{"id":833,"date":"2014-05-14T16:37:25","date_gmt":"2014-05-14T16:37:25","guid":{"rendered":"http:\/\/www.thebizsense.com\/views\/?p=833"},"modified":"2014-05-14T16:37:25","modified_gmt":"2014-05-14T16:37:25","slug":"shale-gas-high-cost-resource","status":"publish","type":"post","link":"https:\/\/www.thebizsense.com\/views\/featured\/shale-gas-high-cost-resource","title":{"rendered":"Shale Gas: a High-Cost Resource"},"content":{"rendered":"<p><a href=\"http:\/\/www.thebizsense.com\/views\/files\/2014\/05\/shale-gas.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-834 size-full\" src=\"http:\/\/www.thebizsense.com\/views\/files\/2014\/05\/shale-gas.png\" alt=\"shale gas\" width=\"600\" height=\"399\" srcset=\"https:\/\/www.thebizsense.com\/views\/files\/2014\/05\/shale-gas.png 600w, https:\/\/www.thebizsense.com\/views\/files\/2014\/05\/shale-gas-300x199.png 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>Shale Gas &#8211; Despite much talk about how it\u2019s going to revolutionize global supplies, investors in the shares have seen them perform poorly for years, major companies in the sector such as Shell and BHP Billiton have been taking some big write-downs and the much-predicted improvement in natural gas prices fails to arrive.<!--more--><\/p>\n<h2>What\u2019s been happening?<\/h2>\n<p>\u201cIt is going to take much longer, and require much more money, to get that unconventional gas produced than global strategists presume,\u201d says the FT\u2019s erudite commentator John Dizard.<\/p>\n<p>\u201cThe shale gas boom of the past decade turned a set of engineering advances into a property bubble. Investors were selling development rights to each other.\u201d<\/p>\n<p>Promoters of exploration and development companies \u201cwere spending multiples of their operating cash flow on buying properties and drilling them to show more production, then selling more stock and more debt.\u201d But \u201ceventually the promoters could not pedal fast enough\u2026 \u201cThe investment world backed away from shale even as the political world embraced it.\u201d<\/p>\n<p>Dizard emphasizes: \u201cUnconventional gas is not a miracle; it is a high-cost source of fuel that requires a lot of technical skill, time and capital.\u201d It\u2019s probably going to require gas prices in the US a couple of dollars a unit higher than current levels (around $4.50) to make it pay in invest in the drilling rigs and crews, processing plants and pipelines to bring large volumes of shale gas to the domestic and export markets.<\/p>\n<p><em>CopyRight \u2013 OnTarget 2014 by Martin Spring<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shale Gas &#8211; Despite much talk about how it\u2019s going to revolutionize global supplies, investors in the shares have seen them perform poorly for years, major companies in the sector such as Shell and BHP Billiton have been taking some big write-downs and the much-predicted improvement in natural gas prices fails to arrive.<\/p>\n","protected":false},"author":1,"featured_media":834,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"amazonpipp_noncename":"","amazon-product-isactive":"","amazon-product-single-asin":"","amazon-product-content-location":"","amazon-product-content-hook-override":"2","amazon-product-excerpt-hook-override":"3","amazon-product-singular-only":"","amazon-product-amazon-desc":"","amazon-product-show-gallery":"","amazon-product-show-features":"","amazon-product-newwindow":"2","amazon-product-show-list-price":"","amazon-product-show-used-price":"","amazon-product-show-saved-amt":"","amazon-product-timestamp":"","amazon-product-new-title":"","amazon-product-use-cartURL":"","amazon_featured_post_meta_key":"","_amazon_featured_alt":"","amazon-product-template":"","footnotes":""},"categories":[8,9,170,52],"tags":[278,277,276],"class_list":["post-833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-news","category-opinion","category-usa","tag-bhp-billiton","tag-resource","tag-shale-gas","has_thumb"],"yoast_head":"<title>Shale Gas: a High-Cost Resource<\/title>\n<meta name=\"description\" content=\"Shale Gas - 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