I certainly believe the part about a backlog at the RRC. We are facing incredible delays in getting new drilling permits.

In any case, I assume that the bottom line is that the EIA is just estimating the increase in shale gas production, while the RRC is trying to count the actual production, but as noted, the RRC is behind in the process. However, I would assume that the annual RRC data, which did show an increase in 2007, are fairly accurate. What the annual RRC data show is that we are producing at about two-thirds of our 1972 peak rate, but that it took four times as many wells to bring production up to two-thirds of our peak rate.

However, the shale plays are probably the best thing going for the US Oil & Gas industry, but as we have discussed, we have the "Red Queen" problem. We are replacing a smaller number of higher volume conventional wells with a much larger volume of generally lower production rate and faster declining unconventional wells. The limiting factors become equipment, personnel and infrastructure.