---
title: "Shale Unbelief"
url: https://independentstockanalysis.com/shale-unbelief/
description: "Oil Near Two-Week High on U.S. Supplies; Brent Rises Above $110 at Bloomberg . “But Helms emphasized that oil production in the Bakken is consistently…"
published: 2012-08-07
updated: 2012-08-07
---

# Shale Unbelief

Published 2012-08-07

Posted on

by

J.J. Butler

Oil Near Two-Week High on U.S. Supplies; Brent Rises Above $110 at [Bloomberg](http://www.bloomberg.com/news/2012-08-07/oil-trades-near-two-week-high-on-forecasts-u-s-supplies-dropped.html).

“But Helms emphasized that oil production in the Bakken is consistently increasing by 15,000 to 20,000 b/d every month, and that thousands of additional wells will be drilled there in the coming years.” [Platts](http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/3246174)

Raymond James Energy Stat of the Week: “this oversupply simply shifting from the Mid-Continent to the Gulf Coast.” [Raymond James](http://www.raymondjames.com/Branches/c2c/7ho/Whittakercooper/resource.asp?page=energy_stat.htm)

“Eagle Ford crude production is close to 600 Mb/d as of July 2012…Takeaway projects being developed today to go online by 2013 have capacity for 1,650 Mb/d…” These numbers will receive push-back, of course, as they are not months old and government issued. [RBN Energy](http://www.rbnenergy.com/knocking-on-heavens-door%E2%80%93the-eagle-ford-crude-story-part-III)

The media has been having a field day with Ohio Gov. John Kasich’s claim that a single energy company could recover $1 trillion worth of oil and gas from the state’s shale. Interestingly, the only ‘expert’ to disagree is Arthur Berman, who last I knew was in denial the natural gas market continues to be oversupplied by 10% or so. Oops. [Washington Post](http://www.washingtonpost.com/business/geologists-governors-claim-of-1-trillion-worth-of-oil-gas-in-ohio-shale-uses-faulty-math/2012/08/02/gJQArCM0RX_story.html) and [Huffington Post](http://www.huffingtonpost.com/2012/08/02/john-kasich-shale_n_1734388.html). Shhh..don’t tell them the Marcellus is a monster: [John Hanger](http://johnhanger.blogspot.co.uk/2012/08/the-marcellus-becomes-top-gas-producing.html). Or that the natural gas oversupply continues while the Haynesville rig count has collapsed: [Haynesville Play](http://www.haynesvilleplay.com/2012/08/haynesville-shale-rig-count-1-to-26.html).

An extensive piece on global gas dynamics for the next decade at [Forbes](http://www.forbes.com/sites/matthewhulbert/2012/08/05/why-america-can-make-or-break-a-new-global-gas-world/).

Chesapeake reported second quarter results. Three things stand out: 1) CHK’s asset base is monstrous. 2) They are pretty good at drilling NG wells and 3) CHK still needs to crack the horizontal shale oil code. [CHK](http://www.chk.com/News/Articles/Pages/1722883.aspx)