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Unconventional Gas? Don't Bother

Posted January 09, 2011 7:26 AM

There are untold trillions of cubic feet of unconventional gas waiting to be found, or so we are told. All it takes is a little technology... hydraulic fracturing, horizontal drilling, and multilateral wells stretching through miles of gas shale. But current gas prices don't support the level of investment needed to unleash unconventional gas where it is needed most — the US and Western Europe. Four-fifty gas works out to $26 oil. The Journal of Petroleum Technology raises an interesting point — why bother?

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Doorman
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#1

Re: Unconventional Gas? Don't Bother

01/10/2011 3:08 PM

"Four-fifty gas works out to $26 oil." I am sorry, but I do nor understand. Can someone explain what this means?

Regarding the economic feasibility: It it won't pay off, then no one will be very interested in extraction... discovery, buying rights, developing a little infrastructure maybe, but all in anticipation of bigger payoff numbers when prices rise. That is simply the way it works (in the private sector, anyway).

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Re: Unconventional Gas? Don't Bother

02/07/2011 6:04 PM

One thousand cubic feet of natural gas is currently $4.20, and has the equivalent energy capacity of 1/6th of a barrel of oil. So 6k feet of gas is equal to a barrel of oil. Financially that works out to $25.20.
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34point5
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Re: Unconventional Gas? Don't Bother

02/11/2011 1:39 AM

Oh I'm sure it will be "worth more" when it seeps into the thick skulls that the 'good stuff' is a thing of the past.

Something, anything, will be priceless in a country that has failed to invest in alternate energy infrastructure - because of this "just dig more up" lobby thinking.

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