Drilling and Completion Cost in the Louisiana Haynesville Shale, 2007–2012

Kaiser, Mark J.; Yu, Yunke

doi:10.1007/s11053-014-9229-9

Cited by 8 publications

(5 citation statements)

References 21 publications

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“…For the Barnett in particular, Browning et al (2013) found that wells in thicker parts of the shale had greater productivity. Shale depth also matters, with wells in deeper shales having greater productivity but also greater costs (Kaiser & Yu, 2015). The shale thickness-to-depth ratio combines both attributes.…”

Section: Identification Of the Extent Of Capitalizationmentioning

confidence: 99%

Broadening Benefits from Natural Resource Extraction: Housing Values and Taxation of Natural Gas Wells as Property

Weber

Burnett

Xiarchos³

2016

J Policy Anal Manage

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We study the effects of the property tax base shock caused by natural gas drilling in the Barnett Shale in Texas-a state that taxes oil and gas wells as property. Over the boom and bust in drilling, housing appreciation closely followed the oil and gas property tax base, which expanded the total tax base by 23 percent at its height. The expansion led to a decline in property tax rates while maintaining or increasing revenues to schools. Overall, each $1 per student increase in the oil and gas property tax base increased the value of the typical home by $0.15. Some evidence suggests that the cumulative density of wells nearby may lower housing values, indicating that drilling could reduce local welfare without policies to increase local public revenues.

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Section: Identification Of the Extent Of Capitalizationmentioning

confidence: 99%

Broadening Benefits from Natural Resource Extraction: Housing Values and Taxation of Natural Gas Wells as Property

Weber

Burnett

Xiarchos³

2016

J Policy Anal Manage

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“…We therefore assume a minimum for drilling costs in Europe of $10 million, comparable to that observed in the Haynesville (Kaiser and Yu, 2015). Yet, the specificities of the continental European context, namely its lack of well-developedon-shore drilling infrastructure and its more stringent environmental regulations could increase this cost.…”

Section: Drilling and Completion Costsmentioning

confidence: 99%

Can the US shale revolution be duplicated in continental Europe? An economic analysis of European shale gas resources

Saussay

2018

Energy Economics

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Over the past decade, the rapid increase in shale gas and shale oil production in the United States has profoundly changed energy markets in North America, and has led to a significant decrease in American natural gas prices. The possible existence of large shale deposits in continental Europe, mainly in France, Denmark, the Netherlands and Germany, has fostered speculation on whether the U.S. shale revolution could be duplicated in Europe. However, a number of uncertainties, notably geological, technological, regulatory, and relating to public acceptance make this possibility unclear. We present a techno-economic model of shale gas production amenable to direct estimation on historical production data to analyze the main determinants of the profitability of shale wells and plays. We contribute an in-depth analysis of an extensive production dataset covering 40,000 wells and accounting for nearly 90% of shale gas production in the six main plays of the continental United States from 2004 to 2014. We combine this analysis with a discussion of the main differences between the American and European contexts to calibrate our model and conduct Monte-Carlo simulations. This enables us to estimate the distribution of breakeven prices for shale gas extraction in continental Europe. We find a median gross breakeven price before taxes and royalties of $10.1 per MMBtu. This would make extraction unprofitable in Europe in the current natural gas price environment, with b47% of the well distribution reaching breakeven at the mean 2011-2016 price. Sensitivity analysis reveals that the breakeven price is most sensitive to initial production rate, drilling and completion costs, and decline rates. We also find that the economic outlook would be slightly better if the productivity of European shale gas plays was comparable to that of U.S. plays of similar depth, but not significantly so. We conclude that under assumptions calibrated on existing shale gas production data, it is unlikely that the U.S. shale revolution can be duplicated in continental Europe.

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“…Drilling costs is calculated, which involves the pre-drilling preparation to the end of the well testing and installation of the oil recovery wellhead of single well. The total cost covers pre-drilling preparation, drilling, cementing, logging, and well testing [17][18][19]. In the previous five major individual work, different stages of production would generate a variety of costs.…”

Section: Cost Analysis Of Drilling In Ultra-deep Wellmentioning

confidence: 99%

Prediction Model of Drilling Costs for Ultra-Deep Wells Based on GA-BP Neural Network

Wang¹,

Zhu²,

Wei³

et al. 2023

Energy Engineering

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Drilling costs of ultra-deep well is the significant part of development investment, and accurate prediction of drilling costs plays an important role in reasonable budgeting and overall control of development cost. In order to improve the prediction accuracy of ultra-deep well drilling costs, the item and the dominant factors of drilling costs in Tarim oilfield are analyzed. Then, those factors of drilling costs are separated into categorical variables and numerous variables. Finally, a BP neural network model with drilling costs as the output is established, and hyper-parameters (initial weights and bias) of the BP neural network is optimized by genetic algorithm (GA). Through training and validation of the model, a reliable prediction model of ultra-deep well drilling costs is achieved. The average relative error between prediction and actual values is 3.26%. Compared with other models, the root mean square error is reduced by 25.38%. The prediction results of the proposed model are reliable, and the model is efficient, which can provide supporting for the drilling costs control and budget planning of ultra-deep wells.

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Drilling and Completion Cost in the Louisiana Haynesville Shale, 2007–2012

Cited by 8 publications

References 21 publications

Broadening Benefits from Natural Resource Extraction: Housing Values and Taxation of Natural Gas Wells as Property

Broadening Benefits from Natural Resource Extraction: Housing Values and Taxation of Natural Gas Wells as Property

Can the US shale revolution be duplicated in continental Europe? An economic analysis of European shale gas resources

Prediction Model of Drilling Costs for Ultra-Deep Wells Based on GA-BP Neural Network

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