tag:blogger.com,1999:blog-24847368.post6718846134313035901..comments2024-01-29T10:04:23.986-08:00Comments on Al Fin Energy: Clashing Viewpoints: Natural Gas Glut vs. Natural Gas Shock! You Be the Judgeal finhttp://www.blogger.com/profile/13739269791915017382noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-24847368.post-78309597599505463732012-06-27T08:54:10.190-07:002012-06-27T08:54:10.190-07:00Right. Moving Obama out of the White House would ...Right. Moving Obama out of the White House would go a long way toward eliminating the stifling uncertainty plaguing the economy as a whole -- not just the energy sector.<br /><br />Basic overcapacity / undercapacity boom bust cycles have been a recurrent problem in many sectors of capital-dependent market economies for centuries.<br /><br />Boom-bust cycles in petroleum have been going on since the 1800s.<br /><br />Repeated boom-busts were much of the driving impetus for creating the OPEC cartel.<br /><br />As for the ND laws for cementing closed wells, I suspect that is not as much a problem for shale wells, given the routine rapid turnover and depletion.<br /><br />Technology for drilling new wells is becoming more efficient as well.al finhttps://www.blogger.com/profile/13739269791915017382noreply@blogger.comtag:blogger.com,1999:blog-24847368.post-67218218864961754122012-06-26T05:59:15.688-07:002012-06-26T05:59:15.688-07:00From the data I looked at, shale gas wells do have...From the data I looked at, shale gas wells do have a steeper decline curve than conventional wells. Though this seems to be less the case as the hydraulic fracturing process improves.<br /><br />I have concerns for a crash in prices causing what we faced in the mid to late 90's when oil prices collapsed. Domestic production cratered. When the world economy finally recovered after the Asian 1997 meltdown, production couldn't meet the new demand.<br /><br />Wells don't go back into service overnight. It takes time to get the rigs and equipment back into place. Also, states like ND require that the well riser be completely filled with concrete and not merely capped. This means you have to completely re-drill the well once prices increase.<br /><br />IMO, what will drive natural gas prices will be Say's Law: Production creates its own demand. How much production will depend on the economic policies practiced after January 20th, 2013.Hell_Is_Like_Newarkhttps://www.blogger.com/profile/11845488554285075902noreply@blogger.com