Miller/Howard Investments
Miller/Howard Podcast Series
2018 Energy Outlook
Upstream, Exploration & Production Series—
Part 1: The Shale Revolution
A brief history of oil and gas development prior to the shale revolution.
Adam Fackler, CFA, Senior Research Analyst  |  Full Bio (PDF)
Listen:  
Upstream, Exploration & Production Series—Part 1: The Shale Revolution
Upstream, Exploration & Production Series—Part 2: The Industry Has Matured
Upstream, Exploration & Production Series—Part 3: The Oil Majors Move In
Upstream, Exploration & Production Series—Part 4: Investing Upstream

Transcript:

Oil and gas development is not new in the US. The first US oil well was actually drilled in northwest Pennsylvania in 1859. Oil production subsequently reached a peak in 1970 at roughly 9.6 million barrels a day, before declining through 2008. George Mitchell—he’s often referred to as the father of fracking—started experimenting with hydraulic fracturing in the 1980s before utilizing a modern-day frack in 1997. Five years after that, Mitchell actually combined horizontal drilling with this improved frack. The combination has led to an American energy renaissance driven by increased resource potential, improved well economics, and has really created a manufacturing model with improving efficiencies.

Horizontal drilling and hydraulic fracturing were first applied to gas-focused drilling in the Barnett, the Fayetteville, and Haynesville. The same technology was then applied to liquids-focused basins like the Eagle Ford, Bakken, and Permian. The Permian Basin is the focal point of development in the US. The basin encompasses two sub-basins called the Delaware and Midland Basins.

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