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

To: bart13 who wrote (99281)	3/18/2013 4:21:11 AM
From: energyplay	2 Recommendations Read Replies (1) \| Respond to of 220075

Looks like the chart is from here: eia.gov That has a VERY conservative case - possibly politically influenced. The results from the Eagle Ford keep getting better for the top companies, such as EOG. Initial production rates are up about 10% each year for the average well. Cost per well, measure on per foot basis, are down about 5% or more each year, in spite of the shortages and high prices in the Eagle Ford area. There has been about a 10% drop in cost in the older Haynesville natural gas area. Some companies are expecting about a 30% IRR even with $3.28 MCF gas. There is enough high quality Haynesville areas to keep this going for 3-5 years. Selected areas of the Marcellus are providing very high returns for oil - and since the Marcellus is huge, even these selected areas are huge, and will take many years to drill out... There are new developments in the Woodford, Wolfcamp (AKA line C), Bossier, Cotton Valley, And people are just starting to look at the Tuscaloosa Marine Shale, the Monterey in California, the Three Forks Formation, which is underneath the Bakken, etc. ****** So we are probably not near Peak moderately priced oil, (with moderately priced being the 75 - 95 dollar range, which is what the Bakken oil has been going for at the rail head. I don't think that the EIA can say they Peak Oil the U.S. gets pushed back 25 years - because then the question comes up, why are we spending tax money on subsidizing all the green projects ?