UPDATE here is a link entitled…
We Think It Is A Mistake To Be Long-Term Bullish On Natural Gas
Since my comments are not posting I’ll put them here on today’s article…
In response to some ludicrous comments such as…
“All that’s left now is hope. It’s not much of a strategy, but it beats the alternative”……what alternative?….. alternative energy?…like the solar energy resources those Saudi’s have such great access too?
“Saudi Aramco’s average cost per barrel is less than $6, according to those in the know”. That is because they extract oil the old school (inexpensive) way.
Last year almost to the day, Fortune writer Shawn Tully wrote ..
The shale oil revolution is in danger
and reported “….breakeven cost for U.S. hydraulic shale is $65 per barrel, according to a study by Rystad Energy and Morgan Stanley Commodity Research”.
And with the old school drilling the Saudis don’t have to worry about the hyperbolic decline curve in production that plagues shale gas and oil as Tully wrote…
“….by the start of year two, a shrinkage of 72%. By the beginning of year three, more than half the reserves of that well will be depleted, and annual production will fall to a trickle. To generate constant or increasing revenue, producers need to constantly drill new wells… need to dig new holes, year after year, to extract reserves of copper or iron ore. In fracking, there is intense pressure to keep replacing the production you lost last year”.
Another one of the Forbes writers named Conca did a (disingenuous) visual comparison of conventional fracking to a jelly donut verses fracking’s tiramisu.
Forbes’ other writer, Catusa did a 2011 story/analysis with predictions as to which countries would/could? follow the US and jump on the fracking bandwagon for Unconventional Oil In The Middle East.
Maybe Forbes writers should start reporting on how many solar success stories are awaiting anywhere the sun shines, or how batteries are evolving to store solar energy when the sun is not shining.
The US will never be able to compete with the Middle East for fossil fuels… give-it-up!
But that Texas’ wind….now that’s some stock we should all bet on!!!
Here is the top 5 NG stocks in case you really like a gamble