Shale Drilling not the Same Internationally

The Chief Operating Officer of oil services giant Schlumberger Ltd. has said that refinements must be made in shale drilling before the underground oil-and-gas-filled rocks can be exploited beyond North America.

"We are convinced that the brute force approach established in North America will not be practical overseas, either from a financial or an operational standpoint," said Paal Kibsgaard.

Schlumberger is among the companies that have helped develop North American shale exploration, which involves complex techniques like horizontal drilling and hydraulic fracturing.

Service providers are now aiming to export the techniques they're using to produce vast amounts of natural gas and oil from North America to international markets, with shale formations including Poland, Argentina, China and France.

Shale drilling requires large amounts of water, ceramic material or fine sand called proppant as well as pumping equipment that can often be in short supply. And before shale exploration can take root internationally, the process needs to be come more efficient, Kibsgaard said.

"We need to establish a workflow and corresponding technology offering built around a better evaluation of shale gas reservoirs," he said. "The goal will be to only drill the best wells, and only stimulate the best intervals, while we continue to look for [fracturing] solutions that further minimize the usage of both water and proppant."

Source: NASDAQ