Shale gas: saviour of the US economy?

Earlier this week, a very important article/study was reported on by Reuters. The original press release from the University of Texas is here.

I have been sceptical that shale gas is the panacea it’s been touted as. My concern was whether the CAPEX required for drilling and fracking was economically justifiable, given the rapid decline rate of shale wells. Whilst such wells produce strongly initially, they decline rapidly, so are only economic if the CAPEX is quickly repaid from production.

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