So is the bubble from a glut of gas which depresses prices and discourages investment or is fracking a myth that doesn't deliver? These are two different things, low gas prices, and presumably low oil prices some day, due to an oversupply don't sound all that bad. The article linked to regarding Chesapeake seems to indicate the latter;
"Chesapeake, the second-largest U.S. gas producer, lost as much as 60 percent of its market value in the past year as a glut-driven slump in gas prices squeezed the company’s cash flow and forced McClendon to accelerate the pace of asset sales."
Regarding the decline in production, it looks a lot like conventional oil production. Of course, all locations follow a different trend, but using the Barnett wells as an example, here's what the long term production looks like (http://seekingalpha.com/instablog/121744-mark-anthony/563001-a-mathematical-model-of-shale-gas-well-production-decline):
This looks a lot like conventional oil wells (http://www.bandrenergy.com/content/oil_patch_basics/lifecycle_of_well.html). Either you need to figure that conventional oil is not economical to recover or else whoever is bringing this up is ignorant or deceptive. This is why the major investment is in finding the fields and developing them, individual wells are pretty cheap and will be drilled throughout the life of the field. The nodding donkeys you may see usually produce a surprisingly low amount of oil, they just do so consistently and for a long time. People have still been able to make a buck drilling for oil in the past 100 years and will do so for a long time.
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Date: 9/7/13 04:57 (UTC)"Chesapeake, the second-largest U.S. gas producer, lost as much as 60 percent of its market value in the past year as a glut-driven slump in gas prices squeezed the company’s cash flow and forced McClendon to accelerate the pace of asset sales."
Regarding the decline in production, it looks a lot like conventional oil production. Of course, all locations follow a different trend, but using the Barnett wells as an example, here's what the long term production looks like (http://seekingalpha.com/instablog/121744-mark-anthony/563001-a-mathematical-model-of-shale-gas-well-production-decline):
This looks a lot like conventional oil wells (http://www.bandrenergy.com/content/oil_patch_basics/lifecycle_of_well.html). Either you need to figure that conventional oil is not economical to recover or else whoever is bringing this up is ignorant or deceptive. This is why the major investment is in finding the fields and developing them, individual wells are pretty cheap and will be drilled throughout the life of the field. The nodding donkeys you may see usually produce a surprisingly low amount of oil, they just do so consistently and for a long time. People have still been able to make a buck drilling for oil in the past 100 years and will do so for a long time.