How I Learned to Stop Worrying and Love Fracking

Critics of hydraulic fracturing say economic and energy security shouldn’t come at the expense of the environment. The controversial practice, dubbed fracking, has become the cause du jour in advocacy circles. A report from Colorado-based IHS, however, finds the oil and natural gas boom in the United States is starting to bring benefits to American families.

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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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