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Page added on April 30, 2015

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The U.S. Production Decline Has Begun

The U.S. Production Decline Has Begun thumbnail

The U.S. oil production decline has begun.

It is not because of decreased rig count. It is because cash flow at current oil prices is too low to complete most wells being drilled.

The implications are profound. Production will decline by several hundred thousand of barrels per day before the effect of reduced rig count is fully seen. Unless oil prices rebound above $75 or $85 per barrel, the rig count won’t matter because there will not be enough money to complete more wells than are being completed today.
Tight oil production in the Eagle Ford, Bakken and Permian basin plays declined approximately 111,000 barrels of oil per day in January. These declines are part of a systematic decrease in the number of new producing wells added since oil prices fell below $90 per barrel in October 2014 (Figure 1).
Chart_ALL New Prod Wells
Figure 1. Eagle Ford, Bakken and Permian basin new producing wells by month and WTI oil price. Source: Drilling Info and Labyrinth Consulting Services, Inc.
(Click image to enlarge)
Deferred completions (drilled uncompleted wells) are not discretionary for most companies. Producers entered into long-term rig contracts assuming at least $90 oil prices. Lower prices result in substantially reduced cash flows. Capital is only available to fulfill contractual drilling commitments, basic costs of doing business, and to complete the best wells that come closest to breaking even at present oil prices.
Much of the new capital from junk bonds and share offerings is being used to pay overhead and interest expense, and to pay down debt to avoid triggering loan covenant thresholds.Hedges help soften the blow of low oil prices for some companies but not enough to carry on business as usual when it comes to well completions.
The decrease in well completions provides additional evidence that the true break-even price for tight oil plays is between $75 and $85 per barrel. The Eagle Ford Shale is the most attractive play with a break-even price of about $75 per barrel. Well completions averaged 312 per month from January through September 2014 when WTI averaged $100 per barrel (Figure 2). When oil prices dropped below $90 per barrel in October, November well completions fell to 214. As prices fell further, 169 new producing wells were added in December and only 118 in January.
Chart_Eagle Ford Break-Even
Figure 2. Eagle Ford new producing wells (2 month moving average) and WTI oil prices. Source: Drilling Info, EIA and Labyrinth Consulting Services, Inc.
(Click image to enlarge)
Bakken break-even prices are higher at about $85 per barrel. Well completions averaged 189 per month from January through September 2014. In November, only 80 new producing wells were added. In December and January, 123 and 114 new wells were added, respectively. Orders for rail cars used to transport oil decreased by 70% in the first quarter of 2015 compared with the fourth quarter of 2014.
Chart_Break-Even
Figure 3. Bakken new producing wells (2 month moving average) and WTI oil prices. Source: Drilling Info, EIA and Labyrinth Consulting Services, Inc.
(Click image to enlarge)
Permian “shale” play break-even prices are also about $85 per barrel based on declining well completion data. Well completions averaged 175 per month from January through September 2014. In January 2015, only 35 new producing wells were added.
Chart_Permian Break Even
Figure 4. Permian “shale” new producing wells (2 month moving average) and WTI oil prices. Permian “shale” includes horizontal wells in the Bone Springs, Consolidated, Delaware, Spraberry, Wolfcamp,Trend Area and related combinations of those reservoirs. Source: Drilling Info, EIA and Labyrinth Consulting Services, Inc.
(Click image to enlarge)
Much of the commentary about the backlog of deferred completions is exaggerated and irrelevant unless oil prices increase to $75 or $85 per barrel. The assumption underlying most industry chatter these days is that oil prices will return to normal.
The world oil market is undergoing a fundamental structural change in response to expensive oil. Producers are trying to survive by limiting expenditures. While analysts have been focused on rig counts, deferred completions have emerged as the initial path to lower U.S. oil production. This unanticipated outcome suggests that others may follow. While everyone is waiting for higher oil prices and for things to return to normal, what we may be witnessing is the end of normal*.

Petroleum Truth Report



47 Comments on "The U.S. Production Decline Has Begun"

  1. marmico on Thu, 30th Apr 2015 6:48 am 

    Berman is wrong. Production is flattish not declining. EIA released February 2015 production estimates yesterday which is higher than either December 2014 or January 2015.

    http://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_m.htm

    The word on the street is that Bakken production was higher in March and April than in February.

  2. Go Speed Racer on Thu, 30th Apr 2015 6:48 am 

    How come all the charts have a vertical axis of price? Why not show how much oil being produced, so we can see if it peaks?

    However, would expect the story line to be true … experts all figure the frack oil is a flash in the pan blip.

    A cheap-schmitt trick to hold-up BAU for a couple of extra years. Long enough to get thru an election cycle before all these low EROEI wells crap out.

  3. marmico on Thu, 30th Apr 2015 7:01 am 

    Berman says: Orders for rail cars used to transport oil decreased by 70% in the first quarter of 2015 compared with the fourth quarter of 2014.

    If production is flattish and new pipelines are coming into operation, why would you need to order new rail oil transport cars from the steel fabricators?

  4. Dave on Thu, 30th Apr 2015 7:20 am 

    It isn’t just Bakken or even shale oil in general. Prices well below $100/barrel will take production down in many places over the entire globe. Of course oil produced by fracking and bitumen production may be affected first, because of cost to produce. Nothing difficult to understand here and nothing I haven’t been saying for months.

  5. marmico on Thu, 30th Apr 2015 7:23 am 

    Berman says: Production will decline by several hundred thousand of barrels per day before the effect of reduced rig count is fully seen.

    Now Berman blogged on February 17th, that U.S. oil production would decline by ~600,000 barrels/day between January and June 2015. I wonder how he is going to walk that crap back.

  6. paulo1 on Thu, 30th Apr 2015 8:03 am 

    Let’s see, who to believe? Arthur Berman, a respected energy analyst, or Marm…a Koch Bros troll? Hmmmm. I think I’ll go with Berman.

  7. marmico on Thu, 30th Apr 2015 8:20 am 

    paulo1, Berman has zero respect in the energy business as a respected energy analyst; you know the combination of labor, capital and technology that actually produces the oil and gas for your quad and chain saw.

    Berman may have nice charts and weave a nice narrative but his recent light tight oil and prior natural gas predictions are consistently and grossly in the toilet. He is just another, in a long list of, chicken little shits!

  8. Kenz300 on Thu, 30th Apr 2015 8:22 am 

    What has the drop in oil prices done to Canada’s tar sands production?

    Are they the high cost producer?

    Is there any need for the Keystone pipeline?

  9. mbnewtrain on Thu, 30th Apr 2015 8:33 am 

    marmico said “word on the street is that Bakken production was higher in March and April than February”
    Well, your word is wrong. See above story from Peak Oil Barrel, which says that ND Dept. of Nat. Resources reports March oil production for ND down more than 50,000 barrels per day from Jan.
    My word on the street says April will be down even more as fewer wells being drilled and even fewer being fractured.
    My friend that works for oil service company in ND says he sees fewer trucks of pipe, frac sand, oil storage tanks plying the roads in ND, with lots of trucks sitting idle. Now can ND oil production increase under these conditions?

  10. Davy on Thu, 30th Apr 2015 8:50 am 

    Marmi, as a corn porn troll, you have little respect here so I am wondering where you base your assumptions on Berman. He is obviously getting his message out. OOh, forgot, zero respect with the legalized criminally corrupted Wall Street psychopaths pushing an agenda of ill gotten gains off widows and gullible investors, big and small, who will believe the institutionalized lies. These lies come from you and the establishment. How does it feel to be part of a sick lie of theft and deception?

    Your message is obviously flawed or you would not be here trying to route the peakers. If the peakers did not have a message it would not gain momentum needing an industry troll or bored anti-peaker with no life. I am not sure what you are but you are definitely a pussy that will not face the writing on the wall that your world is crumbling. No peaker I know has the money to buy a message like your people on the Street and in DC.

    You are here because your message has holes in it and the ship is sinking. You got the bilge pumps going but you are losing the battle against the flood of negative news. You hope the passenger don’t realize the situation and dump all those bogus investment they loaded them up on with lies and manipulated numbers. When they stampede in panic they will leave the likes of you Marmi holding bags of shit. Out here on the farm bags of goat and cow shit are gold but for you they contribute to your type’s sick sport of window diving or gun mouthing.

  11. shortonoil on Thu, 30th Apr 2015 9:03 am 

    “Tight oil production in the Eagle Ford, Bakken and Permian basin plays declined approximately 111,000 barrels of oil per day in January.”

    Reporting by the Texas RRC is usually incomplete for several months. The EIA estimates the front months, and historically it has always been on the high side. Most analysts use the adjusted average discrepancy to produce front month figures. Berman is most likely correct in his estimate that shale production has begun its decline!

    “Unless oil prices rebound above $75 or $85 per barrel, the rig count won’t matter because there will not be enough money to complete more wells than are being completed today.”

    Most shale operators are now using new equity offerings, and high rate junk bond issuance to help cover operating expenses. As new equity distribution dilutes the value of existing stockholders, and junk bonds are commanding very high rates (up to 15%) cash is, undoubtedly, getting hard to come by. Since completion cost are usually higher than the cost of drilling the well, they would most likely be the first area to be curtailed. Producers are forgoing completions in the hopes of higher prices in the future.

    The higher prices needed to increase the rate of completions are not coming! The imbalance of supply/demand that is now keeping prices low is unlikely to be corrected by a decline in shale production. Shale production requires a barrel of oil to produce a barrel of oil. Demand will follow production downward on a one to one ratio. Continually elevated inventory numbers will keep downward pressure on prices over the long term.

    Depletion has now reduced the price that the economy can pay for a barrel of oil to a level below its average production cost. This will result in the shutting-in of the highest cost producers:

    http://www.thehillsgroup.org/depletion2_022.htm

    Because of shale’s very high entropy transfer rates from its reserve, it is one of the highest marginal cost producers, and will be one of the first to be shut-in. The termination of shale production will have a very negative impact on the economy. The subsequent likely default on $300 billion in junk bonds, and the equity loss of existing stockholders will only serve to further stress an already anemic credit market.

    http://www.thehillsgroup.org

  12. GregT on Thu, 30th Apr 2015 9:43 am 

    “Arthur Berman, a respected energy consultant in Texas” – global research.ca

    “Arthur Berman, a well respected energy consultant” – Rolling Stone Magazine

    “Arthur Berman, an expert analyst of the natural gas boom” – The Tyee.ca

    “Arthur E. Berman is a petroleum geologist with 36 years of oil and gas industry experience. He is an expert on U.S. shale plays and is currently consulting for several E&P companies and capital groups in the energy sector.” – Relisience.org

    “Oil Guru Arthur Berman Destroys All Of The Hype About America’s Energy Boom” – Business Insider

    “respected analysts like Arthur Berman” – newsweek

    “Arthur Berman, a respected energy consultant in Texas”- Business Time

    “According to Arthur Berman, a respected energy consultant”- Commondreams.org

    “Arthur Berman is a respected U.S. geologist and shale oil analyst”- Oilfield Services Industry Insights

    “respected energy consultant Arthur Berman” – Washington’s Blog

    “Arthur Berman, a well respected Texas-based geological consultant” – gold sea.com

    “According to Arthur Berman, a respected energy consultant” – marcellusdrilling.com

    “energy expert Arthur Berman” – peak-oil.org

    “Arthur Berman, a respected energy consultant” – who trades.com

    “Arthur Berman, a geological consultant with 34 years of experience”- Zero hedge

    “energy expert Arthur Berman” – oil price.com

    “34-year industry veteran Art Berman” – The Globe and Mail

    “energy expert Arthur Berman” – resourceinvester.com

    “energy expert Arthur Berman”- nasdaq.com

    “His name is Arthur Berman and he is no tree hugger. For 34 years he has been finding and developing oil fields, and he works for Big Oil.” dailyimpact.net

    “Berman has zero respect in the energy business as a respected energy analyst” – Marmi-noo

  13. Northwest Resident on Thu, 30th Apr 2015 9:53 am 

    “The termination of shale production will have a very negative impact on the economy.”

    Stockholders losing their financial asses and more stress on an already over-stressed credit market is just one aspect.

    The loss of good-paying jobs, the loss of income to the service and retail companies that are supported by the income from those lost good-paying jobs, the loss of manufacturing to support the fracking industry resulting in the loss of even more jobs. The collapse of the fracking industry IS impacting a large network of BAU entities, and will end up reverberating throughout the global economy.

    But what the heck. Fracking/shale never was anything but a big financial play, as I’ve said all along — a magnificently orchestrated JOBS program, the ultimate retirement party for the oil industry paid for with maxed out FED credit cards that will never, ever be paid off. Think of it along the lines of a guy who knows he is going to have to declare bankruptcy, so he goes out and uses what’s left on his credit cards to have one last wild fling. Think of it as the end of the industrial age, the end of life as we have known it.

  14. antaris on Thu, 30th Apr 2015 10:10 am 

    marm has zero respect here

  15. Davy on Thu, 30th Apr 2015 10:10 am 

    Greg the hammer speaks and the Marm/NOo tag team retire. Beautiful!

  16. Dredd on Thu, 30th Apr 2015 10:32 am 

    “… what we may be witnessing is the end of normal …”

  17. rockman on Thu, 30th Apr 2015 11:40 am 

    A repeat from another chat but this is THE best spot for this discussion. It’s just a question of time. Just like when the Titanic hit that berg: it’s not a question of IF but WHEN. And that really is that difficult to predict if you’ve lived the life cycle of oil development for 4 decades. There are many aspects in the oil patch that are difficult to predict. But neither the relationship between rig count and wells drilled along the time fall into that category:

    From our buddy copious abundance:”February set a new post-1973 record.” So true. A lot of folks have trouble understanding the time factor at play. Maybe it’s due to becoming use to the 24-hour news cycle and instant communication on the Internet. As been pointed out many times it can take 6+ months between the time a rig moves off and a well begins producing. And then add a month or two for the lag in data being publicly available. The Feb production was from wells drilled in Sept 2014 or so…and even earlier in some cases. A lot of folks also don’t recall the rig count for oil wells didn’t start to fall until late Dec 2014 when it dropped below 1500 for the first time in quite a while.

    So given the lag time we shouldn’t see the INITIAL significant effects of the rig count drop on production until this summer and the full impact not until next Oct or Nov. Folks just need to be patient….the drop off in production is coming. And they also need to understand that even when the rig count stabilizes the production drop off won’t. We may still hitting new highs. But those highs are based on wells drilled late last year. But fracture production being what it is that surge from the new wells will decline 40%+ in 12 months or so. Which means that even if the rig count stays at the current level we’ll start seeing the effect of that high decline rate just begin this summer and not reach its peak until late 2015.

    So the good news: the recent plunge in rig count won’t have a significant impact on US oil production until late 2015/early 2016 IMHE (in my humble estimation). The bad news: the time lag works the same way on the backside: IF oil prices increase significantly by the end of 2015 and IF the rig count starts to increase significantly it won’t show up on the production side until late 2016 AT THE VERY EARLIEST. And IMHO there’s little expectation for drilling to turn around that quickly so IMHE it will be 2017 before we can expect the slide in US oil production to level out let alone begin to increase again. And even that depends on a significant increase in activity to start by early 2016. And I don’t see many making that bet at the moment given the rig count is still slowly falling.

  18. rockman on Thu, 30th Apr 2015 11:41 am 

    Obviously:”And that really ISN’T that difficult to predict”.

  19. nony on Thu, 30th Apr 2015 11:43 am 

    Some of these companies like eog and clr are far from a cash crunch. They are just being rational in not investing in projects with negative returns.

  20. Ken on Thu, 30th Apr 2015 11:58 am 

    As a fellow Wash/Oregon resident I’m so glad to see Northwest Resident making comments again. People in Everett Wa. counted trains 24/7 April 19-25, 2015. They counted 29 coal trains and 12 crude oil trains. Last year it was 24 coal trains and 16 crude oil trains. More coal, less crude.

  21. Nony on Thu, 30th Apr 2015 12:24 pm 

    Ken, could be more Bakken making it’s way to Atlantic or Gulf destinations. Both customers and producers are pretty willing to sell to different locations in search of best prices and this can change based on transport (e.g. the Cushing extension to the Gulf last year) or Brent competition.

  22. Nony on Thu, 30th Apr 2015 12:32 pm 

    You can’t take rigs from 186 to 86 and not have an impact people. It is just a lag until it impacts. The fracklog will just make it take a little longer lag.

    I’ve always said (even during the boom) that a price drop would turn the boom off. But that is still beneficial since the whole point was to get gasoline prices down, not to cheerlead about Bakken volume (although even there, the Bakken/EF helped prevent prices from being 150 or 200).

  23. Nony on Thu, 30th Apr 2015 12:33 pm 

    Now natgas is freaking fascinating, though. How we have 1/3 the rigs and STILL have volume increasing. But natgas is more plentiful and flows better in shale. I think the story of shale is more gas than oil.

  24. rockman on Thu, 30th Apr 2015 1:03 pm 

    According to Baker Hughes the rig count for all the horizontal shale gas plays has fallen from the 2014 max of 287 to 197 today. And dropped 7 rigs in the last week.

    http://oilprice.com/Energy/Natural-Gas/Natural-Gas-Prices-To-Crash-Unless-Rig-Count-Falls-Fast.html

    Time lag…time lag…time lag.

  25. nony on Thu, 30th Apr 2015 1:21 pm 

    Gas has legs and a captive market rock. That is not geology but price at 2.75 turning things off. The gas is there and at great prices. Way below the 8 plus that peaked said was needed. Gas has been a spectacular success.

  26. apneaman on Thu, 30th Apr 2015 1:36 pm 

    nony your setting yourself up for another massive disappointment. The cancer is too far gone.

  27. marmico on Thu, 30th Apr 2015 1:45 pm 

    New world production record.

    79.3 million barrels per day of crude plus condensate in December 2014.

    http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=50&pid=57&aid=1&cid=ww,&syid=2010&eyid=2014&freq=M&unit=TBPD

  28. Northwest Resident on Thu, 30th Apr 2015 1:45 pm 

    “I think the story of shale is more gas than oil.”

    Hey Nony — when natural gas is able to replace oil and power its own production and distribution, let me know. Until then, the ONLY story that matters is oil. No oil, no NG. No nothin’!

  29. penury on Thu, 30th Apr 2015 1:50 pm 

    It seems to me that we have a predicament. Oil producers need around 75 to 100 dollars a barrel to supply the market, consumers (including industry can afford 50-75 dollars barrel.So what to do? Perhaps we can continue for a while longer before the reality strikes.

  30. GregT on Thu, 30th Apr 2015 1:59 pm 

    We can continue on for a while longer as long as interest rates are kept artificially low, governments and central banks continue to be propped up with mountains of debt, or the generally public continues to believe the lies propagated by the big corporations and their eCONomists. Remove any of the three, and it’s Katy bar the door.

  31. Davy on Thu, 30th Apr 2015 2:30 pm 

    N/R, good point but the NOo and the Marmi are crowing oil glut and record production. How can you convince specialist in a narrow range of understanding to get their heads out of the graphs and open their eyes to the big picture?

    These guys see graphs with nice trends and Numbers. That is all they can relate to. This is much like the captain of the Titanic blindly believing in the specs of his ship.

    The other scenario is psychopaths bent on maintaining the profit margin. Lastly, they may be industry trolls paid to discredit peakers. Last option is a strange alien race of lizards like creatures who can speak English.

  32. coffeeguyzz on Thu, 30th Apr 2015 2:50 pm 

    Nony, The details concerning the Marcellus/Utica operations may very well draw increasing attention towards shale gas as the production numbers continue to soar.The output per well, the speed of drilling, the ever-improving fracturing techniques are all promoting greatly increased output.
    On a relatively short lateral of 5/6,000′, operators are increasingly employing so-called Short Stage Laterals (SSL) of 50 to 60 stages.
    One of the several ‘monster wells’ – Rice’s Bigfoot 9H – is producing over 17,000,000 cfd (oil equivalent near 3,000 boed) and will surpass 5 1/2 billion cubic feet in its first year … almost one million barrels oil equivalent.
    The Marcellus’ most productive well, Cabot’s T Flower 2, has produced 13 1/2 bcf in two years … almost 2 1/2 million boe, also averaging 17MMcfd (near 3,000boed).
    In contrast to the Bakkens’ size of 14,000 sq miles, the EIA just described the Marcellus play as covering 72,000 sq miles … an area larger than all of North Dakota.
    The largely unexplored Utica dry gas area is larger and thicker than the Marcellus.

    NWR, you may be surprised to learn not only is natgas powering more and more drilling and frac’ing equipment, all the major power plant manufacturers (Caterpillar, Cummins, Mercedes) are scrambling to provide a wide array of natgas fueled engines to enable existing diesel/gasoline devices to operate with natgas as the fuel.

  33. Davy on Thu, 30th Apr 2015 3:46 pm 

    Coffee, Cat has had NatGas fueled engines for many years now. My brother and parents have stand-by generators hooked to city gas.

    This does not make gas a transport fuel nor should we use it for transport except for niche applications. We need it for other uses like fertilizer, home heating, and specialty industry. Besides like with EV’s the scale is far too great per the required time frame to significantly replace oil fueled transport. IOW gas will not save us as far as I can tell.

  34. Northwest Resident on Thu, 30th Apr 2015 4:15 pm 

    cofeeguyzz — “scrambling” is a good word to use for what they’re doing, no doubt. Just like the FED is scrambling to keep the economy from imploding, the politicians are scrambling to keep up a semblance of BAU as all the world crumbles around us and countries like Greece, Syria, Venezuela and numerous others scramble to keep from succumbing to chaotic self-destruction. Lots and lots of scrambling going on these days, that is a fact. Like rats scrambling on the deck of the Titanic — to use Davy’s most excellent metaphor. I say scramble all you want, it won’t make a damn bit of difference in the end. And specifically to natural gas, there is no where near enough of that stuff accessible to replace oil, even if they did scramble successfully short term to convert over to using NG instead of oil. Scrambling — excellent choice of descriptive wordplay.

  35. Dredd on Thu, 30th Apr 2015 4:23 pm 

    The ratio of propaganda to reality tells the story.

    It is the duct tape of Oil-Qaeda intellectualism.

    “He who counts the poison best” is their Oscar weener.

  36. nony on Thu, 30th Apr 2015 4:50 pm 

    Penury. So they go to 75. And consumers tolerated 100 for four years. Before that produces tolerated 30 to 70 for 10 years. You’d be surprised what people tolerate if there is no choice

  37. GregT on Thu, 30th Apr 2015 4:58 pm 

    “So they go to 75.”

    Three times the historical, non-recessionary, inflation adjusted price. Yet you are still unable to comprehend what this means for BAU and modern industrial society as a whole.

    Come on Nony. Stop playing the denialist games.

  38. Davy on Thu, 30th Apr 2015 5:04 pm 

    NOo, affored and tolerate differ between afford -necessity and tolerate – discretionary. The days of tolerating appear to be winding to a close now that the world is full up on debt. Bills do have to be paid eventually NOo. Extend and pretend has limits just like other human activities.

  39. Northwest Resident on Thu, 30th Apr 2015 5:07 pm 

    Nony — The global economy did not “tolerate” $100 per barrel oil for four years. It suffered hideously under that price. We might say that the global economy “survived” four years of $100 per barrel oil, but just barely, leaving the global and national economies in a bloody, shredded, diseased and terminal state. But yeah, they “survived”. Now the global economies are bleeding out, too weak to recuperate, hollowed out shells of their former selves. Death is certain, it is just a matter of time, and not much of it. Tolerated? Not even close.

  40. JuanP on Thu, 30th Apr 2015 5:11 pm 

    Rock “So given the lag time we shouldn’t see the INITIAL significant effects of the rig count drop on production until this summer and the full impact not until next Oct or Nov.”

    I am 100% with Rock on this. And thanks for the rest of the comment, too.

    I am also glad to see that NWR is still around. I read every one of his comments. 😉

  41. Nony on Thu, 30th Apr 2015 5:49 pm 

    Coffee: yeah the Marcellus/Utica is massive. It’s not just the areal extent, but the size of the sweet spots. In the Bakken, the sweet spot is 2.5 counties within the basin. In the Utica-Marcellus, it’s about 8 counties. And the layers are thick and easily fractured, even pre-fractured. Utica is a bit deep though (costly wells).

    The main thing with the Utica-Marcellus is that gas is selling for 1.20 in the regional hubs. That shows we are not “running out” by geology or the like. It shows lack of takeaway. This article is helpful (explains how the play could grow by servicing local markets, but now needs pipe reversals and new pipes to expand west and south.

    https://rbnenergy.com/the-end-of-the-displacement-are-net-natural-gas-inflows-into-the-u-s-northeast-history

  42. GregT on Thu, 30th Apr 2015 6:56 pm 

    “Together, the Marcellus and Utica Shale regions extend across New York, Pennsylvania, Maryland, West Virginia, Ohio and portions of Kentucky and Tennessee. The deposits sit between 7,000 and 12,000 feet below ground.
    Both are important geologic formations because they hold large reserves of natural gas. Researchers estimate the Marcellus Shale alone could contain as much as 363 trillion cubic feet of natural gas, enough to satisfy U.S. energy demands for about 14 years.”

    https://oilandgas.ohiodnr.gov/portals/oilgas/pdf/EPA-fact-sheets/DrillingforNaturalGasintheMarcellusandUticaShales_EnvironmentalRegulatoryBasics.pdf

    Yup huge Nony. Maybe it would be a better idea to use these resources to build out alternate energy infrastructure, rather than sell them off to the highest bidder to line the pockets of a few, at the expense of all future generations.

    14 years takes us out to 2029. We’ll need all the help we can get far before then.

  43. Nony on Thu, 30th Apr 2015 8:11 pm 

    Let the free markets decide. That gas belongs to the land owners. What are you a socialist?

  44. GregT on Thu, 30th Apr 2015 8:41 pm 

    Nothing free about the markets Nony. Greed does not equate to freedom. The land is not ‘owned’ by anyone, and neither is the gas. We have a responsibility to leave something behind for future generations. Land and gas included.

    Your thought process is flawed, as is your moral integrity.

  45. Nony on Thu, 30th Apr 2015 10:17 pm 

    https://www.youtube.com/watch?v=PF_iorX_MAw

  46. GregT on Thu, 30th Apr 2015 11:02 pm 

    I rest my case Nony.

  47. NewView on Sun, 3rd May 2015 6:17 am 

    https://m.youtube.com/watch?v=5eEAA37N_zw

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