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why is the american govt in a rush to dig out everything to use up...?
http://lubbockonline.com/business/20...m#.ULindoc0V8E
Two years ago, no one had ever heard of the potential of the Cline Shale oil play.
Now, the 140-mile-long and 70-mile-wide oil shale is anticipated to be one of the largest oil plays in American history.
Projections for the Cline Shale contribute to the expectation for the U.S. to become the world leader in oil production by 2017.
As the result of exploration by oil companies Devon Energy and Chesapeake Energy, the Cline Shale is quickly emerging as the richest oil play known. Other development companies with interests include Firewheel Energy, Laredo Petroleum, Exco, and Callon Petroleum, among others.
Devon Energy President John Richels gave a “type curve” for a Cline Shale well — a guess at how much a well would produce over time.
He said he expects a total production of 570,000 barrels of oil equivalent, and 85 percent of that would be oil and liquid gas rich.
“We are very excited about the Cline,” said Andy Coolidge, Devon Energy's vice president for the Permian Basin. “We expect to deliver highly economic and robust production growth.”
Snyder is in the the Cline pocket, which includes parts of Scurry, Borden, Mitc , Fisher, Nolan, Sterling and Glass counties
“It’s like Christmas morning. We are all waiting to see how this unfolds,” said Bill Lavers, CEO of Develop Snyder.
Test wells on the Cline show the shale contains 3.6 million barrels of recoverable oil per square mile, about 300 billion barrels of recoverable oil for the entire shale.
Until recently, the Eagle Ford Shale was considered to be the richest shale play in Texas. The Eagle Ford Shale covers Webb, Dimmit, Lavaca, McMullen, Karnes, DeWitt and Gonzales counties in the southern portion of the state.
Recent advances in horizontal drilling have opened up the possibility of drilling in areas like the Cline.
The Cline’s depth is equivalent to 10 Eagle Ford Shales stacked on top of each other.
Pete Stark, an independent analyst from Englewood, Co., and regarded by the industry as an expert on global oil and gas resources, said, “We haven’t seen billion-barrel numbers onshore since Prudhoe Bay, Alaska, in the ’70s.”
While the buzz surrounding the Cline Shale brings excitement and economic hope, it also presents some challenges to the communities located there.
For weeks, local officials have held public meetings to discuss the effects of the increasing drilling activity.
The shortage of housing in the Cline Shale area continues to be a main concern, according to Lavers.
“Everybody in the entire area is working together more than they ever have. There are no guarantees that anything is going to happen, but when you look at all the growth that has already occurred, it is obvious that something big is going on here,” he said.
Abel Deloera, Snyder councilman and owner of Deloera Realty, said he is busier than he has ever been.
“November and December are usually really slow months in real estate,” said Deloera, “This is the busiest I have been in six years.”
Deloera, who gets 10 to 15 phone calls every day from people looking for housing, said he started trying to address the Snyder housing shortage in October 2008.
“I saw this coming, but no one would listen,” said Deloera, “now we are a good 18 months to two years behind.”
Snyder lacks between 400 and 500 housing units, according to Deloera, and there has been a major increase in land value as a result of recent activity.
“I have people literally calling in tears saying they need a place for their families to live,” he said, “and I can’t help them. From here to Midland, in the entire area, there is virtually nothing available.”
According to Lavers, 35 housing lots were developed for sale and sold within 20 days of completion to a single developer.
Another project expected to close in March, according to Deloera, will develop about 100 single-family housing units.
Deloera said that development is moving too slowly, a fact he attributes to the risk involved. “Developers will have to risk millions of dollars in anticipation of what is about to happen; people are hesitant because of the risk.”
why is the american govt in a rush to dig out everything to use up...?
It's not the government. It's all private property/money. Obama is doing everything he can to with the oil industry.
the oil industry is doing everything it can to over the planet.
Just kill yourself, boo.
CC thinks domestic oil will be cheaper oil products for US consumers.
Boo is so stupid he thinks I believe that.
I'm for increased oil production because it is awesome for our economy. It may suck in Detroit but it's great to be in Texas.
"awesome for our economy"
bull . It's awesome for the oilcos and their investors, iow, the 1%. The 99% will benefit very little, while their land, water, air, bodies are polluted and sickened.
Just kill yourself, boo.
You've made it abundantly clear that you have not the slightest understanding of the oil and gas business other than what your rss overlords tell you to think. Just stop with the nonsense and do some original research.
My hometown sits right in the middle of this formation. It's mentioned in this article. The city and county will benefit mightily from further exploration....jobs, housing, retail, schools. These are the playgrounds of the 99% that you seem to know so little about.
The timing couldn't be better for my parents. They're bout to sell their house and move.
Good for them. Hopefully they hit a home run on the sale of their house.
LOL. You just went too far. That was so stupid that I'm only now realizing how good a troll you've been.
is it on any land? see if they can separate the mineral rights from the land. LOL
Virtually gurranteed. The realtor mentioned in the article lives 3 houses down from my folks.
But I'll also add that most of the time, these shale plays never turn out to be as good as first reported. Usually the area of economically producing wells is cut by more than 50% from the initial maps.
Exactly what my in-laws did. Sold the house but kept the mineral rights.
much of the land being fracked/ ing is losing resale value.
B, evironmental cost aside, you really can't deny the Eagle Ford Shale has not been a boon to the south Texas economy.
We already have about a zillion acres (I really don't know how many, it was an old family farm) that produces decent royalties from small, stripper wells. Pretty sure that's gonna get pumped up once the shale is in full play.
yeah, shale development is pretty complex. But, this is a huge field. Gotta yield.
lol goal post move.
"You've made it abundantly clear that you have not the slightest understanding of the oil and gas business other than what your rss overlords tell you to think. Just stop with the nonsense and do some original research.
My hometown sits right in the middle of this formation. It's mentioned in this article. The city and county will benefit mightily from further exploration....jobs, housing, retail, schools. These are the playgrounds of the 99% that you seem to know so little about."
Gotta love pumping strippers.
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