Thursday, August 8, 2013

Stated purpose of Constitution Pipeline HIGHLY dubious

I've been studying the latest paper by David Hughes (Post Carbon Institute).

Found something very interesting, and it concerns our favorite Un-Constitution-al pipeline.

Q1: What is the STATED reason for the Constitution Pipeline?
A1: Lack of take-away capacity in NE PA.


Whoops! #1 -- According to David Hughes, the field declines so rapidly, they have to keep drilling MANY wells just to keep production flat.

Whoops #1a -- Even worse since they always drill the "sweet spot" first (highest yield), so newer wells don't perform as good. So they must ACCELERATE drilling the field just to keep production flat!

Q2: What is the REAL reason for the pipeline which we all suspect?

A2: To facilitate fracking in NY.

Here's how that works:

Whoops #2-- According to Jerry Action, there's no gas in NY.

So, they don't need to for NE PA.
The existing wells have already declined so fast they need 25 compressor stations just to keep the output pressure up.


And they don't need it to Frack NY.
There's no gas here.

So, tell me,
Why do we need this pipeline again?

What's clear if you listen to the Cabot conference calls to investors,
they are blowing smoke up Wall Street's backside about their reserve estimates and thus the future potential of the gas field in NE PA:

So check this:
In a typical Ponzi-like fashon,
  1. Cabot needs more Wall St. cash to service existing debt.
  2. They only way they can get more cash
    is to borrow more to KEEP ON DRILLING.
  3. (In fact, they only way they can keep production flat
    is to KEEP ON DRILLING!)
  4. They only way they can convince their investors
    to keep giving them cash, is to INFLATE RESERVE ESTIMATES.
  5. If you inflate reserve estimates, then you need more take-away capacity for the gas that's not really there.

Conclusion: There is NO REASON for the Constitution Pipeline.

Cabot-Williams-Peidmont-WGL is going to
  • leverage $700 million dollars
  • clear ~1,500 acres
  • and destroy ~500,000 trees
...  for a con job?

ANTI CLIMAX for Fracking?
Remember the ending of the 1952 movie War of the Worlds?
Just when the aliens were killing everyone in sight,
and it the fate of the human race seemed REAL BLEAK,
all of the aliens started dying, and suddenly the threat was gone?

Part of me thinks (and hopes) the Fracking Bubble
is going to crash and burn, just like that.

I AM NOT suggesting that you should take a nap!
KEEP FIGHTING as if I'm completely wrong.


May you, and all beings
be happy and free from suffering :)
-- ancient Buddhist Prayer (Metta)

No comments: