Have been having a gentle tickle here...win some lose some
The issue is one of porosity and also a related parameter - that of permeability and yes the deeper you go the more the pressure and the less likely that the formation will flow. Below about 4000m you have to have exceptional quality sands to free flow high rates needed to justify offshore development. An associated issue is that you need to be able to try and map any changes to reservoir quality as you move to a follow up location. This means trying to understand a moving and changing depositional environment that happened millions of years ago. Never easy.
Thats why shale gas/oil is such a game changer. You create the permeability by fracking and you dont have to worry about the sensitivites of a changing geology of reservoir over relatively short distances so you have already eliminated 2 of the primary risks in exploration
MEO Price at posting:
17.0¢ Sentiment: None Disclosure: Held
