If you've been asking why I wonder things like:
Why would gas companies even want to invest when gas prices are this low?
Why would gas companies want to invest here when 'wetter' (and currently more profitable) gas is more easily found further west?
How often will gas companies need to drill and frack just to keep up?
How long can gas companies keep this system going?
there's a 33-minute exploration of the bigger picture on shale gas drilling at Energy Bulletion. Yes, I know "industry" folks don't like Art Berman, but I've not yet seen anything approaching a takedown of his data.
One key point - if and when gas prices recover to around $5 or $6 per thousand cubic feet, there will be more active interest in the Marcellus. After bottoming out in April at about $1.90, they're back up to $2.53, $2.67 in futures.
Yes, a transcript would be nice, and the video is pretty weird, from a conference where he connected electronically.
Posted by simon at June 20, 2012 1:19 PM in energy
I made a comment about the economics of this at an earlier blog post. Basically, my professional opinion as an investor is that the fracking companies are running a land scam against the majors, by overhyping the production of fracked wells, then selling them.
This scam is called a "pump and dump" when done in the stock market.