With shale oil deposits located as far north as North Dakota, running south into Texas, the opportunity for businesses to capitalize on the hydraulic fracturing technique continues to grow. One company that is successfully implementing this method is Cunningham Energy (more on Cunningham).
Companies are leaning on new techniques and technology to get more oil out of every well they drill, and they are furiously cutting costs in an effort to keep U.S. oil competitive with much lower-cost oil flowing out of the Middle East, Russia and elsewhere.
One example of this is Cunningham Energy whose founder, Ryan Cunningham, said, “As bigger producers moved into large horizontal shale plays like Marcellus and Utica, it left a huge void for smaller producers because no one was drilling these wells anymore.” Additionally, Cunningham Energy’s staff is comprised of around 80 people on the payroll, most of whom are local and whose communities benefit from this local network of employment.
Cuadrilla is backed by a leading U.S. energy private equity firm, Riverstone Holdings. David Leuschen, acting Senior Managing Director, founded Riverstone after an extensive career heading the Global Energy & Power Group for Goldman Sachs.
What is fracking? Hydraulic fracturing or “fracking” is the process of extracting natural grass from shale rock layers deep within the earth. Fracking methods are used to efficiently produce natural gas in shale plays that were once unreachable with conventional technologies. Fracking in has streamed the media as controversial as environmentalist fear that fracking is not staff. However, multiple studies have been conducted to indicate that fracking is safe.
The only thing standing in the way of increased production is the anti-drilling and fracking activists. Environmental concerns regarding fracking has caused the government to investigate and place heavy regulations on the fracking process. The investigations of regulations have caused production to slow down. While alternative energy source, natural gas, is still a fossil fuel, it produces half of the carbon emissions that traditional fossil fuels.
Due to the controversy and speculations, the EPA has investigated a number of event involving fracking including, water contamination and seismic activity studies. These uncertainties regarding fracking has certainly affected a number of wells in North Dakota, said Helms.
On one hand, the current administration empowers the Clean Air Act and encourage natural gas production, energy from shale. On the other hand, the Obama Administration could potentially regulate fracking, which would increase cost. State governments are currently responsible for fracking regulations.
All signs are pointing in favor of a new fracking economy. Hydraulic fracturing (commonly referred to as fracking), has been used since the 1940s as a method of extracting oil and gas. Today, an abundance of natural gas and new technologies, means opportunities for economic growth. New hydraulic fracturing technologies are being developed everyday to increase fracking efficiency.
Natural gas cost less than alternative fuel sources. For example, while the price of gasoline has risen rapidly over the last year, the price of natural gas has fallen to the lowest level in a decade. The reason why natural gas prices are low has to do with increase production of hydraulic fracturing. Efforts are being made to use more natural gas.
Vehicles: For example, most fleet vehicles (buses) already use natural gas. The market is limited to vehicles that can make it back to headquarter for refilling. Crystler announced a pickup truck that will run on both gasoline and natural gas.
Today’s oil and gas industry is searching for ways to be more efficient, more cost effective. While much progress has been made, two problems important to your bottom line still persist – the overall cost and the all-too-often delays associated with casing, tubing and other downhole components.
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