Halliburton Company (HAL), Chesapeake Energy Corporation (CHK): How Long Will Shale Oil Last?

Now, Chesapeake Energy Corporation (NYSE:CHK) is one company using the technique in popular oil plays, such as Texas’ Eagle Ford, where it has been met with considerable success. In the first quarter, the company reported a staggering 225% year-over-year increase in daily net Eagle Ford production, which came in at 75,000 barrels of oil equivalent. Some companies are even finding innovative new ways to power their fracking operations.

After Range Resources Corp. (NYSE:RRC) paved the way by becoming the first company to apply hydraulic fracturing techniques to recover natural gas in the Marcellus shale of Pennsylvania, Cabot Oil & Gas Corporation (NYSE:COG) followed in its pioneering footsteps by recently becoming the first company to use “field” natural gas in northeastern Pennsylvania to fracture wells ––a feat it accomplished by using engines that can run on either natural gas or diesel.

Can North American shale success be copied?
However, it’s unclear whether U.S. and Canadian success in shale drilling can be replicated in other countries with large shale resources. In addition to having pioneered new drilling technologies, U.S. and Canadian energy producers enjoy several key advantages that their international counterparts do not yet possess.

Chief among them is the presence of a sophisticated and extensive infrastructure network, consisting mainly of pipelines and storage terminals. In addition, U.S. and Canadian energy producers have preferential access to crucial ingredients in the fracking process, such as specialized drilling rigs and plenty of water, as well as clearly established and enforceable property rights.

The article How Long Will Shale Oil Last? originally appeared on Fool.com is written by Arjun Sreekumar.

Fool contributor Arjun Sreekumar owns shares of Chesapeake Energy. The Motley Fool recommends Halliburton and Range Resources and has options on Chesapeake Energy.

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