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Poland Fracking: Shale Gas Production May Begin In 2014
WARSAW, Poland (AP) — Poland's treasury minister said Thursday that the country may start producing shale gas for commercial use in 2014, a move that should help the country limit its reliance on neighboring Russia for a large chunk of its energy needs. Mikolaj Budzanowski said that commercial production of up to 1 billion cubic meters per year could start in late 2014. He said the deposits could be up to 2 trillion cubic meters, enough to add to Poland's energy mix for decades. Poland is seeking to diversify its energy sources to cut dependence on Russian imports and its shale gas deposits are a major element in the plan.Poland Shale: Marathon says Oil!
Some people, intrinsically, and arithmetically, unable to do a risk analysis, are sure to pitch into the DECC consultation on fracking by saying any earthquake risk at all is a risk too far. Other people, in New Zealand for example, have a deeper sense of perpsective: A UK study into hydraulic fracturing offers New Zealand "some reassurance" the process causes only very small, normal-range earthquakes, a GNS scientist says. "We get about 150,000 earthquakes in New Zealand every year that are magnitude 2.3 and above, so that's about 50 a day and most people just don't feel them. That level of seismicity in New Zealand is normal."
Figure 2. Stephen Holdritch's resource triangle for natural gas Shale gas is very low on the resource triangle for natural gas, at least according to Stephen Holditch , in a paper authored under the Distinguished Author Series of the Society of Petroleum Engineers. It has even lower permeability (measured in millidarcies or md) than tight gas or coal bed methane. It seems to me that in the United States we are, or will soon be, reaching a different kind of squeeze at the bottom of the triangle for natural gas–the squeeze of too low prices for shale gas producers to be profitable. If, somehow, natural gas prices do manage to rise sufficiently for the majority of shale gas producers to be profitable, the higher prices are likely to add to the oil’s high price squeeze on the economy that I noted in my earlier post .
The Oil Drum | Natural Gas: The Squeeze at the Bottom of the Resource Triangle
As we wait for Europe’s big weekend to unfold, here is an interesting thought, as generated by back and forth comments on recent pieces. In The Eurozone’s Wacky Plan , we noted the latest hail Mary hope of a “non-default default” — a way to roll over Greece without triggering a credit event, with attending invalidation (or temporary bypass) of CDS insurance payouts. We also noted how this could be very bad news for European holders of CDS insurance (the guys who bought as a legit exposure hedge), as their PIIG debt would be de facto compromised by a non-default default, but their hedges left worthless. “Why have European and American financial institutions behaved so differently when it comes to the PIGs? Specifically, why have American firms been so willing to sell default insurance to the Europeans , though they have not bought much PIG debt?
Mercenary Trader » American Banks vs. European Banks: A Fun Little Conspiracy Theory
The latest study of the impact of the Marcellus shale formation on the economy of Pennsylvania continues the theme of prior reports by concluding that "…the development of the Pennsylvania Marcellus increased domestic energy production, creates jobs, and reduces government deficits." Earlier in its report, titled "The Pennsylvania Marcellus Natural Gas Industry: Status, Economic Impacts and Future Potential," the authors made the determination that if natural gas prices do not fall significantly in the future, "Marcellus economic activity could support over 250,000 jobs and generate $2 billion in annual state and local tax revenues." In a state beset by financial difficulties from a weak economy and lucrative state and local worker pension benefits, the prospect of a pot of $2 billion in new revenues has to be viewed positively.
Musing: Marcellus Impact Study Rests on Some Shaky Assumptions
Question about the New York Times
There's another couple of pieces by Ian Urbina in the New York Times. This is the guy last seen noting that there's a lot of radioactivity in some of the wastewater from shale gas drilling/fracking. The new pieces report on a lot of internal skepticism at energy companies and regulators, respectively, about the economics of shale gas: But the gas may not be as easy and cheap to extract from shale formations deep underground as the companies are saying, according to hundreds of industry e-mails and internal documents and an analysis of data from thousands of wells. In the e-mails, energy executives, industry lawyers, state geologists and market analysts voice skepticism about lofty forecasts and question whether companies are intentionally, and even illegally, overstating the productivity of their wells and the size of their reserves.Liquid gas is set to emerge from a supply glut | 27 October 2010 | www.commodityonline.com
Last Updated : 27 October 2010 at 13:40 IST Commodity Online The global LNG market remains broadly oversupplied. The global LNG market has been hit from all sides.
Exporting shale gas could keep US producers in business | FT Energy Source | FT.com
The shale boom keeps getting better and better. A new report by PFC Energy, the consultancy, shows that the already generous estimates of production from the huge gas field known as the Marcellus Shale were not big enough. Apparently a Pennsylvania law kept well data closed for five years up to August. Now that the data is out, the results, PFC says, are startling. As of August 1 st , the Pennsylvania Department of Environmental Protection (DEP) required that Operators submit the 12 month production records for the dates beginning July 2009 and ending June 2010.
The Cost of Energy » Blog Archive » Doc alert: Shale Gas, Hype and Reality
The ‘shale gas revolution’ – responsible for a 20-fold increase in unconventional gas production in the US over the last decade – is creating huge investor uncertainties for international gas markets and renewables and could result in serious gas shortages in 10 years time, says the report: The ‘Shale Gas Revolution’: Hype and Reality. The report casts serious doubt over industry confidence in the ‘revolution’, questioning whether it can spread beyond the US, or indeed be maintained within it, as environmental concerns, high depletion rates and the fear that US circumstances may be impossible to replicate elsewhere, come to the fore. If the revolution continues in the US and extends to the rest of the world, energy consumers can anticipate a future dominated by cheap gas. However, if the current hype about shale gas proves an illusion, the world will face serious gas shortages, as investment in future supplies are hit by the current uncertainty.
Vexed By Natural Gas | Gregor.us
United States natural gas production in 2010, with just one month of data still due for delivery, is set to nearly match the all time highs last seen in the early 1970′s. By averaging 1,871,272.5 million cubic feet per month through November of last year, total US NG production is slated to reach 22,455,270 million cubic feet in 2010. You can compare this figure with the all time high levels seen in 1971, 1972, and 1973 in the figure below. We are getting close. | see: Annual US Natural Gas: Marketed Production 1900-2009 . There are a number of intriguing issues to discuss here.
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Technological advances have allowed companies to exploit natural gas deposits that were previously off-limits. In this article, we look at the massive potential being unlocked and the wider ramifications for the energy and power sectors. Strictly speaking, unconventional gas resources are defined as those trapped in areas were the permeability of the surrounding rock is too low to permit standard drilling techniques. As a result, specialised methods such as fracturing the basin, using a combination of high pressure water and sand, must be used to obtain commercially useful quantities of gas. Developing the necessary expertise has proven to be extremely challenging and it is only recently, thanks to massive investment by E&P companies that such resources can now be exploited. There are four main types of unconventional gas resources: tight gas, coal bed methane (CBM), shale gas, and gas hydrates.
The rise of unconventional gas | Industrial Fuels and Power
Shale Gas: Not a 'Game Changer' After All
My latest column on Scitizen entitled " Shale Gas: Not a 'Game Changer' After All " has now been posted. Here is the teaser: Newly accessible natural gas from deep shale deposits around the world has been touted as a solution to everything from oil dependence to climate change. But our actual experience with shale gas extraction is telling another story. Read more.The New Truth About Natural Gas Could Shock the Market -- Seekin
Investor sentiment is changing – to the positive – on natural gas. Despite record or near record injection levels into storage in the US most weeks, gas prices have remained steady or even risen. The number of drill rigs actively drilling for gas has barely budged, though it has been down in the US three of the last four weeks. But the market believes slightly increased demand and slightly lower rig counts is enough to move the natural gas price in the US up between 10-15% in the last week.Got an energy problem? Natural gas is the answer- unless you're in the coal, nuclear, alternative energy, or railroad industries. If you're in one of those industries, natural gas is very much the problem. First the facts: Widespread use of horizontal drilling and hydraulic fracturing technology has resulted in a lower wellhead price for natural gas in 2009 than in any year since 2002 - even though annual usage was near an all-time high in 2009 .
Why Natural Gas Disrupts the Energy Industry - Seeking Alpha
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