US OIL COMPANIES PREFER CORKED WELLS TO SHALE DEPOSITS

With new technologies, “reopening” old wells has become more profitable than exploiting shale deposits. This conclusion was reached by The Wall Street Journal analysts. The rise of interest in the old deposits is due to two factors: new technologies and high costs of shale deposits exploitation.
Thanks to the methods of drilling vertical wells, it is much more profitable to return to old deposits than to drill a traditional oil well and, moreover, to extract shale oil.

In addition, the price of WTI oil now does not exceed $ 50 per barrel, and the cost of buying new sites, labor and infrastructure are increasing. WSJ notes that the traditional production at old fields, including the re-opening, land leasing, extraction and transportation of oil to the market, becomes break-even at $ 15 per barrel.

It is known that several companies have already begun to “reopen” and develop old wells.

Source: wsj.com