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Author Topic: Merry Christmas America! Terry Engelder’s Marcellus Shale Story!  (Read 315 times)

PaShaleAdvocate

  • Posts: 1145
Merry Christmas America! Terry Engelder’s Marcellus Shale Story!

Terry Engelder is one of the godfathers of the shale revolution, the guy who first realized its enormous potential. He tells his story in a “TED” talk from 2013.

http://naturalgasnow.org/merry-christmas-america-terry-engelders-marcellus-shale-story/

Wax

  • Posts: 5907
Terry Engelder’s Marcellus Shale Story!
Worked with industry, to hide potential value to Landowners.  (From a pubic Institution).  Told the world of the tremendous find after most of the sweet spots, were had for a pittance.  All, while his own personal gain skyrocket.
He was no Paul Revere " The Landman is coming " "Their gold in these hills"
Those who needed it the most, were taken. Legally.
IMO

Rockdale

  • Anties
  • Posts: 6015
Wax, I think the fairest statement of all would be that no one, public or private sector, profit or non-profit, got the story of the Appalachian Basin shale deposits right except perhaps Mr. Beardsley of Columbia Gas who spoke of the region as the most drilled but least explored region in the United States.  Every supposed authority on these matters undershot the amount of natural gas to be found by a wide margin.  The good part of that underestimate is that our country is now much better supplied by an energy source vital to its economy and at a price so low that no one considered possible a decade or more ago.  The bad part is that too many landowners, as you've indicated, didn't have a good idea as to just how valuable their properties were, and that too many participants in the industry were caught short when low prices triggered by excessive supply wrecked their calculations, especially as to how much they could afford to pay for transportation.

Wax

  • Posts: 5907
Wax, I think the fairest statement of all would be that no one, public or private sector, profit or non-profit, got the story of the Appalachian Basin shale deposits right except perhaps Mr. Beardsley of Columbia Gas who spoke of the region as the most drilled but least explored region in the United States.  Every supposed authority on these matters undershot the amount of natural gas to be found by a wide margin.  The good part of that underestimate is that our country is now much better supplied by an energy source vital to its economy and at a price so low that no one considered possible a decade or more ago.  The bad part is that too many landowners, as you've indicated, didn't have a good idea as to just how valuable their properties were, and that too many participants in the industry were caught short when low prices triggered by excessive supply wrecked their calculations, especially as to how much they could afford to pay for transportation.
how much they could afford to pay for transportation.
The problem is ! the royalty owners are paying for the transportation system. Some companies use, a "new math calculator ".
I do not understand ,  why the, "end user does not pay these charges". I am sure they pay, the companies portion "if any" of post production charges.

Rockdale

  • Anties
  • Posts: 6015

Wax, deliberately opaque lease language allowed many companies, and one in particular, to transfer the burden of excessive transportation charges on to the backs of the land owners with leases.  I expect it will take a combination of successful private lawsuits by land owners and legislation to correct that problem.  Which is also why I am not sure that the operating companies won't do the same thing if they have to pay a new set of taxes based on the value of natural gas.  The governor and legislators might promise that the cost won't fall on land owners receiving royalties but previous experience has shown that the operating companies know all the tricks in the book as to how to shift the burden.

 


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