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April 06, 2012

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yogo

I hate to burst the bubble that you are trniyg to inflate Mark but the EIA has a terrible track record that is even worse than that of the IEA or BP Statistical Review. How does shale become a viable source of energy if prices stay low and break even costs run between $7.50 to $8.00 per Mcf? And what happens to productivity when the core areas that are now being exploited are past their peak? How do the marginal, low energy-density formations manage to produce enough gas to meet the EIA projections? I am sorry but these fools sound just like the Fed economists who told us that the housing industry was sound in 2006.

Brown Bess

Of course if they had reached the opposite conclusion, this story would be on the front page.

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