Oil and gas technology of the future is here, and it’s claimed to be safer and more economical than fracking.
As oil prices slump and fracking remains under constant activist scrutiny, a new breakthrough technology promises a safe solution for making wells more economic and getting even more oil and gas out of them.
The process of terra slicing is a proven alternative to hydraulic fracturing, and the third-generation of Terra Slicing Technology (TST) is now ready for full commercialization and is expected to hit the market running at the prospect of revitalizing ‘dead’ wells economically and safely.
Terra Slicing Technology is a safe, extremely accurate and reliable water jet cutting procedure, patented by Canadian-based FalconRidge Oil Technologies (OTCQB-FROT). It increases the production of under-performing oil and gas assets through precision excavation and cutting of damaged productive hydrocarbon zones, increasing permeability, creating previously non-existent vertical permeability, increasing the overall drainage area of the well and avoiding further damage caused by explosive charge perforation.
The Future of Oil & Gas Economics
The 25% drop in oil prices is testing fracking companies, according to a recent report by Goldman Sachs Group Inc., which noted that hydraulic-fracturing projects could start to become uneconomic with producers seeing the break-even gap narrow.
In late October, the Wall Street Journal noted that shares of Continental Resources Inc. (CLR) and Whiting Petroleum Corp. (WLL) fell by more than 5%, while shares in major shale oil and gas developer Chesapeake Energy Corp. (CHK) fell 7%. At the same time, Hercules Offshore Inc. (HERO) of Houston said its business had been affected by a slowdown in drilling activity.
FalconRidge’s third-generation Terra Slicing Technology could help improve the breakeven point with financial benefits that may come in handy, particularly in this current oil price climate.
According to the company, the technology promises faster oil recovery by 30-50% and faster gas recovery by 80-160%.
Use of the technology means a shorter time period for return on investment, increases cash flow and—most importantly—an extension of the life of current low or non-producing assets. The bottom line is that TST means producers wouldn’t need to frack.
“Not only is TST proven to significantly improve newly drilled assets and recover previously unattainable reserves, it is also a low-risk endeavor because it offers predictable results before any major expenditures,” FalconRidge CEO Mark Pellicane says.
Not only is TST an alternative to fracking. FalconRidge also says it can be used where fracking is not an option, or as a precursor to fracking in order to “better control and enhance the fracturing procedure.”
Beyond this, Terra Slicing testing has proven that the process leads to high production than fracking. Terra Slicing has a longer term effect on the rock, keeping fractures or “slices” open and active for longer, enhancing production, while at the same time it cleans up a well, keeping the flow channels clear by removing rock from the formation.
Perhaps most impressively, in testing, while a second frack of the same well produced no results, a Terra Slice of the same well led to 18,130 million cubic feet of gas over two years.
Safer than Fracking
Hydraulic fracturing—part of the production process that employs chemicals and other fluids to create small fractures in a formation to stimulate the flow of oil and gas from a well—is highly controversial, and activism targeting fracking, particularly in populated areas, shows no sign of abating.
From research linking an earthquake in Ohio in December 2011 to fracking, to concerns of drinking water contamination and continual battles in a number of states over the process, fracking remains a highly contentious and polarizing issue.
On 4 November, the residents of Denton voted in a local ballot on whether or not to ban fracking within the city limits, and there is a flurry of activity on this battleground that is not likely to end with the vote itself, but will be dragged through the courts in the aftermath.
This vote—which takes place atop the Barnett Shale, where the fracking revolution got its start—could reshape the fracking debate country-wide.
This makes the timing of the full commercialization of TST quite fortunate. Not only does the industry recognize it as a safe alternative to fracking, but opponents of fracking are also likely to jump on board and remove some of the scrutiny on producers.
Experts describe Terra Slicing as “an environmentally and ecologically safe excavation process in which fracturing is possible and highly determinable.”
To see terra slicing technology in action you can watch the latest video by clicking here.
By. James Burgess of Oilprice.com
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