Thursday, May 10, 2012

3,700 New Gas Wells In Utah

Obama is a day late and a dollar short on approving these gas wells.  It is a welcome but a blatently lame attempt to buy votes. 
Peter


U.S. to approve major Anadarko natgas project in Utah

WASHINGTON | Mon May 7, 2012 8:04pm EDT

WASHINGTON (Reuters) - Anadarko Petroleum Corp's plan to develop a huge natural gas field in Utah is expected to get the go-ahead from the Obama administration during a visit to the state on Tuesday by Interior Secretary Ken Salazar.

The department's approval will allow Anadarko to move ahead with its proposal to drill about 3,700 new wells over 10 years in an existing field in Utah's Uinta Basin.

"Extending the life of the activity in the Greater Natural Buttes area and keeping high production levels going for another decade will lead to lower energy costs and more jobs for Utahns," Senator Orrin Hatch of Utah said in a statement.

Anadarko first proposed the Utah project in 2006, but faced some delays over air quality concerns.

Interior released a final environmental review in favor of the project in April. At the time, Anadarko said it had reached a conservation agreement with the Southern Utah Wilderness Alliance that would help protect the environment during the drilling.

"It's really kind of a new model for prudent development," Anadarko spokesman John Christiansen said.

The approval of the natural gas project comes on the heels of the department's release last week of proposed new regulations for hydraulic fracturing, or fracking, in natural gas development on public lands.

The Utah field is not in a shale gas play - where much of the attention on fracking has been. However, Christiansen said wells drilled in the field still require fracking, as do about 90 percent of gas wells drilled on federal lands.

Facing attacks over its approach to domestic fossil fuel development, the Obama administration has strongly defended its energy record and stressed its support for more oil and natural gas development.

(Reporting by Ayesha Rascoe; Editing by )

Friday, May 4, 2012

More Government Control Of Drilling

Is this good or bad?  There are professional people out there far more knowledgeable about this than I.  Let's hear from you.  I say we've been drilling for about 100 years and we've done very well.  Prove otherwise.
Peter

Interior sets new drilling rules on public land

The natural gas-producing shale that lies under 34 states is now being seen as a game-changer. But the process of extracting that natural gas, dubbed
The natural gas-producing shale that lies under 34 states is now being seen as a game-changer. But the process of extracting that natural gas, dubbed "fracking," is fueling environmental fears. (CBS)

(AP) WASHINGTON -- The Obama administration said Friday it will require companies drilling for natural gas on public and Indian lands to publicly disclose chemicals used in hydraulic fracturing operations.

The proposed "fracking" rules also set standards for proper construction of wells and wastewater disposal.

Interior Secretary Ken Salazar said the long-awaited rules will allow continued expansion of natural gas drilling while protecting public health and safety
.
"As we continue to offer millions of acres of America's public lands for oil and gas development, it is critical that the public have full confidence that the right safety and environmental protections are in place," Salazar said.

The proposed rule will "modernize our management of well-stimulation activities, including hydraulic fracturing, to make sure that fracturing operations conducted on public and Indian lands follow common-sense industry best practices," he said.

Industry groups and Republican lawmakers say federal rules are unnecessary, arguing that states already regulate hydraulic fracturing, in which water, sand and chemicals are in injected underground to break up dense rock that holds oil and gas.

Critics say the chemicals have polluted water supplies, but supporters say there is no proof.
Tom Amontree, executive vice president for America's Natural Gas Alliance, an industry group, said the Obama administration "may not fully appreciate" significant regulatory steps taken by states such as Colorado, Texas and Wyoming to oversee hydraulic fracturing.

"State regulatory bodies have repeatedly proven that they have the understanding of their state's own unique geologic conditions, the on-the-ground expertise needed to oversee this important work, and most importantly, the ability to respond to rapid change," Amontree said. As drafted, the federal proposal would create reporting requirements and "regulatory impediments" that could substantially affect the ability of companies to drill on public lands, he said.

The government maintains that the new rules, which have been under consideration for a year and a half, reflect industry concerns. For instance, the rule on disclosure of chemicals used in fracking was softened to allow companies to file reports after drilling operations are completed, rather than before they begin, as initially proposed. Industry groups said the earlier proposal could have caused lengthy delays.

© 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

Thursday, May 3, 2012

Marcellus Shale Development Practices

Let there be clear and open study and discussion of how the Marcellus Shale is being developed.  This includes the current emotional debate over "fracking".  Get it all out in the open to challenge and appease the often irrational critics.  Let there be public debate.  The benefits of development far outweigh the cost.  Don't let the fear-mongers dominate the issue.  The following represents a good move in that direction.
Peter



May 3, 2012 | PERMALINK | @MarcellusGas
What They’re Saying About the MSC’s Recommended Practices
Canonsburg, PA – Last week, the Marcellus Shale Coalition (MSC) released the first in a series of forthcoming recommended practices (RP). This ongoing and collaborative work is aimed at enhancing the region’s economy and responsibly developing American natural gas with industry-leading environmental safeguards and technologies, an affirmation of our Guiding Principles. In several major Pennsylvania newspapers this week, the MSC reinforced the importance of this initiative. Here’s what they’re saying about the first RP on site planning, development and restoration:
·         “Marcellus Group 'Raises Bar' With Conservation Guidelines”: The Marcellus Shale Coalition's "recommended practices" are guidelines rather than requirements, and address site planning, development and restoration. Still-planned guidelines will focus on areas such as air quality and water management. A 34-page document, released on April 26, recommends 11 steps for operators, from identifying sites for gas installations, to monitoring, maintenance and repair. The coalition said it sought guidance from member companies and other stakeholders to come up with standards that make sense operationally and environmentally. "These content-rich guidance documents represent a level of detail and transparency derived from many sources which will be updated and refined as development continues," said MSC chairman Dave Spigelmyer, in a statement. (AOL Energy, 4/28/12)

·         “Marcellus Trade Group Issues Recommended Practices For Site Work”: The Marcellus Shale Coalition released the first document April 26 in a series of "recommended practices" documents aimed at providing guidance on a range of subjects. "These content-rich guidance documents represent a level of detail and transparency derived from many sources which will be updated and refined as development continues," said Dave Spigelmyer of Chesapeake Energy, chairman of the Canonsburg, Pa.-based trade group. The first document, "Recommended Practices: Site Planning, Development and Restoration," is based on operational best practices already recognized by MSC members as well as on recommendations developed through consultation with leading sportsmen and conservation groups, according to an overview. (West Virginia State Journal, 4/27/12)
MSC President Kathryn Klaber Discusses the Recommended Practices on PCN-TV

 PCN

Click HERE to view this segment online.

·         “Industry Coalition Offers First Take on Best Practices”: The Marcellus Shale Coalition, a natural gas industry group, last week released the first of a series of reports outlining the best voluntary industry practices for hydraulic fracturing and horizontal drilling in the Appalachian basin. The reports, drawn up by teams of coalition members in consultation with leading sportsmen and conservation groups, outline recommended practices for developing natural gas resources while addressing environmental concerns and working with local landowners, according to MSC Chairman Dave Spigelmyer of Chesapeake Energy Corp. (E&E News, 4/30/12)
·         “Industry Group Releases Suggestions For Natural Gas Development In Marcellus Shale”: The Marcellus Shale Coalition, a trade group of oil and gas companies, released Thursday operational suggestions it hopes will standardize how the oil and natural gas industry approaches future drilling operations. … The coalition's recommended practices touch on how companies could develop a lease and how they should go about restoring the landscape once a well is shut and decommissioned. … "From site identification, to safety, communications, landowner engagement and eventual reclamation, this guidance document is the first of many that the coalition will release in the coming months - all of which are designed to increase awareness and share ideas and practices that work while continuing to raise the bar on responsible natural gas development across the region," said coalition president Kathryn Klaber. (International Business Times, 4/26/12)

# # #

Rational Fracking Standards

I see nothing wrong with having operators follow rational, truthful, and sensible practices when hydraulically fracturing (fracking) dense rocks deep underground to increase the production of oil and gas.  I think the companies involved are wise to confront this issue openly, politely, factually, and persistently.
Peter

Big Natural Gas Producers Set Voluntary 'Fracking' Standards

Nearly a dozen major energy companies, including Chevron Corp. (CVX) and Royal Dutch Shell (RDSA.LN, RDSA), have developed standards for hydraulic fracturing in the Appalachian region as federal regulators look to answer environmental concerns with tightened drilling rules.

The companies released the standards Tuesday, saying their shared set of voluntary practices demonstrates the industry's commitment to responsible drilling.

The industry-led effort coincides with an aggressive push by the Obama administration to develop national rules for hydraulic fracturing, a popular method for extracting natural gas, amid a boom in natural gas production.

The Environmental Protection Agency released rules in April designed to control methane and organic chemicals from "fracked" wells and the Interior Department is in the process of writing rules for hydraulic fracturing on public lands.

Oil and natural gas companies say the states are doing an adequate job of regulating hydraulic fracturing. They criticize the Obama administration for launching multiple, and potentially overlapping, efforts to study or regulate the practice.

The standards released Tuesday address best practices for drilling, well design, water use and equipment use. They also include ways to reach out to residents who live near natural gas production sites, often the most vocal opponents of hydraulic fracturing.

Hydraulic fracturing involves the use of high-pressure water, sand and chemicals to break open seams in shale rock, making it easier to extract natural gas.
Copyright © 2012 Dow Jones Newswires


Read more: http://www.foxbusiness.com/news/2012/05/01/big-natural-gas-producers-set-voluntary-fracking-standards/#ixzz1tp6D5e6x

Wednesday, May 2, 2012

The Obama Administration's Clueless Energy Policies

The Obama Administration has a fixed agenda regarding energy and they will not take their blinders off and admit to the economic failure of large scale alternative energy projects like solar and wind power.  It really makes one wonder, are they really that stupid or do they have some kind of suicidal plan for the American economy.
Peter


Chu-less About Energy
http://finance.townhall.com/columnists/lincolnbrown/2012/05/02/chuless_about_energy/page/full/
Calling it a “religious fervor on the radical left” Representative Tom Mclintock of California is taking issue with a March 16th memo from DOE Secretary Steven Chu.
The memo deals with the cyber-security of the Power Marketing Administrations in the nation but also calls for those administrations to change rate structures to coerce users into being energy efficient, pay customers to use less energy during peak hours (where are they going to get the cash for that?) help facilitate the use of electric vehicles, and…wait for it…use more wind and solar power.

All indications are that bringing these “incentives” to bear would up the cost of power appreciably. In a story at CNS News, Mark Crisson, the President and CEO of the American Power Association commented that integrating renewables into the grid would increase costs on the consumer.
Republican Doc Hastings of Washington commented that the changes Chu outlined in his memo could adversely impact the price of energy, including energy provided by hydropower. Really? Hydropower? Isn’t that renewable? Doesn’t that have a small carbon footprint? What happened to the support for alternative forms of energy? What happened to the “all-of-the-above” to energy policy so recently touted by this administration?

By the looks of it, if your preferred form of energy, renewable or otherwise is not in bed with the administration it is out in the cold.
And if Secretary Chu has his way, many of us could be colder in the winter to come.
One bright note: Massachusetts Representative Ed Markey, was so exasperated by Republican objections to increased energy costs that he borrowed a page from the Tea Party playbook and accused the Republicans of being socialists, going so far as to say that those objecting to the forced implementation of Obama’s most favored energy sources are “…all socialists right to their core -- socialist power systems and restrictions to free competition.”
This from a man whose signature bill sought to drive energy prices up, hamstring free enterprise and provide more power to the federal government.

So apparently, Secretary Chu would prefer that we instead throw our support behind green energy companies such as Solyndra which took government money and subsequently took a powder, leaving a mess in its wake.
And by mess, I don’t mean badly kept books or even a few coffee cup rings on a desk.
I mean the kind of mess that would theoretically have every Disciple of Gaia screaming for the guillotine from the bottom of their Birkenstocks.
 
CBS 5 in San Francisco discovered that Solyndra has not unloaded everything in a “Going Out of Business Sale”.
Namely heavy metals including cadmium, solvents, and lead-contaminated tools all used to construct solar panels are still not disposed of. And the station even found buckets containing unidentified liquid, and barrels marked “Hazardous Waste”.

The materials are in a building leased by Solyndra in Milpitas. A similar site in Fremont is being cleaned but here is the punch line- the building in Milpitas is not being cleaned because Solyndra is not interested in paying for it
.
It only makes sense; Solyndra didn’t pay for the start-up, why should it pay for the clean-up?


So the taxpayers bankrolled the start-up. The taxpayers lost their money in the bankruptcy, and now the taxpayers will probably have to foot the bill to clean up the building in Milpitas.
I say fight government with government.

Have the EPA declare it a Superfund site and send the bill to Steve Chu.

Optimistic Future For Oil And Gas Drilling And Production In Ohio

Let's keep a close eye on what is going on in Ohio as this development takes place.  I must caution however, beware of the hype.  Salespeople have been known to exaggerate the value of products they are selling.
Peter

            
New map showing revised gas-oil drilling prospects in Ohio creates stir

By Bob Downing
Beacon Journal staff writer





A relatively simple multi-colored map is creating a buzz in eastern Ohio.
Some counties’ residents are ecstatic at the possibility they might be sitting atop lucrative deposits of natural gas/oil products. Others are dismayed to learn smaller volumes of gas and oil might lie deep under their feet than previously estimated.

At the center of what’s happening is a newly released map from the Ohio Department of Natural Resources’ Division of Geological Survey. It shows excellent drilling potential under much of Stark County. Large tracts of Tuscarawas, Coshocton and Trumbull counties also rate excellent. So, too, does eastern Portage County.
Larry Wickstrom, one of four men involved in developing the map, says he is a little flabbergasted by all the attention it is getting.

The map is “just the addition of new information ... and fine-tuning what we have,” he said. It is merely the state’s best guess as to what might be found thousands of feet underground.
Areas outside the main development area could still be productive, he advised, and the map probably will change as state geologists get even more information.

The map, relying on new data, shows a slightly different footprint in eastern Ohio for Utica shale, identifying a core area for drilling that covers 10.8 million acres from Ashtabula County south into Guernsey County.

Much of the drilling in Ohio has been located in Carroll, Harrison, Columbiana and Jefferson counties. Those four counties generally rate good to very good, according to the new data.
Summit, Medina, Wayne and Portage counties are all in the good area. Most of Cuyahoga, Lake and Lorain counties are now excluded.

The map was unveiled to little fanfare in March at a statewide meeting of the Ohio Oil and Gas Association and has gotten increasing attention as word of its existence has spread. It is based largely on the level of hydrocarbons found in Utica shale cores the state owns.

Over the years, more than 40,000 wells have been drilled through the Utica shale to deeper formations. The state has stored those core samples at Alum Creek State Park near Delaware.
Occasionally, researchers would sample the cores. Then about three years ago, the samples started generating increased interest from drilling companies.

Companies took core samples to have them analyzed in their labs. Because they paid for the studies, the companies were allowed to keep their research private for a year before giving the data to the state.

As the information began trickling in, state geologists took the new data and began revising its maps.
To date, energy companies have drilled 60 horizontal wells into the Utica shale in Ohio, and a total of 194 permits have received state approval. That total includes 10 permits in Stark, six in Portage and one in Medina counties.

State officials have predicted that more than 2,250 wells could be drilled in Ohio by the end of 2015.
One big question that remains unanswered is whether there is enough pressure in the western part of the Utica shale formation, where it is thinner, to send oil up well shafts, Wickstrom said.
Most of the drilling companies have not begun to prospect the potentially oil-rich area that generally lies west of Interstate 77.

The exception is Oklahoma-based Devon Energy Corp., which has applied for state permits for wells in Medina, Ashland and Knox counties. The company has said it is more interested in Ohio’s oil than its natural gas.

Chesapeake Energy Corp. is the No. 1 player in Ohio and is attracted by the so-called wet gases: ethane, butane and propane that are found in Utica shale. That makes Ohio financially attractive at a time when natural gas prices remain very low.

Records show landowners can get signing bonuses of up to $5,800 an acre plus royalties as high as 21 percent on what’s produced by wells. The average leasing bonus in Ohio is about $2,500 an acre.

Bob Downing can be reached at 330-996-3745 or bdowning@thebeaconjournal.com.

Low Natural Gas Price Reflects Engineering and Scientific Success

We've come so far so fast.  In a few short years America has gone from having a shortage of natural gas to an abundance  so great the price is now at record lows.  Imagine that.  Someone ought to be congratulated.
Peter


Haynesville Shale Slowdown

Posted: Apr 27, 2012 10:57 PM CDT

Four years ago the DeSoto Parish School Board was rolling in money.....Thanks to the development of the Haynesville Shale Deposit.
This month marks the fourth anniversary of the shale's announcement and it is expected to mark a significant turn in activity.
Record low natural gas prices because of an abundant supply from shale plus a mild winter have oil and gas companies scurrying to oil and gas options that will producer greater profit margins.
That doesn't mean the Haynsville Shale will be ignored. companies like Chesapeake, EnCana and Shell are slicing their rig counts in Northeast Louisiana, but they continue to service thousands of wells already drilled there.
Industry officials predict that once gas prices prices and stabilize, the dry gas fields like the Hanynesville will be hot again, especially as markets are developed overseas for liquefied natural gas.
Over the past four years the Haynesville Shale has brought in thousands of direct jobs and created billions of dollars in new business sales for the state of Louisiana.
Parish wide sale taxes in De Soto Parish in 2010-2011 soared past 120 million dollars blasting the previous years total of 84 million dollars. To date this year 68 million dollars have been collected, which is about nine million less than this time a year ago.
The good news is the school board there is far from broke. It has been able to sock away 44 million dollars into an employee benefits fund and earmark 14 million dollars more into a rainy day fund.