Exploding the Shale Gas Myth

by: EJ on 07/05/2013

Bill Powers was interviewed on the Canadian television show, Business News Network on June 25th about the myth of North America's shale gas supply.  Power's recently released book Cold Hungry and in the Dark shatters the conventionally held belief that North America is at the dawn of a new era of energy abundance thanks to shale gas resource development.  Instead, he explains that industry has vastly overstated viable supply. Declining productivity combined with increasing demand will cause a crisis in the coming years that will lead to skyrocketing prices, damage the economy and impact the lives of nearly every North American.

In the interview, Powers explains that fracking will never provide anywhere near 100 years of natural gas.  In fact, he predicts that we will only see seven years production from the majority of gas wells.  The premise for his thesis is that many wells have declined in production much more rapidly than was anticipated.  When the interviewer suggests that he is applying old metrics to the new era of shale,  Powers responds saying, "History does not repeat but it sure does rhyme.  Horizontal drilling and fracking has been around for years.  If we look at the history, over 17 000 wells have been drilled into the Barnett shale in Texas and that field is already in decline. These wells are not recovering anything close to what is expected."  When asked if Canada could anticipate the same results for the gas fields being developed in Northern British Columbia, Powers responded that it is too early to predict.

You can see the entire interview here.



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