Saturday, November 7, 2009

Shale Gas Numbers May Not Add Up?

The interweb is starting to heat up with discussions that shale gas may not re-write the books on North American Gas supply. Here's a few links on the topic:

Shale gas row gets nasty

Art Berman's Blog

Shale Gas: Promises, Promises, Promises

Shale Gas Companies: All Talk, No Walk?

Poll question - Can $8/MMBTU Shale Gas permanently strand Alaska's Gas?

1 comment:

Brett Chandler said...

I have no doubt that shale gas has the potential to change the game for the entire energy picture for North America, but I don't think it's unhealthy to ask a few questions.

First, how easy is the exploration? Given how much deeper most of it seems to be, I can't help but wonder if it costs more to find.

Second, once it's been found, how expensive is it to extract? Horizontal drilling isn't cheap, and shale-gas extraction also involves extensive perforation.

Finally, once you've engaged in more-expensive exploration and extraction, how long do these wells actually produce? At least some of the evidence suggests that these wells don't produce anywhere near as long as conventional wells do.

I've harbored at least a little skepticism over shale gas, and these posts validate that skepticism.