the rock layers and to flow into the drill hole from which it is collected. Fracking is
generally amplified with advanced micro-seismic imaging. Thanks to this process
extra more crude oil can be extracted from the rock layers, something not possible
with conventional extracting methods.
39.4.3 Economic Approach
The boom in shale oil production triggered lower energy prices in the US and made
the country less dependent on oil import. Lower energy prices brought about lower
production costs and a rebirth of the US manufacturing industry. Consequently
strong export growth resulted in a considerable improvement on the US current
account. However, the quantity of future shale oil winning is not only based on the
amount of recoverable oil shale present in the underground. The price of conventional oil on the world markets (Brent, WTI, Dubai/Oman) also plays a major role.
Therefore crude oil price must remain at an adequate high level to maintain
sustainable investments in shale oil projects. The development forecasts were
hypothesizing a conventional crude oil price of about $100 a barrel but the latter
declined from $106 in June 2014 to about $50 in January 2017. Furthermore the
high expectations concerning future drilling of oil and gas shale are undergoing
increasing pressure due to the requirement of large investment levels. There is also
a constant need to drill new rigs since a location does not remain economically
viable for a long period. Moreover it is very difficult to make a correct estimation of
the amount of recoverable oil and gas in a well.
39.4.4 Environmental Approach
The most considerable environmental impacts of shale oil production and
processing are land use, pollution (water & air) and waste management. Surface
mining of oil shale deposits in the US and Canada caused severe disturbance,
especially on land. For instance the region of the Green River Formation was
previously a much appreciated area for fishing, recreational hiking, hunting,
sheep and cattle grazing and fossil collecting. The basin had a significant ecosystem
diversity and was a habitat for large herds of American elk, antelope, mule deer, as
well as wild horses. However, this fragile equilibrium has been disturbed since the
inception of shale oil development on the territory. Although it was postulated in
the preparatory phase that shale oil winning would have minimal or no effect on the
environment, practice has proved otherwise. The modified topography in situ
affected the habitats of various plants and animals. The ecosystem was also
wrecked as a result of the construction of, among others, roads, surface facilities
(industrial, commercial and residential buildings), pipelines, power supply units,
mud reservoirs and impoundments (for fresh water and fracking fluid). Pipelines
39 A Three-Dimensional Approach to Oil and Gas Shale Exploitation in the US
651
generally amplified with advanced micro-seismic imaging. Thanks to this process
extra more crude oil can be extracted from the rock layers, something not possible
with conventional extracting methods.
39.4.3 Economic Approach
The boom in shale oil production triggered lower energy prices in the US and made
the country less dependent on oil import. Lower energy prices brought about lower
production costs and a rebirth of the US manufacturing industry. Consequently
strong export growth resulted in a considerable improvement on the US current
account. However, the quantity of future shale oil winning is not only based on the
amount of recoverable oil shale present in the underground. The price of conventional oil on the world markets (Brent, WTI, Dubai/Oman) also plays a major role.
Therefore crude oil price must remain at an adequate high level to maintain
sustainable investments in shale oil projects. The development forecasts were
hypothesizing a conventional crude oil price of about $100 a barrel but the latter
declined from $106 in June 2014 to about $50 in January 2017. Furthermore the
high expectations concerning future drilling of oil and gas shale are undergoing
increasing pressure due to the requirement of large investment levels. There is also
a constant need to drill new rigs since a location does not remain economically
viable for a long period. Moreover it is very difficult to make a correct estimation of
the amount of recoverable oil and gas in a well.
39.4.4 Environmental Approach
The most considerable environmental impacts of shale oil production and
processing are land use, pollution (water & air) and waste management. Surface
mining of oil shale deposits in the US and Canada caused severe disturbance,
especially on land. For instance the region of the Green River Formation was
previously a much appreciated area for fishing, recreational hiking, hunting,
sheep and cattle grazing and fossil collecting. The basin had a significant ecosystem
diversity and was a habitat for large herds of American elk, antelope, mule deer, as
well as wild horses. However, this fragile equilibrium has been disturbed since the
inception of shale oil development on the territory. Although it was postulated in
the preparatory phase that shale oil winning would have minimal or no effect on the
environment, practice has proved otherwise. The modified topography in situ
affected the habitats of various plants and animals. The ecosystem was also
wrecked as a result of the construction of, among others, roads, surface facilities
(industrial, commercial and residential buildings), pipelines, power supply units,
mud reservoirs and impoundments (for fresh water and fracking fluid). Pipelines
39 A Three-Dimensional Approach to Oil and Gas Shale Exploitation in the US
651