Interesting Article about Barnett Shale well economics

http://finance.yahoo.com/news/gas-boom-projected-grow-decades-02120...

My key takeaways from this article:

1) operators should endeavor to identify and exploit the sweet spots of shale plays early to avoid creating a glut of uneconomic wells surrounding the sweet spots

2) lots of economic wells can be drilled and acreage developed at abut $400/mmbtu, not much higher than today's spot market price

 

3) this was a study on actual development and individual well production and that the researchers were "not unduly influenced" by special interest groups (anti's and green  energy freaks) who consistently and conveniently ignore evidence contrary to their stubbornly held views

 

4) at least one reviewer of this report praised the report as "robust" and "sophisticated." 

 

Enjoy-

 

Brian

 

 

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Permalink Reply by Brian Powers on February 28, 2013 at 3:06pm

Joe -

Thanks for your earlier friend request and your kind words about my prior posts to GMS. I try to provide my experiences and view point s on the business based on my 30 year involvement in it as an engineer working for major operators.

 

I hear what you are saying about drilling to outpace decline, but all of the projects that I worked on and where we attempted to outpace decline eventually fell short due to the demands of the work outpacing our ability to "feed the rig monster" with sufficient quality locations, procedures, materials, equipment, crews, etc.

 

I wish you all the best in your graduate studies. Obtaining an MSc or PhD was something on my list for a long time, but I never lived close enough to a University that would allow this for me and the distance learning offerings of today did not exist during the first two thirds of my career.

 

Thanks again, and all the best as you further your studies,

 

Brian

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