The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

hydraulic-fracturing  fracking  shale-benefits  economic-growth  manufacturing  technology 

Mary Leshper

Mary Schaper
Posted September 16, 2014

Steve LeVine (Quartz): Oil prices continue to plunge today despite the beheading of another western hostage by the Islamic State, tensions between Russia and the West, and mayhem in Libya. As Quartz has reported, one of the main reasons is surging US oil production, which has made up for supply disruption almost barrel for barrel—and is also a bad sign for the leaders of petrostates.

Now we have an estimate of where oil prices might have been absent the American oil boom—a sobering $150 a barrel, former BP CEO Tony Hayward told the Financial Times (paywall).

That’s 55% higher than the current benchmark price of $96.27 that was trading in Asia this morning. If Hayward’s number is right, it means that the US boom is saving the global economy about $4.9 billion a day in oil spending.

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oil-and-natural-gas-development  fracking  hydraulic-fracturing  shale-energy  keystone-xl-pipeline  energy-exports 

Mary Leshper

Mary Schaper
Posted September 15, 2014

(Wall Street Journal): Skeptics of the U.S. energy boom say it can't last much longer because it requires drilling an ever-increasing number of wells.

But the boom already has lasted longer than anyone would have imagined just a decade ago and has more room to run. That's because oil and natural-gas wells have become more productive—an unrecognized but potent trend that should keep the fuels flowing.

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american-energy  fracking  energy-security  jobs  global-markets 

Mary Leshper

Mary Schaper
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.

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american-energy  fracking  jobs  economy  lng-exports  emssions  methane 

Mary Leshper

Mary Schaper
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.

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economy  jobs  fracking  business  supply  american-energy 

Mary Leshper

Mary Schaper
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.

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economy  jobs  energy-security  american-energy  exports  fracking  marcellus  texas 

Mary Leshper

Mary Schaper
Posted September 9, 2014

Platts: US gasoline prices will fall 9-12 cents/gal and prices elsewhere in the world will fall 10-13 cents/gal if current US restrictions on oil exports are dropped next year, a leading Washington think-tank said Tuesday.

"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.

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economy  jobs  american-energy  fracking  manufacturing 

Mary Leshper

Mary Schaper
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.

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economy  jobs  american-energy  fracking  ethanol  colorado 

Mary Leshper

Mary Schaper
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.

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Mary Leshper

Mary Schaper
Posted September 4, 2014

Nola.com (Charlie Williams): No other state in the country is more synonymous with offshore oil and natural gas development than Louisiana. So it is fitting that the Society of Environmental Journalists chose to take a deeper look at the safety of offshore operations during its conference in New Orleans this week.

 

In recent years, the oil and natural gas sec­tor has made substantial improvements to the safe­ty of offshore operations and drilling. The industry has established rigorous new standards, enhanced existing ones and established theCenter for Offshore Safety to ensure continuous improvement in safety and environmental protection.

 

As a result, offshore oil and natu­ral gas exploration and production have never been safer.

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economy  jobs  american-energy  fracking  keystone-xl-pipeline  pipelines 

Mary Leshper

Mary Schaper
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.

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