Shale Well Interference: Spaced Out

After years spent jam packing as many oil and gas wells on their assets as possible, shale producers under pressure from prices and investors are beginning to see that less inventory is more.

Shale Well Interference: Spaced Out

(Source: Hart Energy)

The near-mythic status of the U.S. shale revolution has long been rooted in the premise that North America’s huge arsenal of wells could sway the world’s markets and break the rules set by the all-powerful OPEC pact.

The truth is that shale inventories are already beginning to shrink. The persistent pounding of E&Ps by the market and the ongoing frailty of commodity prices have cut economic support out from under drilling programs that were designed to pack as many wells as possible into a section.

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Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.