Quote:
Originally Posted by New Era
You do know the difference between drilling and production? So long as reserves are not depleted, production should remain stable without further drilling. You do understand that, right?
The United States purchases OPEC oil for many reasons. Do you know what the strategic petroleum reserve is? Do you know that the United States believes it is strategically best served importing oil and sitting on its reserves rather than exhausting its reserves and have nothing in times of crisis? You do understand these concepts?
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Your first statement is not true. A drilled well that is being produced will have a decline rate. The year over year decline rate on a shale well can be as high as 90%. They are getting better at decreasing these decline rates and extending well life however, Shale oil requires continuous drilling of new wells to maintain production.
However TFF is completely wrong that this is somehow due to Obama though Trumps lack of groundwater protection will make it marginally cheaper to drill new wells.