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Donít kill the shale-gas boom
The Washington Post ^ | Published: DECEMBER 23, 8:19 PM ET | Robert J. Samuelson,

Posted on 12/24/2012 2:29:11 PM PST by Ernest_at_the_Beach

Let’s 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, it’s argued, keep prices low for U.S. consumers and manufacturers, contributing powerfully to the revival of American industry. Sounds convincing. It isn’t.

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. It’s 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 ...


TOPICS: Business/Economy; Editorial; Government
KEYWORDS: energy

1 posted on 12/24/2012 2:29:18 PM PST by Ernest_at_the_Beach
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To: Ernest_at_the_Beach

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.


2 posted on 12/24/2012 2:53:14 PM PST by crusty old prospector
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To: Ernest_at_the_Beach

NYS has gone stupid on this until they can figure out how to get a HUGE piece of the action.


3 posted on 12/24/2012 3:08:57 PM PST by Sacajaweau
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To: Sacajaweau

I am sure King Bozo would love to shut it down...


4 posted on 12/24/2012 3:12:23 PM PST by Shady (Libya shows us how Americans rate...)
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To: crusty old prospector
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.

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.

5 posted on 12/24/2012 3:28:14 PM PST by Carry_Okie (Islam offers us choices: convert or kill, submit or die.)
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To: Ernest_at_the_Beach
Don’t kill the shale-gas boom

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.

6 posted on 12/24/2012 3:36:55 PM PST by upchuck (America's at an awkward stage. Too late to work within the system, too early to shoot the bastards.)
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To: Ernest_at_the_Beach

Ubama will kill it any way he can. First with taxes and then price controls.


7 posted on 12/24/2012 3:53:43 PM PST by Figment
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To: Ernest_at_the_Beach

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!


8 posted on 12/24/2012 5:42:54 PM PST by IslamE (epiphany)
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To: Ernest_at_the_Beach

They should be drilling and producing it for free. After all, that’s the only ‘fair’ thing to do.


9 posted on 12/24/2012 5:43:19 PM PST by NurdlyPeon (New tag line in progress.)
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To: crusty old prospector

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.


10 posted on 12/25/2012 1:25:09 AM PST by Fraxinus (My opinion, worth what you paid.)
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To: crusty old prospector

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.


11 posted on 12/25/2012 6:02:16 AM PST by Dusty Road
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To: Carry_Okie

I’ve never heard of any of these foundations you speak of. Got any names?


12 posted on 12/25/2012 9:45:13 AM PST by crusty old prospector
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To: crusty old prospector
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.

13 posted on 12/25/2012 10:43:08 AM PST by Carry_Okie (GunWalker: Arming "a civilian national security force that's just as powerful, just as well funded")
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To: Carry_Okie

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.


14 posted on 12/25/2012 11:09:29 AM PST by crusty old prospector
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To: crusty old prospector
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.

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.

15 posted on 12/25/2012 11:21:04 AM PST by Carry_Okie (GunWalker: Arming "a civilian national security force that's just as powerful, just as well funded")
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To: crusty old prospector
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.

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.

16 posted on 12/25/2012 11:22:39 AM PST by Carry_Okie (GunWalker: Arming "a civilian national security force that's just as powerful, just as well funded")
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