Economic Impact

Whenever we start reading a Bloomberg article about the Marcellus Shale, shale gas drilling in general, or fracking, we just know how skewed to the anti-drilling side of the ledger the story will be. So imagine our surprise when we read an article that actually reports (gasp!) the truth about the Marcellus Shale. Even though Bloomberg usually tells us the low price of natural gas can’t last, the whole shale gas thing is a house of cards waiting to collapse, drillers are trying to hoodwink investors, blah blah blah–this time even Bloomberg can’t ignore the fact that natural gas being piped into New York City is selling below the price of the benchmark Henry Hub in Louisiana–and likely will for years to come. Thanks to the Marcellus.

The Bloomberg article does a good job of giving the big picture with respect to gas prices and how drilling has become more efficient, how infrastructure (pipelines) are helping to get all that gas to market (abundance of supply equals lower prices), and predicting what’s coming next. At the end of the article is an obligatory few sentences from anti-drillers about how shale drilling will poison all of our water and make farms uninhabitable. Well, it is Bloomberg after all. But on balance, this is a good article and worth your time to read. The article begins this way…
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