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EU ‘invites’ members to practice safe fracking

European Environment Commissioner Janez Potocnik said member states are "invited" to follow a minimum set of guidelines for shale gas exploration. Several Eastern European countries are said to be rich in shale natural gas deposits though the reserves are either too expensive to exploit or up against moratoriums against the controversial drilling practice called hydraulic fracturing. Potocnik said there are hopes shale can help address European energy needs but resource extraction is up against public criticism. "The commission is responding to calls for action with minimum principles that member states are invited to follow in order to address environmental and health concerns and give operators and investors the predictability they need," he said in a statement Wednesday. Hydraulic fracturing uses large volumes of water laced with trace amounts of chemicals seen as harmful to human health and the environment. The commission’s recommendations call on […]

Posted On : Published By : Tom Whipple
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EU 'invites' members to practice safe fracking

European Environment Commissioner Janez Potocnik said member states are "invited" to follow a minimum set of guidelines for shale gas exploration. Several Eastern European countries are said to be rich in shale natural gas deposits though the reserves are either too expensive to exploit or up against moratoriums against the controversial drilling practice called hydraulic fracturing. Potocnik said there are hopes shale can help address European energy needs but resource extraction is up against public criticism. "The commission is responding to calls for action with minimum principles that member states are invited to follow in order to address environmental and health concerns and give operators and investors the predictability they need," he said in a statement Wednesday. Hydraulic fracturing uses large volumes of water laced with trace amounts of chemicals seen as harmful to human health and the environment. The commission’s recommendations call on […]

Posted On : Published By : Tom Whipple
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China piping in more natural gas

Chinese government data show Wednesday the country piped in 20 percent more natural gas in December than it did the same time last year. China’s General Administration of Customs reported approximately 90 billion cubic feet of natural gas was imported in December. The Platts news service reports the pipeline imports for December were 20.1 percent more year-on-year. About 80 percent of the natural gas piped into China comes through the Central Asia-China pipeline, which links China to Turkmenistan and Uzbekistan. In August, China announced it started securing some natural gas volumes through a pipeline from neighboring Myanmar. China’s economy is expected to grow 7.8 percent in 2014, unchanged from 2013, the Organization of Petroleum Exporting Countries said in its January market report. China’s economy is outperforming its rivals, meaning it is taking on more energy supplies to keep up with demand. For oil, OPEC […]

Posted On : Published By : Tom Whipple
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Victory for Britain and Poland as EU Issues Guidelines on Controversial Fracking Technique

BRUSSELS—Britain scored a victory Wednesday, when the European Commission shied away from earlier plans to put forward legislation on the exploration of shale gas. The European Union’s executive issued only guidelines for the technology after strong pressure from Britain and Poland, which are keen to forge ahead with the controversial technique of hydraulic fracturing, or ‘fracking,’ used to tap shale gas reserves. The commission said it was responding to calls for "minimum principles…to address environmental and health concerns and give operators and investors the predictability they need," said the EU’s environment chief, Janez Potocnik. Britain and Poland are keen to tap into potential shale gas reserves after seeing the U.S. become the world’s largest gas producer from its reserves. But public opinion in Europe is largely set against the technique, amid concerns over its impact on the quality of water, soil and air. France has put in place a […]

Posted On : Published By : Tom Whipple
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Boston Beats New York With Record Power Price Premiums: Energy

Electricity prices in Boston , which reached record premiums to New York costs last month, are poised to remain at all-time highs through March because of bottlenecks on natural-gas pipelines. New England’s reliance on the fuel for power generation has grown to 52 percent from about 30 percent in 2001, though there have been no new pipelines transporting gas to the six-state region in 40 years. In New York, lines from wells in the Marcellus shale deposits of Pennsylvania and West Virginia boosted deliveries by more than 1 billion cubic feet a day this winter, enough to heat about 3 million homes. Wholesale power in Boston is trading at the highest January premium to New York since at least 2005, according to grid data compiled by Bloomberg. Prices in New York recovered faster from a blast of arctic cold last week because of the increased gas supplies. The power […]

Posted On : Published By : Tom Whipple
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Why Natural Gas Should Stay Cheap — For a Long Time

Natural gas prices are likely to stay low for at least the next 20 years, with a long term annual average price of $4 to $5 per million Btu, a new study says. Even with new demand, the quantity of U.S. gas resources is so vast thanks to unconventional drilling techniques that average Henry Hub prices should not rise dramatically from the $4 to $5 range, though they could fluctuate. (Henry Hub, based in Louisiana, is the delivery point for physical natural gas traded in the Nymex futures market.) Henry Hub prices averaged $4.24 per million British thermal units in December, and hit a high above $13 per million Btu in October 2005. “We now have knowledge and comfort that we have an incredible resource base-technically recoverable resources of 3,000 trillion cubic feet,” said Rita Beale, IHS senior director of power, gas, coal […]

Posted On : Published By : Tom Whipple
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Russia concerned by Ukrainian fracking

The Russian Natural Resources Ministry said Friday it was concerned hydraulic fracturing in neighboring Ukraine could pollute regional water supplies. The ministry issued a statement Friday saying it was concerned about the prospects for shale natural gas development in neighboring Ukraine. Hydraulic fracturing, known also as fracking, uses large quantities of water mixed with potentially harmful chemicals to get at oil and natural gas deposits locked in shale formations. Environmental groups have expressed concern some of that water could eventually spoil drinking water supplies. Deputy Environment Minister Rinat Gizatulin said there are real concerns about contamination because potential drilling sites may be in close proximity to aquifers. He said Friday a letter was sent to his Ukrainian counterparts calling for a bilateral meeting to address the issue. Chevron and Royal Dutch Shell are among the energy companies interested in developing Ukrainian shale. The government […]

Posted On : Published By : Tom Whipple
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Analysts call for US EIA to estimate 300-304 Bcf gas storage withdrawal

A consensus of analysts expects the US Energy Information Administration on Thursday will estimate a record withdrawal from natural gas storage of between 300 Bcf and 304 Bcf for the reporting week that ended Friday. A draw from stocks within consensus expectations would easily surpass the largest pull on record of 285 Bcf in the week that ended December 13, 2013. It would be substantially larger than a 156-Bcf withdrawal in the same week a year ago and the five-year-average drawdown of 159 Bcf, according to EIA data. Article continues below… Request a free trial of: Gas Daily Gas Daily Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline and pooling points in major U.S. markets. Gas Daily keeps you informed about complex state and federal regulations that affect competition in the gas industry. You will also […]

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Alaska to Invest in Natural Gas Project

Alaska officials want to invest billions of state dollars in a major natural gas transportation project that they say will increase energy sales and boost state revenue. The administration of Gov. Sean Parnell, a Republican, said Wednesday that it would seek lawmakers’ approval of an agreement with several big energy companies that would allow Alaska to become an equity partner in the export project, which state officials have been pursuing for years. Oil production has been declining in Alaska, prompting Mr. Parnell and his predecessors to seek ways to shore up the state’s finances, which have been heavily dependent on oil taxes and royalties. Officials have been eager to unlock natural gas that is trapped underground near the Prudhoe Bay oil fields and in another gas-rich region called Point Thomson. "We have a compelling interest in seeing these resources monetized," Natural Resources Commissioner Joe Balash said […]

Posted On : Published By : Tom Whipple
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Polish shale gas may be too hard to exploit

The geological characteristics in Poland means it may be hard for energy companies to duplicate the shale gas success in the United States, an analyst said. New drilling technologies used for shale deposits have given energy companies access to oil and gas reserves previously out of reach, putting the United States in a leadership position in terms of production of those resources. Paul Stevens, an oil analyst at London think tank Chatham House, told the New York Times it may be tough to replicate that success in Poland. “The geology has not worked out,” he was quoted as saying Tuesday. Chevron, which has headquarters in California, is one of the few energy companies still exploring the shale reserve potential in Poland. Marathon Oil, which has headquarters in Texas, gave up on its Polish shale ambitions in 2012 and Italian energy company Eni is said […]

Posted On : Published By : Tom Whipple