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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (56322)	10/12/2009 2:06:28 PM
From: KyrosL	2 Recommendations Read Replies (3) \| Respond to of 218180

In North America the price of natural gas is one third of the price of oil, on an energy equivalence basis. That's not wayo. Those subsalt oil wells may not be needed, after all.

To: elmatador who wrote (56322)	10/14/2009 1:05:43 PM
From: energyplay	Read Replies (1) \| Respond to of 218180

The shale wells in North America are very real. This technology should work in similar shale formations around the world. The frac technology, geological and operating knowledge are still increasing, although not fast a fews years ago. Future wells should be moderately more productive today's wells. Learning curves and higher volume production of frac equipment will tend to contain or lower drilling costs slightly. So we might expect a 3-8% improvement in the economics for the next 4 - 5 years. With the right geology (like Hanesleyville shale), these wells can earn a good return at $3.50 mcf pricing. It may be a number of years before Europe has enough horizontal drilling rigs and trained people to then drill enough wells to pull European prices down. Maybe 2-3 years before there is a measureable effect of prices, and another 3-4 before there are enough wells to really push up European supplies and pull prices down. This could still mean that in 4 years, Russia's natural gas revenue starts a sharp drop.