shale gas snuck up on a lot of usYep, it sure did.
When I first started hearing about it "they" said it was a very expensive way to get Nat Gas out of the ground and that the market price would need to be $5 or $6 to make it profitable - and that the drilling which was happening was only to retain their leases. Yet they continue to drill, continue to acquire leases, and talk about building pipelines. Something does not compute.
I presume the info about the rapid decline of production from a well after the first year is correct, which means that they will need to continue drilling to maintain their production from an area. It must be that their profitability is better than I thought.
Does anyone here have an explanation of what is actually happening? We (PMT) really need $5 gas. Do they???