The Popping of the Shale Gas Bubble

Lastly, the coming natural gas deliverability crisis and bursting of the shale gas bubble will take many by surprise since virtually the entire mainstream media has bought into the unsupported belief that America has decades of cheap natural gas just waiting to be exploited.  There will be much wailing and gnashing of teeth as many energy experts falsely claim that, similar to the housing crisis, ‘nobody could have seen this coming.’   This is simply not true.  There is a large and growing body of empirical evidence to support the notion that the importance of shale gas has been overstated and that today’s level of shale gas production is woefully unsustainable.   Unfortunately, in today’s nonlinear world, the bursting of the shale gas bubble will not lead to a gradual increase in prices, but rather a violent spike that will be very difficult to mitigate.  As we lurch closer to the inflection point where Marcellus production growth plateaus and can no longer make for declines in nearly every other field in America, everything will change.  Today’s complacency will be replaced by panic as natural gas prices reach shockingly high levels.  Don’t be caught off guard!  (Full Disclosure: The author holds no economic interest in any of the companies mentioned in this article.)

via The Popping of the Shale Gas Bubble.