Tight Gas Formation
Also know as unconventional gas formations, these formations are situated in sand, coal or shale and are too dense or "tight" to allow gas to flow freely to the well bore. Specialized fracturing techniques are used to release the gas by cracking the sand, coal or shale with high water pressure and sand.
Yesterday we discussed the shale revolution. (View the post: Why the shale revolution will make oil price shocks a thing of the past.) The production of natural gas and oil from shale is rising rapidly in North America. This angers some environmentalists, even as it creates jobs and tax revenues at a time of economic uncertainty. More than that, oil …read more »
Because of today’s high government debt, high joblessness and high deficit spending, many people expect we’ll have to suffer through rising taxes and weak economic growth for the next decade. This belief makes sense, but only if you disregard recent developments in energy.
Before the start of the financial crisis, pessimists used to look on spikes in oil prices as …read more »
ENERPLUS RESOURCES FUND, $43.76 (Toronto symbol ERT.UN; SI Rating: Speculative) is one of North America’s largest oil and gas trusts.
In the three months ended June 30, 2008, Enerplus’ revenues rose 91.2%, to $741.5 million from $387.9 million. Cash flow per unit rose 52.2%, to $2.42 from $1.59. The rise in revenue and cash flow came largely from increased production and …read more »
CHESAPEAKE ENERGY $56.67 (New York symbol CHK; SI Rating: Extra risk) (405-848-8000; www.chkenergy.com; Shares outstanding: 573.7 million; Market cap: $32.5 billion) is a major U.S. producer of natural gas and an active driller of oil and gas wells.
The company’s primary operating area is the Mid- Continent region of the U.S., which includes Oklahoma, Arkansas, Kansas and the Texas Panhandle. It’s …read more »
We continue to like the prospects for oil and gas stocks — and the recent pullback in share prices makes them attractive right now.
It’s uncertain if oil and gas prices will drop further in the short term, or move back up. Either way, prices will likely remain way above long-term averages. We think the best way to cut risk in …read more »
CHESAPEAKE ENERGY $51.03 (New York symbol CHK; SI Rating: Extra risk) (405-848- 8000; www.chkenergy.com; Shares outstanding: 534.1 million; Market cap: $27.3 billion) has announced a major unconventional gas discovery in the Haynesville shale region of Louisiana.
Unconventional or tight gas formations situated in sand, coal or shale are too dense or “tight” to allow gas to flow freely to the well …read more »
