fluids will return oil upon retrieving the fracking fluid. More oil in the rock equals less wells, lower operating costs, and higher profits. This is the lesson Hess learned from Eagle Ford. We want as much oil as possible in that rock. I know someone on this board seen those core samples like I have but I do not know where they went. There were clear oil stains on the samples.

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