Posts tagged “fracking”

As a result of the hydraulic fracturing (fracking) revolution, US oil and natural gas production have been rising for several years. According to the Energy Information Administration (EIA), US oil production has risen by 27% over the past 5 years.

In reviewing the data for individual states, I came across some interesting trivia. So I decided to put together a little quiz. The data source is the EIA. A table showing the Top 15 states with the highest percentage increases in oil production follows the quiz. Answers are at the end.

1. Which state had the largest percentage increase in oil production over the past 5 years?

a. Texas
b. North Dakota
c. Colorado
d. Oklahoma
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In last week’s Energy Trends Insider (ETI) I analyzed why The Road to Chinese Shale Gas Goes Through the U.S. In addition to my article, Andrew Holland explained how the DOE Report on Economics of Natural Gas Exports Will Lead to LNG Export Permits and Robert Rapier wrote about profiting from the peculiarities of gas price fluctuations in ‘Rockets and Feathers’ — Investing in Refiners. As we have done previously, we would like to share a story from ETI with regular readers of this column. Interested readers can find more information on the newsletter and subscribe for free at Energy Trends Insider.

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The Road to Chinese Shale Gas Goes Through the U.S.

China is reported to have massive unconventional natural gas resources. Technically recoverable gas reserves are forecast to be 36 trillion cubic meters, making it the world’s largest reserve pool according to EIA, and nearly 50% larger than the U.S.’s reserves. In the country’s most recent 5-year plan it laid out a goal of 6.5 billion cubic meters of production by 2015, a steep increase from the current production level of zero.

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An American energy firm is launching a $250 million lawsuit against the government of Canada after the province of Quebec revoked permits that would have allowed for hydraulic fracturing in the region surrounding the St. Lawrence River, a major waterway in that part of the country.

Lone Pine Resources Inc. disclosed its November 8 filing with the United States Securities and Exchange Commission this week, detailing its suit against the Canadian federal government under the much-argued Chapter 11 of the North American Free Trade Agreement (NAFTA), a chapter that allows private companies to pursue the federal governments of participating countries — Canada, Mexico, and the United States — if they feel that their ability to operate profitably is infringed upon unfairly.

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Since 2005, the “total oil supply” for the United States as reported by the Energy Information Administration increased by 2.2 million barrels per day. Of this, 1.3 mb/d, or 60%, has come from natural gas liquids and biofuels, which really shouldn’t be added to conventional crude production for purposes of calculating the available supply. Of the 800,000 b/d increase in actual field production of crude oil, almost all of the gain has come from shale and other tight formations that horizontal fracturing methods have only recently opened up. Here I offer some thoughts on how these new production methods change the overall outlook for U.S. oil production.

Let me begin by clarifying that “shale oil” and “oil shale” refer to two completely different resources. “Oil shale” is in fact not shale and does not contain oil, but is instead a rock that at great monetary and environmental cost can yield organic compounds that could eventually be made into oil. Although some people have long been optimistic about the potential amount of energy available in U.S. oil-shale deposits, I personally am pessimistic that oil shale will ever be a significant energy source.

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In this week’s episode of R-Squared Energy TV, I talk about the impact of natural gas in the U.S., and the Canadian economy.

Some of the topics discussed this week are:

• How I think natural gas prices will behave over the next 10 years
• Which industries will benefit the most from low natural gas prices
• The link between hydraulic fracturing (fracking) and earthquakes
• The relative strength of Canada’s economy

In this week’s episode of R-Squared Energy TV, I answer questions on palm oil and hydraulic fracturing (fracking). Some of the topics discussed are: The EPA decision to exclude palm oil from qualifying as renewable biomass under RFS2 The Chinese influence over the palm oil trade The issue of trade-offs in our energy choices Agendas in the fracking debate After I recorded the clip, I did some research on exactly how the EPA treats palm oil (I should have done it before recording the clip), and they say that “oil palm plantations would have to meet the criteria for existing agricultural land in order for their fruit and crop residue to qualify as renewable biomass under RFS2.” I am not… Continue»

Here are my choices for the Top 10 energy related stories of 2011. Don’t get too hung up on the relative rankings. They are mostly in no particular order, although I think the top story is pretty obvious. 1. The Fukushima Daiichi nuclear disaster On March 11, 2011 the tsunami that flooded Japan’s Fukushima Daiichi nuclear plant resulted in the worst nuclear crisis since Chernobyl. The tragedy spurred heated debates over whether nuclear power could ever be totally risk-free. Several countries decided that the potential consequences were just too great, and reversed their plans for new nuclear plants and in some cases shuttered existing plants. The incident will likely slow the global development of nuclear power for years, just as… Continue»