Open post

USGS Haynesville/Bossier Resource Estimate Decimates The Notion Of “Peak Gas”

Hey, guess what?  There’s a bunch of natural gas out there along the Texas and Louisiana Gulf Coast!

That’s what the US Geological Survey (USGS) announced on April 13, with its assessment that the combined Haynesville and Bossier shales, sandstones and carbonates contain a gigantic volume of natural gas, which the USGS estimates at a total of 304 trillion cubic feet (tcf) in place.  That represents enough natural gas to supply country’s entire demand for natural gas for about 12 years, just from two formations, and it represents a 330% increase over the agency’s 2010 resource estimate.

As USGS noted, the formations also contain a very large volume of oil and natural gas liquids:

The Bossier and Haynesville Formations of the onshore and State waters portion of the U.S. Gulf Coast contain estimated means of 4.0 billion barrels of oil, 304.4 trillion cubic feet of natural gas, and 1.9 billion barrels of natural gas liquids, according to updated assessments by the U.S. Geological Survey. These estimates, the largest continuous natural gas assessment USGS has yet conducted, include petroleum in both conventional and continuous accumulations, and consist of undiscovered, technically recoverable resources.

The updated estimate is a part of an ongoing USGS program to re-visit many of the largest oil and gas producing basins in the country, in order to create a more accurate picture of the resource available for the nation’s use as we move into the future.  The agency previously released an updated estimate of oil contained in the Wolfcamp formation in the Permian Basin, which I analyzed last November.  This is an important exercise designed to better inform public policy decisions related to energy, especially given the amount of ridiculous mis-information that gets into the media every day, such as the always-present but never correct “peak oil” and “peak gas” theories.

Read The Rest Here

Open post

That Uncomfortable Moment When The Pipeline Boogeyman Fails To Perform

A couple of weeks back I wrote about the shifting focus of anti-fossil fuel conflict groups in their efforts to impede the nation’s energy development in various parts of the country.  That focus, which since about 2008 had centered on the boogeyman “fracking”, has now shifted to a new, midstream boogeyman in the form of pipelines.

When conflict groups have identified a good boogeyman, they flaunt it at every opportunity, and it becomes a rationale for them and their supporting web-based media outlets for stopping whatever other activities they want to stop. Of course, what they really want to stop is all development of fossil fuels.  Thus, over the last decade, we have seen minor spills of returned fluids from hydraulic fracturing jobs blown up into a reason to halt all drilling in a given basin or state.  Now, we see the same dynamic at work, in which even the smallest event that can (at least seemingly) be attributed to a pipeline forms the rationale for halting all activity in an entire region.

That previous piece focused on an incident involving a natural gas pipeline leak in Alaska’s Cook Inlet, which is operated by Hilcorp, and the manner in which Hilcorp’s efforts to coordinate with regulators to address the issue were distorted by one of those web-based media groups, EcoWatch.  Repairs to that pipeline are underway, with no discernible impacts to surrounding wildlife or the environment, but it placed Hilcorp on these groups’ radar as a target for exploitation.

Read The Full Piece Here

Open post

The Oil And Gas Situation: The Rigs Just Keep On Coming

Read the Full Piece Here

Some thoughts on the domestic oil and gas situation as we move into April…

The rigs just keep on coming…:  The industry activated more than 70 additional drilling rigs during the month of March, bringing the total new rigs activated during the first quarter of 2017 to more than 200.  My “bold” prediction as the year began was that it would take four months, not three, for the U.S. industry to bring that number of new rigs onto the market.  So, ok, I was too timid.

Interestingly, more than a dozen of these newly-active rigs have moved into the Haynesville Shale region, which is experiencing a somewhat surprising resurgence of activity, even in the seemingly interminable weak price market for natural gas.  The play’s abundance of pipeline takeaway capacity and proximity to major export facilities are two of the main reasons for this uptick in activity, as detailed by Forbes contributor Jude Clemente in his piece of March 25.

March’s increase in rigs drilling for oil was also less focused on the Permian Basin than in prior recent months, with other basins like the Eagle Ford, the SCOOP/STACK and the DJ Basin also seeing significant upticks in activity.  How much longer this rising rig count can last is anyone’s guess, but it was a major reason why…

 

Open post

President Trump’s Latest Energy Executive Order Is Not Just About Coal

Read the Full Piece Here

An interesting facet of the news media’s coverage the past couple of days about President Trump’s Executive Order on Promoting Energy Independence and Economic Growth (hereinafter referred to as “Order”) is that the coverage focused mostly or entirely on the Order’s impacts on the U.S. coal industry and coal-related jobs.  Granted, the Order was cast as the President’s effort to essentially rescind major parts of former President Obama’s “Clean Power Plan”, which most recognize was an effort by his Administration to damage the nation’s coal industry.  But just as the “Clean Power Plan” had impacts and produced major regulatory efforts that reached far beyond the coal industry, President Trump’s newest executive order also impacts other segments of the nation’s energy sector.

Some major aspects of the Order contain significant implications for the oil and natural gas industry as well.

Here is a review of several of them:

  • Section 2 of the Order directs all relevant agencies to “review all existing regulations, orders, guidance documents, policies, and any other similar agency actions (collectively, agency actions) that potentially burden the development or use of domestically produced energy resources, with particular attention to oil, natural gas, coal, and nuclear energy resources.”   This is a very broad-ranging mandate that, when combined with other aspects of the Order, is likely to create a vast array of proposed regulatory rescissions and reforms.
Open post

Today’s Campaign Update (Because The Campaign Never Ends) – 3.31.2017

  • This makes them different from the Democrats….how, again?:  With the Democrats threatening to shut down the federal government over the pending expiration of the current continuing resolution (CR), Republican “leaders” in both the House and Senate have already conceded that they will continue to fund Planned Parenthood and Obamacare, and will deny President Trump’s request for funding for the border wall.  I’m sorry, but didn’t we just have an election about every one of those funding priorities last November, and didn’t the voters indicate they prefer to reverse all three of those decisions by the pathetic GOP congressional leadership?  What am I missing here?
  • Let’s just rename it The Federal Bureau of Non-Disclosure.:  You would have had to search long and hard to find it due to the mainstream fake media blackout on anything not harmful to President Trump, but the Weekly Standard reports that House Intelligence Committee Chairman Devin Nunes pointed out yet again that the FBI is still stonewalling his Committee’s requests for information related to its investigation of the Democrats’ Trump/Russia fantasy.  In response to Nunes’s statement, the FBI sent a spokesman out to say “We’re cooperating”, and then presumably went back to stonewalling the Committee.
  • But was her son, Scut, involved?  What about his toady, Grover Dill?:  Speaking of stories you can’t find, a former Obama official named Evelyn Farkas told Mika Brzezenzski (or however you spell that name) on MSNBC early in March that she and many other Obama officials had indeed participated in an organized effort to circulate raw surveillance intelligence involving members of the Trump Transition Team, and had gladly shared the intel with members of the fake news media, unmasking some American citizens in the process.  She told this all to MSNBC gladly, and in a manner that made it obvious she is in fact proud of her actions.  She apparently did not understand that, in the process of that interview, she was potentially admitting to the commission of multiple felonies by herself, other Obama officials and members of the fake news media.  Thus, the fake news media has been jointly sitting on this story hoping it would just fade away.  Trouble is, the story has been getting a ton of attention in the realm of talk radio this week, so suddenly Ms. Farkas felt the need to go back on cable TV on Thursday to deny everything she had told Mika.  And her friends in the fake news media will nod their heads and move on.  Nothing to see here, all is well.
  • Editor:  you really think the public will buy that cock and bull story?  Reporter:  Well, sure, er, the Democrats will, at least.:  Rather than report on the admissions of Ms. Farkas, the fake (literally fake, since it is no longer in print) magazine Newsweek ran with a “blockbuster” story about how our suddenly intrepid (now that he’s bashing a Republican) bi-polar FBI Director James Comey really, truly, no kidding was begging to run to the NY Times late last summer with an op-ed in which he would reveal the Russian efforts to “rig” the elections.  And guess who stopped him?  Why, our hero, Barack Obama, of course!  Also of course, this Newsweek “blockbuster” is based solely on the word of not one, but two (!) source…who naturally remain unidentified.  *sigh*  #Fakenews at its finest.
  • A story you can easily find this morning is the Wall Street Journal’s report that General Mike Flynn has offered to testify before the Senate Intelligence Committee in exchange for immunity.  Upon hearing of this offer by Gen. Flynn, talking heads all over the fake news media exploded, and immediately jumped to the conclusion they have jumped to 1,000 times before over the last 21 months, which is that “this is finally it” for President Trump.  Trouble is, if you read the whole WSJ story, you find this statement from Gen. Flynn’s lawer:Mr. Kelner, Mr. Flynn’s attorney, decried the “unfounded allegations, outrageous claims of treason” and other charges by lawmakers and media commentators.“No reasonable person, who has the benefit of advice from counsel, would submit to questioning in such a highly politicized, witch-hunt environment without assurances against unfair prosecution,” he said.That doesn’t sound much like someone who’s getting read to toss the POTUS under the bus.  It sounds a lot like someone who saw the shameful travesty that happened with Scooter Libby during the last Republican presidential administration, and who wants to avoid the same fate.

 

But hey, it’s all Trump Derangement Syndrome, all the time in the fake news media.

That is all.

Open post

State Dept. Approves Keystone XL, World Does Not End. Film At 11.

It’s been a very busy week for pipeline-related matters.  On Monday, I wrote about the Dakota Access Pipeline, and the latest controversy surrounding whether the state of North Dakota will receive any help in paying the huge tab it has incurred policing and cleaning up after the protesters.  On Wednesday I wrote about the fact that anti-oil and gas conflict groups are shifting their focus from an upstream boogeyman (fracking) to a midstream target (pipelines).

Today, the pipeline-related topic moves to the grandaddy of all the conflict lobby’s boogeymen – the Keystone XL pipeline – and the Trump Administration’s announcement that the State Department has issued the cross-border permit necessary for Trans-Canada to proceed with completion of the northern leg of the Keystone system.  Friday’s announcement states that the State Department “considered a range of factors including, but not limited to, foreign policy; energy security; environmental, cultural and economic impacts; and compliance with applicable law and policy.”

The decision by the State Department comes as no surprise, given that it follows an executive order issued by President Trump in January, which instructed State to make a decision on whether to issue the permit after a study period to last no more than 60 days.  It is also in line with Trump’s “America First Energy Plan” which focuses on ways to make the U.S. less dependent on imports of oil from the Middle East.  Keystone XL, if completed, will carry large volumes of Canadian oil sands crude into the United States to be refined and consumed.

Read The Rest Here

Open post

Conflict Groups Find A New Boogeyman – Pipelines

As their decade-long effort to demonize hydraulic fracturing – or “fracking” as they like to call it – lost its previous steam over the last couple of years, anti-fossil fuel conflict groups who raise money by stoking public fears related to the oil and gas industry have gradually shifted their main focus over to the pipeline segment of the business.  Encouraged by the temporary victory given them by the Obama Administration related to the Keystone XL pipeline project, these conflict groups have become engaged in protests related to numerous midstream projects in the Northeast, in North Dakota (the Dakota Access Pipeline) and in West Texas (the Trans-Pecos Pipeline).

While their high-profile “wins” to date have been either temporary or, as with the Dakota Access Pipeline, illusory, the conflict industry obviously sees this coordinated attack on the midstream segment as a money-makernevertheless.  Thus, they have chosen to engage in a constantly-increasing number of pipeline-related construction projects and incidents.

Read the Full Piece Here

Open post

A New Controversy Rises As Oil Begins To Flow Through Dakota Access Pipeline

Read The Full Piece Here

The Oceti Sakowin protest camp as it appeared on 3.17.2017, after cleanup operations had been completed by local officials.

Photo Credit: NDResponse.gov

The Oceti Sakowin protest camp as it appeared on 3.17.2017, after cleanup operations had been completed by local officials.

A U.S. Court of Appeals ruling rejecting the latest appeal by the Standing Rock Sioux and Cheyenne River Sioux Tribes on Saturday means that oil could begin flowing through the completed Dakota Access Pipeline (DAPL) this week. Once fully operational, the 30-inch pipeline will carry more than 400,000 barrels of crude oil per day out of the Bakken region in North Dakota to market, mitigating the current process of carrying the oil out of the basin via trucks and rail cars.

The commencement of flow through the DAPL represents the closure, of sorts, to one of the most hotly-contested pipeline construction projects in U.S. history, although a number of protesters remain in the area, presumably in the hopes of mounting efforts to disrupt operations in the future.  But all is quiet on the protest front for now, and the announcement early in March that cleanup of the huge mess the protesters left behind at the Oceti Sakowin protest site is complete also represents a sort of closure.

But as one source of controversy has closed, another has opened.  The question now is, with the State of North Dakota estimating that it and local authorities have incurred more than $38 million in costs related to the policing of the protesters and cleanup of the massive mess they made at Oceti Sakowin and other protest camps, who is ultimately going to pay the bill?

Open post

Is The Constantly Changing Natural Gas Market About To Change Again?

The growing glut of natural gas on the global market – spurred in part by increased exports of Liquefied Natural Gas (LNG) by U.S. producers over the last year – reminds us of the dynamic nature of the domestic natural gas market, and the role shifting public policies have played into that over the years.

My own frame of reference here begins during the summers of 1977 and 1978, when I earned college tuition money by taking summer jobs on pipeline crews in deep South Texas.  In 1978, the Congress and the Carter Administration had become convinced by some really bad science that the U.S. would actually run out of natural gas in a few decades, and thus needed to conserve what little remaining reserves it had on-hand for home heating usage.  Acting on this belief, then-President Jimmy Carter signed into law the Natural Gas Policy Act (NGPA) and the Fuel Use Act (FUA), both of which had major impacts on natural gas markets, and both of which inhibited investment in new natural gas-buring infrastructure.

The NGPA discouraged investment in drilling for new natural gas reserves by allowing the federal government to establish ceiling prices producers could receive for various categories of natural gas that were established under the law.  The FUA was even more prohibitive on the demand side of the natural gas ledger, prohibiting utility companies from building new gas-fired power plants.  The result?  A Democratic Administration ironically actively encouraged the building of dozens of new coal-fired and nuclear power plants all over the United States, many of which are still operating, much to the chagrin of today’s climate alarm lobby.

 

Read The Full Piece Here

Posts navigation

1 2 3 4 5
Scroll to top