Press Esc to close

WorldOil

CONTENT PREVIEW

For full content view: Log in Now!

  • What's new in exploration


    Arthur Berman, Contributing Editor

    In mid-July 2008, the US somewhat unexpectedly discovered that it had an oversupply of natural gas, and prices fell sharply. Jen Snyder, head of Wood Mackenzie Ltd.’s North American Gas Research Group, recently said that the development of shale gas plays has caused “a significant potential oversupply” (Oil & Gas Journal, Dec. 1, 2008). I am disturbed by an irrational tendency in the E&P industry to pursue shale plays despite oversupply of natural gas and lower prices, since most of these plays were marginally commercial at higher gas prices. I have struggled to understand the economic appeal of shale plays. I thought that lower gas prices would greatly reduce shale activity, but this has not occurred. In the first half of July, spot gas prices were more than $13/MMBtu. Six weeks later, the price had fallen below $8, and further dropped below $6 in early December. Some analysts predict $5−6/MMBtu range at least through the end of 2010.

This area of the site is restricted. In order to gain access, please either Log In, or subscribe to World Oil.

Two options are available to you for creating an account.

1. Get a Free Trial Subscription to World Oil Magazine and gain immediate access to select content on World Oil Online.

Start a Free Trial Subscription and gain immediate access to the complete current issue of World Oil Magazine. Plus, you’ll receive 3 upcoming issues of World Oil Magazine in print or digital format.* You also receive access to the Energy Events Calendar, Industry Statistics and WO Wire’s news and industry coverage.

Free Trial


2. Purchase a subscription to World Oil magazine and gain immediate and complete access to World Oil Online. As a Total Access subscriber you will have access to all areas of the site available to registered users and free subscribers as well as having access to such premium content areas as:

  • The Archives section containing over ten years of complete magazine archives,
  • The WO DataHub's engineering tables and directories,
  • The World Oil annual forecasts, including past predictions,
  • Select World Oil technical handbooks,
  • And much, much more!

Subscribe


Physical copies of this content may be available for purchase. Visit the Reprints & Back Issues section.


If you are already a paid subscriber and do not have access, please email CustomerService@worldoil.com.

WO DATA HUB

EngineeringTablesIcon-Large

Engineering Data Tables

World Oil's specialized upstream Engineering Data Tables featuring the Drill Bit Classifier, Tubing Tables and more. Get Total Access today.

WO SUPPLEMENTS

2013 Fracturing Technology

2013 Fracturing Technology

ENERGY EVENTS

Upcoming Events