$100+ oil prices allowed companies to master the fracturing technology. As a result, the shale industry was able to increase average productivity per well by employing advanced horizontal drilling techniques, multi-stage fracturing and concentrating towards the most productive areas of the basin. For example, oil productivity per rig for the Bakken increased from 112 b/d in January 2007 to 746 b/d in March 2016 – over 6.6 fold increase. Improvements were also made in terms of Estimated Ultimate Recovery (EURs) which in some of the basins reached 50 to 60 percent in 2015/16.
The US idea should be to even subsidize the shale producers and refiners until we purchase no foreign oil. Then see that we have modern refineries to make all the petroleum products we need. Fill the National Petroleum Reserve to the brim. And then only sell a minor amount to foreign buyers because we will need it in the future. I believe if the present price was maintained it would help the economy recover. Stable oil prices would lead to a stable economy. OPEC with the constant rise and fall of oil prices jerks our industries around and causes less profitability and lower wages. Buying OPEC oil is not in our interest anymore as we don’t need to support regimes that are hostile to us anyway.
There is now finally the option to break free from the middle east mess. We no longer need their oil. Build a few solar stations and advanced nuclear reactors and our nation will be 100% self sustaining. So why are we still letting British Petroleum sell our Alaskan oil to China?