Young Research & Publishing Inc.

Investment Research Since 1978

  • Breaking News
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • The Final Richard C. Young’s Intelligence Report
  • Home
  • About Us
    • Contributors
    • Archives
  • Investing Analysis
    • Bonds
    • Commodities
    • Currencies and Gold
    • Dividend Investing
    • Economy
    • ETFs & Funds
    • Investment Strategy
    • Real Estate
    • Retirement Investing
    • Stocks
    • Taxes
  • Money Management
  • Crisis at Vanguard
  • Free Email Signup
  • Retirement CompoundersSM
  • Dynamic MaximizersSM
  • Facebook

The Marvel of American Energy Productivity

September 29, 2016 By Jeremy Jones, CFA

Two years ago, the shale oil industry was knocked down. The house of Saud cooked up a scheme to put the U.S. shale oil industry out of business. Instead of limiting production, the Saudi’s decided to make a play for market share. Oil prices plunged as a result, reaching lows not seen since the height of the financial crisis.

Some U.S. firms went bust, others slashed expenses, and many were forced to scale back their investment plans. But two years later, the U.S. shale oil industry is getting back up. Firms have adjusted to the lower price of oil by cutting costs and getting more productive. Oil services companies like Halliburton are leading the charge.

As the Wall Street Journal reports,

In May,  Halliburton Co. helped tap the longest shale well on record—8,500 feet deep and another 18,544 feet long—for Eclipse Resources Corp. in Ohio, 130 miles south of Cleveland.

That well was fracked—the process of injecting water, chemicals and sand to coax out oil and gas—an extraordinary 124 times. Typical shale wells are fracked between 30 and 40 times, up from just nine fracks in 2011 at the start of the oil boom, according to Drillinginfo, a data provider for the energy industry.

To put that engineering feat in Manhattan perspective, that is equivalent to burrowing down to the depth of nearly five World Trade Centers at One World Trade Center, turning 90 degrees and drilling underground 3.5 miles to Grand Central station. Eclipse saved 30% by supersizing the well, said Chief Operating Officer Tom Liberatore.

It would seem the Saudi’s underestimated the power of American ingenuity and grit.

 

The following two tabs change content below.
  • Bio
  • Latest Posts
My Twitter profileMy LinkedIn profile

Jeremy Jones, CFA

Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.
My Twitter profileMy LinkedIn profile

Latest posts by Jeremy Jones, CFA (see all)

  • Are Consumer Stocks Problems Fixable? - April 20, 2018
  • Where’s the Value in Tech? - April 19, 2018
  • Red Alert! $164 Trillion in Global Borrowing Exceeds Pre-Financial Crisis - April 18, 2018

Related Posts

Our Most Popular Posts

  • Vanguard GNMA and Your Retirement Years
  • Yes, Vanguard is too Big: Part II
  • This Chart Has a Concerning Look
  • Wellington Management Company
  • War Tensions Driving up LNG Prices
  • Facebook: “A Giant Blood-Engorged Tick Hanging off Your Frontal Lobe”
  • Your Pre-Retirement Years: A Straightforward Way to Earn Over 9% with Vanguard Wellesley
  • Amazon Establishes Foothold in Big Box Retail with Best Buy Partnership
  • Red Alert! $164 Trillion in Global Borrowing Exceeds Pre-Financial Crisis
  • Meet a Long-Time Friend and Advisor: The Stissing, Mountain Man
Fidelity: #1 Online Broker

The Economy Hasn’t Done this in Over a Decade

Household Net Worth Hits a Record High: Is that a Good Thing?

Is the GOP Tax Plan as bad as You’ve Heard?

Warehousing Employments Soars to Support E-Commerce Explosion

How Expensive is the Stock Market?

Search Young Research

RSS The Latest at Richardcyoung.com

  • Senate Must Not Confirm Anti-Iran-Deal Pompeo
  • One Standard for the Public, Another for the FBI?
  • O Canada: “Sports Bind Us Together in our Pain and Heartache”
  • Syria’s Four Fronts and a Perfect Storm of Chaos
  • How Would You Evacuate? Could You?
  • Cato’s Justin Logan—Iran Nuclear Deal an Historic Achievement
  • Iran’s Nuclear Bomb Prospects
  • Central Asia: Russia in Worse Shape than is America
  • The Poetic Outing of Sean Hannity Politically Motivated
  • Blackout: The Lights are Out in Puerto Rico

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Social Media

  • Facebook
  • Twitter
  • Youtube
  • Pinterest

Copyright © 2018 | Terms & Conditions