Gas Boom Goes Bust

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

Posted on December 29, 2012, in AMERICAS, Energy, Natural Gas, North America, Oil & Gas - inland, Shale Gas, South Texas, United States and tagged , , , , , , , , , . Bookmark the permalink. Comments Off on Gas Boom Goes Bust.

Comments are closed.

%d bloggers like this: