Could Shale Be the next Bursting Bubble, CEO Says Yes
12 01 2012Overseas interest in U.S. shale deposits have been on the rise over the last few months. But what about looking at home? Some CEO’s, like Aubrey McClendon of Chesapekae, believe that “they will have a hard time over there at the end of the day,” What this essentially means is that the U.S. possesses what is arguably the largest and most volatile stock of shale natural gasses on the planet and most of the available land under which it rests has already been snatched up for harvest by drilling operations. To successfully develop a shale gas basin a company needs infrastructure such as processing facilities, indigenous demand for gas and favorable commercial terms. Without those factors, many basins around the world are eliminated right away, the executive said. energy law prevents over harvesting of the shale from completely depleting the resource entirely, however, with only a limited supply, demand has gone through the roof resulting in a new “arms race” that is poised to be the next bursting bubble if not handled properly. Similar to other markets that have found themselves oversaturated and abused before finally giving out, the harvesting of Shale has grown nearly ten times in the last 5 years and must be handled with care.
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