The Importance of Shale Formation

Importance of Shale Formation

Shale formations have played a significant role in offsetting the decline in US oil and gas production in recent years. These formations have allowed experts the ability to extract more oil and gas from them compared to other sources. The shale revolution has also directly led to a significant increase in oil and gas reserves, which means many mineral owners across about 30 states have received oil and gas revenue as a result.

Consider North Dakota as an example where oil companies essentially invaded the entire state to drill for the Bakken Shale. This has led to significant oil and gas extractions and making farmers in North Dakota rich overnight. So when you think about shale formations and oil and gas mineral interest, it’s easy to see why these formations have played a significant role in keeping the US economy strong, all while making money for mineral owners in the process.

Type of Shale Most Commonly Used For Oil and Gas

When you learn about shale formation, you’ll quickly understand the Oklahoma minerals (oil and gas) that make it up. These minerals typically include particles of kaolinite, illite, smectite, quartz, feldspar, chert and other organic particles depending on the environment of the shale. The composition of shale can make a difference in what color it is as well.

The most common shale color that indicates organic materials may be present is black or gray. The organic debris contained within the black or gray shale often indicates a quality source for oil and gas minerals. Other colors of shale include yellow, red, brown or green, but these typically do not result in the presence of oil and gas minerals.

Impacts of Porosity and Permeability

Porosity and permeability have to do with the ability of the shale rock to hold fluids like oil and gas. The particle size of shale is sometimes so small that these fluids can’t move through easily, which leads to it trapping oil and gas minerals underneath it. The low permeability of shale means the oil and gas minerals can’t be transmitted easily, so experts in the industry have to overcome these challenges with different techniques.

Challenges Faced By The Oil and Gas Industry

Hydraulic fracturing and horizontal drilling are two of the most common techniques experts use to overcome the issue of low permeability in shale. These techniques essentially generate a certain amount of artificial permeability and porosity within the rock to allow for the release and transmission of the fluids more easily. As a result, Oklahoma minerals (oil and gas) are able to be excavated freely and efficiently.

Eckard Land and Acquisition can help the average person understand the importance of shale formation as it relates to oil and gas mineral interest. The formation of shale is one of the most challenging aspects to overcome in the oil and gas industry, as it has a direct impact on the production and transmission of minerals. If you have any questions about your oil and gas investments, contact us for expert answers and helpful information.

Contributor: Troy W. Eckard

Contributor: Troy W. Eckard

Troy W. Eckard has over three decades of energy expertise. Troy has been investing in tangible asset since 1985, and built multiple companies focused on aggregating, maturating, and liquidating investment opportunities.​ He's the longest World MoneyShow attendee, and is striving to continue his presence to inform and educate investors on tangible assets.