Abstract

This past year has been particularly harsh to our industry, although the unbridled growth of unconventional resources contributed to the dramatic increase of production that led to this situation. The rush to take advantage of unsustainably high prices that incorporated inefficient drilling practices fueled this growth. We realize that the surviving fraction of our industry must work to develop practices that can produce our resources at more realistic prices, which are predicted to return. As I am writing this, I have witnessed an increase in the price of West Texas Intermediate crude from a low of US$26 per barrel to more than US$45 per barrel. There are optimistic predictions that later this year the high will be in the neighborhood of US$60. This definitely is encouraging, but to survive, we must continue to collaborate and work toward more efficient operations. This is why SEG, along with AAPG and SPE, initiated this integrated event, the Unconventional Resources Technology Conference (URTeC), to share what has been learned and help industry avoid making the same mistakes again.

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