• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 11 hours Once seen as fleeting, a new solar tech proves its lasting power
  • 5 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 7 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas

Breaking News:

Oil Should Stay In Triple Digits: Analyst

OPEC Well Completions Dip In 2021

OPEC Well Completions Dip In 2021

The number of completed wells…

U.S. Gulf Coast Crude Exports Are Breaking Records

U.S. Gulf Coast Crude Exports Are Breaking Records

Despite the domestic supply issues,…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

U.S. Shale Drillers Begin Re-Fracking Existing Wells

  • Oil well re-fracking is on the rise in the United States.
  • Re-fracking of existing shale wells can cost up to 40 percent less than drilling a new well.
  • Re-fracking could also help U.S. shale drillers boost their cash flow further.

Oil well re-fracking is on the rise in the United States as shale producers seek to boost production without making significant investments in new wells, Reuters has reported.

Re-fracking appears to be a way to reconcile shareholder insistence on higher returns and calls from the federal government to increase oil production at a time of tight supply, which has led to higher prices for both crude oil and refined products, chiefly fuels.

According to the report, re-fracking of existing shale wells can cost up to 40 percent less than drilling a new well. It can also double or triple the output of an existing well, one fracking industry executive told Reuters.

Economy has become important for shale drillers despite much higher benchmark oil prices because of widespread shortages of equipment, workforce, and raw materials that have increased production costs. These are up about 20 percent from a year ago, according to Callon Petroleum, a Texas-based company, as cited by Reuters.

Re-fracking could also help U.S. shale drillers boost their cash flow further, which would make their shareholders even happier than higher dividends.

According to a recent report by Saudi bank Al Rahji Capital, cash per well for U.S. shale producers rose to $34 per barrel in the first quarter of this year, from $23 per barrel in the last quarter of 2021.

This is still much lower than the $51 per barrel that shale drillers got in the first quarter of 2020, the report noted, but added that it is still “providing enough cushion to boost the production levels amid higher oil prices.”

U.S. crude oil prices have gained some 40 percent over the past 12 months, but domestic oil production remains about a million barrels daily below the record 12.8 million bpd the U.S. produced in early 2020.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on June 27 2022 said:
    Neither re-fracking nor rising oil rig count and also high oil prices will change the fact that US shale oil production is a spent force.

    OPEC+, the global oil market and the US Energy Information Administration (EIA) know that the good old days of shale are history. Shale drillers should continue to make good money while they can before the game is over.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News