Hello All, Here are some quotes from an article in the Sydney...

Hello All,

Here are some quotes from an article in the Sydney Morning Herald about oil and gas production in the states. The Americans sure are an innovative mob and whilst we wait for the hedging to run them into the ground they continue to reduce costs... I don't even need a hand to count how many 18,000 ft horizontals Australia has drilled, let alone in 16 days....

"We have just drilled an 18,000 foot well in 16 days in the Permian Basin. Last year it took 30 days," he said.

"Consultants Wood Mackenzie estimated in a recent report that full-cycle break-even costs have fallen to $US37 at Wolfcamp and Bone Spring in the Permian, and to $US35 in the South Central Oklahoma Oil Province. The majority of US shale fields are now viable at $US60"

Advanced pad drilling techniques allow frackers to launch five or ten wells in different directions from the same site. Smart drill-bits with computer chips can seek out cracks in the rock. New dissolvable plugs promise to save $US300,000 a well. "We've driven down drilling costs by 50 per cent, and we can see another 30 per cent ahead," said John Hess, head of the Hess Corporation.

The full link is posted below;

http://www.smh.com.au/business/comm...-us-oil-industry-buckles-20150805-gism05.html

Definitely some food for thought...