Blogthe latest commentary and analysis from EPF

Aug

13

The Shale Sugar Lick

By Deborah Lawrence (formerly Deborah Rogers) A well known American comedian, Ron White, quips about the amount of sugar Americans eat by suggesting that certain restaurants install a sugar lick. Patrons can “belly up” and take their fill at the trough. Such an analogy might be apropos of some shale operators with regard to their […]

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Aug

12

EIA Corroborates the Work of Energy Policy Forum

Over a year ago, on 19 June, 2013, Energy Policy Forum (EPF) wrote a post exposing the explosion of capital expenditure by shale operators to drill and complete wells and the concomitant lack of free cash flow. Unless operations can produce sufficient cash, the exercise is obviously unsustainable. At some point a company simply hits […]

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Jul

31

Optimism, Wealth Creation and Climate Change

By Deborah Lawrence (formerly Deborah Rogers) Talk of climate change is often frightening. Much is said about melting polar ice caps, rising sea levels, drought and the escalation of severe weather events. Political leadership has been disappointing at best and the doom and gloom nature of most discourse surrounding climate change has left many people […]

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Jul

25

Shales vs. Solar: An Investment Perspective

By Deborah Lawrence (formerly Deborah Rogers) There are many strident voices in the debate over energy. On the one hand, proponents of shale gas claim the extraction of natural gas from low porosity shale formations to be the energy panacea for which we have all been waiting. They have buzz words and sound bites such […]

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May

26

Has Occidental Petroleum Deliberately Duped Investors?

By Deborah Lawrence (formerly Deborah Rogers) You gotta love shales! I frequently refer to the sector as “the greatest show on Earth” due to the three ring circus exploits of shale operators. It is highly entertaining. And few things have been more entertaining recently than EIA’s admittance that there is simply very little oil in […]

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May

22

Are Shales A Bubble?

By Deborah Lawrence (Formerly Deborah Rogers) Hype works. Particularly when monetary and economic benefits are promised. Hype has been the primary tool used by the oil and gas industry with regard to shales and it has worked brilliantly. There is just one problem. When considering shale economic viability, hype was the only aspect that actually […]

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May

22

Monterey Reserves Slashed

EIA, part of the US Department of Energy, significantly downgraded the Monterey shale reserve estimates today. Prior estimates had projected 13.7 billion barrels of recoverable reserves. This was drastically slashed to .6 billion barrels. This constitutes a 95% revision in reserves. Further, the Monterey was touted by both industry and government as the largest potential […]

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Mar

06

Exxon’s Shale Reserves Drop Dramatically

By Deborah Lawrence Rogers In February, 2012, Exxon Mobil announced that approximately 40% of its reserve replacements came from two shale plays, the Woodford and the Bakken. Exxon stated: “Reserve additions in 2012 from the liquids-rich Woodford and Bakken plays in the United States totaled almost 750 million oil equivalent barrels.” This is of note […]

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Jan

27

The Cost of Carbon and Climate Change

Cambridge University in the United Kingdom has come out with estimates of the costs of shale extraction on climate. According to the Guardian: “Shale frackers operating in Britain should be paying £6bn a year in taxes by the middle of the 2020s to compensate for the damage wreaked on the environment.” While the Europeans place […]

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Dec

27

The Myth of Energy Independence

By Deborah Lawrence Rogers Much rhetoric about energy independence has been bandied about from policy makers in Washington and executives in the oil and gas industry. We are assured that energy independence is possible now thanks to the large shale deposits being exploited throughout the country. The sound bites are frequent and effective. But when […]

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