shortonoil wrote:
Right. The shale production discussed in the Appalachian Gas Play atlas beginning between 1860 and 1880 and continuing on through the 1990's when the atlas was published never was a long term economic process.
For about the 50th time that you have done this, I did not write that. Can you stop your stupid, childish games of deceit. Pstarr quoted it, and you wrote it; you moron:
dirtyharry wrote:
They crop up from time to time .Poland ,UK have tried to devolp their shale resources ,but failed . Why ? Because they do not have the liberty of printing unlimited amount of their currency ,unlike the USA . Shale is drilled only in the USA because of unlimited finance . It would never have occurred was it not of this.
Even the Chinese, that have huge shale deposits, aren't developing them, and cash is in no short supply for them. They have their own central bank to print up piles of it, and they do. The primary reason that shale development was initially pursued in the US was because they had a market for it. The Bakken was developed to supply diluent for the Canadian tar sands industry. The Eagle Ford, with shallower wells, and higher per well production rates with access to the pipeline network then jumped in to supply the growing Canadian market. That was when oil was still heading for $100 per barrel.
Since there is no other oil to be found that the industry or the economy can afford, Shale has taken on a life of its own. The refining industry discovered that it was helping to keep the price of oil down, which made it very competitive in the international market for its finished products. The US is still importing 7 mb/d to use for the production of fuels while producing 3½ of shale. Shale is still used as a diluent for heavier oils, and as a feedstock for the petrochemical industry. As long as the FED keeps interest rates low, and liquidity abundant shale will plug along. That, however, is not likely to be the case for very long. Many people are sounding the alarm, and Stockman is among them:
http://davidstockmanscontracorner.com/t ... it-part-1/Along with the equity market and bonds, oil is now in a state of "irrational exuberance". It is about $10 higher than the economy can afford to pay for it. That will put the brakes on the economy, and Stockman's predictions will come true. Of course, when the bottom starts falling out (most likely this coming spring) they will blame it all on Trump. Energy is still not considered by economists to be an essential part of the economy! We will have a lot of oil, and no economy, and people will be asking the central banks to tweak the economy back into shape. Lots of luck with that one!