Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.

Thanks for the graph - very appropriate. I bet it is related to this pair:


by nb41 on Thu Jun 26th, 2008 at 04:05:46 PM EST
[ Parent ]
Higher prices -> more drilling and new tech developed, new kind of resources exploited-> higher production

I wonder why it works for gas but not for oil?

Why Is Natural Gas Production Increasing Now?

Improved technology, developed over many years, now allows economic production of resources in deep water and large "unconventional" resources, which are difficult to produce. High and increasing natural gas prices have spurred more natural gas drilling and the trend to move from drilling simpler vertical wells to horizontal wells.

This means decline rates newly drilled individual wells can reach 25-50 % per year.

No matter. Those high gas prices (= marginal price producer for electricity) means $$$ for my Exelon shares. ;)

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Thu Jun 26th, 2008 at 04:22:30 PM EST
[ Parent ]
I wonder why it works for gas but not for oil?

We got all that North Sea oil brought online, didn't we ... that horizontal drilling and shenanigans to crack the tight rock in the play under Montana ... its just that with the gas co-produced with oil being so cheap for so long, there was a long time that we weren't trying very hard to find the natural gas.

Plus there is the natural geology ... there's a window where carbon bearing sediments cook to a mix of oil and gas ... if it gets pushed deeper than that window, its just gas.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Thu Jun 26th, 2008 at 05:53:10 PM EST
[ Parent ]


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