Shale gas plays in the United States are commercial failures and shareholders in public exploration and production (E&P) companies are the losers. This conclusion falls out of a detailed evaluation of shale-dominated company financial statements and individual well decline curve analysis. Operators have maintained the illusion of success through production and reserve growth subsidized by debt with a corresponding destruction of shareholder equity. Many believe that the high initial rates and cumulative production of shale plays prove their success. What they miss is that production decline rates are so high that, without continuous drilling, overall production would plummet. There is no doubt that the shale gas resource is very large. The concern is that much of it is non-commercial even at price levels that are considerably higher than they are today.
Shale gas—Abundance or mirage? Why the Marcellus Shale will disappoint expectations
I’ve posted about this previously:
The Shale gas economic shell game
Shale Gas Mania: Fairytale or shell game?
We are ruining our water, fouling our air and contaminating our land for very short-term gain.
About Sharon Wilson
Sharon Wilson is considered a leading citizen expert on the impacts of shale oil and gas extraction. She is the go-to person whether it’s top EPA officials from D.C., national and international news networks, or residents facing the shock of eminent domain and the devastating environmental effects of natural gas development in their backyards.
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Story for your list of links – thanks for your site, keep up the good work!
Catholic Cemeteries to permit gas drilling among the headstones
http://www.pittsburghlive.com/x/pittsburghtrib/news/s_695330.html