Spicer

Natural Gas Extraction May Be More Expensive Than It Seems

Not familiar with meaning of the term reserve? If it ain't economically viable with today's commodity market prices it ain't a reserve just a resource.


On Nov 03 10:07 AM Ravi Nagarajan wrote:

> Interesting op-ed in the WSJ this morning on the shale topic:
>
> online.wsj.com/article...
>
>
> I don't doubt that shale provides real reserves. The question is
> at what cost natural gas must trade at to make extraction economically
> viable.

Natural Gas from Shale: Emerging Plays

On Oct 16 08:57 AM UK Gas Guru wrote:

> I've been trying to cover shale from a UK and European perspective
> for over a year at nohotair.co.uk, and your last sentence
> about ridiculous and improbably romantic resonates with what I've
> been seeing here. The entire UK and EU energy policy is built on
> the assumption of gas as a finite resource.
> We're now moving from the disbelief to denial stage where we'll tarry
> a while longer while some players quietly buy up acreage ready for
> the acceptance stage. What we now see is an identity of views between
> green carbon purists, and groups seeking similarly vast levels of
> public investment in Clean Coal and nuclear tech, that is now being
> re-badged as no carbon generation.
> Let's remind ourselves that all the various government strategies
> are for a low -carbon economy, not no-carbon. No carbon can still
> be the ultimate destination, but we can start the low carbon journey
> now using gas as a bridge fuel. Bridge to where? Hydrogen or fusion
> or both, along with wind and solar are my bets. But could we afford
> a no carbon world by investing in CCS or nuclear today?
> CCS and nuclear are dead ends in a gas abundant world.
> Excellent article, a kind of Gas Grand Tour, learnt a lot about
> China for example.
> A company that bears looking at is Toreador Resources, simply by
> how uncoventional they are acting. They started out in the Barnett
> and Haynesville but earlier this year moved the HQ from Dallas to
> Paris. How many other companies move from the heart of the energy
> world to land of the cheese eaters? They recently divested Polish
> and Turkish operations to concentrate on their French acreage. Either
> they are mad as loons, or some crazy coyotes. Worth keeping an eye
> on.

Toreador sold their assets in Turkey and Hungary, they've never held any acreage in Poland, Haynesville or Barnett.

Positioning for Major Reversal in Natural Gas Prices

Sunoco is an oil refiner, it doesn't produce crude oil or natural gas.