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Shale Unbelief

Oil Near Two-Week High on U.S. Supplies; Brent Rises Above $110 at Bloomberg.

“But Helms emphasized that oil production in the Bakken is consistently increasing by 15,000 to 20,000 b/d every month, and that thousands of additional wells will be drilled there in the coming years.”  Platts

Raymond James Energy Stat of the Week:  “this oversupply simply shifting from the Mid-Continent to the Gulf Coast.”  Raymond James

“Eagle Ford crude production is close to 600 Mb/d as of July 2012…Takeaway projects being developed today to go online by 2013 have capacity for 1,650 Mb/d…”  These numbers will receive push-back, of course, as they are not months old and government issued.  RBN Energy

The media has been having a field day with Ohio Gov. John Kasich’s claim that a single energy company could recover $1 trillion worth of oil and gas from the state’s shale.  Interestingly, the only ‘expert’ to disagree is Arthur Berman, who last I knew was in denial the natural gas market continues to be oversupplied by 10% or so.  Oops.    Washington Post and Huffington Post.  Shhh..don’t tell them the Marcellus is a monster:  John Hanger.  Or that the natural gas oversupply continues while the Haynesville rig count has collapsed:  Haynesville Play.

An extensive piece on global gas dynamics for the next decade at Forbes.

Chesapeake reported second quarter results.  Three things stand out: 1) CHK’s asset base is monstrous. 2)  They are pretty good at drilling NG wells and 3)  CHK still needs to crack the horizontal shale oil code.  CHK