Decline Rates for Shale Wells Mean We’re on a Drilling Treadmill

The U.S. oil and natural gas sector operates on a drilling treadmill. As production from existing wells rapidly declines—a trend exacerbated by the faster decline rates of prolific horizontal (shale) wells—operators are forced to drill new wells to maintain current output. Since 2010, however, new hydrocarbon production in the Lower 48 states has been robust enough to not only offset these significant losses but also increase overall production levels. The U.S. Energy Information Administration published a post yesterday explaining the shale drilling "treadmill" we find ourselves on.

---

To view this content, log into your member account. (Not a member? Join Today!)