You would think that now is the time for companies to maximize short lateral areas as the return on investment/drilling based on present oil prices would make them worth implementing and be an incentive to use those areas for the short term of things.
mk
One might think that, but the other factors are the lack of qualified crews (as folks left the industry in the hard times), training of new crews, lack of rigs, and the supply chain issue of actually finding pipe and other supplies. Funding is also an issue. Wall Street pulled back out of financing for a while, so finding other sources in the Private Equity arena, etc. is a challenge. Companies have to live within their cash flow and the demands of their stockholders, so a balancing game of staying in business and figuring just how much they can drill and meet their objectives. Drilling and fracking two short laterals is much more expensive than drilling one long lateral. Having been burned multiple times before, caution is the name of the game now.
Thanks Martha, I understand what you are saying, I was more thinking out loud than being reasonable in all arenas as you put it. Again Thanks mk
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