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Indonesian oil producers restart almost all output disrupted by haze

Indonesian oil producers have restarted almost all of the 12,000 b/d of crude output in central Sumatra that they shut last month during forest fires, a spokesman for upstream regulator SKK Migas said Tuesday. Haze from the forest fires forced producers to halt output starting March 11, as hazardous air prevented workers from continuing to work at oil fields in the region. "All producers have almost recovered their production," said Handoyo Budi Santoso, head of SKK Migas’ communications division. "The production is currently ramping up to reach their normal production. We expect the normal production figure can be reached as soon as possible." Chevron has restarted 573 wells, but output is fluctuating as the wells return to normal production, Santoso said. Energi Mega Persada and local company Bumi Siak Pusako, a joint venture between state-owned Pertamina and the local government, have also ramped up […]

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On Fracking Front, A Push To Reduce Leaks of Methane

Scientists, engineers, and government regulators are increasingly turning their attention to solving one of the chief environmental problems associated with fracking for natural gas and oil – significant leaks of methane, a potent greenhouse gas. Loose pipe flanges. Leaky storage tanks. Condenser valves stuck open. Outdated compressors. Inefficient pneumatic systems. Corroded pipes. Forty separate types of equipment are known to be potential sources of methane emissions during the production and processing of natural gas and oil by hydraulic fracturing, or fracking, of underground shale formations. As the fracking boom continues unabated across the U.S., scientists, engineers, and government experts are increasingly focusing on the complex task of identifying the sources of these methane leaks and devising methods to stop them.   Photo credit: Tim Evanson/Flickr. "Fugitive" methane escapes from natural gas production sites, such as this one in North Dakota. "There are many, many, many possible leaking sources," said […]

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Fracking With CO2 To Replace Water A Distant Goal, GE Says

Carbon dioxide, used for years to force crude oil out of old wells, likely will not replace water in fracking anytime soon because of technical challenges and limited infrastructure, says General Electric Co , which is studying the issue under a $10 billion research program. The delay means energy companies will continue to use more than 2 million gallons of water for each fracked well, equal to baths for some 40,000 people, stressing water supplies in arid American states and likely delaying fracking’s expansion to western China and other water-stressed regions. GE, which is making a push into oilfield technology, is studying how a chilled form of CO2 known as a "super-critical fluid" – neither a liquid nor a solid – could be used as the new industry standard for hydraulic fracturing, the process commonly known as fracking. The conglomerate is working […]

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Move carefully on crude exports, refiner urges House subcommittee

Tight oil formations have helped the US increase its crude production dramatically, an independent refiner conceded. But the nation should proceed cautiously as it considers authorizing more crude exports, he told a US House Foreign Affairs Committee subcommittee. “For decades, this country has worked to become energy secure or even energy independent, and now just recently, the expansion of production from both traditional and non-traditional sources has allowed the country to make great progress toward that goal,” said Michael Jennings, chief executive of Houston-based HollyFrontier Corp. , on Apr. 2. Higher US crude production also has reduced refined product costs for consumers, and has mitigated price volatility or prices that historically resulted from geopolitical events, he continued in testimony to the Terrorism, Nonproliferation, and Trade Subcommittee. “Given the great progress made in the last several years and the continued uncertainty in the global marketplace, HollyFrontier does not believe that […]

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Tight oil-driven production growth reduces need for U.S. oil imports

In the Annual Energy Outlook 2014 (AEO2014) Reference case, crude oil production rises from 6.5 million barrels per day (MMbbl/d) in 2012 to 9.6 MMbbl/d before 2020, a production level not seen since 1970. Tight oil production growth accounts for 81% of this increase, and sees its share of national crude oil production grow from 35% in 2012 to 50% in 2019. In the High Oil and Gas case, U.S. crude oil production reaches 11.3 MMbbl/d in 2019 and reaches 13.3 MMbbl/d in the mid-2030s. Under the Reference case, the import share of U.S. petroleum and other liquid fuels falls to about 25% during the last half of the current decade before rising again to 32% by 2040. In comparison, the High Oil and Gas Resource case projects that net U.S. oil imports will continue to decline through the mid-2030s and remain at or near zero between 2035 and […]

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EIA – Independent Statistics and Analysis

Issues in Focus U.S. tight oil production: Alternative supply projections and an overview of EIA’s analysis of well-level data aggregated to the county level Release Date: 4/07/14 U.S. production of tight oil has increased dramatically in the past few years, from less than 1 million barrels per day (MMbbl/d) in 2010 to more than 3 MMbbl/d in the second half of 2013. The Annual Energy Outlook 2014 (AEO2014) Reference case reflects continued growth in tight oil production. However, growth potential and sustainability of domestic crude oil production hinge around uncertainties in key assumptions, such as well production decline, lifespan, drainage areas, geologic extent, and technological improvement—both in areas currently being drilled and in those yet to be drilled. As a result, High and Low Oil and Gas Resource cases were developed to examine the effects of alternate resource and technology assumptions on production, imports, and prices. Potential of liquefied […]

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California’s big dry shows little let-up

California’s record-setting drought is touching the heart of Silicon Valley . With the rainy season ending with hardly any rain to show for it, the city of Mountain View, home to tech giant Google, declared last week a water shortage emergency. In the tech-heavy city, the impact of the emergency declaration is light. Restaurants, for example, cannot serve water except upon request. Drive or fly just a few hours inland from Apple’s home town in Cupertino, however, and the impact of the drought hitting the US’s most populous state and biggest agricultural industry is far more menacing. For a brief moment in February and March, light rains fell, giving grape growers in Napa Valley, lettuce farmers near Salinas and suburban and rural homeowners a glimmer of hope for an end to a drought now entering […]

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James River Coal Files for Chapter 11 Bankruptcy

Appalachian coal miner James River Coal Co. filed for Chapter 11 bankruptcy protection Monday as it continues its search for a buyer or investor. The Wall Street Journal in February reported that the Richmond, Va., company , an effort the company will continue in Chapter 11. "We took this action to restructure under Chapter 11 because it will allow us to adjust the balance sheet and improve our liquidity in a controlled and definitive manner," James River Chairman and Chief Executive Peter T. Socha said Monday in a statement. "We will also continue to explore and evaluate potential strategic alternatives for the company, such as a capital investment through a plan of reorganization or a sale of one or more portions of the company." The company, which sells coal to electric utilities and industrial customers, said it has secured a $110 million bankruptcy loan to help it fund its […]

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Baker Hughes: U.S. rig count increasing

HOUSTON, April 7 (UPI) — The number of rigs actively exploring for oil and natural gas in the United States was up more than 2.5 percent in March year-on-year, Baker Hughes said Monday. Oil services company Baker Hughes released its rig count for March. The average count for the United States was up 34 from the 1,769 counted in February and up 47 from March 2013. In its latest assessment, the U.S. Energy Information Administration said more than 90 percent of the active rigs were spinning onshore. More than 80 percent were targeting crude oil reserves. The United States had more active rigs counted than any other region in the world, according to Baker Hughes. U.S. oil production is expected to reach 8.4 million barrels per day this year, an increase of nearly 1 million bpd from the previous year. The oil services company said the Canadian rig country […]

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U.S. shale to curb imports for decades, EIA says

U.S. imports of petroleum and liquid fuel sources should dip to 25 percent by the mid 2010s before rising again by 2040, the Energy Department said Monday. The Energy Information Administration, the statistical arm of the Energy Department, started the first in a series of phased roll outs from its annual outlook for 2014. It said in its initial report Monday the import share of petroleum and other liquid fuels declines to about 25 percent of the total fuel supply by the middle of this decade and doesn’t rise again above 30 percent until around 2040. According to EIA, part of the decrease in imports is because of the increase in production from so-called tight oil formations, a reference to reserves found in underground shale formations. EIA said U.S. oil production should hit 9.6 million barrels per day before 2020, a level not seen […]

Posted On : Published By : Tom Whipple