Sunday, November 25, 2012

Documents: Leaked Industry E-Mails and Reports

This is more evidence from geologists who are dampening expectations for shale.  Yes, I do believe we should pursue this and other alternative energy resources--including renewables, but due to more efficient extraction (i.e., horizontal drilling), the life cycles of oil and natural gas fields are much shorter in duration than what the hopium describes.  Peak oil subscribes to the theory that we will not run out of oil--rather, we will run out of easy-to-reach, and cheap oil.

While this "bubble" in shale will end in tears, it is the investments in the technology that will be end up being a disaster.  Prices will remain elevated as long as these forecasts for production remain overly optimistic.

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