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America’s Jaw-Dropping Shale Gas Boom Is Starting To Slow Down

By on July 1, 2012

Everyone’s raving about the American shale gas revolution, which could make the country the next Saudi Arabia of energy.

Indeed, the growth rate in shale gas production has gone geometric.

However, things are showing signs of slowing down.

Credit Suisse’s Oil & Gas Exploration & Production research team led by Arun Jayaram is out with a note titled 10 Observations About Natural Gas.  Here’s their second observation:

2. Production from unconventional plays is starting to soften. Exhibit 1 illustrates the jaw dropping increase in natural gas production from unconventional dry gas plays. After taking many years to reach 5 Bcf/d of production, the industry added 5 Bcf/d in a two year stretch between 2008 and 2010, which took overall production to 10 Bcf/d. In the past two years, the industry has nearly doubled production to ~20 Bcf/d or 27% of supply. Recent data suggests that this trend is finally beginning to ease given sharp reductions in drilling activity in the Barnett, Haynesville, Fayetteville, and Woodford Shale plays, which should mute further gains in the Marcellus Shale.

shale boom

…decelerating…

shale boom

…decelerating.

shale boom

SEE ALSO: This One Sobering Fact About The Energy Revolution Should Be On Everyone’s Minds >

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