“The US boom in oil and natural gas shows no signs if petering out, new data show, despite doubts raised by rival countries. The Federal government suggest the industry is becoming more efficient: Companies have figured out ways to use fewer drilling rigs to produce bigger and better wells in shale formations helping to to boost overall energy production. The technology is getting better. This summer the US passed Russia to become the World’s largest producer of oil and natural gas, thanks to hydraulic fracturing “fracking” and related well drilling improvements.”
As efficiencies improve in the drilling sector costs will continue to decrease improving the overall economics for shale oil and gas exploration and development in the US. This improvement coupled with the continued development of infrastructure improvements will all contribute to improved economics over the longer term.