U.S. Shale Boom Has Plenty of Room to Run, Oil and Gas Expert Says

Another must read............

"Technological advancements drove drilling costs down by 40% since 2010, he writes. Meanwhile activity at the relatively cheap Marcellus Shale increased. By July 2014, it accounted for almost 40% of shale gas production in the U.S.

"This powerful combination of increased productivity and Draconian cost reduction explains why the shale gas revolution thrived in spite of plummeting U.S. gas prices," Maugeri writes. "It also explains why shale oil production will likely continue to grow in the near future. The combination results from a dramatic advancement of knowledge of shale formations and the technology used to develop them. Analyses that underestimate the actual evolution of U.S. shale oil and gas production seem to have ignored the impact of those two factors."

Here's the link:

http://www.thestreet.com/story/12963559/1/us-shale-boom-has-plenty-...

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Permalink Reply by Frank Walker on November 23, 2014 at 5:43pm

Maugeri might be a shale expert from the standpoints of technology and economics.  I don't challenge that.  But he is ignoring political considerations.  How much "room to run" has the Marcellus shale boom had in New York State?  And how much "room to run" will it have going forward?!

There are Americans alive today who have never heard of the German-American Bund, who are unaware that circa four to five percent of Americans during WW II were opposed to the fight against Nazism.  Most such uninformed people are young and/or have not studied history.  Have you ever heard of famous American aviator Charles Lindbergh?  He was a supporter of Germany during the war.

We can tolerate small numbers of people with strange notions.  We can overcome Americans who desire a weaker America, fifth column types, provided their numbers are not too great.  But today radical environmentalists threaten our nation.  They are numerous and becoming more so.  They control many of our colleges and their tentacles are reaching ever deeper into our secondary, middle, and primary schools.  They are firmly in control of Hollywood and the mainstream media.

Adherents of the radical environmentalist religion are highly motivated within their circle of dogma.  They proselytize endlessly and pay homage to their false green god whenever opportunity arises.  They are equally as insane as members of ISIS.  They will stop at nothing to curtail use of fossil fuels, including natural gas, which they believe threaten to destroy, through non-existent "global warming",  the green earth for which they endlessly clamor.

Failure to stop radical environmentalists politically could alter the ongoing shale boom envisioned by Mr. Maugeri, which strengthens America against their will.  It's instead weakening of our country, even a kill shot if they can achieve it, that the radicals want and are working overtime every day to achieve.  But unlike during WW II, the percentage of radical kooks today could be as high as 20%.  And the recent outcome notwithstanding, it's going to take more than one election to stop them.  

Permalink Reply by Dexter Green on November 24, 2014 at 12:09am

They're about as correlated as the share price for any company listed on the Russell 2000 and reality.  So not much.

Permalink Reply by Trapper on November 23, 2014 at 8:42pm
Hmmmm. So yesterday's 6 million$ well now costs 3.6 million$....?
I have seen the 6 million $ figure thrown about many many times here. 40% reduction in cost for any business is HUGE!
Permalink Reply by Tim on November 24, 2014 at 5:21pm
Yup, just like that, overnight, saving 40%.

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