Over exploitation of shale oil shale gas fire

Over exploitation of shale oil shale gas fire

       Rapidly increasing demand in brown sand
EOG is the largest U.S. independent oil and gas companies, with operations throughout North America, in recent years, and even extends to Europe and China. EOG CEO Mark Papa in an interview revealed that in 2008, taking into account the  Hydraulic fracturing  of  shale gas  development boom with the arrival was quickly promoted fracturing sand either demand or prices will explode , Texas, the company decided to buy a sand mine in northern and affiliated plants, their operations.
       Papa said the general development of  shale gas  wells lies smoothly or not hydraulic fracturing process it properly, but the success of hydraulic fracturing, fracturing sand quality is good or bad you play a decisive role. "Solving the problem should pay attention to focus on." Papa explained, EOG will buy their own sand mine, but it will not buy your own rig. Obviously, sand tight and rig rental market there are a lot of room.
      Apart from Texas north through the massive sand mine, in order to take into account the South Texas Eagle Ford shale project, EOG also Central Wisconsin Chippewa Falls bought the company's second sand mine. With its own sand mine project in the Eagle Ford, EOG single well drilling costs can be cheaper than other oil companies from 1 million to 2 million U.S. dollars. According to the U.S. investment bank Oppenheimer (Oppenheimer & Co), said the North American shale gas single well drilling costs of approximately $ 8,000,000, EOG return on investment is clearly enormous.
      Pioneer Natural Resources Company in March this year bought Texas Central Brady's a sand mine a year for the company to save 65 to 70 million U.S. dollars of the cost. According to company CEO Timothy Dove said, this sand mine not only ensure the pioneer company in the Permian Basin, a stable supply of brown sand, and the supply price of only 80 U.S. dollars / ton, well below the market price of 120 U.S. dollars / ton . Insiders judgment, the North American gas prices in the doldrums, more and more companies are moving away from the exploitation of  shale gas  and shale oil steering, brown sand market demand will rise. Texas and Arkansas produced brown sand than anywhere else because of the sand particles, suitable for oil exploration, and therefore more favored by the oil companies.
      The industry believes that large-scale application of  Frac sand  is actually revival of U.S. oil industry as a microcosm of the United States is likely due to the exploitation of shale oil and get rid of dependence on Middle East oil. U.S. Department of Energy data show that in 2011 U.S. exports of petroleum products exceeded imports for the first time since the post-war years. Despite the recession led to decline in oil demand is the main reason for the above phenomenon, but the U.S. oil and gas industry technology level, like North Dakota's Bakken Basin, a large number of such places exploitation of shale oil is also one of the reasons. As technology advances, Bakken's recoverable reserves have more than 43 million barrels of reserves in 1995 assessed 25 times.
     USGS data released in January of this year, the U.S. silica sand production ranking followed by Illinois, Texas, Wisconsin, Minnesota, Oklahoma, North Carolina, California and Michigan. Silica sand production in these regions for 64% of total U.S. production. The silica sand used in the United States 41% of the  hydraulic fracturing , cementing and cement processing.
      Wisconsin southern and southeastern Minnesota because of a lot of small town sitting on sand mine, increasing employment opportunities, and get a lot of revenue to withstand recession. Sand mine main people and therefore made a fortune.