Oil And Gas Industry Jobs: A Huge Positive

I don't mean to beat a dead horse, but the oil and gas industry is creating jobs, creating wealth, and making America more energy independent.......all without much government support......in fact, in spite of what the government does.  Compare that to the Billions of taxpayers dollars wasted on failed "green energy" projects (Solar energy boondoggles, wind turbine folly, ethanol production from food sources like corn, and on, and on).  It does make one wonder about our leadership in Washington, D.C.
Peter

Need A Job? Energy Sector Producing More Than Oil, Gas

July 24th, 2012 vaddison Posted in Uncategorized |

By Velda Addison, Associate Editor

The oil and gas industry supports more than 1.92 million jobs in the US, and it has the potential to create 1.4 million new jobs in the next 15 years.

Jamie Vazquez, president of W&T Offshore, presented the figures during the July 20 Decision Strategies’ Oilfield Breakfast Forum. Her talk was peppered with an array of statistics. There was even more informative data, left for those who attended the event, in the National Ocean Industries Association’s (NOIA) booklet that touted what the American offshore industry can do. Keeping the economy growing, putting Americans to work, and securing a reliable energy future were on the list.

Article continued here: http://blogs.epmag.com/rebecca/2012/07/24/need-a-job-energy-sector-producing-more-than-oil-gas/?spMailingID=4545580&spUserID=MTUxNzUzNDk0ODgS1&spJobID=49152564&spReportId=NDkxNTI1NjQS1

Hess Improves Production And Technique In Completing Bakken Oil Wells

For those interested in some of the finer details of operations in producing oil from the Bakken Formation, horizontal drilling, completions, and hydraulic fracturing, the following article is interesting and valuable.  Here is a link to the original article:
http://seekingalpha.com/article/722661-bakken-update-hess-has-made-a-big-change-to-its-completion-design?goback=%2Egde_156898_member_138170874

The author, Mr. Filloon does his research and seems very knowledgeable about the oil and gas industry.  I'm quite certain he obtains his information from publicly available sources.  He provides his analysis as a service to the investment community.
Peter

Bakken Update: Hess Has Made A Big Change To Its Completion Design

July 16, 2012 | by: Michael Filloon |

 

<>2011 Hess Southern Williams County Results

Name	Date	Choke	Stages	Water	Proppant	60Day IP	120Day IP
En-Weyrauch 154-93-1918H-3	10/11	30/64	N/A	N/A	N/A	488	369
En-Frandson 154-93-2116H-3	8/11	28/64	38	84203	3986800	939	780
En-Weyrauch 154-93-1918H-2	6/11	22/64	22	48161	1931448	501	367
En-Weyrauch 154-93-1918H-1	4/11	22/64	22	40421	1097939	504	435
En-Weyrauch 154-93-2932H-1	12/11	38/64	N/A	N/A	N/A	1101	825
En-Weyrauch A-154-93-2017H-1	11/11	42/64	38	61305	3995800	653	479
En-Weyrauch 154-93-3031H-2	12/11	34/64	38	71049	3991720	1003	787
En-Weyrauch 154-93-3031H-1	12/11	30/64	38	41472	1741722	1148	837

Hess Corporation (HES) is a very large and well-run oil producer. In 1957, it discovered oil in North Dakota and has become one of its biggest players. I had previously discussed Hess and its very conservative completion methods early in 2011. At this time, Hess was using 20 to 22 stage fracs with lower amounts of water and proppant. This was also consistent with Continental Resources, Inc.'s (CLR) well design, which I covered in this article.
The table to the top of this article shows a change from these lower number of stages to 38. This is consistent with Brigham (STO), which I covered in this article. Not only was this a big move, it has improved results significantly, and in some cases doubled old IP rates. One issue I had in researching Hess' results, was its lack of documentation with respect to well design. For those specific wells, I place N/A in the appropriate space.
In the second half of 2011, it used varying amounts of water and proppant. This variance has not always produced better results with increased water and proppant, which I found somewhat puzzling. Well orientation and lateral length are different for each well, sometimes by 1,000 feet. Another finding is Hess' move to a more moderate choke, which is consistent with Newfield Exploration Co.'s (NFX) well design, which I covered here. This has also been consistent with other Bakken operators.
In the table below, we see even more changes to design as Hess has used more than 100,000 barrels of water. It has also moved to above 3.2 million pounds of proppant. This move is consistent of Brigham, Kodiak Oil & Gas Corp (KOG) and Exxon Mobil Corporation (XOM).

<>2012 Hess Southern Williams County Results

Name	Date	Choke	Stages	Water	Proppant	IP Rate
En-Weyrauch C-154-93-2932H-2	3/12	22/64	38	34396	1995429	60Day=911
En-Madisyn 154-94-0607H-1	5/12	27/64	38	93122	3137554	41Day=892
En-Thompson Trust 154-94-1930H-1	4/12	36/64	N/A	N/A	N/A	54Day=1548
En-Weyrauch A154-93-2017H-2	1/12	33/64	N/A	N/A	N/A	60Day=801
Ca-Halvorson 154-95-0409H-1	5/12	34/64	38	101929	3203698	32Day=1610

In summary, Hess is moving forward at a quick pace to increase IP rates and EURs. It is not surprising as many operators are spending more per well in the hopes of increasing profits in the short and long term. The surprise isn't the change, but the amount of change. Hess' move has been much quicker than others in the Williston Basin, so it is my guess that Hess believes it is important enough to make a bigger move. These results could be different in other areas such as Mountrail or McKenzie counties, but this will take more research.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: IP Rates are measured in barrels of oil per day. Water volumes are measured in barrels. Proppant amounts are measured in pounds. N/A is used on any well without sufficient information. This is not a buy recommendation.

Sierra Club Speaks With Forked Tongue

So the Sierra Club is confused and promoting nonsense?  That is nothing new, they've been doing it for years (like pushing the myth of man-caused global warming down our throats).

Peter

 

Key Democrats To Sierra Club: You’re Wrong About Natural Gas

July 24th, 2012 sweeden Posted in Uncategorized |

By Julia Bell, Researcher, Energy in Depth
As a fuel source, natural gas represents a rare combination of benefits: affordable, abundant, and clean. The White House has acknowledged this on several occasions, touting also the enormous job creation potential that responsible natural gas development can deliver.

But for some, denying the facts about natural gas has become a profitable enterprise. The most notable example? The Sierra Club, which recently launched its “Beyond Natural Gas” campaign to stop development of this important source of energy.

 Ironically, it was also the Sierra Club that was touting the environmental benefits of natural gas just a few short years ago, back when natural gas was expensive and considered in short supply – we’ll let our readers extrapolate the meaning of that.

Nonetheless, the facts are still the facts, and it’s telling that the Sierra Club’s new efforts against natural gas not only butt heads with well-established scientific facts about the processes used to extract it, but also with folks that they used to consider their allies – including President Barack Obama, whom the Sierra Club has cheerfully endorsed for reelection.

The United Nations has even pointed out that expanded natural gas use can help the world’s poor and foster a cleaner global environment.

And just this week, the Sierra Club received even more pushback for its activism against natural gas, this time from US Rep. Ed Markey (D-Mass.) and US Sen. Ron Wyden (D-Ore.).
Discussing specifically the Sierra Club’s anti-natural gas campaign, Rep. Markey delivered a fairly clear rebuke: “I think environmentalists should want natural gas on the table as an option,” Markey said, adding later that he thinks it would “be wise for us to not take natural gas off the table.”
When Sen. Wyden was asked about the Sierra Club’s “Beyond Natural Gas” campaign, he issued a similarly unequivocal rejection: “This is what I tell environmental folks: natural gas is really important to a lot of renewables, solar and wind, ensuring that option is out there.”

In describing the environmental benefits, Wyden added, “Natural gas is the cleanest of the fossil fuels, so you start with that as your basic proposition.”

So for those keeping score at home, those acknowledging the safety and benefits of natural gas development include President Obama, the US Environmental Protection Agency, the US Department of Energy, state regulators from across the country, independent experts from respected universities, and now even prominent members of Congress who are widely recognized for their work on environmental issues. Heck, even a study funded by the Sierra Club found natural gas to be a comparatively clean source of energy.

On the other side? Hollywood, Josh Fox, and the Sierra Club.

Gee, I wonder who we should believe?

http://blogs.epmag.com/guests/2012/07/24/key-democrats-to-sierra-club-you%e2%80%99re-wrong-about-natural-gas/?spMailingID=4545580&spUserID=MTUxNzUzNDk0ODgS1&spJobID=49152564&spReportId=NDkxNTI1NjQS1

Shale......The Game Changer?

Shale Could Become Game-Changing Catalyst For US

http://www.epmag.com/Exploration/Shale-B...

 

If the US proves successful in unearthing natural gas from shale formations, the geopolitical structure with the world’s top energy producers could shift in the nation’s favor.

an excerpt:

One slide in his presentation showed a map of the world that highlighted areas with high energy usage. Another slide showed the location of major shale developments near those areas. “[Shale gas] basically sits right in our backyard,” he said. “It’s not just about where the resources are located. It’s also about regulatory infrastructure that’s in place that promotes the development of this resource.”

Shocking News.........

The following article about fracking and how the truth is distorted is not new news, nor is it shocking.  People calling themselves "environmentalists" have a long and shameful history of "distorting the facts" when criticizing or protesting everything from climate change, to mining activity, to farming, to wildlife management, and now the process of hydraulic fracturing of underground rock formations to enhance the production of oil and gas.  More often than not they resort to emotional fear tactics and leave science by the wayside.

The late, great author Michael Crichton even wrote an excellent book on the subject, titled "State Of Fear".  For more about that book go here:

Michael Crichton Interview With Charlie Rose - Pete'sPlace

Jul 17, 2008

Jul 17, 2008

Michael Crichton does not believe it is. He makes some very astute comments. Also, I highly recommend Crichton's book, "State of Fear". There is much more about Michael Crichton on this blog, do a search on his name.

http://petesplace-peter.blogspot.com/

clipped from Google - 7/2012

 

Michael Crichton Gone - Pete'sPlace - Yes

Nov 06, 2008

Nov 06, 2008

Michael Crichton Gone. What a shame, what timing. His writing, his insight, his intellect remain. Do a search on this blog and read more. In tribute, a humble hats off. Peter More on Michael Crichton: Predicted Demise of MSM ...

http://petesplace-peter.blogspot.com/

clipped from Google - 7/2012

 

Michael Crichton: Our Environmental Future - Pete'sPlace

May 02, 2007

May 02, 2007

Michael Crichton: Our Environmental Future. I wish I could post this entire speech, but I can only quote parts of it and encourage you to read it all here: http://www.crichton-official.com/speeches/npc-speech.html. In the speech ...

http://petesplace-peter.blogspot.com/

clipped from Google - 7/2012

 

Michael Crichton Speech: Environmentalism As Religion - Pete'sPlace

Aug 24, 2007

Aug 24, 2007

Michael Crichton Speech: Environmentalism As Religion. I can't post the entire speech here without his permission, but this by Michael Crichton is worth reading and saving and contemplating. He sees environmentalism as ...

http://petesplace-peter.blogspot.com/

clipped from Google - 7/2012

 

Experts: Some fracking critics use bad science

By KEVIN BEGOS, Associated Press–

PITTSBURGH (AP) — In the debate over natural gas drilling, the companies are often the ones accused of twisting the facts. But scientists say opponents sometimes mislead the public, too.
Critics of fracking often raise alarms about groundwater pollution, air pollution, and cancer risks, and there are still many uncertainties. But some of the claims have little — or nothing— to back them.
For example, reports that breast cancer rates rose in a region with heavy gas drilling are false, researchers told The Associated Press.

Fears that natural radioactivity in drilling waste could contaminate drinking water aren't being confirmed by monitoring, either.

And concerns about air pollution from the industry often don't acknowledge that natural gas is a far cleaner burning fuel than coal.

"The debate is becoming very emotional. And basically not using science" on either side, said Avner Vengosh, a Duke University professor studying groundwater contamination who has been praised and criticized by both sides.

Shale gas drilling has attracted national attention because advances in technology have unlocked billions of dollars of gas reserves, leading to a boom in production, jobs, and profits, as well as concerns about pollution and public health. Shale is a gas-rich rock formation thousands of feet underground, and the gas is freed through a process called hydraulic fracturing, or fracking, in which large volumes of water, plus sand and chemicals, are injected to break the rock apart.

Continued:  http://www.google.com/hostednews/ap/article/ALeqM5jCUQcMjaT-TJqizs7WRB1zIw8rzA?docId=cef00570f618477d8e9fcb53579af91c&goback=%2Egde_156898_member_138056030

FILE - In this file photo from Nov. 3, 2010, documentary filmmaker Josh Fox speaks at a rally of protesters against Marcellus Shale drilling and hydraulic fracturing in Pittsburgh. Researchers say the claim that fracking has been linked to increased cancer rates in Texas is simply wrong. Fox, an Oscar-nominated filmmaker who uses the claim in a new film, declined to acknowledge the error when told of researchers who say he's doing a disservice to people with cancer by misrepresenting health data. (AP Photo/Keith Srakocic, File) (A "disservice" to people is too kind.  He's lying to the public for his own personal gain.  In my mind that is despicable.  Peter)

Boone Pickens Likes Fracking

Not that Boone Pickens has a lot of credibility left, but he is at least repeating what a lot of people active in the oil and gas industry are recognizing.  I wonder how long it will take the mainstream media, voters and the people in Washington, D.C. to catch on to the enormous changes taking place in the U.S. and around the world.  I say we have some good times coming.  We may actually be able to climb out of this massive pit of debt we are in.
Peter

Boone Pickens says we have more energy than he imagined, thanks to fracking

 

By ELIZABETH SOUDER

ELIZABETH SOUDER The Dallas Morning News

Staff Writer

esouder@dallasnews.com

Published: 19 July 2012 09:56 PM

 

Related

T. Boone Pickens, who used to regularly warn Americans about running out of oil, said Thursday the world has far more energy than he ever imagined, thanks to fracking.

 

Since oil and gas companies figured out how to use hydraulic fracturing and horizontal drilling techniques profitably, the amount of available fuel in the U.S. has boomed. Pickens, who runs hedge fund company BP Capital, said at a conference Thursday this boom is about to fundamentally change the world.

“You, me and the rest of America are sitting on a huge change in energy globally,” he said at the Texas Conservative Coalition Research Institute’s Energy Summit in Irving.
The Organization of Petroleum Exporting Countries “isn’t going to have near the power they have today in five years, maybe in three,” Pickens said.

Pickens, who made his fortune trying, and failing, to buy big oil companies, said: “There’s a lot more energy in the world than I ever imagined there would be.”

Hydraulic fracturing, or fracking, involves injecting water and chemicals into a well to crack the underground shale and release oil or gas. The process has boosted domestic production, annoyed people living nearby, increased air pollution in some places and worried many people about water contamination.

Pickens has been trying since 2008 to persuade Americans to stop importing oil from hostile countries and replace it with domestic energy such as natural gas. He inspired a debate about imported oil but couldn’t persuade Congress to offer incentives for truckers to switch to natural gas.
“I thought I could sell this in no time. Wrong, wrong. I could not,” he said. He said more Senate Democrats than Republicans voted for the bill.

“You all have no idea how many millions of dollars I have put into Republicans over the years, and I got six votes,” he said.

He and Railroad Commission Chairman Barry Smitherman, who interviewed Pickens at the event, agreed the U.S. doesn’t have a real energy plan. “We actually had a plan, and it was called cheap and imported,” Smitherman joked.

Instead, Pickens’ Clean Fuels company, which sells natural gas vehicle fuel pumps, is installing pumps on its own. He said the lower cost of natural gas compared with diesel is prompting truckers to make the switch.

Searching For The Truth About Fracking

Let's watch this and put forth some experienced commentary.  Informed decision-making is needed about the issue of hydraulic fracturing (fracking), not mass hysteria.
Peter

TruthlandJuly 20, 2012 | Truthland@YouTube
The natural gas industry has prepared a movie, “Truthland”, that responds to the HBO movie “Gasland”.