{"id":28924,"date":"2017-12-16T16:56:32","date_gmt":"2017-12-16T21:56:32","guid":{"rendered":"http:\/\/olduvai.ca\/?p=28924"},"modified":"2017-12-16T16:56:32","modified_gmt":"2017-12-16T21:56:32","slug":"shale-gas-revolution-did-not-last-long-for-bhp-the-fayetteville-story","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=28924","title":{"rendered":"Shale gas revolution did not last long for BHP \u2013 the Fayetteville story"},"content":{"rendered":"

Shale gas revolution did not last long for BHP \u2013 the Fayetteville story<\/a><\/h3>\n
\n

\"BHP_ready_goodbye_US-shale\"http:\/\/www.naturalgasintel.com\/topics\/101-fayetteville-shale<\/a><\/p>\n

We had these headlines a couple of months ago:<\/p>\n

BHP\u2019s $50 billion shale oil blunder<\/strong><\/p>\n

23\/8\/2017
\nBHP slapped $US4.75 billion ($6 billion) down on the table to buy the rights from Chesapeake Energy to around half-a-million acres of prospective shale gas reserves at Lafayette in Arkansas.<\/em>
\nhttp:\/\/www.abc.net.au\/news\/2017-08-23\/bhp-billion-dollar-shale-oil-blunder\/8832698<\/a><\/p>\n

\u2018They went too hard\u2019 \u2013 BHP\u2019s retreat wins plaudits<\/strong><\/p>\n

22\/8\/2017
\nMr Mackenzie conceded BHP\u2019s entry into the onshore US shale industry was \u201cpoorly timed, we paid too much\u201d for the assets.<\/em>
\n\u201cWe would like to get on with the exit from shale,\u201d he said, adding that BHP would \u201cbe patient to make sure we restore value for shareholders\u201d.<\/em>
\nhttp:\/\/www.smh.com.au\/business\/mining-and-resources\/they-went-too-hard\u2013bhps-retreat-wins-plaudits-20170822-gy1jfq.html<\/a><\/p>\n

This post\u2019s focus is the Fayetteville shale gas in the US State of Arkansas. The following map is from a BHP investor presentation in February 2011, shortly before BHP bought shale gas acreage from Chesapeake in March 2011.<\/p>\n

\"Fayetteville_map_2011\"Fig 1: Location of the Fayetteville shale<\/p>\n

http:\/\/www.bhp.com\/media-and-insights\/news-releases\/2011\/02\/bhp-billiton-announces-acquisition-of-chesapeake-energy-corporations-fayetteville-usa-shale-assets<\/a><\/p>\n

Let\u2019s hit the road, on route 65 from Conway (Arkansas) towards Greenbrier where many new subdivisions were built like this one:<\/p>\n<\/div>\n

Let\u2019s hit the road, on route 65 from Conway (Arkansas) towards Greenbrier where many new subdivisions were built like this one:<\/p>\n

\"Greenbrier_subdivision\"Fig 2: Testifying to the newly found wealth \u2013 as long as it lasts.<\/p>\n

You can buy 5 acre lots for US$ 80,000 and the average house costs just 140 grand.<\/p>\n

5 kms north of Greenbrier we find BHP gas well Fielder 8-13 2-33H, carved out of a forest lot.<\/p>\n

\"BHP_permit_41740\"Fig 3: BHP gas wells in Fayetteville<\/p>\n

\"BHP_Fayetteville_well_locations\"<\/p>\n

Fig 4: BHP well locations in Fayetteville<\/p>\n

The production history shows that BHP went into shale just 1 \u00bd years before the whole basin started to peak:<\/p>\n

\"Fayetteville_shale_gas_production_2004-Jul2017\"Fig 5: Fayetteville shale gas production up to July 2017
\nhttps:\/\/www.eia.gov\/tools\/faqs\/faq.php?id=907&t=8<\/p>\n

An undulating peak of production is clearly visible between mid 2012 and mid 2014<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Shale gas revolution did not last long for BHP \u2013 the Fayetteville story http:\/\/www.naturalgasintel.com\/topics\/101-fayetteville-shale We had these headlines a couple of months ago: BHP\u2019s $50 billion shale oil blunder 23\/8\/2017 BHP slapped $US4.75 billion ($6 billion) down on the table to buy the rights from Chesapeake Energy to around half-a-million acres of prospective shale gas […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[17534,6292,17535,722,723],"class_list":["post-28924","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-bhp","tag-crude-oil-peak","tag-fayetteville","tag-shale-gas","tag-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28924"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28924\/revisions"}],"predecessor-version":[{"id":28925,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28924\/revisions\/28925"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}