Thursday, August 2, 2012

Conserving Water While Fracing

The following link will take you to an excellent article about how fracing is being done with minimal water usage, simply by recycling .  Anyone who has a swimming pool knows the water is kept clean by removing debris like leaves and grass, regularly using  chemicals to kill bacteria and algae, (mainly chlorine), and continually filtering the water.  Basically, the same thing can be done with the water used to frac oil and gas wells.    It may not be "rocket science", but it works, it is safe, and it greatly reduces the amount of water used.  That you can take to the bank and use as one more  weapon against the opponents of fracing.
Peter

Water Demands Spark Improved Technology For Fracing
The fracing industry has long considered water a nuisance. But water reclamation and treatment companies see H2O as liquid gold, and the technologies they bring to the game will play a pivotal role in the shale boom.


Wednesday, August 1, 2012

Marcellus Shale Gas Development Update

Everyone should follow the Marcellus Shale Coalition which regularly puts out a newsletter containing information and news such as the following.  Here is their contact information:

Marcellus Shale Coalition | 24 Summit Park Drive | Pittsburgh, PA 15275 | www.marcelluscoalition.org
 
 

America needs to become productinve again.  We can not just be consumers.  Eventually that credit card gets "maxed out" and the shopping game is over.  It's time to get back to work.  Developing our shale gas (and oil) is a very good beginning.
Peter

What They’re Saying: American Natural Gas Drives “Economic Growth and Prosperity”

Pittsburgh, Pa. – It’s difficult to go an entire day – or hour – without a reminder of the economic difficulties facing America, especially for the millions looking for work. This week, the Associated Press reports that “As U.S. hiring as declined, so has consumer and business confidence.” The Associated Press also recently reports that “High unemployment isn't going away” in the United States. These are historically challenging times. For its part, though, America’s natural gas producers – along with a robust supply chain – continue to make critical investments leading to expanded economic growth, private sector job creation and strengthened energy security all while protecting the environment. Here’s what they’re saying.

BUILDING A STRONG, LOCAL WORKFORCE, BETTERING COMMUNITIES

· Help Wanted: Trucking Jobs Widely Available in the Marcellus: [PGT Trucking Inc. CEO Pat] Gallagher said recent developments with Marcellus shale drilling in the area have created more opportunities for drivers to seize local driving jobs that will have them home every night. “Most people in Beaver County who want a trucking job will have one,” Gallagher said. (Beaver Co. Times, 7/29/12)
· “Lt. Gov. Cawley says Marcellus Shale Creating Jobs in Blair Co.”: Marcellus Shale natural gas is helping to create family-sustaining jobs in Blair County and across Pennsylvania, Lt. Governor Jim Cawley said today during a tour of New Pig Corporation in Tipton. "Whether it is at one of the drill sites in the southern end of the county or right here at New Pig, Marcellus Shale is creating good, family-sustaining jobs. Governor Tom Corbett and I want to see more of this happen across the state," said Cawley. Cawley cited recent Department of Labor and Industry statistics showing that 29,000 people are working in the drilling industry in the state with average annual earnings of $81,000. There are about 238,000 people working in related industries. He also noted that natural gas drilling has produced $1.6 billion in state tax revenues since 2006 and helped to reduce energy costs across Pennsylvania. (Release, 7/26/12)
· “Gas Co. Donation Ensures Safety”: Thanks to one of the companies constructing a pipeline in Dallas Township, Back Mountain emergency personnel have a new tool at their disposal to help respond to calls related to the natural gas industry. PVR Partners, formerly Chief Gathering LLC, recently donated a Polaris Ranger 800EF all-terrain vehicle to Dallas Fire & Ambulance Inc. … Mark Van Etten, president of Dallas Fire & Ambulance Inc., said the organization has been looking for ways to better equip personnel to respond to natural gas emergencies as the industry continues to move into the area. … PVR Partners Vice President Mark Casaday, a Dallas High School graduate, said it is the company’s policy to aid the communities in which it does business. … “It’s our policy to help out.” (Dallas Post, 7/29/12)
· Job-Creating Shale Gas Creating “Optimism”: Local business leaders have been enthusiastic in their embrace of fracking. "That's a long time coming, and that creates optimism," said Thomas Humphries, president of the Youngstown/Warren Regional Chamber. The industry has already created more than a thousand jobs in the region thanks in part to a European company called Vallourec SA, whose V&M Star unit will soon begin operating a new $650 million mill to manufacture the steel tubes used in extracting the natural gas. Regional homeowners, meanwhile, are cashing in by selling their mineral rights. (CBS News, 7/24/12)
· “Marcellus Summer Camp Held at Mansfield University”: The first ever Marcellus Summer Camp was held at Mansfield University July 8 to 10. Twenty-one students in grades 10 to 12 from Tioga, Bradford, Clarion and Indiana counties in Pennsylvania were joined by students from New York State for an introduction to the natural gas industry and possible career paths. Throughout the event, campers were introduced to many of the 150 occupations within the industry and the educational opportunities available in our area. They gained real world knowledge of a well site and had the opportunity to interact with faculty members from various educational institutions as well as industry professionals. … "We were excited to offer high school students the opportunity to explore different career options within the natural gas industry," Lindsey Sikorski said. (Sun-Gazette, 7/30/12)
· Shale Gas Helping to Drive “Economic Growth and Prosperity”: Cheap energy is vital to the manufacturing sector, lowering the overall cost of goods which increases consumption. That drives economic growth and prosperity, but it does so without government involvement, direction and stimulus. (Washington Times editorial, 7/27/12)
· Local University Training Next Generation of Natural Gas Leaders: The Tioga Co. Development Corp. celebrated 21 years of accomplishments with its 19th annual meeting at the university on Monday. … Featured was the [Mansfield] University's new Marcellus Institute, which was established in February to develop new academic programs focused on expanding the shale gas industry. Since then, the university has developed two degree programs in just a few months. (Sun-Gazette, 7/31/12)
SHALE GAS GENERATING MUCH-NEEDED CONSUMER SAVINGS
· “Columbia Expects Abundant Supplies” of U.S. Natural Gas, Lower Consumer Prices: In announcing its average budget payment plan amount for 2012-13, the natural gas utility said it foresees abundant supplies of gas that should keep consumers' costs in check. The utility calculated the average monthly payment at $66 -- down $9 a month from last winter and among the lowest amounts of the last decade. … Columbia Gas said plentiful gas supplies have helped drive prices down by more than half in recent years. For example, the August, 2008, projected budget plan amount was $133 a month. (Toledo Blade, 7/31/12)
· “Columbia to Lower Price for Natural Gas”: Natural gas is plentiful and its price is low, which yesterday brought good news for Columbia Gas of Ohio customers. Columbia yesterday announced rates for its budget-billing customers. For the year starting in August, the average customer will pay $66 per month per household, down $9 from last year. It’s the lowest in more than five years. “We think it’s a really good thing for consumers,” said spokesman Ken Stammen. “Any time you can lower costs, it’s a good thing and a welcome thing.” … Gas prices are low because of the growing supply of energy from U.S.-based shale deposits, among other factors. (Columbus Dispatch, 7/31/12)
· “More Pa. Drivers Converting to Compressed Natural Gas”: O-Ring CNG Fuel Systems in Punxsutawney has been operating its compressed natural gas station for a year. Compressed natural gas is currently $2 a gallon at that station. Bob Beatty, the founder of the company, believes that using compressed natural gas will continue to become more popular. He predicts that in five years compressed natural gas will not exceed $2.25 a gallon. Beatty said that there is currently an abundance of natural gas, and he believes there is enough in Pennsylvania to last the next 150 years. For Beatty, he said business has been successful. Over the last year he has opened stations in Punxsutawney, Coolspring and Rimbersburg. His Punxsutawney station has about 85 customers. Another station is slated to open near Interstate 80 in Clarion County. (WJAC-TV, 7/31/12)
· “Columbia: Gas Bills Going Down for” Consumers: Columbia Gas of Ohio says its average budget payment plan for this year has gone down, and is among the lowest rates offered in the last decade. … The company states that abundant new supplies of natural gas have helped drive prices down by more than half in recent years. (WYTV, 7/30/12)
· More American Natural Gas = More Consumer Savings: Expanded shale gas production is “making it far less expensive for consumers to heat their homes during the winter and power their appliances throughout the year.” (Washington Times editorial, 7/27/12)
JUST THE FACTS ON SAFE SHALE GAS PRODUCTION
· “Shale ‘Revolution’ Is More Than Hyperbole for Capitol Hill”: Energy policy is being transfigured alongside the energy economy by technology advances that have allowed access to enormous reserves of natural gas. … It is hard to argue with the reality: The American Gas Association says reserves estimates have risen to 2,100 trillion cubic feet of natural gas as of the end of 2011, a century’s worth of supply. … Greater use of natural gas is a stated aim of the Blue Dog Coalition of self-declared fiscally conservative Democrats, and Democratic governors in Colorado and North Carolina have enthusiastically endorsed more natural gas development. (Roll Call op-ed, 7/31/12)
· Facts Must Prevail Over Scare Tactics: Opposition to fracking increasingly seems to be relying on scare tactics, with activists blithely repeating factoids they like with little effort to check the raw data or even the mainstream press. … They also have the same responsibility to check their facts. As with any industrial activity, hydraulic fracturing of shale should be done in an environmentally responsible fashion, and regulators should monitor emissions. But by making false claims, activists not only damage their own credibility, they distract from actual environmental issues that require amelioration. (U.S. News & World Report op-ed, 7/30/12)
· NY Daily News Columnist Highlights “Hypocrisy of The First Order”: A group of anti-fracking foodies threw an interesting fund-raiser at the Brooklyn Winery last week. … They call themselves Chefs for the Marcellus. Guests were treated to eggplant-stuffed okra, smoked lamb belly with fermented tofu and whipped ricotta jewel on toast — along with wines from the Finger Lakes and beers from Cooperstown’s Ommegang brewery. The only thing more delicious than the menu was the irony, because many if not most of those dishes were cooked over the bright blue flame of natural gas. That’s right, the Chefs for the Marcellus saw nothing wrong with using the very same fuel they portray as a dire threat to the upstate countryside. Plus, there’s all the electricity they needed to refrigerate the okra and air-condition the patrons who had paid $125 a pop. Most of those kilowatts, in New York City, were produced by gas-fired power plants. … But too many anti-frackers are trying to have it both ways — to completely ban the practice in their own backyard, while continuing to take enjoy the food-cooking, house-warming, juice-generating benefits of gas drilled elsewhere. (NY Daily News op-ed, 7/31/12)
· EPA - Once Again - Confirms Dimock’s Water Quality: EPA announced June 25 that extensive testing of Dimock wells revealed that “there are not levels of contaminants present that would require additional action by the Agency.” This confirms earlier EPA and Pennsylvania environmental officials’ tests, whose results were denied and decried by natural gas opponents. The silence from these activists on EPA’s latest announcement so far has been deafening. (Forbes.com op-ed, 7/31/12)
# # #

NOTE: Please follow us on Twitter (@MarcellusGas) and Facebook for updates on clean-burning American natural gas.

Thursday, July 26, 2012

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

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


<>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

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?



 

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.”

Wednesday, July 25, 2012

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:

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.
 
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 ...
 
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 ...
 
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 ...
 

Experts: Some fracking critics use bad science
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)