NEO – Washington‘s Shale Boom Going Bust
… by F. William Engdahl, …with New Eastern Outlook, Moscow
– First published May 12, 2014 –
Two metrics widely used in describing shale well performance are the initial production (IP) rate and the production decline rate which together determine the ultimate recovery (UR) from a well, an essential number in determining economic viability. A group at MIT university in Massachusetts carried out an analysis of production data from the major US shale regions. What they found is sobering.
The reality of the shale gas boom is increasingly being shown to be quite different. According to Arthur Berman, a petroleum geologist of 34 years’ experience who has studied production and other aspects of the shale gas and oil boom, “forecasts show production in shale plays from North Dakota’s Bakken to Texas’s Eagle Ford will peak around 2020. Those investing with the expectation that the boom will last for decades are “way out of line.”