Sunday, September 25, 2011
Shell into shale oil and gas
"Tight oil" and "tight gas" has been the domain of independent drilling companies but the majors are now entering the market in a serious way. Shell plans to make a major push into shale oil and gas. Their current cost is about $2/ million BTU and the current price is $3.70. They expect gas to fall into the $4-$8 range, but assume that in the near-term it will stay near the low-end of their range.
With the major comes more capital, the oil and gas bubble in the US will not go away anytime soon with the money and effort flowing.