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Thursday, February 16, 2012

Drilling Slowdown Seen As Temporary

Natural Gas Industry ‘Dip’ Seen As Temporary

jimladleePotter County is experiencing a “temporary dip” in shale gas drilling, as are many other counties, but the long-range forecast calls for the industry to remain a major force for decades to come.

That was the theme of a comprehensive assessment delivered by Jim Ladlee at Tuesday’s meeting of the county’s Natural Gas Task Force. He addressed a wide variety of topics, while observing that a full analysis of any one of them could consume multiple hours.

“History has taught us over and over again that it would be foolish to make any firm predictions about what energy companies are going to do,” Ladlee said. “There are far too many factors at play to do that and conditions are always changing.” He added that, with the presence of quality shale gas confirmed in Potter County and the inevitability of gas consumption increasing in future years, companies will be active here.

Market forces (i.e., gas prices that have gone from $8.00 per MCF to about $2.50), a temporary oversupply of gas and the absence of pipeline distribution capacity have slowed drilling and production in Potter County. However, many industries are evolving to increase the consumption and distribution of gas — retrofitting coal-fired electricity generators to be fueled by gas, boosting gas exportation and building motor vehicles to be powered by natural gas, rather than gasoline.

Ladlee is director of initiatives at the Marcellus Shale Education and Training Center, executive director for Penn State Extension in Clinton County, and has recently joined the staff of Penn State’s Marcellus Center for Outreach and Research.

10 comments :

Jack said...

Yes, temporary until they drive prices back up where they think they should be to make a killing. Abundance of gas will never create cheap fuel for the end user...you. If the case was actually that they wanted to sell gas to "you" they would be out there putting infrastructure in your neighborhood..Nope, I have to heat with propane.

Jack (north hollow) said...

Plenty of large diameter pipe lines going in the ground to transport "our" gas to terminals for compression and shipment overseas where they can make big money from it. Nope, it's not coming to my neighborhood I'd venture to guess...although it's being taken from it...hmmm. Oh yeah, and that goes for downstate too. Not in my neighborhood.

Anonymous said...

Saw on the church channel on tv today that we are days from an all out war with Iran & expect to see gasoline at about $5.50/gal & sky-rocketing food prices by Spring.

I think we should keep our gas here.

Anonymous said...

There is tons and tons of oil underneith our feet in utica plate but they wont sallow us to drill here...instead we rely on foreign oil..

Anonymous said...

Keystone pipeline shut down! Now might go to china! Thank you Obama!

Anonymous said...

Keystone Pipeline was a prime example of liberal "government knows best" BIG BROTHER government. They wanted to steal away private property rights and blast through sensitive environmental area and the big fat energy companies bribed a lot of congressmen to push this big government anti-American liberal project. I am glad somebody stood up for individual rights and against the big know it all government.

Anonymous said...

Big government anti-american liberal project!Mr. Obama is that you?

Anonymous said...

Actually 9:17 President Obama was opposed to this big Government Knows Best project. Believe me, I am no fan of the guy but he got this one right when it came to trampling on people's private property rights and sensitive environmental areas. He took a stand for the people and their rights and against the powerful energy companies trying to get their own way over the people. The Tea Party should applaud Obama on this one if they're really against Big Government crushing individual rights.

Anonymous said...

Why do you confuse people with the facts?

Anonymous said...

Just as OPEC controls the price of gas for our vehicles by slowing production, Chesapeake and other major players are slowing the production of natural gas which creates an artificial shortage ... there-by raising the market price. The NG glut has kept the price too low for drilling & production companies to make the profit their investment levels demand. Look beyond the contents of personal wallets to the world-wide presence of investments in our shales. Profitablity is not a dirty word. It keeps large and small businesses IN BUSINESS. It makes the world go 'round.