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To: Sequoyah101

Its obvious that you are an expert. However there is little doubt that fracking and the new technologies have altered the oil and gas dynamic within the United States. There are political ramifications and US foreign policy will soon reflect the new energy realities.


19 posted on 01/25/2016 3:55:53 PM PST by allendale
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To: allendale

Yes, things have come a long way since I read my first oil well log, saw porosity and oil but no water in shale and asked why we can’t produce that. The answer was, “That’s shale boy. Everybody knows you can’t produce oil and gas from shale.” Of course I asked why not and then got busy making a living instead of taking it further.

Getting it out of the ground does not always make it economic even if the well pays out. I know that sounds strange. Early time money makes NPV and RoR. Out year money pays for new wells and dividends and light bills. If you can’t build enough production to grow organically you don’t have a sustainable business.

There are geopolitical ramifications yes but don’t take them to the bank just yet. Some of us think we are a long way from being the new Saudi Arabia of oil and gas. They did make KSA nervous enough to whack shale but they are also whacking Russia and Persia.

Watch the production from here out this year. Let’s see what it does.

http://www.eia.gov/petroleum/weekly/crude.cfm

I read my first well log about 4 decades ago.


20 posted on 01/25/2016 5:27:03 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just have a few days that don't suck.)
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