The New York Times article on shale gas drilling did leave out a lot of things like the names of its sources, but it did not address that so many companies are invested in Shale Gas that the likelihood they’re all wrong is relatively low. Maybe, they won’t make money hand over fist, but we’re talking about real companies making real business decisions. They’re not throwing away shareholder dollars and if they did they’ll all be replaced soon.
“Last week, the Times ran Urbina’s three-part series on the bullish outlook for natural-gas production in the United States, questioning whether industry officials and analysts are too optimistic.”"The New York Department of Environmental Conservation will soon issue a new report that will decide whether New York state will allow hydrofracturing. Is the Times’ series meant to nudge New York toward a negative decision?”
“These headlines want to make you call your broker and sell. They read ’Insiders Sound an Alarm Amid a Natural Gas Rush,’ ‘Behind Veneer, Doubt on Future of Natural Gas,’ and ‘S.E.C. Shift Leads to Worries of Overestimation of Reserves.’ ”
“Energy Department estimates of recoverable U.S. natural gas have climbed from 1,100 trillion cubic feet in 1990 to 2,587 trillion cubic feet today. Shale gas production is expected to triple between 2009 and 2035.”
“Urbina wants to show that this boom is a bubble, like the housing bubble that burst in 2007.”
“No one can predict the future with certainty. But evidence is against a gas bubble because of strong U.S. and global demand for energy.”
Read the full news release at sfexaminer.com