Old Oil Is New Again; Companies say conventional wells can be profitable, no fracking required


From California's Central Valley to the Native American lands of Oklahoma, more small- and mid-sized oil firms--many backed by private equity--are forgoing expensive shale drilling projects and opting for old-school wells instead.

As crude prices languish under $50 a barrel, and with increasing costs for land, labor and infrastructure, some shale fracking operations are starting to look expensive. That has some investors turning to conventional drilling to make a profit.

Tapping shale involves fracking, drilling horizontal wells that extend for more than a mile, then using a highly pressurized mixture of water and chemicals to break open underground rock layers. The process has attracted billions of dollars in capital because it can unleash huge volumes of oil, but at today's prices most producers are losing money on every barrel they pump.

Some oil companies are choosing instead to apply newer technology and methods to vertical wells in century-old American oil fields, betting they can wring out faster and safer returns. The trick, they say, is finding the special locations where stranded oil can be profitably extracted from conventional wells, which are cheaper. They tend to cost less than $1 million, compared to between $6 million and $8 million for an average shale well.

Upstream Research Center

Research and development of upstream petroleum industry paradise comprises three independent research divisions: "Geosciences Division", "Petroleum Engineering Division" and "Reservoir Studies and Field Development Division". Apart from the three mentioned divisions, it has also organized two "Centers for Upstream Software Development". >> Read more

Downstream Research Center

research and development of downstream petroleum industry paradise consists of six divisions namely “ catalysis and nanotechnology”, “Petroleum Refining and Processing Technology Development Division”, Gas Transportation and Processing Technology Development Division >> Read more

Energy and the environment

Research and development of energy and environment paradise consists of three divisions namely “Environment and Biotechnology”, “Industrial Protection”, and optimization and development of Energy technologies” and “Analytical Chemistry Research Group>> Read more


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