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Bridge Out: Bombshell Study Finds Methane Emissions From Natural Gas Production Far Higher Than EPA Estimates

A major new study blows up the whole notion of natural gas as a short-term bridge fuel to a carbon-free economy. Natural gas is mostly methane (CH4), a potent heat-trapping gas. If, as now seems likely, natural gas production systems leak 2.7% (or more), then gas-fired power loses its near-term advantage over coal and becomes more of a gangplank than a bridge. Worse, without a carbon price, some gas displaces renewable energy, further undercutting any benefit it might have had. Fifteen scientists from some of the leading institutions in the world — including Harvard, NOAA and Lawrence Berkeley National Lab — have published a seminal study, “ Anthropogenic emissions of methane in the United States .” Crucially, it is based on “comprehensive atmospheric methane observations, extensive spatial datasets, and a high-resolution atmospheric transport model,” rather than the industry-provided numbers EPA uses. Indeed, the Proceedings of the National Academy […]

Posted On : Published By : Tom Whipple
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US Shale Plays to Watch in 2014

DrillingInfo CEO Allen Gilmer talks with Rigzone about shale plays to watch in the United States in 2014 and beyond. The U.S. shale exploration and production boom has dramatically changed the U.S. energy landscape, unlocking enough natural gas resources to turn the country into a future exporter of liquefied natural gas while reversing the decline seen a few years ago in U.S. crude oil production. While unconventional plays such as the Eagle Ford and Bakken are well-known, DrillingInfo CEO Allen Gilmer told Rigzone he sees potential for exploration and production activity in 2014 and beyond for some emerging U.S. shale plays. These plays are standalone plays that people are just now looking at, as well as ancillary plays in and around proven plays, either up dip or down dip of proven plays but in juxtaposition with good source rock as well, Gilmer told Rigzone in an interview.     […]

Posted On : Published By : Tom Whipple
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Baker Hughes: US drilling rig count edges up to 1,763

The US drilling rig count tallied 2 units to reach 1,763 rigs working in the shortened week ended Nov. 27, Baker Hughes Inc. reported. The overall gain was represented by a 2-unit increase in land-based rigs to 1,687. Rigs drilling offshore and rigs drilling in inland water were unchanged from last week at 57 and 19, respectively. Oil rigs accounted for 4 more units to 1,391 while gas rigs lost 2 units to 367. Rigs considered unclassified remained at last week’s total of 5. Directional drilling rigs added 6 units to reach 222. Horizontal drilling rigs were unchanged from last week at 1,127. Canada reported 385 rigs working thanks to a 17-unit rise, most of which consisted of a 15-unit gain in oil rigs to 215. Gas rigs were up 2 units to 170. Canada now has 14 fewer rigs compared with a year ago. Major states, basins The […]

Posted On : Published By : Tom Whipple
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EIA: U.S. Crude Imports Drop for 19th Straight Month

U.S. crude-oil imports fell year-on-year for a 19th straight month in September, as domestic crude output climbed to its highest level since January 1989, government data released Wednesday show. Imports dropped 5.6% to 7.911 million barrels a day in the month. That was the lowest September level since 1996 and the smallest volume of crude imports since June, according to the Energy Information Administration. The drop of 470,000 barrels a day came as domestic output from shale oil fields jumped by 18.4%, or 1.2 million barrels a day, to 7.794 million barrels a day. Among major sources of imports, Canada maintained the rank of top supplier as it has since March 2006. Imports from Canada averaged 2.531 million barrels a day, […]

Posted On : Published By : Tom Whipple
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Dustup Grows Over Refinery Byproduct

Mountains of a black, powdery refinery byproduct called petroleum coke are piling up from Chicago to Corpus Christi, Texas, prompting local officials to fight what residents say is a dusty scourge that coats houses, cars and even pets. Chicago’s City Council this week debated a proposed ordinance that would ban pet-coke storage within city limits, after officials said clouds of it blew from a storage site on the city’s South Side into a nearby neighborhood. The dusting from Koch Industries Inc.’s KCBX Terminals Co., which operates the site adjacent to the Calumet River, prompted Chicago Mayor Rahm Emanuel last week to order the city’s public-health department to draft new regulations governing pet coke. “We will be working actively with our state and federal partners to force these petroleum-coke facilities to either clean up or shut down,” Mr. Emanuel said. Tighter storage rules being drafted include height restrictions for pet-coke […]

Posted On : Published By : Tom Whipple
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Analysis: High-ethanol gas – Not coming to a pump near you

A month ago, Steve Walk was on the brink of deals to sell two big oil refiners some of his company’s specialized oil pumps, which serve up fuel that is 85 percent ethanol, a biofuel made mostly from corn. Walk’s company, Protec Fuel, sells and installs the equipment needed to dispense so-called E85. The deals would have nearly doubled Protec’s business, he said. The number of stations across the United States dispensing E85, which is a rarity despite the growing use of biofuels, would have jumped by 10 percent. But those deals are on hold after the U.S. Environmental Protection Agency’s proposal earlier this month to slash the minimum volume of ethanol to be used in the country’s gasoline supply next year. The surprise move by the Obama administration marks a retreat from the 2007 Energy Independence and Security Act meant to push increased sales of […]

Posted On : Published By : Tom Whipple
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Water shortages may make fracking impractical, industry says

Fracking may be impractical in parts of the UK due to the scarcity of local water supplies, and in other areas will have an impact on local water resources, the water industry has admitted, in a deal struck with the oil and gas industry. The controversial process of shale gas and oil extraction uses hydraulic fracturing technology or fracking, where water and chemicals under very high pressure are blasted at dense shale rocks, opening up fissures through which the tiny bubbles of methane can be released. But the quantities of water required are very large, leading to cases in the US – where fracking is widespread – where towns and villages have run dry . In a memorandum of understanding published on Wednesday, the water trade body Water UK and the UK Onshore Operators Group (UKOOG), which […]

Posted On : Published By : Tom Whipple
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Poland Eyes Shale-Gas Boom

Poland is planning to speed up its search for shale gas to reduce its dependence on its former overlord, Russia, following the departure of several major U.S. companies from Polish gas fields. Poland is one of the most promising exploration sites for shale gas in the European Union, with enough estimated reserves to allow for decades of production. But so far only several dozen wells have been drilled, with mixed results. The process won’t be without its challenges, though. The country faces stiff opposition from environmental groups that say the hydraulic fracturing, or “fracking,” of rock formations releases methane, a greenhouse gas, into the atmosphere and may pollute water tables. Similar opposition in France led the country’s constitutional court to ban the process in October. Germany also looks set to shelve its plans for shale gas as its center-right and center-left parties work on a compromise agenda for their […]

Posted On : Published By : Tom Whipple
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EU agreement pushes full implementation of 95 g/km CO2 target for cars back 1 year to 2021, expands use of supercredits

EU agreement pushes full implementation of 95 g/km CO2 target for cars back 1 year to 2021, expands use of supercredits The European Parliament (EP) and member state negotiators reached an informal agreement on new rules to achieve the 2020 CO 2 emission target of 95 g/km for new cars. Under the new agreement, which must be approved by both the European Parliament and Council to enter into force, 95% of new cars must meet the 95 g/km mandatory target by 2020, and 100% by 2021. An earlier agreement ( earlier post ), set aside after EU ministers failed to endorse a previous informal deal on it with Parliament, had envisioned full implementation of the 95-gram target in 2020. […]

Posted On : Published By : Tom Whipple