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Record W2014978952 · doi:10.2118/0909-0018-jpt

Comments: Short-Term Pessimism for Gas

2009· article· en· W2014978952 on OpenAlexaboutno aff
John Donnelly

Bibliographic record

VenueJournal of Petroleum Technology · 2009
Typearticle
Languageen
FieldEnergy
TopicGlobal Energy and Sustainability Research
Canadian institutionsnot available
Fundersnot available
KeywordsFossil fuelDrillingChevron (anatomy)Natural gasShale gasUnconventional oilEconomicsEconomyOil shaleNatural resource economicsMarket economyEngineeringGeology

Abstract

fetched live from OpenAlex

Editor's column Chevron's decision last month to put its North American land-based natural gas drilling on hold highlights not only how tough things have become for drillers but also this year's divergence in oil and gas prices. Chevron cited poor demand and said it does not make sense to continue drilling and producing gas at depressed prices. Other operators and service companies also were pessimistic about the outlook for gas drilling for the rest of this year when announcing second quarter earnings. Gas prices in the US are at about a fourth of their value compared with a year ago. Oil prices have rebounded to half of their highs from last year, but the gas market finds itself hampered by new competing supplies from unconventionals, pipeline constraints, and built-in barriers to trade that oil does not face. In addition to poor demand caused by the recession, drillers are a victim of their own success. The growth of new unconventional gas-shale resources has created a significant oversupply that has helped beat down gas prices. Shale development has become prolific—at Barnett in Texas, Haynesville in Louisiana, and Marcellus in Pennsylvania, among others. Unconventional gas supplies seem to be gradually displacing conventional gas production in the US, a pattern that could be repeated in many parts of the world. Recently, energy companies in Europe have begun to turn more to unconventionals in light of maturing gas fields and concerns of dependence on Russian gas supplies. Finding and development costs for unconventional production have fallen, and technology advancements have greatly improved unconventional development prospects. Unconventional gas production has been growing sharply since 1990, even as conventional offshore and onshore gas output has declined. In addition, last year's high gas prices led to stepped up drilling, efforts paying off this year in increased production. Gas is not as tradable or as "moveable" as oil, which is part of the reason efforts to form a global gas cartel, similar to OPEC, have not gotten far. In the US, there is often a disconnect among new gas supplies, gas demand centers, and pipeline infrastructure or capacity. That makes gas prices regionalized, unlike oil, which limits trade that would naturally follow supply and demand signals. The increasing efficiency in gas-shale development and the exciting new prospects have encouraged some operators to continue drilling this year, including Chesapeake Energy and Anadarko. Early results from the Marcellus-shale development—it is estimated to contain 3 billion to 6 billion cubic feet of recoverable gas—have led Anadarko to believe that it could be a star in its onshore portfolio. The short-term outlook for gas prices is not good, despite what oil prices do. Gas-shale producers are likely to keep drilling. And new liquefied natural gas imports, not to mention new promising Canadian production such as Horn River, should only add pressure on gas.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.538
Threshold uncertainty score0.508

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0010.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0010.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.014
GPT teacher head0.304
Teacher spread0.290 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2009
Admission routes1
Has abstractyes

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