Friday, April 19, 2013

A Picture is Worth a Thousand Words

Of course, it's not as simple as saying that the sudden abundance of shale gas caused a gas price crash and led to a drastic reduction of natural gas drilling.  That's a very big reason, but a surge in oil drilling led to an increase of oil rigs, which makes the "percentage of the whole" comparison a bit misleading.  Still, it's a dramatic image (and yes, I am pooping on my own chart).

1 comment:

Anonymous said...

Another fundamental change was that shale gas accelerated the move from vertical to horizontal drilling. I remember in 2007 one of the big ideas was the drilling of 20 acre spacing (from 40 acre) vertical wells in the Cotton Valley Sands. The number of rigs needed in horizontal drilling is much less than vertical drilling.