• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 17 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 5 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 10 hours Mr
  • 9 mins Russia's Rosneft Oil is screwed
  • 19 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 7 hours Free market or Freeloading off the work of others?
  • 9 hours Marine based energy generation
  • 21 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 22 hours How to Create a Pandemic
  • 7 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 14 hours Which producers will shut in first?
  • 21 hours Real Death Toll In CCP Virus May Be 12X Official Toll

Breaking News:

WTI Slides On Huge Crude Inventory Build

Alt Text

Giant LNG Projects Face Coronavirus Death Or Delay

The coronavirus crisis is now…

Alt Text

Shell Sees LNG Market Returning To Balance By 2021

The supply growth of liquefied…

Alt Text

Is Europe’s Latest Gas Deal A Win-Win?

The recent gas transit deal…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Here's an Unexpected Shale Gas Play

Argentina. - U.S. producer Apache said Friday it plans to drill a well by year-end to test shale gas potential in the La Calera field of the Neuquen Basin. The area already hosts conventional oil and gas production.

A few year's back Argentina would have been the last place on Earth for any kind of gas play. Let alone an experimental shale gas test.

Government price fixes in country have resulted in one of the lowest domestic gas prices in the Americas. Currently, gas sells for around $2.50 per MMBtu.

But the low price is curing the low price. With no incentive for gas producers to explore, Argentina's gas production has fallen off a cliff. To the point where the nation is having trouble honoring export contracts with neighboring countries like Chile.

In response, the government has implemented a two-tiered pricing system. Gas brought on-line from new fields can now be sold at prices above the domestic average. It's up to producers to negotiate the sales deals with prospective buyers.

The result being that producers have recently done deals as high as $5 per MMBtu. A relatively decent price. And one where shale gas could be economic (geology depending, of course).

This actually could be an ideal environment for shale.

If a producer like Apache can get a handle on the dynamics of a shale play, they can figure out what price they need to make it work. Cover costs, and build in an acceptable profit.
They can then negotiate to lock this price in, ensuring the continuing viability of the play.

The concept is sound. We'll see what the test results look like.

By. Dave Forest of Notela Resources


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News