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Re: OT - The heat continues to rise on the cost of producing shale gasOn the danger of being annoying (sorry), but I had links on my site saying this for quite some time: ) US gas costs $7-9 per Mcf http://seekingalpha.com/article/143036-are-oil-etfs-showing-us-how-natural-gas-etfs-will-trade ) The reality of US shale gas not so rosy, production cost $7-8 per Mcf http://www.altenergystocks.com/archives/2009/10/shale_gas_promises_promises_promises.html http://shareholdersunite.com/2009/10/26/the-reality-of-us-shale-gas/ ) What average natural gas wellhead price allows the shale boom to continue? Shale gas economics is a contentious issue. One camp believes that shale gas is economic at-and will keep future prices in-the $5-6/Mcf range. I'll call these analysts the optimists. The other camp believes the marginal cost of shale gas production is $7-8/Mcf, and perhaps much higher depending on the shale play. These are the pessimists. Let's break down the arguments. http://www.energybulletin.net/node/49342 ) In North America, the prospect of importing more and more natural gas will force many marginal producers (like shale gas companies) to cut back production. (Note; unfortunate quote about doubling of supply near-term) http://seekingalpha.com/article/129901-liquefied-natural-gas-the-forgotten-energy-boom http://shareholdersunite.com/2009/09/14/lng-forgotton-energy-boom/ ) Fracturing shale gas an environmental risk http://nenmore.blogspot.com/2009/11/gas-drilling-poisons-water.html |
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