It is too early to think about changes in the international oil market in connection with the discovery of Texas deposit. Such opinion was expressed on “Hromadske Radio” by the editor in chief of “Ukrainian Energy” website Viktoria Torop.
According to her, the discovered and estimated oil has not been extracted yet. “The next step will include installation of wells and setting up of infrastructure and the commencement of commercial production. Such well will show whether there are reserves in it and whether we can use them for a long time,” said the expert.
Ms. Victoria said that under the conditions of low oil prices it is not profitable for the extracting companies to start shale oil production. “Over the past year, the number of wells in the US decreased by 60%. This means that low oil prices force extracting companies to reduce their production and wait for the price cap when it becomes cost-effective. Shale oil production can start only when the price of oil exceeds USD 50,” said Victoria Torop.
As previously reported, the largest oil deposit was discovered in Texas, USA. According to the U.S. Geological Survey, the deposit has about 20 billion barrels of oil and 16 trillion cubic meters of natural gas and over 1.5 billion barrels of gas condensate.
