The U.S. Shale Patch Is Facing A Plethora Of Problems

  • Date: 04-May-2022
  • Source: Yahoo News
  • Sector:Oil & Gas
  • Country:Gulf
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The U.S. Shale Patch Is Facing A Plethora Of Problems

There is a fairly blithe assumption in government circles that shale production can be raised at will. That assumption is about to be put to the test as the American shale drilling and fracking industry attempts to respond to the entreaties and outright demands of legislators, members of the administrative branch’s leadership, and even the president himself to put more capital toward increasing production.

This is happening, but at a level and rate that will be insufficient to boost production significantly. In fact, data from the most recent publication of the Energy Information Agency’s Drilling Productivity Report-DPR indicates trouble could lie ahead. As the graph taken from EIA-DPR data reveals, the rig count is going steadily higher, but production from the eight major shale basins has leveled off and, as of Feb, 22, has actually slightly declined. If the May edition of the DPR confirms this trend then there is going to have to be a drastic reevaluation of what will be expected from shale in the future.