Water is by far the largest component of fracking fluids. According to driller Chesapeake Energy, an initial drilling operation itself may consume from 6,000 to 600,000 US gallons of fracking fluids, but over its lifetime an average well may require up to an additional 5 million gallons of water for full operation and possible restimulation frac jobs.[1]
When fracing was first developed, they perforated the casing across a length of 20m or so. Later on they "stacked" 2 or 3 together. Now with the shale oil wells they were getting smart and had progressed to 10+ individual fracs. Now they are up to 30 plus. So each well is taking more water,though hopefully producing more oil per well.
What is needed is a method of cleaning up the used frac fluid when it is produced back to the surface. That technology is being worked on, but yet to arrive.
As for the Arckaringa Basin not being remote. It may have one gas line, one railroad an one road, but when I traveled from Darwin to Adelaide I must have slept through the centres of population that are going to service this operation. At the end of the day it will always come back to access to water, even just to support the work force, which is why it is still a remote location.
Note: 90% of the South Australian land mass hold 1% of the population.
LNC Price at posting:
$2.13 Sentiment: LT Buy Disclosure: Held
