Monday, July 14, 2014
Is the U.S. Fracking Boom a Bubble?
Posted 6:12 PM
Source: Newsweek ... some wonder how long the shale revolution will last. Energy analysts like Arthur Berman, a Texas-based geologist and energy consultant, and David Hughes, a Canadian geoscientist, have suggested that the shale revolution may be just a bubble. ... ... a shale well has a limited lifespan of around seven or eight years. Its output plummets after the first three years, then deteriorates steadily thereafter. By contrast a conventional oil field produces crude at a level that wanes slowly over the course of decades. Saudi’s massive Ghawar field, for example, began production in 1951 and is still pumping out around 5 million barrels a day. ... Observers like Berman and Hughes believe the U.S. needs to prepare for a time when the shale tide starts to ebb. ...