Why I’m skeptical about the Chesapeake energy boom
It has been a year since the Cheshire Energy oil boom burst, and yet there are still plenty of questions lingering about the state’s energy future.
I asked some experts what they think is going to happen.
In this week’s episode of the Lad Bible, we look at the most pressing questions about the next wave of drilling in the Cheslamarkas and beyond.
Will the energy boom really come to an end?
The answer to that question is unclear.
The boom itself is now over, but it was never quite over, according to some experts.
The Chesapeake Energy project has been plagued by problems and delays since its start in 2013.
In the first quarter of this year, Chesapeake was forced to shut down production because of a pipeline failure that has shuttered more than 40,000 jobs in the region.
That shutdown has not yet been fully repaired.
And, as with any oil spill, there is a chance that a pipeline leak could contaminate the oil from the fracking fluid.
The biggest question in the energy business is how the shale gas boom will be sustainable over the long term.
If Chesapeake can’t produce oil, there will be a huge shortage in the shale resources that the company is currently producing.
This may be the only time that it will be viable for the company to drill more than a few thousand wells in the United States, says David Wertheimer, a professor of economics at Georgetown University and author of “The Great Gas Shock.”
But he adds that he is not sure how long that will be.
Chesapeake is planning to drill some 30,000 wells in North Carolina and Texas next year, but that will only represent a small fraction of its overall production, which is expected to grow by nearly 2 million barrels a day by 2025.
The company has been planning for that future for some time.
The oil and gas boom has already created more than $2 trillion in economic activity for the U.S., but it is unclear how the boom will ultimately play out.
For now, Cheshire is focusing on its drilling in Oklahoma and South Dakota.
The energy boom in the last year has also given a boost to renewable energy, but Wertheim says that is only a temporary fix for the region’s energy problems.
“Renewables are going to take off a little bit over the next year and a half, but if you look at it, we’re still at about 15 percent of our total energy use,” he says.
Werthel says the industry needs to be prepared for the worst, which could be a year from now.
In other words, the industry will be more reliant on renewables, but there will also be a lot of uncertainty about whether those technologies will be able to replace the fossil fuel industry.
The next big thing that is going on in the oil and natural gas industry will depend on how much of Cheshire’s energy output is actually generated.
Weren’t the wells that have been drilled in the first half of the year producing more oil?
“No, they weren’t,” Wertheiser says.
“They were only producing about 2.5 million barrels of oil per day, but those are only a small part of Chesapeake’s total output.”
The Cheshire drilling project is still working on finding the right wells to drill.
The first quarter saw the company start drilling wells in Pennsylvania and Texas, where the first oil was found, but the company has since closed those projects.
“We are still waiting for some of the well permits,” says Kevin Jorgensen, the head of Chesham’s energy operations, in a phone interview.
“It’s not a big deal because we have about a week’s notice of when the drilling starts.”
That means that even if the drilling actually starts, the company will have a long time to wait to see if it can produce enough oil to replace some of Cheshar’s already declining production.
“The first half [of this year] is going pretty well,” says Wertheiels Jorgensons energy team.
“If we can start producing a little oil, we’ll probably be able [to] start producing oil again within a few months.
But I don’t know what’s going to be a problem.”
How will the shale oil industry react?
Wertholers Jorgans team is planning a few more exploratory wells this spring, but is still waiting to see how much oil is produced in the coming months.
The U.N. panel of experts, the International Energy Agency, estimates that the United Kingdom’s shale oil boom will generate more than 300,000 barrels per day by 2020, with the United Arab Emirates producing at least 2 million bpd.
The British government is also planning to begin producing oil from shale in the next few months, although there are reports that that will not happen until after the U