Study: U.S. Natural Gas Boom Has Weakened Foreign Influence on Energy Markets | The Pelican Post. Energy & Environment, Featured, Pelican Site Featured — By Robert Ross on August 4, 2011 5:30 am Shale drilling is creating jobs, slashing natural gas prices and spurring billions in investment for Louisiana NEW ORLEANS, La. - The American natural gas boom will cause the U.S. to dethrone Russia as the world’s leading supplier of natural gas, and will continue to bring jobs to Louisiana, according to a new study.
The Baker Institute for Public Policy at Rice University study, titled “Shale Gas and U.S. National Security,” claims that Russia’s share of western Europe’s gas market will fall from 27 percent in 2009 to 13 percent by 2040 as a result of rising U.S. shale-gas production, specifically from increased activity at the Haynesville Shale in Louisiana and the Marcellus Shale in Pennsylvania, creating an opportunity for the U.S. to increase exports of natural gas to European and Asian markets. The reason Dow chose Louisiana? The study, sponsored by the U.S. U.S. Shale speeds up.
Freaked out by fracking - Jan 17. Shale gas: a provisional assessment of climate change and environmental impacts (report) Dr. Ruth Wood, Dr. Paul Gilbert, Maria Sharmina, Professor Kevin Anderson, Anthony Footitt, Dr Steven Glynn, Fiona Nicholls, The Tyndall Centre, University of Manchester This report, commissioned by The Co-operative, provides a provisional review and assessment of the risks and benefits of shale gas development, with the aim of informing The Co-operative’s position on this ‘unconventional’ fuel source.
The analysis within the report addresses two specific issues associated with the extraction and combustion of shale gas. Firstly, it outlines potential UK and global greenhouse gas (GHG) emissions arising from a range of scenarios building on current predictions of shale gas resources. ...There is little to suggest that shale gas will play a key role as a transition fuel in the move to a low carbon economy. Exploiting shale gas within the UK is likely to give rise to a range of additional challenges. Shale boom leaves industry considering US gas exports | FT Energ. When the US independents (oil and gas producers without refining operations) began growing US natural gas production, nobody thought they would flood the market. But in recent years, new technology and expertise has grown production to the extent that the industry has worried in recent months that there would be no more room to store it in the US.
Indeed, companies have started to contemplate exporting natural gas from the US. This is an about-face from expectations of even a few years ago. In 2003, Alan Greenspan, then chairman of the Federal Reserve, noted the alarming rise in natural gas prices in the face of growing US demand and decreasing access to US supplies. That led to a concerted drive to build LNG facilities. But that is not the way it turned out. Indeed, production has grown to such an extent that the major oil companies, which once focused their efforts internationally, are moving back into the US. I consider the Haynesville one of our core areas. Related links: Terry Engelder on shale gas: The good, the bad and the decline curves | FT Energy Source | FT.com. How safe are the shale gas wells that are springing up around parts of the United States? And how well will they pay off for the increasingly large investments that are going into them? Late last month I spoke to Terry Engelder, professor of geosciences at Pennsylvania State University and an expert in shale formations about these rather controversial aspects of shale gas, and more.
As with many topics in the energy world, shale gas elicits rather polarised opinions. There are those who say it will neatly reduce emissions and solve energy security problems in one fell swoop. Others believe that some issues around pollution and yield have not yet been resolved. We felt that Engelder would provide a more nuanced view across all these issues. While he is a big believer in the benefits of shale gas, he doesn’t work for the industry and has been critical of both shale gas supporters and detractors for claims made over safety.
Here are a few excerpts; the full interview is below. On pollution: 'Fracing' dominates ExxonMobil-XTO merger hearing - Oi. Abundant shale gas reserves found in U.S : EIA | 18 December 2010 | www.commodityonline.com. New information gleaned from drilling activity in the United States reveals shale gas reserves are about twice as abundant as previously thought, the EIA said. 18 Dec 2010 WASHINGTON (Commodity Online): New information gleaned from drilling activity in the United States reveals shale gas reserves are about twice as abundant as previously thought, the EIA said. The U.S. Energy Information Agency said in its 2011 outlook that it projects technically recoverable unproven shale gas reserves sit at 827 trillion cubic feet, 474 trillion cf larger than the previous year's outlook. Shale deposits are considered an emerging energy resource for the United States. T. Boone Pickens, a Texas oil magnate, said abundant gas reserves in the United States made the country the "Saudi Arabia of natural gas.
" U.S. consumers by 2035 are projected to rely on imports to meet 18 percent of their energy demands compared with 24 percent in 2009, the EIA said. America's Natural Gas Revolution. The Quiet Energy Revolution. The 20th century was the century of oil. Wars were fought over it, and the outcomes of the century’s biggest conflicts hinged on the stuff. In World War I, for instance, Churchill’s conversion of the British Navy to oil gave the crown’s ships supremacy over German vessels. In World War II, when the Nazis and Japanese each failed to secure supplies of oil, they were doomed. Later, President Ronald Reagan, CIA Director William Casey, and America’s Middle Eastern partners manipulated global oil production to bankrupt the Soviet Union and win the Cold War.
In the first half of the century, oil policy served as the catalyst for military victory. All hail oil! Suddenly, the mammoth shale formations in Texas, Pennsylvania, Ohio, New York, North Dakota, and elsewhere have the potential to produce abundant amounts of gas for decades to come. Two monumental shifts in the world of energy are underway right now: one technological, the other financial. How significant are these developments? Shale Gas—Abundance or Mirage? Why The Marcellus Shale Will Disappoint Expectations. Shale Company Cost, Debt and Undeveloped Reserves Shale gas operators have consistently told investors that their projects are profitable at sub-$5/Mcf (thousand cubic feet) natural gas prices.
Yet company 10-K SEC filings show that this is untrue. They have invented a new calculus of partial-cycle economics that excludes major capital draws for land costs, interest expense and overhead. They justify these disclosure practices because excluded costs are either sunk or fixed and, therefore, supposedly should not affect their decisions to drill. Their point-forward plans are made at shareholder expense since the dollars spent were very real at the time, and their costs cannot be charged to a profit center other than the wells that they drill and produce. A multi-year evaluation of production costs for ten shale operators indicates a $7.00/Mcf average break-even cost for shale gas plays in the U.S. taking hedging into account (Figure 1).
One Hundred Years of Natural Gas? The Traveling Circus. Estimating the Breakeven Costs of Shale Gas - It seems official when you turn on the television or pick up the paper, everyone is singing a chorus that natural gas is “set to explode”. Many look at gas purely as an asset that has underperformed in an environment where commodities have soared. The problem is this; the majority of those making these claims do not understand this commodity at all.
There is a reason that natural gas has underperformed and continues to do so, contrary to what popular opinion you hear otherwise, the market is always right. In doing research on the internet, I find so many articles about how the current price environment is below breakeven costs for many of the new unconventional plays. The problem I find is the estimates are all old, and based on expectations that are far outdated as we have learned best practices on how to drill and produce these plays. So I am going to update these expected breakevens with what we know at this point. There is a perception that natural gas is too cheap. . (189 followers)