Tight Oil and Oil Sands Versus Small Deep Water Developments

#peakoil Tight Oil and Oil Sands Versus Small Deep Water Developments: This post which is based on results fro...

Companies that both hold prolific tight oil acreage (thus the acreage acquisition is sunk cost) in North America (Bakken, Eagle Ford and others) and have deep water discoveries in their portfolios, will now, and using point forward approaches, give priority to tight oil wells (and oil sands) due to predictability and scalability (staged investments, CAPEX flexibility). Small, deep water developments have proven to be associated with high reservoir risks and high capital commitments. From the start of the investment until it is grossly recovered it takes normally 3 – 4 years for a small Norwegian deep water discovery, if it produces as expected. For the Bakken reference tight oil well it takes around 2 years from the well is spudded until the investment is grossly recovered. Taxation, royalties, OPerational EXpenses (OPEX), debt services, general and administration etc. wil...

Full article: http://peakoil.com/production/tight-oil-and-oil-sands-ver...