Issue link: http://read.dmtmag.com/i/101441
Energy (���It���s All Right Now, In Fact It���s a Gas��� continued from page 56) a method of injecting fluid into the ground to break up shale, offering drillers more access to the natural gas or oil hidden within. While we���ve heard more and more about hydraulic fracturing in recent news, it���s really nothing new. These technologies have been in use for decades in conjunction with vertical drilling. However, the method has become more high profile with the introduction of horizontal drilling. Together, hydraulic fracturing and horizontal drilling enable gas producers to extract shale gas and oil more economically than traditional methods. Without these techniques, the hydrocarbons do not flow to the well rapidly, and commercial quantities cannot be produced from shale. Hydraulic fracturing���s economic viability is tied to the price of oil or natural gas. Regarding oil, at the high end, below $80 per barrel, fracking is not economically viable. At the low end, some shale formations are viable at $45 per barrel. Today, the presence of liquid gas creates the greatest economic value. However, as demand for natural gas increases, prices will rise and it will be more economically viable. While traditional methods of extraction focused on production zones where oil or gas migrated to, the new unconventional drilling is focusing on where the oil or gas migrated from. As a result, there is an exponentially greater amount of hydrocarbons available to the producer who can drill to them. That makes the use of unconventional methods highly desirable and the need for new equipment highly necessary. Fastest-Growing Areas Construction equipment dealers in many states find themselves within an oil or gas shale formation. From the West Coast to the East Coast, and from the Canadian border to the Mexican border, shale formations exist and offer opportunities to those with the right tools and expertise. The industry is particularly focused right now on the Bakken Shale in North Dakota, the Utica/Marcellus Shale that extends into New York, Pennsylvania and Ohio, and the Eagle-Ford Shale in Texas. These plays offer enough inventory to drill for a decade or longer. According to the U.S. Energy Information Administration, in June of 2012 alone the Bakken formation averaged 594,000 barrels of oil per day. That���s an increase (continued on page 60) Dispatching Solutions, inc www.dispatchingsolutions.com info@dispatchingsolutions.com 58 | www.cedmag.com | Construction Equipment Distribution | January 2013 56_BOKF_Feature_KP.indd 58 12/21/12 1:24 PM