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60 comments on Natural Gas and Complacency

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Odysseus on December 4, 2007 - 11:55am

It's easy to over analyze whether drilling these shales is cost effective. The two facts I come back to are:
1) Gas companies only make money when they punch holes in the ground that produce. Meaning you have to drill holes! You can't make a living off of analysis alone. It's much easier to blog, arm-chair quarterback, or be an analyst.
2) A producing well (at almost any level) is a true fixed asset that I would much rather have than a fist-full of dollars when hyperinflation really takes hold. We simply will ALWAYS need more gas here in North America. I think the wise companies see this coming and are drilling like mad now while there is capital available.

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mcgowanmc on December 4, 2007 - 12:14pm

I have a stake in the Fayetteville Shale Play.

First. The roads are taking a beating.

Go to your County Judge/Quorum Court to find out which roads
are about to be used.

http://www.entrepreneur.com/tradejournals/article/168629997.html

"“The Department of Finance and Administration is studying very thoroughly how this industry and this product is taxed around the region, in other states,” DeCample said.

The relationship between the state and gas companies is not broken down, DeCample indicated.

“The governor has not ordered restrictions on gas industry trucks,” DeCample said. “The highway department controls that. The governor does feel strongly about sustaining that balance between insuring those who use the roads and who potentially damage the roads pay their fair share to maintain the roads, but at the same time preserving the economic development for that region, and the Fayetteville Shale has been a big source of economic development for that region.”

Fayetteville Shale about numbers..."

The roads better stay in good shape.

And the water better be taken care of as well.

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Aniya on December 5, 2007 - 2:01am

Hi mcg,

Hmnn...

re: "The roads better stay in good shape.

And the water better be taken care of as well."

Any idea of how this can happen? (Because it looks like the default position is for worse roads and, what's up w. water?)

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