Utica's production decline rate

Has anyone heard anything about the rate of production declining abnormally fast?  It was brought to my attention that there is some concern that production might fall off in Utica wells faster than in other shales.  Does anyone know if this is the case?

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Permalink Reply by Bluflame on October 24, 2012 at 6:37am

Joseph,

  Even if we elect to export, we'll still have a significant competitive advantage due to LNG processing and shipping costs. Please don't construe this as support for exporting shale gas. I do believe that "Forewarned is forearmed"!

   The good news is that the shale gas bounty is providing us with options previously not available. Countries importing our NG would be beholden to us ala our relationship with Saudi Arabia.

  There are a lot of pieces to the puzzle!

BluFlame

Permalink Reply by Bluflame on October 24, 2012 at 6:40am

Jim,

 Well said. (pun not intended) Exporting NG is not a "Black & White" issue.

BluFlame

Permalink Reply by Joseph-Ohio on October 24, 2012 at 8:07am

To:  Jim Litwinowicz and BluFlame

Thanks for all of the enlightening posts and although I understand your posititions regarding exports of our domestic fuel products I can't talk myself into sharing - especially considering the costs we've been paying domestically and in overseas involvements - blood, treasure, borrowed treasure, etc.

Not as worldly as you folks apparently.

Not interested in becoming as worldly either.

Not at all interested in the 'new world order' and / or associated one sided trade agreements and /or alien workers stealing jobs domestically and seeing them shipped to foreign states.

I see it mostly as black and white not gray - I prefer to stay out of the gray areas myself.

Jim, did you mean what you wrote about Dominion having an export terminal that they have been given permission to be converted to an import facility - I think you meant vice versa.

Standing by for the next shoe to fall.

It will.

I'm confident.

Permalink Reply by Jim Litwinowicz on October 24, 2012 at 9:53am

John, you are right, I had that reversed. But I stand by the rest. I am not an internationalist or "worldly" but I believe that exporting LNG would be good for us and the world. If we become the dominate energy supplier of the world, that will seriously weaken the crazies of the Mid East by shutting off their funding. And making the dollar stronger will weaken China's export economy.

If the world doesn't appreciate us and goes to pot, we stop exporting gas and tell them to shove off.

Permalink Reply by Rick on October 24, 2012 at 1:28pm

Hold on a second fellers!!! Why are we already exporting NG (we are) when we still import a significant amount of natural gas? As of right now, we still dont produce enough NG for us to use without even converting autos and such to NG... we import something like 15% of what we use today.

Permalink Reply by Joseph-Ohio on October 24, 2012 at 1:46pm

If it's happening (and not doubting your comment - just trying to confirm it) it probably involves some kind of a 'profit deal' for some corporate energy czar.

Permalink Reply by Jim Litwinowicz on October 24, 2012 at 3:12pm

We are exporting some constituents to Canada because we don't have the capacity to process it here. Its either export it, waste it, or don't drill and/or cap wells for a few years. It will take years to get the processing plants and the manufacturers in place to use all the huge amounts that will be produced.

Some NG is exported because it is more profitable to export, say, Alaskan gas to Japan and import gas for East Coast from Canada. Just basic economics. Some of this trading will continue but we will import very little in a few more years when all the necessary infrastructure is in place.

Permalink Reply by Joseph-Ohio on October 25, 2012 at 12:10am

Especially considering Jim L's. most recent comment it appears that current corporate profit structure has more impact on developing the future NG market than strategic use does.

This represents a mistake to my way of looking at things.

To me it remains reasonable to argue that government intervention (subsidy of conversion to CNG from Diesel and Gasoline on a national scale) would straighten it all out.

Also, the part about our enemies changing their perspective towards the U.S. should they become customers and purchase our natural resources doesn't wash with me.  Our enemies will remain our enemies and use our natural resources against us - they have a history of using us.  They are our enemies.  That is different than not liking us - they are our enemies and want us gone.  I think we need to make them gone instead. 

Permalink Reply by Jim Litwinowicz on October 25, 2012 at 1:20am

Joseph-  Where did I say anything about selling LNG to our enemies? How much LNG will we sell to Iran? Or Syria? or Saudi Arabia? How much will we sell to Russia?  How did you come up with that?

Permalink Reply by Joseph-Ohio on October 25, 2012 at 2:24am

Jim L.,

You didn't say who you thought our enemies were or are Jim.

I've just got an idea who I think they may be - that's all.

I guess I think that any foreign state that we might sell our natural resources to may have a tendency to use them against us even in competition.

I don't think OPEC are all that pro-USA.

Likewise China.

The way I see it there is we and they - us and them.

The way I see it our natural resources need to be used by us not them.

I see it as black and white - not gray.

 

Permalink Reply by Jim Litwinowicz on October 25, 2012 at 2:27am

Where did I say anything about selling to our enemies?????

Permalink Reply by Jim Litwinowicz on October 25, 2012 at 2:39am

The only country I named was Japan. We will be selling LNG to Japan, Europe, maybe South American countries. probably China.  China would be the only one considered a threat. 

My point was that selling to these countries will take markets, and thus money, away from our enemies and deprive them of the money they need to hurt us.  Exporting LNG may be the biggest and best national security win we will ever get.  Imagine when Russia can no longer hold Europe hostage to their gas like they have done in the past. Imagine a Russia that no longer has the cash to support Iran, Syria, and other enemies of freedom and democracies. Imagine an Iran that loses its oil markets. Imagine the Saudis with out the cash to support madrases and Whabbism around the world.

You seem to have a default position that blames everything on evil "big corporations." You appear to be a Ron Paul accolade that believes we can ignore the world and live on an island. While I wish it were so, we need to be part of the world because we are part of the world.

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