[Peakoil] Gas Bubble Leaking, About to Burst

[Keith]

I guess I haven't been paying attention, but Heinberg's article uses a sensible way - new to me - to refer to energy prices: in $ per million BTUs.

> In the years from 2005 through 2008, as conventional gas supplies dried up due to depletion, 
> prices for natural gas soared to $13 per million BTU (prices had been in $2 range during the 
> 1990s). ... With new supplies coming on line quickly, gas prices fell below $3 MBTU, less than 
> the actual cost of production in most cases. From this point on, gas producers had to attract 
> ever more investment capital in order to maintain their cash flow. It was, in effect, a Ponzi scheme.....
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Keith Thomas
myrmecia at gmail.com
074 2929 4146
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On 11/11/2012, at 8:40 PM, Jenny Goldie wrote:

http://www.postcarbon.org/blog-post/1262435-gas-bubble-leaking-about-to-burst
Gas Bubble Leaking, About to Burst
Posted Oct 22, 2012 by Richard Heinberg 
For the past three or four years media sources in the U.S. trumpeted the "game-changing" new stream of natural gas coming from tight shale deposits produced with the technologies of horizontal drilling and hydrofracturing. So much gas surged from wells in Texas, Oklahoma, Louisiana, Arkansas, and Pennsylvania that the U.S. Department of Energy, presidential candidates, and the companies working in these plays all agreed: America can look forward to a hundred years of cheap, abundant gas! ...