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MIT Energy Initiative has released an multidisciplinary study on the future of natural gas.

Some interesting findings (more or less):

- Unconventional natural gas, and particularly shale gas, will make an important contribution to future U.S. energy supply and CO2 emission-reduction efforts. <-- Assuming economic viability. No money, no business..

- Using a 2007 cost base, a substantial portion of the estimated shale resource base is economic at prices between $4/MMBtu and $8/MMBtu (US). <-- According to Talisman's investor presentation April 2011, Talisman focus on plays with potential <$4 full cycle break-even costs. Their break-even cost has dropped from $8 in 2008 to $3-4 in 2011. Not sure if the 2011 numbers indicate actual break-even or target..I don't think it would be reasonable to apply break-even of $3-4 to Quebec at this point in time anyway. When Quebec is up and running, the break-even of $3-4 could very well become reality. FYI, the Talisman shale portfolio in NA also includes Montney, Marcellus and Eagle Ford shale plays.

- With over 20,000 shale wells drilled in the last 10 years, the environmental record of shale gas development has for the most part been a good one — but it is important to recognize the inherent risks and the damage that can be caused by just one poor operation. <-- Awaiting regulation that will help reducing the potential risks. Politics, science and $$$ will move the Quebec/Utica shale forward.

- The outlook for gas over the next several decades is in general very favorable. In the electric generation sector, given the unproven and relatively high cost of other low-carbon generation alternatives, gas could well be the preferred alternative to coal. <-- Coal accounts for more than 20% of the US energy consumption. Great potential here in the long run.

- During the period 1991 to 2010, the oil/gas price ratio consistently exceeded 10, sometimes substantially, when the WTI price was above $80/barrel...Should these price ratios persist at high oil prices, the opportunities for opening up the transportation fuels market to natural gas would be enhanced. <-- Imagine cars fuelled by natural gas on a large scale. This would be huge. We have got to be very patient tough..lol..

http://web.mit.edu/mitei/research/studies/natural-gas-2011.shtml

GLTA