Gasland again

Who better than Peter Tertzakian to rebut Gasland with the real story of the week, the China/Encana deal:

Waiting for investment to dry up has been the part of the shale gas movie everyone in the natural gas business has been anticipating.

An announcement by EnCana last week confirms that the plot is taking on a different direction.

Putting pen to paper in a memorandum of understanding, EnCana and the China National Petroleum Company (CNPC) now have a framework for the two companies to negotiate a potential joint-venture investment in prolific unconventional gas regions of Northeastern British Columbia, specifically, plays in the Horn River, Greater Sierra and Cutbank Ridge areas.

And in his inimitable way, he tells us what the real story is about:

Relentless drilling at the current pace will continue to pressurize the continent with excess natural gas, to the point where Americans and Canadians will have natural gas coming out of every structural orifice, from kitchen faucets to manhole covers.

Something will have to give before that happens.

You know you have a real energy megatrend when someone makes a contrarian documentary with outrageous claims. Yet the story of natural gas using hydraulic fracturing is no longer just about new technology, aggressive drilling, environmental concern and production growth.

There is a broader plot here that will take the North American shale gas story through another twist or two: the influx of Asian capital followed by reciprocal exports of LNG to Asian markets.

Announcements by large natural gas producers over the past few weeks are like a movie trailer for what’s to come.

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