[Maddog78]

Yeah, we're just going to keep drilling until the price goes so low we're broke. (Don't know whether to cry or laugh)

I re-read this whole thread again.
The posts denying the production of all this gas were very entertaining.
We've only just begun to tap most of these plays and more are being discovered on a regular basis.
Face it guys, there will be affordable n. gas for 100 years +.

[TheAntiDoomer]

$this->bbcode_second_pass_quote('Maddog78', 'I') re-read this whole thread again.
The posts denying the production of all this gas were very entertaining.
We've only just begun to tap most of these plays and more are being discovered on a regular basis.
Face it guys, there will be affordable n. gas for 100 years +.

[shortonsense]

$this->bbcode_second_pass_quote('Maddog78', '
')We've only just begun to tap most of these plays and more are being discovered on a regular basis.
Face it guys, there will be affordable n. gas for 100 years +.

[copious.abundance]

Disclaimer: This has nothing to do with a football team in Green Bay.

>>> LINK <<<
$this->bbcode_second_pass_quote('', '[')b]Packers Plus leads drilling revolution
New technology changes face of North American shale gas game
By Shaun Polczer, Calgary Herald
July 25, 2009

[...]

Three years ago, Packers could insert a half-dozen or so "stages" into a single well. As horizontal wells got longer, that number has grown to 22, and Themig says new advancements will allow virtually "unlimited" stages in a single well. That, in turn, has resulted in an order-of-magnitude higher production for a basic well that costs only about twice as much to drill.

The average conventional gas well in Western Canada produces about 250,000 cubic feet of gas a day. EnCana Corp. CEO Randy Eresman said in releasing the company's second-quarter results this week that its latest Horn River wells that use the multistage technology are coming on at initial rates of up to 11 million cubic feet per day.

[...]

[copious.abundance]

Natural gas boom in the Columbia Basin in about 5 years.

You heard it here first.

And no, this isn't shale.

[copious.abundance]

In case anyone was wondering, there are still lots of shales to be tapped. Nosiree, won't be running out of these things any time soon.

This also mentions the Monterey Shale per my other thread. Along with the oil in it there will, of course, be natural gas.

>>> LINK <<<
$this->bbcode_second_pass_quote('', '[')b]Shale, Shale, Everywhere
Posted: Aug 24, 2009 10:02 AM by Eric Fox

Most investors are already familiar with the big five shale plays in North America - the Barnett, Fayetteville, Haynesville, Marcellus and Bakken Shales - as they tend to get a lot of news coverage, almost to the point of saturation. There are, however, many other shale plays that get less publicity, but may be end up being just as productive as these better-known areas. Here's a run down of some shale plays you've never heard of. (For a primer on the oil industry, refer to our Oil and Gas Industry Primer.)

Let's start with California, a state with a long history of oil and gas production, but not exactly considered a hospitable place currently for exploration and production. Ever heard of the Monterey Shale? Well, small cap Venoco (NYSE:VQ) has and is planning up to two horizontal wells to test it in 2009. The Monterey Shale runs from 1,000-3,500 feet thick, and Venoco has 200,000 acres under lease, both onshore and offshore.

Estimates of the amount of recoverable resources in the Monterey Shale are hard to come by, but Venoco is using a figure of 37.6 billion barrels oil equivalent in its investor's presentation for all of the Southern California area.

Moving to the Eastern United States, we have the Conasauga Shale, located in Alabama and Georgia. Energen Resources (NYSE:EGN) is developing its acreage in this shale and drilled some test wells several years ago. The company entered into a partnership in April 2009 with Chesapeake Energy (NYSE:CHK), and is required to drill another well into the Conasauga Shale within 18 months. Some confuse the Conasauga Shale with the nearby Chattanooga and Floyd Shales, but the three are separate formations.

Dominion Resources (NYSE:D) used to have significant operations in the Conasauga Shale but sold out in 2007 to a subsidiary of the Loews Corp (NYSE:L)

In the Rocky Mountain area there is the Hovenweep Shale, which overlaps the Gothic Shale in the Paradox Basin in Colorado. Bill Barrett Corp (NYSE:BBG) is testing this play in its Green Jacket Project, and will drill a horizontal well in 2009.

Bill Barrett Corp is also active in the Cody Shale in Montana, where it has 173,400 net acres under lease. The Cody Shale is an upper Cretaceous Shale that runs from 900-2,000 feet thick at depths of 3,000-7,000 feet deep. The company drilled four vertical wells in 2008, and plans a horizontal well in 2009 to further test the acreage.

[...]

[copious.abundance]

Whoa - 32.5 quadrillion cubic feet!

Here's what that looks like: 32,500,000,000,000,000

And it could be conservative!

>>> LINK <<<
$this->bbcode_second_pass_quote('', '[')...]

Mr Holditch is running a research project into unconventional gas in North America, and has already identified 25 basins in the US with a lot of unconventional resources.

According to the study, there is generally nine times more gas that's technically recoverable than conventionally recoverable.

There could be 32,560 TCF of unconventional gas reserves in the US, Mr Holditch estimates. “But I think that's very low – no-one has tried to quantify this other than in n America, and most of the technology to develop tight gas has been developed in N America.”

Mr Holditch believes that this rule may apply for every gas field in the world. “You can take all conventional resources – and you'll have nine times more unconventional resource that's technically recoverable,” he said.

[...]

[copious.abundance]

>>> LINK <<<
$this->bbcode_second_pass_quote('', '[')b]BP sees possibility of 100 more years of natural gas
Bloomberg News
Oct. 9, 2009, 11:25AM

BP Plc, Europe's second-largest oil company, forecasts that gas resources may rise 60 percent to 100 years of global use at current rates, helped by unconventional sources that are undeveloped or unidentified.

New discoveries could contribute 4,000 trillion cubic feet of gas resources “over the next few years,” BP Chief Executive Officer Tony Hayward said yesterday. BP estimates that global proven natural-gas reserves totaled 6,500 trillion cubic feet, or 1.2 trillion barrels of oil equivalent, at the end of 2008, enough for 60 years.

“Reserve estimates are rising sharply as technology unlocks unconventional resources,” Hayward said in a Buenos Aires speech posted on the London-based company's Web site. “Estimates vary, but the U.S. may now be sitting on between 50 and 100 years worth of recoverable natural gas.”

BP forecasts that there is potential to find tight and shale gas resources in North Africa, the Middle East, Europe, China and in the southern areas of Latin America. There are potential reserves in coal seams in Australia and Southeast Asia, according to the statement.

[Maddog78]

Big deal, I said that back in July.
BP, bunch of johnny come latelys.

[copious.abundance]

Hey, check this out - from 2005:

>>> Exxon says N. America gas production has peaked <<<

[TheAntiDoomer]

Yawn. Did anyone else read Prof Gooses pathetic attempt to downplay our new found natural gas supplies. Those poor guys have just taken too many kicks to the nuts in the last few months. How long till the oil drum nuts finally accept that we easily have 100 year supply of natural gas if not much much more.

Yawn.

http://www.calgaryherald.com/business/O ... story.html

$this->bbcode_second_pass_quote('', '&')quot;With the technological advances in shale gas production in the U.S., they can put it on the market for$2 to $3."

[Maddog78]

Yes, time will tell.

As I understand it from reading Rigzone and other sources is the Prof's data keyed in on wells that had particularly high decline rates. As others said some have higher and some have lower decline rates.
I won't pretend to be an expert on the Haynesville but from what I have see in our field this is true and the good ones are really good and don't show high decline rates like he has stated.

Overall I think it is pretty significant that over half the n. gas rigs have been shut down for more than half a year and the industry is still injecting much the same rate as previously. This is still happening with many wells shut in waiting for better prices.

Our company has at present over 30 wells drilled that we have not even fracced and 7 less rigs drilling than last year and our production rate in the Woodford is still increasing.

Also his costs are too high. Since the slump in the industry service companies have cut their rates significantly and our costs are down over 30 percent from what they were.

We have also hedged our forward sales for 70 percent of our production at 6 bucks. We don't need $9 to make money in our shale.

Any significant drawdown in storeage will get the fracc crews working again and the rigs drilling again.
I wouldn't get overly excited about significant drawdown rates on a few of the hundreds of wells and not being able to make money unless it is 9 bucks.


Funny that rockman has never heard of the Montney shale in Northern B.C. Someone over there should tell him it's the Montney not the Ojay.

$this->bbcode_second_pass_quote('pstarr', '')$this->bbcode_second_pass_quote('TheAntiDoomer', 'Y')awn.

http://www.calgaryherald.com/business/O ... story.html

$this->bbcode_second_pass_quote('', '&')quot;With the technological advances in shale gas production in the U.S., they can put it on the market for$2 to $3."

[Maddog78]

Arthur E. Berman is Odysseus?
Based upon the quote you selected I very much doubt that.

[TheAntiDoomer]

$this->bbcode_second_pass_quote('Maddog78', 'Y')es, time will tell.

As I understand it from reading Rigzone and other sources is the Prof's data keyed in on wells that had particularly high decline rates. As others said some have higher and some have lower decline rates.
I won't pretend to be an expert on the Haynesville but from what I have see in our field this is true and the good ones are really good and don't show high decline rates like he has stated.

Overall I think it is pretty significant that over half the n. gas rigs have been shut down for more than half a year and the industry is still injecting much the same rate as previously. This is still happening with many wells shut in waiting for better prices.

Our company has at present over 30 wells drilled that we have not even fracced and 7 less rigs drilling than last year and our production rate in the Woodford is still increasing.

Also his costs are too high. Since the slump in the industry service companies have cut their rates significantly and our costs are down over 30 percent from what they were.

We have also hedged our forward sales for 70 percent of our production at 6 bucks. We don't need $9 to make money in our shale.

Any significant drawdown in storeage will get the fracc crews working again and the rigs drilling again.
I wouldn't get overly excited about significant drawdown rates on a few of the hundreds of wells and not being able to make money unless it is 9 bucks.


Funny that rockman has never heard of the Montney shale in Northern B.C. Someone over there should tell him it's the Montney not the Ojay.