The Ebb and Flow of Shale Gas

Is the Boom Over?

Recently I was at a hearing in a rural town in southwestern Pennsylvania before a magistrate for a business dispute. After the hearing, the judge and I got to talking and it came up that I worked as a landman and for a Pittsburgh law firm in mineral title in the past year. His train of thought was clearly broken up by a burning question and he asked, "So, do you think it's over? Or is it ever coming back?" By "it" the judge was referring to the shale gas boom that has changed the face of the area around Pittsburgh and the surrounding states over the past 10 years. 

This is a question that, like many other aspects of the oil and gas industry, most of us northeasterners are not quite used to. I can't say how many confused looks I've gotten at the term landman in conversations with people in this area, but in any room with at least one Texas accent I've got at least one guaranteed easy conversation topic. Similarly, the people in this area just are not accustomed to industries coming, growing, busting, and then returning again. Again, if you spoke to anyone who has worked in the oil and gas industry for more than 20 years they'd be able to tell you about the boom and bust cycle that is expected in a volatile and internationally driven industry. These same people can likely tell you about the past slumps where companies consolidate and jobs are trimmed off companies large and small. However these past slumps and the current slump included, are based on the drop in oil prices and not the natural gas we have all come to know well in this region. The problem now is that the shale boom was so productive and efficient in not only producing gas, but in generating more effective technology to continue the process in the future. Now we have a glut of international oil supply without space to store it all domestically, and a glut of domestic natural gas supply here at home without the means of exporting it to keep the demand high. It's a truly tight spot to be in for those who work in the industry, and not exactly the best time for others to advocate alternative energies either with prices so low. It is however, a great time to regulate and dig in as far as the regulatory structure is concerned, to prepare for the next wave of activity to come crashing in. 

We are now in that portion of the cycle where companies consolidate power, invest in technology, and get ready for when the next price rise calls for their unique stance in the market. The industry boom generated the local money and new drilling technology that will be ready for the next boom in oil when companies have the wiggle room again to invest in gas output. Hopefully the excess money that was generated will allow for technology to continue progress in a clean energy future and not just on perpetuation of the current regime. Regardless of the form of progress, we should all still be looking ahead at an energy future where we can avoid the external costs of expected disaster and overuse all together. I think the initial boom is certainly over, but the industry is here and will be here for our lifetimes. Though it's a financially difficult time to be a part of the business, it's a perfect time to be a part of the effort to improve its performance internally and for the sake of the public good. 

What' This All About? I'll Tell You.

Welcome

With any project such as this I always find myself struggling to get the conversation moving, but once it is then it is quite easy to jump in and out without much self-reflection. In any professional field networking is an absolute key to success. Despite having been a teacher and gone through the public speaking training and experiences of an attorney, I still get that anxiety prior to any networking experience. All the worries in the world arise: What will I say? What if we run out of things to talk about? What if we disagree on something important? All very valid concerns, but each one must be left at the door if you want to step through and make a connection. Similarly, I'm leaving it all at the door so we can have a conversation about environmental issues, sustainability, law, policy. In this post I will just go over the basics of what we're going to discuss as this project progresses.

Mission

This blog is entitled Environment In Prospectus. A prospectus is defined by Merriam-Webster's as "a printed statement that describes something (such as a new business or investment) and that is sent to people who may want to be involved in it or invest in it; something (as a statement or situation) that forecasts the course or nature of something." This embodies the content of the discuss I hope to have with readers. The environment and the resources we all depend upon are aspects of this world that we all need, use, and must invest in to some degree in order for the continued success of humanity and the way of life we all want for ourselves. 

As the title may suggest a little overtly, there is not only an aspect to our view of the environment based in stewardship, but also a component based on our culture's innate drive to quantify everything into an economic value of inputs and outputs. I am nothing if not a pragmatic guy. Sure, I have passions and my own desire to see changes made to policies and laws. That being said, I understand the constraints on our actions. The social contract works both ways. 

What I intend to do here is to act as a filter so that we can discuss issues of importance in the United States and abroad related to the environment, ecology, and sustainable living policy and law. I'll do my best to tell what appears to be the truth and I won't hesitate to separate that very clearly from what my opinions are. Hopefully those who find an interest in what I put down here don't hesitate to jump in and join the dialogue; I have not interest in being a talking head. 

Though I come from a legal background, and that will be one of the main ways I attack these topics, I also come from a lower class background and from an education background. I'm used to boiling down topics into what matters most and stating them in a way that doesn't intentionally confuse, or use language that the average person just runs away from. A conversation only works if everyone is speaking the same language. I'll do my best to ensure that we all have a place at the table. 

Invitation

I'm now inviting all of you who come across my blog through facebook, twitter, through my law practice, or through the good ole wonder that is Google, to join the dialogue with me. Hopefully the writing you'll find here will be engaging or infuriating, depending on your stances. Regardless of where you stand though, let's talk about that which is of the utmost importance in this world of ours: Natural resources and how we use, conserve, abuse, and sustain them. 

Legal Disclaimer

The materials available in this blog and any sites associated with its content are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between Garrett E. Eisenhour, The Commerce Law Group, LLC, and the user or browser. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

Though I am an attorney, I'm not YOUR attorney. If you have any questions, comments, or interest in my practice or questions related to any potential legal claim feel free to email the author at geisenhour@thecommercelawgroup.com.