Shale Gas Bubble About to Burst: Art Berman, Bill Powers | MyFDL
In a recent interview, Powers said the “bubble” will end up looking a lot like the housing bubble that burst in 2008-2009, and that U.S. shale gas will last no longer than ten years. He told The Energy Report:
My thesis is that the importance of shale gas has been grossly overstated; the U.S. has nowhere close to a 100-year supply. This myth has been perpetuated by self-interested industry, media and politicians…In the book, I take a very hard look at the facts. And I conclude that
the U.S. has between a five- to seven-year supply of shale gas, and not 100 years.
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Berman is a petroleum geologist, Associate Editor of the American Association of Petroleum Geolgists Bulletin and Director of the Association for the Study of Peak Oil. He maintains the blog Petroleum Truth Report.
“In the Eagleford shale, which is supposed to be the mother of all shale oil plays, the annual decline rate is higher than 42%,” he stated. “They’re going to have to drill hundreds, almost 1000 wells in the Eagleford shale, every year, to keep production flat. Just for one play, we’re talking about $10 or $12 billion a year just to replace supply.”
Berman believes there’s a possibility that this
could lead to an economic crisis akin to which happened during the Big Bank bailouts of 2008.
“I add all these things up and it starts to approach the amount of money needed to bail out the banking industry. Where is that money going to come from?,” he asked the interviewee.
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