Seeking Alpha

tullii's  Instablog

tullii
Send Message
Studied: Power Engineering, Exploration Technology, Worked Upstream, Midstream, Downstream in Oil and Gas, Pipelines, Drilling, Refineries. I'm Interested in very big picture, game changers that come from sizeable economic deposits of Oil, Gas, Gold, Silver, Uranium, Specialty Metals used in... More
My company:
Tullii.com
My blog:
UNDER CONSTRUCTION TIL 2015
My book:
CrOblet Creating real opportunity by leveraging energy technology
  • Top 7 USA Shale Plays  1 comment
    Aug 1, 2013 3:01 PM | about stocks: CXO, APA, MRO, OAS, EOG, HES, WLL, CLR, TRN, BRK.A, RAIL, ARII, CN-OLD, CP

    Shales Tullii.com / USA

    Which Companies, stocks are in Top 7 Shale Plays in USA.

    (click to enlarge)

    1•Anadarko-Woodford - Also called the Cana Woodford, the Anadarko-Woodford is a growing crude and liquids play in West-Central Oklahoma running up within the Anadarko basin. Devon Energy is the unchallenged leader here, accounting for more than 40% of all drilling activity. Four other companies follow with another 40% or so of new wells including Cimarex Energy, Continental Resources, Marathon, and ExxonMobil. It's a relatively deep horizontal play with depths ranging from 11,500 to 14,500 feet. Average drilling and completion costs/well can be ~ $8.5 million.

    (click to enlarge) The Bakken Extent has now reached Williston the larger and better the oil pool is the more the Land goes up, KOG just paid $660 Million for 42000 Acres a new record per acre

    2•Bakken - The Bakken shale play is one of the biggest oil discoveries in recent history. Long known since the early days of drilling in the Williston basin, the Bakken shale was largely ignored until technology came along to make it economic to develop. Since then, it has become a huge success. Seven E&P companies will account for about 65% of Bakken drilling this year. In rank order they are: Continental Resources, Hess, Whiting Petroleum, Statoil/Brigham, Oasis Petroleum, Marathon, and EOG Resources. At present, Continental and Hess are together running ~ 40 rigs. Each is developing ways to become more efficient and reduce drilling days/well to somewhere in the mid-20s. These wells will be around 10,000-foot TVD and cost over $9 million each.

    (click to enlarge)

    3•Eagle Ford - About 400 miles in length and stretching from Southwest Texas into East Texas, the Eagle Ford shale is a very interesting play with oil, liquids, and dry gas windows with 60% to 70% carbonate content and a more brittle geology that's good for fracturing. Four companies account for around 45% of all drilling here: Chesapeake Energy, EOG, Conoco Phillips, and Marathon. But there are other very aggressive players including Pioneer, Anadarko, Talisman/Statoil, and BHP (which paid $12 billion for Petrohawk and gained significant Eagle Ford holdings). Most are drilling $6.5 million to $7 million wells with focus on the Eagle Ford's oil and liquids windows.

    4•Granite Wash - A collection of several "wash plays" in the Texas-Oklahoma Panhandle are alluvial placers formed by mineral particles and deposits set down by ancient streams, involving a number of stacked oil and gas formations at depths of 11,000-15,000 feet. Chesapeake, Apache, and Linn Energy lead all players in the Granite Wash, drilling more than six of 10 wells here while Devon and Forest follow. These wells can have up to 15 frac stages (at least at this time) and cost $7.5 million to $8 million each.

    5•Marcellus - Most Marcellus shale wells are in Pennsylvania, with about 8 of 10 wells focused on natural gas. Range Resources and a few others are leading wet play development in the southwestern corner of the state. TVDs are around 6,300 feet with horizontals costing around $5.3 million. Busy players include Anadarko (with their Mitsui JV), Chesapeake and their associated JV with Statoil, then comes Range, Shell (which bought into the Marcellus by paying KKR $4.7 billion for East Resources), and then Chevron via their $4.3 billion acquisition of Atlas Energy. A plus for the Marcellus is its location adjacent to the biggest gas-consuming region in the country.

    6•Niobrara - The Niobrara formation is located in a corner of the Rockies involving Colorado, Wyoming, Kansas, and Nebraska. Most activity today is in the northeastern corner of Colorado within the Denver-Julesburg basin. Noble Energy is the hands-down leader with more than 440,000 net acres in leasehold, drilling almost one in three wells here. Growing independent Bonanza Creek and Anadarko follow, both with aggressive development programs. TVDs are in the neighborhood of 6,200 feet with well costs that range from $4.5 million to ~ $5 million/well.

    WPX hits a monster size gas well in the Niobrara, it will double WPX

    The OPTIONS are One way to Play NBL (here is a good day)

    7•Permian - Several exciting shales now overlay an historic conventional oil basin where drilling began in the 1920s. They include the Avalon, Leonard, Wolfcamp, Bone Spring Field, Spraberry Field, and Yeso Oil Play. Also included is the Wolfberry Trend which refers to the Wolfcamp Shale and the Spraberry Field. There are plenty of operators of record here, but just eight account for around 70% of shale drilling today in the Permian. The top three: Pioneer Natural Resources, Concho Resources (which just spent over $1 billion to acquire Three Rivers Operating), and Apache. Oxy follows close behind, then comes Energen, Sandridge, Cimarex, and EOG.

    soon upcoming basins Monterey, Tuscaloosa, Woodford.

    How Oil Equipment and Oil get transported around the USA

    How the industry looks at Tight Oil, Shale Gas, Unconventional

    Shales need to "break, crack" or Frac for better Oil Production

    VIDEO on Frac Sand

    Frac Sand Information

    1] Frac Sand in Wisconsin: Bruce Brown, Wisconsin Geological and Natural History Survey, Fact Sheet 05, 2012.

    [2] The Facts of Frac: article from Drilling Minerals, January, 2007.

    [3] Hydraulic Fracturing Proppants: article, map of U.S. Silica proppant sources and video on the important properties of frac sand, 2011.

    [4] Sand Dollars - Mining Frac Sand in the River Valley: Reggie McLeod, Big River Magazine, July-August, 2011.

    [5] Oil Companies Drawn to Frac Sand: Isabel Ordonez, Dow Jones Newswire article on Rigzone.com, May, 2012.

    [6] St. Peter Sandstone: website article, Missouri Department of Natural Resources, Geological Survey Program, accessed July, 2012.

    [7] Silica: Thomas Dolley, 2011 Minerals Yearbook, United States Geological Survey, March, 2013.

    [8] Ground Water Atlas of the United States, United States Geological Survey, Hydrologic Investigations Atlas Series, published 1992 through 2000.

    Global Frac Horse Power to Grow 243% by 2017

    CANADA LINKS: Trican Sanjel Calfrac

    USA LINKS: Schlumberger, Halliburton, Baker Hughes,

    New Specialty Frac Players From Canada

    Canyon Technical Services

    Gasfrac

    Element Technical Services

    IronHorse Energy Services

    Millenium Stimulation Services

    Calfrac is 92% focused on Fracturing Wells

    Sanjel is a private company and is not publicly traded

    How

    (Private Company)Fracking

    (Saskatchewan)

    (Williston, Estevan)

    (Gasfrac uses Propane Gel)

    Shale = OIL PRODUCTION

    (NYSE:USA)Global

    Shale Gas Reserves: Click to Enlarge

    USA Shale Gas

    60% of Oil is found in Carbonate Reservoirs

    Petrophysics: Water Saturation helps find best rock Quality

    Sand is mined and piled for Transport

    Some is shipped by RAIL or Truck

    Conveyors or trucks move the sand

    Special Dump Trailers are made to unload it

    Demand has driven up production

    Sand is squeezed in oil shale to break it

    Surface Pumper run 24 hrs till each stage is done.

    (Some wells include 100's to 1000 total truck loads during the entire job of preparing lease, drilling and completing a well. All this equipment requires power trains, horsepower, hydraulic power, and this equipment is about to experience a Boom)The

    LINKS Western Star, Kenworth, Peterbuilt, Mack, Volvo,

    Cummins, Cat, Detroit Deisel, Deutz, Paccar

    Parker, Propell, Ingersol-Rand, TimKin

    Shales Plays are worldwide, Not just USA, but they affect global oil ...click on this "Shale Oil Boom Report" to read a HARVARD study from expert Leonardo Maugeri.

    (The Game of Oil Shale)

    Fracturing fluids are liquids or gases that convey pressure from the surface into the reservoir to enable fractures to be created. Fracturing fluid allows transportation of proppant and chemicals into the reservoir.

    To learn More: Click on the Fact Sheets Below

Back To tullii's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Todd Monka
    , contributor
    Comments (53) | Send Message
     
    I enjoyed your presentation(except the "It's complicated" picture), everything else was very well done...you make a subject fun and very informative. Thanks!
    23 Sep 2013, 10:22 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.