Energy Tomorrow Blog
Posted September 23, 2014
FuelFix Blog: From steel pipe manufacturers to companies that produce sand and gravel, the U.S. shale boom is buoying businesses far removed from the oil and gas fields, a new study finds.
These companies are benefiting from the huge investments needed to explore, produce, process and transport oil and gas unlocked from previously inaccessible dense rock formations through advances in hydraulic fracturing and horizontal drilling, according to the findings by Houston-based energy analyst firm IHS.
The boom has been most generous to companies working in states with the most oil and gas activity, but the economic boost has also trickled down to steel-makers and machine tool manufacturers based in regions with no production, the report said.
Posted September 22, 2014
Washington Examiner op-ed (Karen Harbert): America's economic recovery is being fueled by energy. Increased natural gas production is at the center of our energy revolution, creating new opportunities at home and abroad.
Not long ago, conventional wisdom was that America’s natural gas production would decline over time. Terminals were planned and built in anticipation of the need to import natural gas from overseas. Now, these facilities are either being converted to export terminals or are idle.
Obviously, things have changed — and for the better. The combination of hydraulic fracturing and horizontal drilling made accessing unconventional oil and gas much easier, safer, and cost effective. More and more formations were discovered, and now, natural gas extracted from shale makes up over one-third of total U.S. natural gas production. Over time, this trend will continue to increase to about half of our natural gas production by 2030.
Posted September 19, 2014
Posted September 12, 2014
NY Post (Editorial): Despite the years of stalling from Gov. Cuomo and the state Legislature, fracking has still managed to deliver real dividends for New York. Thanks to fracking, the Buffalo Bills are staying put.
The two main reasons the NFL franchise won’t be moving are as follows:
First, Terry Pegula this week won the bidding for the team. Pegula owns professional hockey’s Buffalo Sabres — and thus was seen as the most committed of the bidders to keeping the Bills in their home of 55 years.
Second, the cash the self-made billionaire and his wife used to buy the team (and to invest in Buffalo) comes largely from the fortune he made in fracking.
He’s not the only one profiting. As The New York Times reported this week, the fracking revolution has set off a boom in nearby Ohio, with benefits rippling through the Buckeye State’s economy.
Posted September 11, 2014
Oil & Gas Journal: The US Department of Energy approved Cameron Energy LLC and Carib Energy LLC’s requests for authorization to export LNG to countries that do not have a free-trade agreement with the US. Both applicants had completed reviews required under the National Environmental Policy Act, DOE said.
It gave the Cameron facility in Cameron Parish, La., permission to export LNG up to an equivalent of 1.7 bcfd of gas for 20 years. Carib Energy, a Crowley Maritime Corp. subsidiary, received approval to export up to an equivalent 0.04 bcfd for 20 years from its proposed Martin County, Fla., facility in International Standardization Organization approved containers, DOE said on Sept. 10.
The decision marked the last regulatory hurdle for the Cameron LNG facility and cleared the way for execution of the largest capital project in the history of its sponsor, San Diego-based Sempra Energy, Sempra Chair Debra L. Reed said.
“This landmark project will create thousands of jobs and economic benefits for Louisiana and the US for decades to come, while delivering natural gas to America's trading partners in Europe and Asia,” she said.
Posted September 10, 2014
Reuters: The U.S. government on Tuesday jacked up its forecast for oil production next year by 250,000 barrels per day (bpd) as the boom in shale oil drilling continues to confound expectations of slower growth.
The U.S. Energy Information Administration now expects domestic output to rise to 9.53 million bpd, growing by around 1 million bpd for a third consecutive year, according to its latest monthly short-term energy outlook. A month ago the EIA had predicted output growth would slow in 2015 to 800,000 bpd.
The U.S. shale boom has allowed producers to unlock thousands of barrels of reserves, putting the United States on course to become the largest producer of oil globally, which would dramatically reduce its dependence on imports.
"Rising monthly crude oil production, which will approach 10 million barrels a day in late 2015, will help cut U.S. fuel imports next year to just 21 percent of domestic demand, the lowest level since 1968," EIA Administrator Adam Sieminski said.
Posted September 9, 2014
"The more the US exports crude oil, the greater decline in gasoline prices," the study from The Brookings Institution's Energy Security Initiative claimed. "As counterintuitive as it may seem, lifting the ban actually lowers gasoline prices by increasing the total amount of crude supply, albeit by only a modest amount."
Brookings' finding are nearly identical to those of a May study from energy consultancy IHS which concluded that free trade of crude would cause US gasoline prices to fall 8-12 cents/gal due to the close link between gasoline and world oil prices.
Like IHS, the Brookings study claimed the impact of crude exports on gasoline prices dulls over time, falling from a 9-12 cent/gal drop in 2015 to 0-10 cents/gal by 2025.
Posted September 8, 2014
NY Times: Waist-high weeds and a crumbling old Chevy mark the entrance to a rust-colored factory complex on the edge of town here, seemingly another monument to the passing of the golden age of American industry.
But deep inside the 14-acre site, the thwack-thwack-thwack sound of metal on metal tells a different story.
“We’re holding our own,” said Greg Hess, who is looking to hire draftsmen and machine operators at the company he runs, Youngstown Bending and Rolling. “I feel good that we saved this place from the wrecking ball.”
The turnaround is part of a transformation spreading across the heartland of the nation, driven by a surge in domestic oil and gas production that is changing the economic calculus for old industries and downtrodden cities alike.
Posted September 5, 2014
Greeley Tribune: A study by an energy initiative at Duke University shows that Colorado’s booming oil and gas industry has had a positive impact on public finances to date.
“Our research indicates that the net impact of recent oil and gas development has generally been positive for local public finances,” states the report, conducted by Daniel Raimi and Richard Newell of the Duke University Energy Initiative. “While costs arising from new service demands have been large in many regions, increased revenues from a variety of sources have generally outweighed them or at least kept pace, allowing local governments to maintain and in some cases expand or improve the services they provide.”
In Colorado, besides some harsher impacts on the Western Slope, the industry’s impact was a net positive, the study found, meaning that the benefits of the industry outweighed the costs of supplying services to support the industry.
Posted September 3, 2014
Pittsburgh Post-Gazette: Two major pipeline projects are in the works to ship natural gas from the Marcellus and Utica shales to the southeastern U.S., a region with a growing appetite for natural gas.
Downtown-based EQT Corp. said Tuesday it is moving forward with its partner NextEra Energy, a Florida electric utility, to form a joint venture dubbed Mountain Valley Pipeline LLC. The partnership plans to build a 330-mile pipeline that would provide at least 2 billion cubic feet per day (Bcf/d) of transmission capacity to the mid-Atlantic and South Atlantic regions. The project, which is now seeking firm commitments for capacity from shippers during an open season, was first announced in June, and has already gotten commitments for 1.5 Bcf/d, EQT said.
Meanwhile, a partnership of four energy companies — Dominion, Duke Energy, Piedmont Natural Gas and AGL Resources — also announced Tuesday a roughly $5 billion pipeline project to take about 1.5 Bcf/d to North Carolina and Virginia. The Atlantic Coast Pipeline would span 550 miles from Harrison County, W.Va., through Virginia and then south to North Carolina.