Monday, October 5, 2009

More From Haynesville Critic

Arthur Berman published a post this weekend (also an article in World Oil magazine) updating his thoughts on the economic potential of the Haynesville Shale. In the past, I've noted a couple of articles by Mr. Berman and a critical response to his work. The occasion for the most recent article was the Gulf Coast Association of Geological Societies meeting in Shreveport in late September that focused on the Haynesville Shale.

Mr. Berman's contention is that the steep decline rates lead to low estimated ultimate recoveries (EUR) and that the type curves projected by the producers are too optimistic. Ultimately, he contends, producers are overstating their reserves. That's a big no-no, as a few companies found out a few years ago. This position stands in direct opposition to the published reports by producers, which are sticking with their curves and EUR estimates (and of course their reserve estimates). Who is right? I'd love to know.

The post is filled with technical information that mostly is over my head, but it is still worth reading. It also includes brief summaries of some of the good technical presentatioins made at the recent symposium.

1 comment:

Anonymous said...

Mr Berman doesn't have access to the kind of data necessary to make an accurate conclusion regarding EUR.