Daily Archives: December 29, 2012
Posted by mb50
December 29, 2012 Posted by Jonathan Callahan
The current boom in drilling for ‘unconventional’ gas has helped raise US production to levels not seen since the early 1970′s. This has been an incredible boon to consumers and has kept spot prices contained below $5 per million BTU for the past year, recently dropping below $3/mmbtu. Unfortunately, this price is below the cost of production for many of these new wells. When the flood of investment currently pouring into natural gas drilling operations dries up, the inevitable bust will be as scary as the boom was exciting.
Read more: The Oil Drum
- Don’t Kill The Economically Beneficial Shale-Gas Boom (cornhusker4palin.newsvine.com)
- The Oil Boom May Be Busting (seekingalpha.com)