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“I'm not rushing out to buy natural gas just because I don’t really know the answer yet. If I find it is a serious geological problem that we cannot solve any time soon, then I’ll probably buy more n..

08 Dec 2012

Commodity Online
Jim Rogers, the legendary commodity investor speculates that he may have a knowledge gap when it comes to shale gas but points out the fact that “ the number of drilling rigs for shale gas (in US) has gone down 75 percent in the last 18 months or so.”

The wells are generally short-lived, he said: “they're great for the first 30 days. But by year three or four, they're very expensive to maintain.”

Olivier Ludwig, Managing Editor IndexUniverse.com, in an interview was asking Jim Rogers about the ramping up of production in US natural gas front and inquired if there is “a realistic prospect that the United States will become a gas exporter?”'

Jim Rogers did not speculate if US would become an exporter of natural gas or not, but said:

“I'm not rushing out to buy natural gas just because I don’t really know the answer yet. If I find it is a serious geological problem that we cannot solve any time soon, then I’ll probably buy more natural gas” he said. “But at the moment, I'm just watching.” he revealed.

If shale gas production is dwindling due to technological issues, he believes that human ingenuity could solve the issue, but if it is a geological issue “and it cannot be solved, then the gas boom is not quite what we all thought it might be. And I’m told the same applies to the shale oil wells.” he elaborated.

“If mankind can solve the problem, then sure, that’s going to be a great boon for the world. There's a lot of shale gas and shale oil in the world. A lot of countries have it, it turns out...” Jim Rogers added.


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