The Rising Influence of Rising Affluence

[Democritus_of_Abdera]

Regarding Sutherlin’s misleading comments quoted in #msg-41175973 ...

OakesCS, thanks for the Schlumberger Shale Gas white paper link.... and the critique of Sutherlin’s comments...

Even though the white paper was authored in October 2005, I found the following quote to be particularly relevant to your critique .... and one that refutes Sutherlin’s statement that depletion rates of the new Shale plays are dramatically fast (18 months); i.e. the white paper states that

The most prolific shales are relatively flat, thick, and predictable, and the formations are so large that their wells will continue producing gas at a steady rate for decades.

.... Sutherlin might have been confusing shale gas with that from tight gas sands....

Albeit, it is no excuse, it should be noted that Sutherlin’s comments were in the question and answer period and not prepared remarks (i.e. hopefully, they do not represent what the experts at JOYG are presuming), but they do reflect badly upon the CEO’s attention to detail (something I will need to keep in mind as I have a substantial investment in JOYG).

I also found the following white paper quote useful with respect to my developing understanding of the natural gas industry

The price of gas is linked to oil and based on each fuel’s heating value. The ratio is about 6 to 1. In other words, 1 bbl of oil contains about 6 times more heat energy than 1,000 ft3 of gas. If a barrel of oil sells for USD 50.00, then 1,000 ft3 of gas is worth about USD 8.00