Archive for the ‘Shale’ Category

America’s Oil Boom Overwhelms Global Production Decline

Breitbart

The United States, sometime in the first quarter of 2014, passed Saudi Arabia to become the world’s largest producer of petroleum liquids, with daily output exceeding eleven million barrels per day (bpd), according to the International Energy Agency. Growth from January 2011 to July 2014 included three million bpd of crude oil and another one million bpd of hydrocarbon gas liquids and biofuels. U.S. crude oil production growth more than offset the 2.8 million bpd of global “unplanned supply disruptions” associated with the “Arab Spring.”

Global “unplanned supply disruptions” averaged 3.2 million bpd during the first seven months of 2014 and peaked at 3.5 million bpd in May. The recent supply disruptions are the highest since the 1990-to-1991 Iraq/Kuwait War, when supply disruptions peaked at 4.3 million bpd according to the International Energy Agency data.

However, over the last thirteen months, from July 2013 to July 2014, the international standard price of crude oil, referred to as “Brent Crude,” stabilized in a narrow $5 per barrel range between $107 and $112 per barrel due to booming U.S. production. This compares to the $21 range for Brent Crude during the prior thirteen-month period from June 2012 to June 2013.

U.S. production gains have been geographically concentrated in Texas and North Dakota, which together accounted for 83% of U.S. production growth. Production in the South Texas Eagle Ford formation reached 1.22 million bpd in December 2013, and production from the Bakken formation in North Dakota and Montana reached one million bpd in November 2013. Oklahoma, New Mexico, and Colorado saw smaller increases.

The U.S. average retail price for regular gasoline was $3.45 per gallon on August 25th, the lowest price on the Monday before Labor Day since 2010. The average price at the pump is also $0.25 per gallon lower than it was at the end of June.

Fuzzy Math Can’t Hide Shale Boom’s Green Credentials

AmericanInterest

Here’s the bottom line: natural gas is a cleaner fossil fuel than coal, and unlike renewables, it can supply power consistently (even on cloudy, windless days). We are well-served by unlocking new reserves of natural gas not just for the economic boost these plays provide, but also for their environmental benefits. One day, with the right technologies, we’ll be able to power society without relying on fossil fuels, but we’re not there yet. Until then, natural gas is one of our best options, and greens would do well to recognize the fracking boom for what it is: good news.

Shale gas displaces coal as a source of cheap baseload power, which this chart shows pretty handily, and it does so with just half the greenhouse gas emissions. There are other advantages that make natural gas—and the shale boom that’s supplying it here in the U.S.—a boon to Gaia, but its ability to help us wean ourselves off our dependence on dirty-burning coal is the reason why shale gas is fracking green.

North Dakotan Shale Boom to “Surge” This Summer

AmericanInterest

You just can’t keep a good boom down. Oil production from North Dakota’s Bakken formation has quintupled over the past five years as drillers employ the dual technologies of hydraulic fracturing and horizontal well drilling to tap previously inaccessible hydrocarbons trapped in shale. This summer, it looks as if Gaia will cooperate, offering mild weather to spur what one official is predicting will be a “big surge” in output. Bloomberg reports:

Better summer weather will lead to production growth in the region of 5 to 6 percent a month in June, July and August, said Lynn Helms, director of the state’s Department of Mineral Resources.

“We still expect the big surge to come in June, July and August in terms of completions and some really rapid production increases,” Helms said on a conference call with reporters yesterday.

The shale boom has been so sudden, and so unexpected, that we still lack the transportation infrastructure to deliver shale-sourced crude to refineries. Without pipelines to link North Dakota’s Bakken formation to Gulf Coast refineries, that crude is riding our nation’s rails and being transported by truck—more expensive and more dangerous options. Building new pipelines will cut down on bottlenecks, save money, and potentially save lives. This is a challenge, but it’s the kind we’d like to see more of: one of abundance, not scarcity.

Europe’s Anti-Fracking Activists May Be Way More Sinister Than You’d Think

NationalReview

As the debate over how to regulate fracking — and whether to permit the process at all — rages in the U.S. and Europe, there are powerful interests that can benefit from blocking its expansion, namely, existing oil and gas producers, such as the Gulf States and Russia.

The FT reports:

Russian intelligence agencies are covertly funding and working with European environmental groups to campaign against fracking and maintain EU dependence on Russian gas, the head of Nato has claimed.

“The potential for Russia using energy supplies as a means of putting pressure on European nations is a matter of concern. No country should use supply and pricing terms as tools of coercion,” they said. “We share a concern by some allies that Russia could try to obstruct possible projects on shale gas exploration in Europe in order to maintain Europe’s reliance on Russian gas.”

I’m still confused as to why we are selling this to other countries…

‘Saudi Dakota’ Tops One Million Barrels a Day in Oil Production

It is the most remarkable economic story of our time and it comes in the midst of the Obama economy’s miserable performance.

The United States of America leads the world again in petroleum production, which includes crude oil, natural gas, and other liquids. We’re number 3 in crude oil production behind Russia and Saudi Arabia and the Financial Times notes that we will eventually surpass both countries and become the leading producer of crude oil in the world.

Four decades of declining oil production has been reversed in just the last 5 years.

The growth in production in North Dakota has been phenomenal. The US Geological Survey keeps raising the estimate of proven, retrievable reserves in the Bakken Formation. It currently stands at about 8 billion bbl but with the technology to extract it improving by leaps and bounds, no one can guess how much of the estimated 80 billion bbl in the 220,000 square mile expanse of the Formation will actually be recovered.

In April, North Dakota surpassed the milestone of averaging 1 million bpd. The state has seen its oil production increase twelve-fold over the last decade from only 83,233 bpd in April 2004 to 1,001,149 bpd in April this year.

So why are our gas prices still so high??

Fracking – The Experts Strike Back At The Luvvies

Breitbart

A group of over fifty lecturers and professors has written to the Guardian newspaper in support of fracking and shale gas exploitation in the abundant Bowland Shale in North-East England.

It’s quite possible that, given their educational background and training, they know slightly more about the subject than the group of fashion designers, installation artists, pop stars, children of rich celebrities, green activists, actors and models who signed that letter the other day demanding that fracking should be stopped.

Then again, perhaps not. As I’m sure Radiohead’s Thom Yorke or designer Stella McCartney or public intellectual Russell Brand would happily confirm, every one of these scientific experts is tainted by their association with the Big Oil industry and therefore cannot be trusted to tell the truth.

Unlike, say, their fellow signatories wind farm developer Dale Vince, Greenpeace or Friends Of The Earth, none of whom have any vested interest whatsoever in promulgating the global warming scare and the green energy scam, apart from the small fact that it makes them millions and millions of pounds.

Fossil fuels have made the earth cleaner, not dirtier

DailyCaller

Environmentalists often use this day to warn that using fossil fuels, like coal and oil, will continue to harm the planet and cause global warming. But government data shows that the U.S. has become greener even as fossil fuel use exploded.

“The incredible advances in human flourishing and economic growth over the past two and a half centuries were made possible by a technological revolution that harnessed underground energy from coal, oil, and natural gas,” Myron Ebell, director of international energy and global warming policy at the Competitive Enterprise Institute told The Daily Caller News Foundation.

Economists generally argue that environmental protection becomes a higher priority the wealthier a country gets. Fossil fuels, like coal and oil, have enabled the U.S. and many other countries to rapidly grow their economies and focus more on environmental protection.

“Countries with access to more energy have populations that are healthier and live longer and also have higher environmental quality than energy-poor countries,” Ebell added. “And coal, oil, and natural gas are not yesterday’s fuels; they remain the basis of global prosperity and continue to contribute to a healthier, cleaner environment.”

Tell me why we’re still buying Middle Eastern oil…

ND pumps record 313.5M barrels of oil in 2013

North Dakota produced a record amount of crude oil in 2013 — 313.5 million barrels, about 70 million more than the previous high mark a year earlier, state data show.

The tally, up nearly 29 percent from 2012, marks the sixth consecutive record year for oil production in North Dakota, which is the nation’s No. 2 oil producer behind Texas.

Lynn Helms, director of the state Mineral Resources, said Friday that North Dakota produced an average of 923,227 barrels of oil daily in December. The monthly total of 28.6 million barrels was down from 29.2 million barrels in November due to worse-than-normal winter weather that caused the slowdown in oil production, he said.

“The big story in December was the weather,” he said.

I wonder if the Saudi’s are buying their vote, too?

First Nations chief received $55,000 from Tides Foundation

A left-wing lobby group in San Francisco wired $55,000 to the bank account of an Indian chief in Northern Alberta, paying him to oppose the oilsands.

And sure enough, that chief – Allan Adam, from the Athabasca Chipewyan First Nation – earned his money. Last weekend, he flew to Toronto to sit on a stage next to Neil Young, the folk singer who was in town to demonize Canada’s oil industry.

Now, $55,000 might sound like a lot of money to pay, just to rent a politician for a day if all the chief did for his money was to appear on stage in Toronto beside Neil Young. But to the Tides Foundation, it’s well worth it. Think of Adam as an actor, hired to play a part in an elaborate theatrical production.

Neil Young had his role: he’s the American celebrity who can draw crowds of fawning Baby Boomer journalists. But at the end of the day, he’s just another millionaire celebrity. When he talks about the oilsands, he quickly reveals himself as a low-information know-nothing.

H/T Instapundit

 

U.S. has overtaken Saudi Arabia to become the world’s biggest oil producer on jump in output from shale

Then why are our gas prices still so high?

The United States is now the world’s biggest supplier of oil overtaking the world number one, Saudi Arabia, according to latest output figures.

A surge in US oil output, which includes natural gas liquids and biofuels, has swelled 3.2 million barrels per day (bpd) since 2009.

The spike in oil production is the fastest expansion over a four-year period since Saudi Arabia’s output surge from 1970-1974, energy analysis firm PIRA said in a statement.

It was the latest milestone for the US oil sector caused by the shale revolution, which has upended global oil trade. While still the largest consumer of fuel, the rise of cheap crude available to domestic refiners has turned the United States into a significant exporter of gasoline and distillate fuels.

PIRA said the increase in oil from shale, which has been centered in areas such as Eagle Ford in Texas and the Bakken in North Dakota, has seen U.S. supply grow by 1 million bpd in 2012 and again 2013.

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