Shale Gas Competitiveness

abarrelfullabarrelfull wrote on 25 Mar 2010 15:10
Tags: gas shale

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As a little dampener on Shale Gas excitement, I am going to pass on a comment that I recieved from the CEO of a Canadian Independent Oil & Gas company.

I asked him what he thought the longer term impact of shale gas was going to be on the global market. His reply surprised me.

He said that shale gas producers needed a far higher gas price in order to cover costs and make a return on their investment. He had attended a conference in the last couple of weeks, which had changed his mind on the subject. A speaker had given details of average costs of extraction and these apparently showed that unless gas prices rose, shale gas volumes would have to fall.

True or not, its always more interesting to hear dissenting voices than members of the chorus.


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