Slide 2Labyrinth Consulting Services, Inc. Houston SIPES Continuing Education Seminar
After The Gold Rush: Shale Magical Thinking
It is doubtful that shale gas will meet supply expectations except at much higher prices: high shale gas decline rates & non-shale depletion are the main factors.
Decline-curve analysis indicates lower reserves than operators claim.
Natural gas demand has increased & supply is flat: EPA regulations will increasedemand further.
Shift to liquid-directed drilling & flight from dry gas will decrease gas supply.
Capital expenditure necessary for supply maintenance is not supportable.
All difficulties arise from what seems easy. All great things arise from what is minute.One who thinks that everything is easywill encounter much difficulty.
Tao Te Ching
(If something sounds too good to be true,It probably is!)