Energy Tomorrow Blog
Posted October 7, 2014
Reuters: As oil production swells, demand falters and prices slide, the global oil market appears on the verge of a pivotal shift from an era of scarcity to one of abundance.
Oil prices have fallen as much as 20 percent since June, despite a host of rising supply risks, leading more investors and traders to consider whether 2015 is the year in which the U.S. shale oil boom finally tips the world into surplus.
While the plunge has rekindled speculation that the Organization of the Petroleum Exporting Countries (OPEC) may need to cut output for the first time in six years when it meets next month, some analysts are looking much further ahead.
They say a long-anticipated fundamental shift in the market may now be under way, ending a four-year stretch when $100-plus prices were the norm, and opening a new era in which OPEC restraint once again becomes paramount.
Posted September 25, 2014
Observer-Reporter: For nearly an hour, Stephen Moore expended a lot of energy speaking about energy and the economy – and their inextricable link.
“You cannot understand economics unless you understand energy,” he said in his opening. “The industry is carrying the rest of the U.S. on its shoulders. Without the energy boom going on, there would be no economic recovery at all.”
Moore is a chief economist for the Heritage Foundation, a conservative research think tank from Washington, D.C. And his thoughts made an audience in the hundreds think Tuesday morning, as Shale Insight 2014 kicked off its two-day conference at the David L. Lawrence Convention Center.
This is the fourth annual Insight, and first conducted outside Philadelphia. It is organized by North Fayette Township-based Marcellus Shale Coalition, which supports oil and gas exploration companies and their supply chain partners in Marcellus Shale, the world’s largest natural gas deposit.
Posted May 13, 2014
FuelFix Blog: Oil production will continue to soar in the six major U.S. shale plays, with more barrels pumped per rig, according to federal projections released Monday.
Total oil production in the six regions is expected to grow to 4.43 million barrels per day in June, an increase of 75,000 barrels per day compared to May, according to the U.S. Energy Information Administration. The federal agency expects oil rigs will produce an average of 271 barrels per day each, an increase of one barrel over May.
The projection reflects the growing efficiency of rigs since the U.S. energy boom began. In June 2007, each rig produced an average of just 116 barrels per day in the most efficient region, the Bakken Shale.
Posted May 12, 2014
But over the past four years, Vitale and Van Blarcom have come to live in different economic worlds.
Vitale’s Organic Farm, located in New York’s Steuben County and beset by what its owner calls high taxes and a regulation-happy state government, has shrunk in size by almost 30 percent. He’s had to sell off land to stay afloat – and it wouldn’t have happened, he said, if the state had let him cash in on the riches buried thousands of feet beneath his property.
Posted March 21, 2014
To Americans used to thinking of energy in terms of the Middle East, the names of the world's top producers of natural gas might come as a surprise.
No. 1 is the United States. No. 2 is Russia. Together they stand as the giants of gas production. What separates them is that the U.S. consumes its gas, while Russia has become the world's largest exporter — a key reason why President Vladimir Putin felt confident that he could seize Crimea from Ukraine and get away with it. Russia supplies 30% of Europe's gas needs, making it hard for European leaders to muster the resolve to resist.
The good news is that the West can turn the tables on Putin, freeing Europe from its dependency and in the process making Russia pay dearly. That can't be done fast enough to neuter the current crisis, nor will it come cheaply. But if Putin believes his actions will drive Europe toward energy independence, he'll have to think twice. Deprived of its biggest market, Russia's fragile, energy-based economy would erode, along with its power and Putin's stratospheric popularity.
Posted March 20, 2014
The U.S. shale boom is beginning to ripple outward to American cities.
The shale mining industry's rising demand for materials and equipment along with the abundance of cheap fuel are fueling a modest renaissance in American manufacturing, according to a report prepared by IHS Global insight for the U.S. Conference of Mayors.
The shale extraction industry is itself driving growth through its hunger for steel pipeline, extraction machinery and other materials needed at domestic shale deposits, including the Bakken in North Dakota and the Marcellus shale in Pennsylvania. The availability of cheap fuel has in turn allowed these energy intensive manufacturing industries to cut costs and compete better with foreign imports.
Posted March 18, 2014
Colorado Breaks Nearly 60-Year Record for Oil Production
Denver Business Journal: Colorado’s booming energy industry produced nearly 63.2 million barrels of crude oil in 2013, a new state record for annual oil production, according to a Denver Business Journal review of records from the Colorado Oil and Gas Conservation Commission (COGCC), which oversees the multi-billion dollar industry.
That’s a 28 percent jump from 2012, when the state’s oil and gas wells produced nearly 49.3 million barrels of oil, according to COGCC records.
Posted March 17, 2014
Happy birthday, fracking! What a fantastic, 65-year ride it has been – and here’s to another 65 years and more.
Advanced hydraulic fracturing and horizontal drilling launched an oil and natural gas renaissance in this country – bringing dynamic job creation, economic stimulus that radiates well beyond the oil and natural gas industry proper and greater energy security. Thanks to fracking, the United States is an energy superpower that, with the right policies, can harness its vast resources to ensure a significantly better future for its citizens while reducing energy-related tension across the globe.
Posted March 11, 2014
Denver Post Editorial: Speeding up U.S. natural gas exports was a good idea even before the crisis in Crimea, but it's an even better idea now.
It's not as if U.S. exports are going to undermine Vladimir Putin's imperialistic designs in the short term. Ukraine would love to be less dependent on Russia for natural gas, but the export infrastructure in the U.S. for liquefied natural gas (LNG), particularly in terms of ports, isn't ready.
Indeed, the earliest that an export terminal is expected to come on line is in late 2015, with other terminals becoming operational perhaps a couple of years later. For that matter, the government doesn't direct where exports go. If the price in Asia for LNG is higher than in Europe, U.S. exports will tend to wind up there.
Still, the more gas is available worldwide, the less leverage Putin will have in bullying neighbors and in talks with European powers such as Germany, which also depends on Russian gas.
Posted February 18, 2014
U.S. Energy Secretary Says Fracking Brings Prosperity
Capital New York: ALBANY—U.S. energy secretary Ernest Moniz said Andrew Cuomo should consider the economic prosperity fracking has brought to Pennsylvania as he weighs a ban in New York.
Natural gas produced by fracking has boosted American industry by more than $100 billion and lowered CO2 emissions, Moniz said, in an interview with Capital.
“This new resource is of critical importance. If you look at Pennsylvania, it's amazing, in the Marcellus shale,” he said. “They have gone from a very, very minor contributor to the national natural gas production, to nearly 20 percent in a remarkably short period. And as we know, that has had enormous economic benefits for the state. Obviously, New York will presumably take that as one of the factors to be considered in its decision.”
Moniz acknowledged that high-volume hydraulic fracturing presents environmental challenges, but said it can also be done safely. Proper management of wells is important including minimizing water usage as well as recycling and the careful monitoring of surface water and flow back fluids.