us oil boom, page-2

Mick, there seems to be two schools of thought on the shale boom. The most optimistic expert view is of the USA being energy self sufficient. The alternate view is that the high decline rate of shale wells will mean the US is less dependent on imports but not self sufficient.

In either scenario the viability of shale depends on a reasonable oil price as the cost of extraction is relatively high. Too great a drop in the oil price will see activity suspended while a continuation of good prices will see the activity carry on.

Currently expansion is limited by rig availability and ancilliary services.

My view is that if US shale production continues to grow as it has then we will see alot of rationalisation within the industry. Smaller players will be taken out by bigger players, if not in an outright takeover at least in field sales.

Cheers everyone for the discussions this year and the high level of reporting. Nows the time to forgot boring old commerce and do whats real important and go enjoy good time spent with family, friends and in our case, critters.
Merry Christmas team.