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U.S. Gas Exports Unlikely to Ease Tensions Over Ukraine

LONDON—Natural gas exports from the U.S. are unlikely to help ease the tensions between Europe and Russia over Ukraine as the first such shipments are about two years away, a senior executive from oil and gas company BG Group PLC said Tuesday. The U.S. has vast supplies of cheap natural gas thanks to the fracking boom and could become one of the world’s top three exporters of liquefied natural gas by 2025, BG said. Over the past week, some U.S. politicians have urged the Obama administration to speed up oil and natural gas exports to weaken Russia’s hand over Ukraine. Russia supplies about 30% of Europe’s gas requirements, half of which transit via Ukraine, a factor some believe has stifled European opposition to Russia’s annexation of Crimea. Federal law places heavy restrictions on U.S. companies from exporting natural gas to countries, like those in Europe, that aren’t among its […]

Posted On : Published By : Tom Whipple
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Louisiana's Gas Supply-Demand Balance: At A Crossroads

For more than 50 years, Louisiana has stood out as one of North America’s leading natural gas producers. Boasting pipeline and storage infrastructure to support widespread production from conventional onshore wells in-state and from neighboring Texas as well as offshore from the Gulf of Mexico, the Bayou State has long been at the crossroads of the United States’ natural gas industry. However, a number of factors could transform Louisiana from a key gas supplier to a major demand center. Production from conventional gas fields is declining while relatively new supplies from the Haynesville, Marcellus and other shale gas plays are poised to meet growing demand for gas-fired electricity in the Southeast, power for new petrochemical plants in the state and exports of liquefied natural gas (LNG) from new Gulf Coast terminals. In order to maintain its gas market equilibrium, Louisiana needs to tap new supply sources, concludes the new […]

Posted On : Published By : Tom Whipple
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Louisiana’s Gas Supply-Demand Balance: At A Crossroads

For more than 50 years, Louisiana has stood out as one of North America’s leading natural gas producers. Boasting pipeline and storage infrastructure to support widespread production from conventional onshore wells in-state and from neighboring Texas as well as offshore from the Gulf of Mexico, the Bayou State has long been at the crossroads of the United States’ natural gas industry. However, a number of factors could transform Louisiana from a key gas supplier to a major demand center. Production from conventional gas fields is declining while relatively new supplies from the Haynesville, Marcellus and other shale gas plays are poised to meet growing demand for gas-fired electricity in the Southeast, power for new petrochemical plants in the state and exports of liquefied natural gas (LNG) from new Gulf Coast terminals. In order to maintain its gas market equilibrium, Louisiana needs to tap new supply sources, concludes the new […]

Posted On : Published By : Tom Whipple
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New York, Bakken and crude oil by rail: where is the love?

The crude-by-rail industry is not feeling so much of the “love” in New York’s “I Love New York” slogan these days. Governor Cuomo has put a target on the backs of those moving Bakken oil in particular, which some recent tests have shown has the volatility of gasoline. That spells trouble for the crude, more of which is moving through the New York capital of Albany by rail and then barged down the Hudson River to East Coast refiners. It is access to more domestic crudes that has kept those plants open after pricey imports almost shuttered them a few years ago. New York’s crude-by-rail scrutiny is taking the form of a so-called “inspection blitz” of rail yards and terminals, along with a moratorium that has created uncertainty around projects to bring in more heavy oil. Granted, New York has reason to be concerned after several recent derailments in the state […]

Posted On : Published By : Tom Whipple
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California Drought: Is this the big one?

Rainstorms finally arrived in California, after a 14 month drought with no significant rain. But the big reservoirs are still pitifully low, and snow pack is less than a quarter of normal. Hundreds of thousands of acres will not be planted, and food bills will likely go up in North America, and possibly around the world. This is the Radio Ecoshock special on the California drought, as a case study of what we can expect in many parts of the Earth. I’ve lined up 4 experts all with something new for you. Dr. Peter Gleick is a climate and water specialist who has been warning this could happen for years. Dr. Reagan Waskom is another water and agriculture expert from Colorado. We connect with boots-on-the ground water conservation specialist David Schroeder in Montclair, right on the edge of thirsty Los Angeles.  Finally, we get back to the big picture, […]

Posted On : Published By : Tom Whipple
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After annexing Crimea, Russians move to carve up the spoils

While the people of Simferopol celebrated Russia’s annexation of Crimea , 10 minutes’ drive from the city centre on Balaklava Street another Russian invasion was under way – this time of a private business. A group of heavily-armed suspected Russian soldiers in ski masks on Tuesday stormed the Bogdan Avto-Salon, a Hyundai and Subaru dealership in a quiet suburb of the city, taking control of its offices and salesrooms. The men, who later stood guard along the salon’s perimeter fence, refused to identify themselves to reporters and waved them away with guns. Critics of Moscow have been warning for weeks now that Russia’s attacks on Ukrainian military facilities in Crimea were just the start, and that commercial business on the peninsula would be the next target. Events on Balaklava Street suggests they might be right. “It’s clear there’s going to be a new carve-up of property here now that […]

Posted On : Published By : Tom Whipple
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GE, Boeing Among Firms Tracking Russia Sanction Fall-Out

Photographer: Alexander Astafyev/EPA Russian Prime Minister Dmitry Medvedev (L) meets with General Electric CEO Jeff Immelt at the Gorki residence, outside Moscow, on Feb. 11, 2014. GE Russia had earnings of $2.5 billion in 2012 and 3,400 employees, according to the company’s website. Close Close Open Photographer: Alexander Astafyev/EPA Russian Prime Minister Dmitry Medvedev (L) meets with General Electric CEO Jeff Immelt at the Gorki residence, outside Moscow, on Feb. 11, 2014. GE Russia had earnings of $2.5 billion in 2012 and 3,400 employees, according to the company’s website. Companies with investments in Russia — such as General Electric Co. (GE) and Boeing Co. (BA) — are growing concerned as the U.S. prepares to impose tougher sanctions over the crisis in Crimea that may spur retribution against corporate interests. Almost 100 chief executive officers with the Business Roundtable are set to meet in Washington today with Defense Secretary Chuck […]

Posted On : Published By : Tom Whipple
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Exploring the “why” behind extreme energy

For eight months I’ve been travelling around England and Wales talking about ‘unconventional gas’ – shale gas , coal-bed methane [2] and underground coal gasification [3] , which the media often erroneously conflate as ‘fracking’ [4] . This intensive period of work began last June, and continued into 2014 to meet the continued requests for talks. In particular I’ve tried to tour those areas next in line for extreme energy [5] developments – South Wales [6] , The Marches [7] and the South Midlands [8] . Travelling has its fringe benefits. I get to read a lot; whiling away the hours on trains or in cafés, moving between consecutive events or home. 2013 […]

Posted On : Published By : ASPO-USA
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Solar Power More Economical Than Natural Gas, Coal, Nuclear In Texas

Yeah but the seven or eight cent per is based on Today’s price for gas. Almost everyone agrees, it’s almost impossible to make money at today’s gas prices. A person can make the argument that NG prices will never go much higher (than $4.50) in which cases energy companies will simply stop drilling for gas. Or one can hope for shortages on account of low prices hoping low prices will cure low prices. Solar technology is leaping forward both on the manufacturing and efficiency angles. Even if PV price stabilizes, in 2014 dollars, in a few years either NG is No More or it’s futures price makes it better suited to make plastics and fertilizer than burning to power that wall to wall TV. Depending on region, wind, hydro, geothermal Owning too much stigma, nuclear power […]

Posted On : Published By : ASPO-USA
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How do ex-Saudi Aramco geologist Dr Husseini's oil price spike predictions of USD 140 by 2016-17 stack up?

In an interview with ASPO USA in January 2014 Ex-Saudi Aramco geologist Dr. Sadad-Al-Husseini predicted oil price spikes of $140 by 2016/17. This post shows some graphs explaining why this could happen. Husseini:  My base oil price forecast in 2012 dollars still ranges between $105 and $120/barrel Brent with a volatility floor of $ 95/barrel and more probable upward spiking to $140/barrel within 2016/2017. Husseini did not elaborate how he arrived at that time frame but this question and answer give us a hint:   ASPO:  “In the larger context, how has your view of future world oil production supply evolved over the last four or five years? As a benchmark, I reference your slides from the 2009 Oil & Money Conference slides”   Husseini:  “The realities of the 2009 O&M forecast of a limited plateau of oil supplies have been pretty much vindicated since then. The oil plateau […]

Posted On : Published By : Tom Whipple