Energy Tomorrow Blog
Posted March 31, 2015
Posted March 30, 2015
Posted March 3, 2015
oil and natural gas development safe operations leasing plan offshore drilling economic benefits atlantic ocs gulf of mexico alaska pacific outer continental shelf ocs interior department boem federal leases
Posted January 28, 2015
Three maps, two views of America’s offshore energy wealth.
One reflects vast offshore oil and natural gas resource potential – nearly 50 billion barrels of oil and more than 200 trillion cubic feet of natural gas. We say potential because these areas represent the 87 percent of America’s federal offshore acreage that has been closed to exploration and development, dwarfing the areas where development is allowed.
Nonetheless, what’s visible is the profile of an offshore energy giant, an offshore superpower. This is energy muscle waiting to be flexed. These are resources that could benefit Americans in terms of energy security, as more oil and natural gas is safely and responsibly produced right here at home, as well as job creation and economic stimulus.
That’s what energy superpowers do. They develop their resources to increase their security in a world where secure energy is fundamental to overall security. They develop their resources to fuel economic growth and to help ensure the prosperity of their citizens.
Posted December 3, 2014
New Orleans Times-Picayune: After more than a decade of work and a $7.5 billion investment, Chevron has started oil and gas production at its Jack and St. Malo fields in the deepwater Gulf of Mexico. The fields are among the largest in the region, expected to produce more than 500 million barrels of oil equivalent over the next three decades.
The Jack and St. Malo fields, discovered in 2003 and 2004 respectively, are located 25 miles apart in the Walker Ridge region of the Gulf about 280 miles south of New Orleans.
Oil and gas from the fields will flow back to a single, floating production platform located between the two fields. The platform has the capacity to produce up to 170,000 barrels of oil and 42 million cubic feet of natural gas per day.
Posted August 21, 2014
There’s much good to report from this week’s federal offshore drilling lease auction for the western Gulf of Mexico. But we can do better.
The good: nearly $110 million in apparent high bids over 81 blocks covering more than 430,000 acres, according to the U.S. Bureau of Ocean Energy Management (BOEM). The bid total represents a moderate increase over last year’s western Gulf sale that generated slightly more than $102 million in bids. BOEM estimates the sale eventually could yield 116 million to 200 million barrels of oil and 538 billion cubic feet (bcf) to 938 bcf of natural gas.
Broadly speaking, the fact that the federal government conducted an offshore lease sale is in itself encouraging. Development of vast offshore oil and natural gas reserves starts with leasing areas for exploration. That’s where we can do better. More sales are needed to begin the process of finding and developing offshore energy on the outer continental shelf, 87 percent of which is off limits by policy.
Posted August 21, 2014
Wall Street Journal: U.S. economic growth accelerated in the second half of 2013 before unexpectedly contracting early this year. But growth late last year was uneven across the nation, with some energy-rich states leading the pack while economies slowed in New England and on the Plains.
That’s according to new data released Wednesday by the Commerce Department. The agency already reported gross domestic product for the nation on a quarterly basis and at the state level annually. Now, it has offered a quarterly breakdown for state-level GDP data through the end of 2013. The data are volatile from quarter to quarter, but allow a finer understanding of the ups and downs in regional economies.
Posted July 21, 2014
Recent Improvements in Petroleum Trade Balance Mitigate U.S. Trade Deficit
EIA Today in Energy: Since the mid-1970s, the United States has run a deficit in merchandise trade, meaning that payments for imports exceeded receipts for exports. This large and growing deficit on the merchandise trade balance reached a maximum of $883 billion in the second quarter of 2008.
As a result of the recession, dramatic declines of imports in excess of exports during the fourth quarter of 2008 and the first quarter of 2009 reduced the merchandise trade deficit by 49%, to $449 billion in the second quarter of 2009. This trend of declining imports resulted in the lowest quarterly deficit level since early 2002. The merchandise trade deficit then increased to $686 billion in the fourth quarter of 2013, with much of the difference from the 2008 level ($131 billion) attributable to a $158 billion increase in net exports of crude oil and petroleum products.
Posted July 15, 2014
Reuters: By now everyone knows the shale revolution was made possible by the combination of horizontal drilling and hydraulic fracturing.
But although fracking has captured the popular imagination, and is often used as a synonym for the whole phenomenon, horizontal drilling was actually the more recent and important breakthrough.
Mastery of horizontal drilling around 1990, originally for oil rather than gas exploration, was the decisive innovation that lit the long fuse for the shale revolution that erupted 15 years later.
"Horizontal drilling is the real marvel of engineering and scientific innovation," David Blackmon wrote in Forbes magazine last year ("Horizontal drilling: a technological marvel ignored", January 2013).
"While impressive in its own right, the main innovations in fracking have been beefing up the generating horsepower to accommodate horizontal wells rather than vertical ones, and refining of the fluids used to conserve water and create better, longer lasting fractures in the target formation."
Posted June 18, 2014
Here’s a link to a well-done video produced by Fortune magazine, showing a little bit about what it’s like to work on an oil and natural gas production platform more than 100 miles out in the Gulf of Mexico. The video’s producers visited Chevron’s Tahiti platform and interviewed a couple of the facility’s workers to gain insight into the two-weeks-on, two-weeks-off nature of life on the platform.