shales: the drilling treadmill energypolicyforum · (data courtesy of deborah rogers, april, 2014)...
TRANSCRIPT
![Page 1: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/1.jpg)
SHALES:
The Drilling Treadmill
EnergyPolicyForum
Photo Credit: J. Henry Fair
![Page 2: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/2.jpg)
Encana$1.7 Billion
ExxonMobil $2 Billion
Devon$2 Billion
Chesapeake
$3.3 Billion
BP$2.11 Billion
BHP$2.84 Billion
(50% of Fayetteville assets purchase)
Write Downs
Shell$2 Billion
$35B in write downs among 15
shale operators
![Page 3: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/3.jpg)
CAPEX = Free Cash Flow?
NO
![Page 4: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/4.jpg)
-30.
-2.5
25.
52.5
80.
2010 2011 2012 2013
$B
illio
ns
Free Cash Flow CAPEX
$235 Billion CAPEX and
$81 Billion in Negative Cash Flow over 2010-2013
Free Cash Flow and CAPEX for Shale Drillers, 2010-2013
(data courtesy of Deborah Rogers, April, 2014)
![Page 5: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/5.jpg)
Frackonomics
![Page 6: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/6.jpg)
The Real Job Story
Oil & Gas
• Approx. 181,000
direct industry jobs
(2011)
• Approx. 45% of
total energy gen.
capacity
Renewables
• Approx. 183,000
direct industry jobs
(2011)
• Approx. 15% of
total energy gen.
capacity
![Page 7: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/7.jpg)
Recovery EfficiencyHow Much Gas Can We Get Out?
“The recovery efficiency for the five major [shale gas] plays averages 6.5%...
This contrasts significantly with recovery efficiencies of 75-80% for conventional gas fields.”
Oil & Gas Journal, December 2012
![Page 8: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/8.jpg)
EROEIEnergy Returned On Energy Invested
• Crude, early U.S. - 100:1
• Crude today - 11:1
• Tar Sands - 3:1
• Tight Oil - <7:1
• Troubling dependence on low EROEI fuels
![Page 9: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/9.jpg)
TEXAS
Revenue: $3.6B
Road Damage: $4.0B
ARKANSAS
Revenue: $182M
Road Damage: $450M
PENNSYLVANIA
Impact Fee Revenue: $405M
Funds to maintain roads: $3.5B
Road Damage vs.
Revenues
Sources: State Comptrollers, State DOT
NORTH DAKOTARevenue: $3.3B (since 2010)
Road Damage: $7.0B
![Page 10: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/10.jpg)
Majors Struggling
![Page 11: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/11.jpg)
SOURCE: YAHOO FINANCE
![Page 12: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/12.jpg)
Shale Exportation
![Page 13: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/13.jpg)
In 2008, the City of Fort
Worth, Texas received
$50 million in revenues
from 44 shale gas
wells.In 2012, the city
received only $23 million
from 397 wells.Source: City of Ft. Worth
![Page 14: SHALES: The Drilling Treadmill EnergyPolicyForum · (data courtesy of Deborah Rogers, April, 2014) Frackonomics. The Real Job Story Oil & Gas • Approx. 181,000 direct industry jobs](https://reader033.vdocuments.us/reader033/viewer/2022051919/600c3ceed75f5d36566bdada/html5/thumbnails/14.jpg)
EnergyPolicyForumwww.energypolicyforum.org