Bad news for oil producers

By Marwan Salamah

Kuwaiti Consultant

OUR Comments: Russian scientists have announced a new invention that increases oil well productivity and capacity by six times! They have invented a new “Fracking” method that increases shale oil production by 1.7 to 6 times, and in some cases by 10 to 20 times. And its success rate is 100%.

Instead of injecting water at high pressure, they inject chemicals that react together and fracture the rocks, releasing the oil and gas. This chemical reaction remains active in the well for a period of 1 to 3 years.

The beauty of this method is that it is environmentally friendly as it uses ammonium nitrate for the chemical reaction and, when it is completed, the residue is water and nitrogen. (Ammonium nitrate is usually used for fertilizer).

The controlled tests have now been completed, and tests on operational wells will begin in September 2017.

Generally: Optimistic

Negative For: For oil producers as this will increase world oil supply for a very long time, and keep prices low, if not lower than they are. It will be especially negative for “single revenue source” oil producing countries, who may suffer financially more deeply. Also, this may slow the rush to develop alternative energy sources, which is bad for the environment and climate change.

Positive For: The environment by reducing the damage caused by “Fracking”. It will also, bring cheaper oil to the world and especially poorer nations. Impact Potential: High Time Scope: Medium and Long Term Read Original: http://oilprice.com/ Energy/Crude-Oil/Russia-Claims-ToHave-Invented-Alternative-To-Fracking.html and, https://sputniknews.com/ science/201708171056536584-oil-sciencerussia-technology-fracturing/

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