Via: The Wall Street Journal- Shale Gas Could Fracture Energy Market
Wednesday, June 6, 2012
James Herron recently wrote a blog post on The Wall Street Journal’s website. Herron discusses how the natural gas boom could change the energy landscape of the world. He says that if the United States continues fracturing and if Europe begins the process, it could dethrone the Middle East as the world’s dominate energy exporter.
It can also lower exports, according to Herron:
Lower imports will come largely at the expense of the current established gas exporters. By 2035, gas exports from Russia and the Middle East will both be around a third lower than they would otherwise have been, the IEA estimated.
Herron also offers this warning:
However, if the shale gas industry fails to get off the ground due to growing public opposition, the dominance of existing exporters would only grow, to the detriment of consumers.
With North Carolina recently approving a fracking bill and Shell drilling for natural gas in China , it seems like world natural gas production will only increase in the years to come.
Though public opinion of fracking is mixed, at best, it doesn’t seem to be slowing down production in the short-term.
Read Herron’s entire post here.
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.
The market realization to both the E&P worker, the E&P Stockholder, the E&P Operaotor and any J.V. Partner, or Financier who has a vested interest in result is this:
A. JetUltra Ultra-Prem Regular Lo-Lead
Octane 108 101 92 87
What wells will consistenty supple BBL’s of the highest octane and volatility for the given capital needed as a) Sunk cost of capital and b) the incremental or “variable” costs to bring X Y Z Z+ to market; now speaking of market One must commence a COST BENEFIT ANALYSISIS OF SELLING TO COURNTY A FOR $8.53 HENRY HUB VS. 10.20 ON A FUTURES CONTRACT. WHAT’S THE TAKE-A-WAY capacity and can we deliver on a consistent basis with rail, truck, barge and O.-Liner(s)
Tip of the day: Don’t get differentially stuck. (regardless of bottomhole, tophole or a whole bunch or ice or low inventory at work.
Keep up the hard work men and women.
TK EnergyDrillingGrouup@hotail.com
The cost benefit balance of targeting one formation in “A” township vs.”B” formation in another payzone, all comes down to Pipeline TakeAway capacity, water availability along with Frac Crew availability and cost(s). This all has to keep in mind the Henry Hub pricing for the day and where one may best transact their product then taking into account Logistics.
Have fun; we are doing the right things for this Great County that just got GREATER.
God’s speed my brothers, and neighbors.
Long Live the American Cowboy with a little oil on them boots…