Are shale gas current prices real ?

[CultureCitizen]

I've just read the article "Don't count on cheap fracked gas".

Though it seems to be that shale gas is plentifull it requires intensive drilling and the current $4 per mcf might not be sustainable for much longer.

"prices would have to rise to between $5 and $6 to make currently paid-for leases profitable from this point forward and between $7 to $8 to make new leases worth pursuing."

This of course doesn't mean shale gas isn't worth exploiting , it just means it has to be taken cautiously ( e.g converting carbon plants into gas plant might proove the wrong investment in the mid term).

Does anyone have any reference of the real production cost of one mcf of natural shale gas?

 

[Mr. H.]

The actual production cost is quite low.

Preparing the geology, acquiring the acreage, drilling and completing the well, complying with regulations, cleaning and compressing the gas, transporting the gas... is as expensive as hell.

 

[Steelplate]

The actual production cost is quite low.

Preparing the geology, acquiring the acreage, drilling and completing the well, complying with regulations, cleaning and compressing the gas, transporting the gas... is as expensive as hell.

Not to mention environmental clean up and the inevitable personal injury/wrongful death lawsuits that will pop up after a decade from exposure to the chemicals in the water table.

 

[Mr. H.]

 

[chikenwing]

The actual production cost is quite low.

Preparing the geology, acquiring the acreage, drilling and completing the well, complying with regulations, cleaning and compressing the gas, transporting the gas... is as expensive as hell.

Not to mention environmental clean up and the inevitable personal injury/wrongful death lawsuits that will pop up after a decade from exposure to the chemicals in the water table.

Still with the water,you do know that this has been proven a total lie right??

 

[Mr. H.]

I thought that was sarcasm.
I hope it was LOL.

 

[martybegan]

I thought that was sarcasm.
I hope it was LOL.

No, it wasn't, unfortunately.

 

[Mr. H.]

The actual production cost is quite low.

Preparing the geology, acquiring the acreage, drilling and completing the well, complying with regulations, cleaning and compressing the gas, transporting the gas... is as expensive as hell.

Not to mention environmental clean up and the inevitable personal injury/wrongful death lawsuits that will pop up after a decade from exposure to the chemicals in the water table.

Shirley you jest.

 

[RGR]

Not to mention environmental clean up and the inevitable personal injury/wrongful death lawsuits that will pop up after a decade from exposure to the chemicals in the water table.

More like, "defending the frivolous lawsuits of claims of environmental clean up and the inevitable..." in front of your statement, an it will be much more correct. Obviously no one has ever even found frac chemicals in the water table except in MAYBE a few cases of well design failure, certainly the fracture treatment doesn't put anything into the water table, and regulatory well design requirements in all oil and gas producing states are designed for just that purpose. And they work. Certainly the screaming meemee petroleum engineer amateurs have not been able to explain how you push anything through the multiple layers of concrete and steel involved. But then, the uninformed do stuff like this all the time.

 

[RGR]

The actual production cost is quite low.

Preparing the geology, acquiring the acreage, drilling and completing the well, complying with regulations, cleaning and compressing the gas, transporting the gas... is as expensive as hell.

Not to mention environmental clean up and the inevitable personal injury/wrongful death lawsuits that will pop up after a decade from exposure to the chemicals in the water table.

Still with the water,you do know that this has been proven a total lie right??

Of course it isn't a lie. The core to any good fabrication or hysteria building exercise in the uninformed is a kernel of truth. Has a failed well somehow leaked something into a water table, somewhere, somehow, at least once? Sure.

But after tens of millions of frac jobs, you can't find the pollution of ground water from the chemicals used in them. And the worst ones? Those were the originals, the new ones are mostly just water. And the funny part about frac jobs? As soon as you put them in the ground...you take them back out! The problem then becomes one of cost for the companies to dispose of the water. Which they are then required to do properly. All sorts of laws for that as well.

 

[Mr. H.]

Not to mention environmental clean up and the inevitable personal injury/wrongful death lawsuits that will pop up after a decade from exposure to the chemicals in the water table.

More like, "defending the frivolous lawsuits of claims of environmental clean up and the inevitable..." in front of your statement, an it will be much more correct. Obviously no one has ever even found frac chemicals in the water table except in MAYBE a few cases of well design failure, certainly the fracture treatment doesn't put anything into the water table, and regulatory well design requirements in all oil and gas producing states are designed for just that purpose. And they work. Certainly the screaming meemee petroleum engineer amateurs have not been able to explain how you push anything through the multiple layers of concrete and steel involved. But then, the uninformed do stuff like this all the time.

Could you please fix this? That's not my quote.

 

[editec]

I've just read the article "Don't count on cheap fracked gas".

Though it seems to be that shale gas is plentifull it requires intensive drilling and the current $4 per mcf might not be sustainable for much longer.

"prices would have to rise to between $5 and $6 to make currently paid-for leases profitable from this point forward and between $7 to $8 to make new leases worth pursuing."

This of course doesn't mean shale gas isn't worth exploiting , it just means it has to be taken cautiously ( e.g converting carbon plants into gas plant might proove the wrong investment in the mid term).

Does anyone have any reference of the real production cost of one mcf of natural shale gas?

Just imagine what the REAL COSTS would be if they admitted what this shit is doing to the groundwater!

 

[Mr. H.]

I've just read the article "Don't count on cheap fracked gas".

Though it seems to be that shale gas is plentifull it requires intensive drilling and the current $4 per mcf might not be sustainable for much longer.

"prices would have to rise to between $5 and $6 to make currently paid-for leases profitable from this point forward and between $7 to $8 to make new leases worth pursuing."

This of course doesn't mean shale gas isn't worth exploiting , it just means it has to be taken cautiously ( e.g converting carbon plants into gas plant might proove the wrong investment in the mid term).

Does anyone have any reference of the real production cost of one mcf of natural shale gas?

Just imagine what the REAL COSTS would be if they admitted what this shit is doing to the groundwater!

Since they won't admit it, maybe you can fill us in.

 

[CultureCitizen]

Can anyone provide actual figures of the cost of drilling ... I know the exchange of sarcasm is a lot more fun , but it's not really very constructive.

By the way , I've heard there are some risks asociated with the posibility of water polution, but to this date I haven't been able to find a single case in which this has happened , so by the time being I will consider fracking a safe practice.

 

[Mr. H.]

Can anyone provide actual figures of the cost of drilling ... I know the exchange of sarcasm is a lot more fun , but it's not really very constructive.

By the way , I've heard there are some risks asociated with the posibility of water polution, but to this date I haven't been able to find a single case in which this has happened , so by the time being I will consider fracking a safe practice.

Are you being genuinely inquisitive, or genuinely stupid?

Actual drilling and completion costs depend upon a host of variables.

If you can give me some variables, I'll try to give you a ballpark wiener figure.

 

[RGR]

Could you please fix this? That's not my quote.

My apologies. It is fixed.

 

[RGR]

Just imagine what the REAL COSTS would be if they admitted what this shit is doing to the groundwater!

Since they won't admit it, maybe you can fill us in.

Admit it? They can't FIND it.

 

[CultureCitizen]

Can anyone provide actual figures of the cost of drilling ... I know the exchange of sarcasm is a lot more fun , but it's not really very constructive.

By the way , I've heard there are some risks asociated with the posibility of water polution, but to this date I haven't been able to find a single case in which this has happened , so by the time being I will consider fracking a safe practice.

Are you being genuinely inquisitive, or genuinely stupid?

Actual drilling and completion costs depend upon a host of variables.

If you can give me some variables, I'll try to give you a ballpark wiener figure.

Genuinely inquisitive... but then of course the chances of finding someone who actually works in the shale gas industry are slim.

I have just found some disturbing articles.

Dirt Cheap Natural Gas Is Tearing Up The Very Industry That's Producing It - Business Insider
Controversy On Shale Gas Boom And Burst Explained - Seeking Alpha

http://www.nytimes.com/2011/06/26/us/26gas.html?_r=2&src=tptw&

From the last link :

A review of more than 9,000 wells, using data from 2003 to 2009, shows that — based on widely used industry assumptions about the market price of gas and the cost of drilling and operating a well — less than 10 percent of the wells had recouped their estimated costs by the time they were seven years old.

on the other hand it also quotes :

“I wouldn’t worry about these shale companies,” said T. Boone Pickens, the oil and gas industry executive, adding that he believes that if prices rise, shale gas companies will make good money.

Mr. Pickens said that technological improvements — including hydrofracking wells more than once — are already making production more cost-effective, which is why some major companies like ExxonMobil have recently bought into shale gas.

and it ends with :

“Looks like crap,” the Schlumberger official wrote about the well’s performance, according to the regulator, “but operator will flip it based on ‘potential’ and make some money on it.”

“Always a greater sucker,”

... so honestly I don't really know if this shale gas bonanza can be trusted.

 

[Mr. H.]

Can anyone provide actual figures of the cost of drilling ... I know the exchange of sarcasm is a lot more fun , but it's not really very constructive.

By the way , I've heard there are some risks asociated with the posibility of water polution, but to this date I haven't been able to find a single case in which this has happened , so by the time being I will consider fracking a safe practice.

Are you being genuinely inquisitive, or genuinely stupid?

Actual drilling and completion costs depend upon a host of variables.

If you can give me some variables, I'll try to give you a ballpark wiener figure.

Genuinely inquisitive... but then of course the chances of finding someone who actually works in the shale gas industry are slim.

I have just found some disturbing articles.

Dirt Cheap Natural Gas Is Tearing Up The Very Industry That's Producing It - Business Insider
Controversy On Shale Gas Boom And Burst Explained - Seeking Alpha

http://www.nytimes.com/2011/06/26/us/26gas.html?_r=2&src=tptw&

From the last link :


on the other hand it also quotes :

“I wouldn’t worry about these shale companies,” said T. Boone Pickens, the oil and gas industry executive, adding that he believes that if prices rise, shale gas companies will make good money.

Mr. Pickens said that technological improvements — including hydrofracking wells more than once — are already making production more cost-effective, which is why some major companies like ExxonMobil have recently bought into shale gas.

and it ends with :

“Looks like crap,” the Schlumberger official wrote about the well’s performance, according to the regulator, “but operator will flip it based on ‘potential’ and make some money on it.”

“Always a greater sucker,”

... so honestly I don't really know if this shale gas bonanza can be trusted.

Trusted in what fashion? Economics? It's always a crap shoot when you drill a hole in the ground. Risk VS reward. But why are you focusing on failure when success has recently far outweighed? It's nationwide, baby. And it's putting people to work, creating energy that drives the economy, and provides exports that bring hard dollars back into the U.S. economy. It's win-win-win. Too bad Obama spells lose-lose-lose for hydrocarbons in this country.

 

[Mr. H.]

Your quotes and quoted articles point to the resilience of the U.S. oil and gas industries- they often meet with failure in the hope of attaining success. Play the odds, risk the dollars.

Not government dollars, mind you.

$5 million, $10 million, $50 million holes in the ground. For what- a chance.

And yet Obama throws 10 times that in OUR money at failed "green" projects.

Give me private enterprise over government enterprise any day.