20057
Argentina, China Lead Shale Development Outside N. America
Energy

Argentina, China Lead Shale Development Outside N. America

As recently as last year, only four countries in the world were producing commercial volumes of either natural gas from shale formations (shale gas) or crude oil from tight formations (tight oil): the United States and Canada, and more recently, Argentina and China.
Beyond these four countries, other countries have started exploring hydrocarbons from shale and other tight resources, but they are still short of reaching commercial production. The 2013 World Shale Gas and Shale Oil Resource Assessment, produced by US Energy Information Administration, pointed to large shale deposits in China and Argentina.
Exploration and drilling are already underway in these countries. For the last two years, China has drilled more than 200 wells, and Argentina has drilled more than 275 wells. Each country has the potential to significantly increase production of shale gas and tight oil.
In Argentina, many international companies hold leases and have drilled wells in shale formations. Much of the initial activity has targeted shale oil and natural gas in the Neuquen Basin's Vaca Muerta shale formation, located in west-central Argentina.
 National energy company Yacimientos Petroliferos Fiscales, the largest shale operator in the country, reported production in April 2015 of 22,900 barrels per day of oil and 67 million cubic feet per day of natural gas from three joint ventures in Vaca Muerta: one with Chevron at the Loma Campana field, a second one with Dow Chemical at the El Orejano field, and a third joint venture with Petronas at La Amarga Chica field.
In addition, China's national oil company Sinopec and Russia's national oil company Gazprom have recently signed a memorandum of understanding with YPF to jointly develop shale from the same basin. While several international companies are active in China, much of the early effort has been led by Sinopec and China National Petroleum Corporation's PetroChina, two of China's national oil companies. According to China's Ministry of Land and Resources, these two companies are on schedule to reach 600 mcf/d of shale gas production by the end of 2015.

  Commercial-Scale Effort
CNPC has drilled 125 shale wells, bringing 74 of them into production, and is on schedule to produce 250 mcf/d of shale gas by the end of this year. Sinopec has a commercial-scale effort underway at the Fuling shale gas field in the Sichuan Basin, currently producing 130 mcf/d. By the end of 2014, Sinopec completed 75 test wells at the Fuling field, with plans to drill an additional 253 wells.
Other countries have also begun to explore shale gas and tight oil, including Poland, Algeria, Australia, Colombia and Russia. Shale oil and natural gas exploration drilling is also underway in Mexico, particularly in the country's portion of the Eagle Ford Shale and in La Casita formation within the Burgos Basin in northeastern Mexico.
In May 2015, the national oil company Petroléos Méxicanos released the results for 13 of its shale exploration wells, with 10 of these categorized as commercial. These 10 shale gas wells have initial production ranging from 2 to 11 mcf/d. Pemex also drilled three horizontal wells into the Tampico-Misantla Basin's Pimienta formation in 2013, and the company plans to complete all three wells this year.

 

Short URL : http://goo.gl/cT2Be5

You can also read ...

Russia Says US Sanctions on Iran "Unproductive"
United States' sanctions on Iran's oil industry are...
China to Cut Solar, Wind Subsidies
China will speed up efforts to ensure its wind and solar power...
Oil Coalition Seeks Consensus Ahead of Algiers Summit
With a critical meeting in Algiers fast approaching, a...
Abu Dhabi Planning Biggest Oil  IPO in Decade
Abu Dhabi is pushing ahead with an initial public offering for...
Crude Prises Higher as Supply Concerns Rise
Oil prices rose on Monday as investors worried about the...
New Power Capacity for Sistan-Baluchestan
Operations to build new combined-cycle power plants in...
Abadan  Refinery  Second Phase  on Track
The second development phase of Abadan Oil Refinery in...
ICOFC to Develop  Eight Gas Fields
Iranian Central Oil Fields Company plans to develop eight gas...

Trending

Googleplus