Posted September 5, 2013
How America’s Oil and Natural Gas Revolution is Helping Consumers and Workers
CNN Money (Daniel Yergin): The rapid rise in shale gas and tight oil in the United States constitutes nothing less than a revolution in oil and natural gas. No longer can there be any doubt about the dramatic change in America's energy position. U.S. oil production is up 50% since 2008, when we were supposedly slated to run out of oil. Natural gas production has increased by 33% since 2005, and shale gas alone now constitutes about 45% of total natural gas production.
This revolution is not just about energy production; it's an economic story along several dimensions, whether measured in consumers' pocketbooks, jobs, U.S. manufacturing output, or America's increased competitiveness in the world economy. This has occurred amid a half-decade of deep recession and high unemployment. Indeed, without the boost from the unconventional oil and gas development, the U.S. economic picture would have looked even worse over the last few years.
Read more: http://bit.ly/15ClGse
Posted September 4, 2013
U.S. Energy Lifting Economy More Than Expected
USA Today: Newly found sources of domestic oil and natural gas are having an even bigger impact on the economy than first projected, adding more than $1,200 last year to the discretionary income of the average U.S. family, a new study says.
The explosion in domestic energy production now supports 1.2 million jobs, directly or indirectly, says consulting firm IHS, in a study released Wednesday. That number will grow to 3.3 million by 2020, and new energy's contribution to U.S. families' disposable incomes will hit $2,000 per household per year by 2015, said IHS.
Read more: http://usat.ly/13eFEFC
Posted September 3, 2013
COLUMN – Your Kids Should Consider Petroleum Engineering
Reuters: Encouraged by some of the highest starting salaries available in any industry, record numbers of students are enrolling in petroleum engineering courses at U.S. universities.
It is part of a broader renaissance in engineering education, which should eventually ease severe skill shortages in the oil and gas sector.
But it will be the end of the decade before these new graduates are the experienced professionals needed to lead teams and make a real difference to exploration, output and refining.
In 2010, 1,295 graduate students enrolled in petroleum engineering courses at U.S. universities, according to the U.S. Department of Education's "Digest of Education Statistics."
Read more: http://reut.rs/15V2jb8
Posted August 30, 2013
Benefits of Fracking Will Be Tested in Syria Attacks
Forbes: Oil prices are surging on concerns that a U.S.-led attack on Syria could disrupt global oil supplies. West Texas Intermediate crude traded at $110.45 a barrel on the New York Mercantile Exchange this morning, after rising more than $3 a barrel on Tuesday. Less than two months ago, oil sold for less than $100.Gasoline prices have risen the most in six weeks at a time when forecasts had indicated they would be falling because of seasonal decline in demand.
It’s a pretty typical market response to geopolitical unrest in the Middle East. The concern, of course, is that any escalation of the Syrian conflict will expand to include other oil-producing nations, particularly Iran. Iran has the power to control the all-important Strait of Hormuz, through which about 17 million barrels of oil pass each day — roughly one fifth of the world supply.
But this time things are different, at least from the U.S. perspective. The implications of a supply disruption are muted because domestic production is at a 20-year high, driven by the hydraulic fracturing boom. U.S. inventories are flush.
Read more: http://onforb.es/15jNSjt
Posted August 28, 2013
The Infrastructure Supporting America’s Energy Renaissance Begins in Texas
Fuel Fix Blog: While many states throughout the nation struggle to make ends meet, surrounded by economic uncertainty, Texas is booming. Robust investment in the energy industry – from deep-water drilling to above ground production, and everything in between – has allowed the state to succeed despite an inconsistent U.S. economy.
None of this is news to those living in the Lone Star State – and in fact Texas has received a steady stream of national attention for its economic success – however it is worth noting that a key reason for such outstanding growth has been the investment in and development of our nation’s extensive energy infrastructure.
In April 2013 alone, Texas created over 33,000 jobs, which is more than any other state in the country, and nearly one-fifth of all the jobs created in the United States.
Read more: http://bit.ly/1dQjBcL
Posted August 27, 2013
The Geography of Jobs: Smart Policies Are Good, But Oil Is Better
The Atlantic: If you want to understand how to create jobs -- not just a few at a time, but hundreds of thousands at once -- look to Texas and North Dakota.
Together, these two states account for a little more than 8 percent of the country's population -- about one in 12 people. But they're also responsible for 20 percent of net new jobs since the end of the recession. And, crucially, they account for "more than 100 percent of the increase in U.S. [oil] production since 2009," James Hamilton writes.
The Great Plains have been relatively great throughout the recovery for many reasons -- cheaper land, cheap wages, service sectors insulated from the housing-finance crisis that leveled parts of California, Florida, Arizona, and Nevada -- but energy has helped a lot.
Read more: http://bit.ly/1823p3p
Posted August 26, 2013
Posted August 23, 2013
High-volume hydraulic fracturing natural gas development has made increased production of shale gas and oil economically attractive. With increased production of natural gas, the price according to BCG has declined 51% since 2005. And, technology is projected to result in further lowering production costs. This is a big advantage over our competitors that have natural gas prices that are 2.6 to 3.8 times greater than our domestic prices in America.
Posted August 22, 2013
Shale, Fracking Are Not the main Cause of Texas Water Shortages
One of the challenging aspects of shale oil and gas development in the United States comes from the fact that some of the large shale reservoirs are located in areas that are arid or semi-arid. Some, like the Eagle Ford and Cline Shales in Texas and the Niobrara in Colorado, are affected by ongoing drought conditions. This reality can make the sourcing of water for hydraulic fracturing operations a difficult undertaking.
Posted August 21, 2013
USA Today: What New Energy Landscape Means to USA
When Mexican President Enrique Peña Nieto unveiled a plan recently to allow private investment in his nation's energy production, it received relatively little notice. But it is a very big deal. Mexican oil has been the province of a government controlled-monopoly since the industry was nationalized in 1938.
Adding private sector know-how could easily increase production by 25% or more in a decade as new drilling technologies are brought to bear. This would add to an equally positive and unanticipated development: the vast increase in oil and gas production in the USA and Canada.