"The U.S. should immediately begin a push to exploit its enormous trove of oil in the Arctic waters off of Alaska, or risk a renewed reliance on imported oil in the future, an Energy Department advisory council says in a study to be released Friday. The U.S. has drastically cut imports and transformed itself into the world’s biggest producer of oil and natural gas by tapping huge reserves in shale rock formations. But the government predicts that the shale boom won’t last much beyond the next decade."
"The U.S. Energy Information Agency (EIA) released its 2012 Annual Energy Outlook on January 23, with the claim that the Marcellus shale contains 141 trillion cubic feet (TCF) of unproved technically recoverable natural gas. That estimate reignited the debate begun in spring 2011 about whether the amount of natural gas in the Marcellus Shale has been overestimated. The key to comprehending the wide-ranging estimates of the Marcellus shale’s natural gas reserves lies in understanding the nuances of the terms applied to oil and gas reserve estimates—namely proved, unproved, undiscovered and technically recoverable. "
"Shale gas plays in the United States are commercial failures and shareholders in public exploration and production (E&P) companies are the losers. This conclusion falls out of a detailed evaluation of shale-dominated company financial statements and individual well decline curve analyses. Operators have maintained the illusion of success through production and reserve growth subsidized by debt with a corresponding destruction of shareholder equity. Many believe that the high initial rates and cumulative production of shale plays prove their success. What they miss is that production decline rates are so high that, without continuous drilling, overall production would plummet. There is no doubt that the shale gas resource is very large. The concern is that much of it is non-commercial even at price levels that are considerably higher than they are today. "