10 Jul '13, 1pm

Drumbeat: July 10, 2013

As for the frac-slays-TOD theory, that is certainly expected given the way this has been portrayed by most in the media: technological advances overcoming depletion. Closer to reality is that, while there have been some advances, it is mostly that continued high prices made the application of pre-existing technology worth the financial risk of drilling expensive, rapidly depleting wells on land that one must pay royalties on in addition. We have had some recent posts indicating that well performance has been getting worse instead of better, so even at current prices, the future is uncertain. At the same time, US consumption is still down from what it was prior to 2008, and the net result is a lot of feel-good myths about imminent US energy independence. But although this has played a role in the decline of page views on TOD, I don’t think it really factored into our decisi...

Full article: http://www.theoildrum.com/node/10080

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