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EnvestorFirst (44.29)

Shell Shifts Towards Shale

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July 20, 2011 – Comments (2) | RELATED TICKERS: RDS-A

Can you say shale boom? Everyone is getting in on it, and some companies are dishing out the big bucks to acquire land in these shale play areas. Shell is following suit and pursuing their own interests in the shale plays. Paul Ausick has put together the details of Shells move towards shale natural gas.

 

" The project included production in the Mackenzie River Delta on Canada’s Arctic coast and a 1,200-kilometer long pipeline along the Mackenzie River Valley to a connection point on the border between the Northwest Territories and Alberta. Up to 1.2 billion cubic feet/day would have been pumped through the pipeline.

 But that was then. Now, the enormous, and much easier to extract, shale gas plays in the US have driven the cost of natural gas to below $5/thousand cubic feet, making the construction of the Mackenzie Project simply uneconomic. Add to that the blizzard of lawsuits from environmental and aboriginal groups, and expectations evaporated that this project would be up and running any time soon." 

 

Find additional research here:  http://turnkeyoil.com/2011/07/20/shell-shifting-towards-shale/

2 Comments – Post Your Own

#1) On July 20, 2011 at 12:54 PM, dwot (66.68) wrote:

There's tons of shale gas in the southern parts of the NT and in northern BC, and there has been huge expansion of pipelines in these regions and there continues to be enormous work happening in those areas.  They are building a frac sand mine about 15-20 km from where I live.

We have the businesses involved in this industry visit our school fairly regularly and when I was chatting with one of the people he was saying they can make money at $4/thousand cubic feet so they are quite thrilled with the current price.

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#2) On July 20, 2011 at 1:57 PM, EnvestorFirst (44.29) wrote:

I would be pretty thrilled too. Shale is going crazy all across North America, it seems. These pipelines could have big impacts oh the industry, and I am interested to see how it all pans out. Thanks for the additional info.

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