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OGFJ_04_08_09_Don Warlick

Wed, 22 Apr 2009|

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Transcript

Hello and welcome to. The GSA CB. I'm not sellers that you're going -- With -- day is done more like from one of international. Does present employees international actually. Business consultancy -- the global -- space. Established in 1977. And serving clients and he. Energy and answer all those services pro -- The premise -- was a series of strategic energy -- in cooperation with this journal and -- Actually they're releasing them in North America and it's hard -- for -- -- and I. 175 page electronic document that is very comprehensive report on 21. US and Canadian and congressional gases. -- was previously -- -- -- company PepsiCo and Williams in marketing and corporate develop us. Yes yes and MS degrees in engineering there's -- -- -- -- we talk about unconventional gas what we me. We're. Without being over -- there's. It Andy. Businesses. -- conventional way. Hit it -- crash scenarios where you really. Perhaps track -- -- or in some cases world. But unconventional. Plays or continuous good example would be -- -- things. -- ratio. Goes across well. -- -- -- If -- recessions in North America. Where -- the leading I think there's a place. There's. Three times. Unconventional. Gas plays there's gas shales which. It's. They're about fifteen. Or -- about when you want gas shale basins. Across North America. -- second and probably just as borders Afghanistan was. They're fifteen plus. Yes. Bases in the US. -- six. Third is pulled it. Which. Please he's. On. -- They're about forty -- fifty Kobe I think nations -- the US. -- -- -- -- -- -- -- -- Specifically in the United States. What role does an initial gas. It's becoming a real important going to be us. Today. Unconventional yes I'm talking about. Commitment and he -- shale gas supply. Rather. They're 40%. US production and I'm talking about wireless. Set aside Canadian and worse and -- she. That -- 60%. Production in North America is conventional. What's happening is over there for your records say -- -- -- Unconventional gas production. Is increasing seven to 10% while. Conventional gas due largely due to client security are increasing anywhere from twelve news. -- you. You know we're we're gonna -- -- economic downturn right now. What it would be drivers today. What's going maintenance. Well most obvious is that is the price natural gas price of everything -- yes. Yes business. I -- this morning Nvidia. Period but yes. Trading yesterday closed about three dollars. And five cents a year ago -- my dollars. So we've gone from. Nine dollars and panacea to three dollars. Sense that explains. This downturn so this. Besides that. Patient you know. Huge driver. Very very cost effective. -- -- Adaptation of natural gas and there's been a big deal especially. Aimed at. Production. Chris. Electric power generation. What specific. -- -- -- -- Prayer for his most important would be of course all really completion. Mentioned earlier that. The nature -- unconventional gas blazes. Anyway so it's perfect. We'll go vertical case that down. They can. The later turned and -- no matter. For example in the whispered -- in southern Oklahoma. There's really collateral rules -- -- little girls -- 1005. That's been almost a mile salute you infect a huge. Significant exposure -- -- wars. Yes this. -- second one would be. -- -- -- -- become much more cost effective technologically. Financially well there would be probably be used micro seismic technology. Which helps. The service companies how great these are growing -- And probably the last week would be especially for caching -- that characterize. Manufacturing -- Why not that we gave -- replicate this thing right program over and over and over its its. -- most important thing. Please tell us Jose division yes there. But the US and Canada in comparison. The last I looked. It. But you just. Forty -- -- groups. Canada just passing 41 person. Our estimates or. Drilling indeed. Unconventional. Plays cash. I guess -- tells us. They're down only about 20%. The reason this. A long term objective. So 20% versus forty there's 40% down versus 40% down. If you go to -- Outstanding. Unconventional gas -- The most successful today. To come to mind. The first is fabulous people -- which is located in north Louisiana. The rate -- return they're getting down or even. -- -- -- Probably what it. So. But more importantly we're forecasting. This year that. Wells drilled via this again. Unbelievable footage this. The second one -- consequence. That stands out as you Marcellus Shale. -- Pennsylvania they're gonna be -- 3040%. Increases -- wells drilled. Range resources -- player Marsalis. Five dollar yes. Economic model. That temperatures Williams. 46%. Greater. Or. Those two real standouts. And -- -- Extends over bigger area this sense. It is we're talking to ourselves and across. We -- West Virginia. And Ohio. What can we expect. Couple things. Media if he developers. Playing these. This up. It's. So long term -- -- this will get assets under. Yes. Person. I believe you know. This year. That -- best for this press. Six. My own boxes -- -- somewhere in between -- the economics. Especially when you pull down in pre race. Rational. Pressure pumping. Yeah actually. The other thing is managing expectations this little -- Players and -- so close. Story. But one about expectations. This story if you can believe. -- comes into. Are -- one letter -- vision. This is that. He sits across the bartender hours and he agrees it's all about this issue. -- The bartender. Expressionless. Looks at him he lives as well. This much fun here well. We have. 2009 is there. Hello Don thank you very has been where -- We have important work.

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