Skip to comments.Donít kill the shale-gas boom
Posted on 12/24/2012 2:29:11 PM PST by Ernest_at_the_Beach
Lets not smother the shale-gas boom. It is the crown jewel of the disappointing economic recovery. Why tamper with success? Yet, there are those who argue that benefits of shale gas could be maximized if we restricted gas exports, mainly as liquefied natural gas (LNG). This would, its argued, keep prices low for U.S. consumers and manufacturers, contributing powerfully to the revival of American industry. Sounds convincing. It isnt.
Limiting LNG exports might initially cut prices, but the long-run consequences would be perverse. By depressing prices, we might kill the boom. Production would become less profitable or unprofitable, and new drilling would slow or stop. This is not just supply and demand. Its also history. From 1954 to the early 1990s, the federal government regulated prices for interstate natural gas. Prices were held artificially low. Shortages developed in the 1970s; drilling suffered.
The shale-gas boom the most important energy event in decades is mostly a market phenomenon. The drilling techniques to extract gas from tight formations long considered uneconomic were first demonstrated by a small Texas company, Mitchell Energy. Other firms then perfected these techniques: fracking injecting formations with highly-pressurized liquids and horizontal drilling.
(Excerpt) Read more at m.washingtonpost.com ...
None of these wells in dry gas resource plays are commercial south of $5.00/mcfg. It will take higher prices, higher recoveries, or cheaper frac costs. We are the victim of our own success.
NYS has gone stupid on this until they can figure out how to get a HUGE piece of the action.
I am sure King Bozo would love to shut it down...
Which is why the big producers like those higher prices as generated by selective regulations. Which is why their major stockholders' tax-exempt "charitable" foundations are the major donors to the green groups who do the dirty work of suing complicit Federal agencies to get them implemented.
Believe that nobama and, especially, his thug minions are working 24/7 figuring ways to do exactly that. Plentiful, cheap, energy that comes out of the ground is antithetical to nobama's third world plans for our country.
Ubama will kill it any way he can. First with taxes and then price controls.
No, no, you are doing it all wrong, the way you deal with libtards is you tell them the opposite of what you want them to do, for example: Republicans should tell the libtards they should kill the shell gas boom because it will never succeed nor create jobs;thus, the liberals will support the shell gas boom, and it will succeed and create jobs, see, now you try!
They should be drilling and producing it for free. After all, that’s the only ‘fair’ thing to do.
I am not certain how much LNG would be exported given that I expect that it will take ~3 years to permit and build the export facilities and in several of the most likely markets current exploration work is underway for fracking tight formations there. I have seen reports of promising finds in England and Poland. With exploration work at least being attempted in China.
One of the reasons the drilling has picked up here in the Permian Basin, wet gas and lots of it. Our gas contracts are going from 8 to 9.50 a unit. It’s been a scramble getting all the bigger pipelines in.
I’ve never heard of any of these foundations you speak of. Got any names?
Sure do. These guys totally control California and exert prominent influence in all 50 States.
I didn’t see any names of anyone associated with the major producers in shale plays, only a few California utilities who like lower natural gas prices. Where is APA, APC, CHK, EOG, DVN, MRO, CLR, etc? The majors aren’t a going concern in the US except Exxon from their purchase of XTO.
I wasn't talking about specifically shale gas producers, but those attempting to restrict shale gas production while holding large positions in natural gas and energy production in general. The NRDC holds exactly such a position opposed to fracking, yet their major donors are in the oil and gas business, which is what I said. They want higher prices while restricting access to the market.
In addition, be careful reading what I said: I never said the the COMPANIES oppose exploration and development, but that the MAJOR STOCKHOLDERS contribute to those who do.