At the Rate Natural Gas Production Is Falling Dallas Will Never Get its Parkland Fracked

Categories: Environment

Thumbnail image for FrackCover.jpg
Read: "A Moron's Guide to the Fracking of Dallas," by Anna Merlan
We can argue and cheat and take all the money we want based on all the secret side deals we can surreptitiously sign, but that doesn't mean anyone will want to frack us: That's the lesson from the latest numbers produced by state regulators, which show natural-gas production continuing its free fall in the first four months of 2013.

It's a matter of demand: While prices have inched up some, they're still too low to get energy companies fracking again, especially when the oil fields are calling. Statewide oil production ticked up in every month of 2013, the Dallas Business Journal reported, while natural gas production kept dipping, both in the Barnett Shale and elsewhere.

Eventually this should correct itself: The U.S. government is investing billions of dollars in exporting facilities, to help create global demand for our natural gas. Soon enough we'll be able to more easily send it to China so they can use it make more stuff us to buy.

Although eventually, researchers say, we'll be buying the gas from them, too:

In short, the eventual synchronization of supply and demand will serve to both moderate the demand for exports from the U.S., as well as put downward pressure on natural gas prices. In the same way that crude oil has become a global market, so will natural gas. This will come about as a direct result of new, significant natural gas discoveries and eventual production in Australia, East Africa and probably China -- perhaps other countries as well.
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12 comments
pak152
pak152

". Statewide oil production ticked up in every month of 2013," you make it sound like it barely moved up but checked this graph
http://www.aei-ideas.org/2013/07/more-on-the-spectacular-rise-in-texas-oil-production-maybe-the-most-remarkable-energy-success-stories-in-us-history/

"natural gas production kept dipping" which is it? dipping or falling? From the link above
"Activity in the Barnett, Haynesville and the dry gas window of the Eagle Ford has recently been slow due to low prices for natural gas. But make no mistake about it: the gas is still there in enormous quantities, and whenever the commodity price does move back up into a more healthy zone – which it inevitably will – we will see many more natural gas rigs come on line in Texas and elsewhere to begin tapping it once again."
from the Energy Information Agency
http://www.eia.gov/dnav/ng/ng_prod_sum_dcu_NUS_m.htm
Number of producing gas wells
http://www.eia.gov/dnav/ng/ng_prod_wells_s1_a.htm

Natural gas weekly update
http://www.eia.gov/naturalgas/weekly/ 

be sure and check out how much is in storage at the above link

and the closing paragraph from the WSJ article you linked to
"Over the long haul, market dynamics—which include the ability to export without undue uncertainty or restriction—will best manage global supply and demand curves for natural gas. Evidence strongly suggests that limiting exports will simply have the unintended effect of also limiting supply."

doclawson
doclawson

It's a matter of supply not demand. Back to ECON 101 for you.

holmantx
holmantx topcommenter

It's an asset in the ground.

Since TE paid for all the seismic studies, we now have a pretty good idea of the size of the recoverable gas fields.

From here it's just a matter of applying the net price per MCF to the royalty interest (the City's take).  

There will be a strike price one day that we should allow well completions.

Beats loading up the taxpayer with more tax revenue.

Montemalone
Montemalone topcommenter

I thought Parkland was already fracked.


Oh, you meant park land.

schermbeck
schermbeck

@holmantx Once you take into account all the industry "externals" that taxpayers end up being billed for, fracking for gas isn't profitable for hardly anyone except the lease flippers. And you have no idea how much recoverable gas, if any, is in the city limits of Dallas, even with TE's sloppy seismic studies.

mcdallas
mcdallas

@Montemalone Are you sure "fracked" is the exact word you'd use to describe Parkland?

holmantx
holmantx topcommenter

@schermbeck @holmantx 

kinda flies in the face of that which may very well save the nation, doesn't it?

I suggest you lose your abolitionist approach to energy production and adopt a utilitarian one.  

pak152
pak152

@schermbeck@holmantxand what are these "externals" you refer to? or are they like the boogieman in the closet?

"ven with TE's sloppy seismic studies." and in what way were they sloppy?

Montemalone
Montemalone topcommenter

@mcdallas @Montemalone I'm tryin' to watch my fuckin' language around here, bein' summer and all, might be some rug rats on here listenin'.

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