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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Frank who wrote (97320)2/28/2008 12:45:57 AM
From: energyplay  Read Replies (1) of 206111
 
There are two areas that have been able to develop increasing supplies of natural gas.

1. Coal bed Methane from Wyoming. So much was on line in excess of pipeline capacity that prices at the well heads fell sharply.
Now the limitation on increased production is where to put all the water ? There are many places to drill wells, and most of them are shallow.

2. Barnett Shale and related shale plays. Drillers and E&Ps have learned how to get more out of each well, and are going after thicker and thicker shales. They are also successfully re-fracing older wells, the lifetime of the well is extended.

Those are the only major positives on the North American supply side.

I don't think they will be able to make up for all the decline form the GOM.

It appears that regulators, planners, etc. are all assuming a near infinite supply of natural gas.
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