June 27th, 2011
The New York Times threw some water on the natural gas frenzy this weekend with its story about industry insiders questioning predictions for a bountiful U.S. harvest of natural gas, the so-called “bridge” fuel of the future.
We’ve been wondering for a while about why everyone seems to take the industry word on natural gas prospects. The Times story quoted industry insiders with deep concerns about whether hydraulically fractured shale gas operations will produce as promised, and one analyst who likened the “shale gas plays” to “a Ponzi scheme”.
The skeptics point to data showing that many productive wells dwindle after a few years, and that wide regions around successful wells often come up dry.