Pops wrote:So why would they drill themselves into near bankruptcy?
It is what drillers do? The list of companies bankrupt or consumed by their better financed peers is a list longer than many of us have paper in the house I imagine, to the point where it seems to be part of the system, the hyping and flipping, the stable companies ending up running the board at the end. Once the majors left the US what you were left with was the big independents, with more than a little experience related to promotion.
Pops wrote:Simple, they were not drilling to secure gas but to secure leases - the right to drill. But one company has sold $15 billion of those leases this year alone on the strength of what are described by some as exaggerated claims.
If you had that $15 billion in your pocket, it is unlikely you would feel the claims were exaggerated. It is part of the game, and securing leases has a value which certainly isn't captured in a financial statement.
Pops wrote:Also note, at current consumption there are about 11 years worth of NG for sure, and 20 years probably - just because someone says it's there doesn't mean it will ever be burned.
What does "for sure" mean? Once upon a time we had 20 years of NG for sure...and then 20 years went by, and we then had that much (or even more) still laying around. "For sure" hasn't been very sure in the past.
