Profitability of shale gas drilling: A case study of the Fayetteville shale play

Svetlana Ikonnikova (), Gurcan Gulen, John Browning and Scott W. Tinker

Energy, 2015, vol. 81, issue C, 382-393

Abstract: Discussion on shale gas production sustainability raises the question of shale gas well profitability. The study presents a well economics model incorporating key geologic and production features of shale gas. The model is used to demonstrate analytically how profitability of a well may change depending on completion and local geology. We show how wells with the same expected production may have different profitability and, vice versa, how wells with different production profiles may appear to be equally attractive.

Keywords: Cash flow analysis; Investment attractiveness; Shale gas; Productivity (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:81:y:2015:i:c:p:382-393

DOI: 10.1016/j.energy.2014.12.051

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