Friday, February 3, 2012

Shale Gas Reserve Estimates Reduced

Welcome to the Collaborative Revolution!

The US Department of Energy has released revised estimates of shale gas reserves that are significantly lower than those touted last year.  The Marcellus Shale formation here in Ohio and in western New York, western Pennsylvania and West Virginia took the biggest hit.

The practical effect, I think, will be to drive natural gas prices higher over time and may cause energy companies investing in exploration, extraction and transportation of natural gas to proceed more cautiously.

Importantly, I saw no indication the report fully addressed the Utica Shale formation, a much deeper and possibly richer formation that lies beneath the Marcellus and extends further into Ohio.  Further, the findings will likely only fuel a desire for smaller less geopolitically secure countries to explore their own shale gas reserves.  Readers should also keep in mind the fact that there is often a significant amount of oil in tight shale formations as well and oil prices, unlike natural gas prices, are likely to remain high as exploration moves forward.

The blurb from Penn Energy is linked below.

Shale Gas Reserve Estimates Reduced

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
Collaborative Construction Website
Sustainable Land Development International

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