The Energy Information Administration previously released an early version of its Annual Energy Outlook 2014, which contains its analysts’ predictions on the future of the nation’s energy production and consumption until 2040. Given the uncertainties inherent in any projection of the energy market, however, data in the reference should not be viewed in isolation and should instead be compared to alternative projections.
Nonetheless, the projections for growth in the energy industry are nothing short of reassuring. The EIA traces how domestic oil production, strengthened by new shale developments in key areas like North Dakota and Texas, will continue to grow at roughly 0.8 million barrels per day until 2016. By then, EIA researchers predict that domestic production will reach 9.6 MM bbl/d, a historical high that was achieved only in 1970.
However, nearly all of the growth in the oil sector is expected to come from shale oil. As for other conventional sources in the lower 48 states and Alaska, things are expected to remain static or in decline. Meanwhile, U.S. oil imports patter due to lowered consumption brought about by improvements in fuel efficiency and less driving.
The EIA projects natural gas production to increase by 56 percent between 2012 and 2040 to 37.6 trillion cu. ft. a year thanks to fracking. By mid 2030s, natural gas is expected to finally replace coal as the biggest source of U.S. electricity.
Dr. Ali Ghalambor is the former director of the Energy Institute of the University of Louisiana and Head of the Department of Petroleum Engineering. Find more updates on the energy industry through this Twitter page.
The energy boom is gradually spreading influence over several industries, and one of which is shipbuilding. The shipbuilding sector is enjoying a major growth which is considered as the biggest boost in decades. At present, it pitches in some $36 billion to the US economy.
Fox News gathers that this development has not been observed since the 1970s. “The movement of more oil has built up a real commercial shipbuilding renaissance,” said Matthew Paxton, president of the Shipbuilders Council of America.
Despite the struggling economy, this period of new growth and activity is taking place, thanks to the increase in the production of natural gas in the country. Fox News attests that the huge amounts of gas and oil extracted from shale, through hydraulic fracturing, have contributed to the country’s energy boost. Hence, industry experts have dubbed the country as “the Saudi Arabia of natural gas.”
Natural gas is a promising alternative source of energy for industries, including the shipbuilding industry. More about the discussion of natural gas can be found on Dr. Ali
Ghalambor and Dr. Boyun Guo’s highly
acclaimed book, The Natural Gas Engineering Handbook. For more resources about the production of natural gas and sustainable energy sources, access this Facebook page.
Many workers today are disillusioned with their jobs, thinking they exist as spectators and not movers or changers. Petroleum engineers might be exempt from this feeling—they impact people’s lives in a big way. They extract and refine hydrocarbons to turn them into energy, which fuels industrial, commercial, and domestic activity. Petroleum engineers are easily classified as “movers.”
Energy is a big part of people’s lives, and with more sophisticated technology, it even forms an insatiable need. Workers in the energy sector are so indispensable in the industry that a shortage of them would be catastrophic. Petroleum engineers are highly skilled and difficult to replace without attendant reforms in tertiary educational systems. The high level of specialization in their line of work --- manifested in both their formation and on-the-job training --- makes their position unique and difficult to fill. At the core of the responsibility of a petroleum engineer is ensuring abundant energy production with little environmental impact. This is what makes petroleum engineering a career for the highly skilled.
Becoming a petroleum engineer is easier said than done. A petroleum engineer should have ample knowledge from a wide range of disciplines ranging from mathematics, geology, physics, and chemistry to create better and more efficient systems of harnessing hydrocarbon energy to bring about a balance between cheap abundant energy and a clean and safe environment.
Environmentalists are clear about their opposition to fracking. It is better to ban the process entirely instead of treading into unknown territory only to end up with a mistake that could pollute other valuable resources.
In some parts of the globe where oil supply is abundant, however, hydraulic fracturing is already widely accepted and the energy industry forges ahead without much opposition. The benefits of accepting the process with proper regulations are also becoming clearer with explorations of underground shale gas reserves underway. In using a proven method to harvest this resource, many countries have a chance at creating more jobs and increasing energy security.
Still, it would take time before many countries can lift their moratoriums on fracking. More studies and examples would have to be presented to convince the majority that the process can be used without dire consequences for the environment.
Meanwhile, many nations are already looking at the US for models in regulating fracking. Many are worried about whether fracking can be done safely and about how such an outcome can be achieved. To answer these concerns, experts maintain that the way to reap the economic benefits of hydraulic fracturing and large-scale oil and gas production without adversely affecting the environment and the health of the people is through strict regulation which can be formulated through the cooperation of industry experts and environmental groups.
Dr. Ali Ghalambor has previously served as the head consultant to more than 50 petroleum production and service companies. Stay abreast on the developments in the energy industry by following this Twitter page.
The use of hydraulic fracturing for high-volume oil and gas production presents the nation with large opportunities that may come with dire consequences to the state of the environment.
For one thing, pursuing developments in this area of the energy industry could generate thousands of jobs. Meanwhile, the abundant supply of domestically produced oil and gas can be used to offer alternatives that could help them recover faster from the effects of the recession. There may also be more than enough supply, thus opening up opportunities for export.
However, those who oppose the use of fracking to produce natural gas point out that the effects of the process are still unclear. Many studies need to be conducted to determine the health and environmental impact of fracking because many fear that it could cause pollution and it may significantly deplete water resources.
While the debate goes on, lawmakers in Illinois have gone ahead with a measure to create strict regulations for high-volume oil and gas drilling. The legislation was created through collaboration between some key players in the energy industry and an environmental group.
Strict regulations are seen as a way for the energy industry to move ahead and take advantage of the opportunity presented by the abundant supply of natural gas in several areas while taking measures to protect the environment and the health of the people.
Dr. Ali Ghalambor is the author, co-author, and editor of several books and more than 160 technical articles and manuals that discuss various aspects of petroleum production. Find more updates on the developments in the energy industry on this Twitter page.
(CNN) -- American energy production is skyrocketing, and pundits are promising everything from millions of jobs to energy independence. All of this could be put in jeopardy, though, if we don't get serious about the accompanying risks and make sure that oil and gas development is done right.
The United States is now the world's largest producer of natural gas. Meanwhile U.S. oil production increased last year by over 300 million barrels -- its biggest jump since the industry began in 1859.
There's good reason to believe that these changes have created hundreds of thousands of jobs. Meanwhile increased production of cleaner burning natural gas has helped cut U.S. greenhouse gas emissions to their lowest level in more than a decade. And while claims of looming "energy independence" are wildly over the top, there's no question that the oil and gas boom is making the country more secure in the world.
These changes are driven by a technique known as "fracking," short for hydraulic fracturing, which is being used to produce oil and gas trapped in dense shale rock.
Drillers dig down thousands of feet underground, take a sharp turn, and then bore thousands of feet further sideways. Then they pump a mix of water, sand, and chemicals into the new L-shaped well, and detonate explosives to create tiny cracks in the surrounding shale. Oil and gas flows through those cracks and eventually up to the surface where it can be collected, shipped, and sold.
The practice has raised alarm in many of the communities where it's used. People fear that their water will be contaminated by the chemicals that are used in fracking. They worry about earthquakes that have been reported near some places where disposal of water from fracking occurs. And they often bristle at how a sudden surge of workers and wealth transforms their neighborhoods overnight.
These concerns have led to a moratorium on fracking in New York State, and efforts to pass similar restrictions by state and local governments elsewhere, from Colorado to Texas.
People are right to insist that fracking is done safely, but they're wrong if they conclude that it can't be. The key is to drill down on the biggest problems and require drillers to address them.
The first risk has to do with water. The problem isn't so much what's pumped underground -- it's borderline impossible for fracking chemicals to seep up from thousands of feet beneath the earth and into water supplies -- but what comes back out.
When oil and gas are produced, they're accompanied by "flowback water", which contains a mix of toxic chemicals found underground. If drillers cut corners and don't dispose of that water right, it can contaminate local water supplies. Rules need to be in place -- and enforced aggressively -- to ensure that doesn't happen.
The second danger has to do with air. Some drillers power their operations using diesel; others let gas seep out from their equipment. Both practices lead to local air pollution. And while the emissions from a single well might not be big, the impact of dozens of wells operating in the same area can be bad. These problems can be fixed -- diesel generators can be replaced with equipment that uses clean-burning gas, and leaks can be plugged -- but the rules need to be right.
Perhaps the toughest challenge, though, is fitting fracking into communities that aren't used to intense industrial development. It's no surprise that concerns about fracking began to really rise in 2009, when the practice migrated from states like Texas and Louisiana, where oil and gas development is commonplace, to Pennsylvania, where oil production peaked in 1891.
If local authorities do things like make sure roads are maintained, help workers get training so that they can join the oil and gas business if they want to, and protect people on pensions who often struggle with rising living costs in boom towns, everyone can win. If they don't, though, the intense fights that result between winners and losers from energy production can be paralyzing.
A lot of enthusiasts for oil and gas are hostile to new rules. They say that companies are already doing the right thing and warn that extra costs could kill the industry. It's true that many companies are ahead of the curve when it comes to social and environmental responsibility; some are even working actively with local and environmental groups to ensure that they pursue development right. But the dangers don't come from the good guys -- they come from the laggards who screw things up. Reining them in can't be done just through voluntary steps.
That makes it a relief that, while dumb regulation could indeed be crushing, smart rules would not. (By one estimate, a suite of twenty-two tough requirements, including greater disclosure of fracking fluids and tighter standards for cementing wells, would add at most 7% to the cost of a well.)
The biggest risk for fracking, and to all the benefits it brings, isn't that drillers will have to spend a bit more to make sure that oil and gas production proceeds safely. It's that they won't -- and that the resulting backlash when things inevitably go wrong will deal the U.S. power surge a far more severe blow.
For more updates on the oil and gas industry, visit this Ali Ghalambor Facebook page.
Various environmentalist groups are calling for a stop to all fracking operations because of the environmental risks involved, and this is likely where most of the opposition to liquefied natural gas (LNG) as a domestic and export product is coming from. Advocates of the product, however, insist that the product itself is not as unsafe as most of the public would think.
Peter Micciche, manager of ConocoPhillips’ Kenai LNG Facility in Alaska, previously shared some facts about LNG that could change how the public perceives it. In his demo, he points out that LNG is less volatile than other hydrocarbon products. As such, a predominant misconception about it leading to massive explosions due to transport mishaps is unlikely to happen.
To liquefy natural gas, it needs to be cooled in a processing facility to about minus 260 degrees Fahrenheit, and then it can be transported to an insulated container. As long as the container releases pressure, the LNG is not going to explode.
Micciche also demonstrates in the video above how safe the supercooled substance is. One demonstration, which involved pouring LNG into a fish bowl, should serve to dispel fears in transport that are linked to some major oil spills that have occurred in the past.
Meanwhile, LNG retains its appeal to oil and gas companies which are pushing for the widespread use of the product as an industrial and transport fuel. Many also see that with the abundant supply, LNG could also be pushed as an export product.
Dr. Ali Ghalambor has worked with more than 50 petroleum production and service companies as a top consultant for petroleum engineering matters. Find the latest developments in the natural gas industry on this Twitter page.
The US Department of the Interior has recently released an updated draft proposal for a new set of rules that would govern hydraulic fracturing for oil and gas on public lands. This update on the proposal drafted about a year ago is reported to be a part of the Obama Administration’s all-of-the-above strategy to support safe and responsible domestic energy production.
The update on the draft proposal has kept the three main components of the proposal in 2012. Operators still need to: disclose the chemicals they use in fracturing activities on public lands, run well-bore integrity tests to make sure that the fluids used during operations don’t contaminate groundwater, and have a water management plan to ensure that fluids that flow back to the surface are handled properly.
While the proposal is still subject to a 30-day public comment period, however, it has already drawn the ire of environmentalist groups for the allowances it gives to operators. With the new rule, operators have the option to keep some components (such as proprietary compounds) secret, and well-integrity tests can be done on a representative well instead of all wells in the field.
In light of the criticism, the Interior maintains that the new proposal ensures that best practices will be used to ensure steady development in the industry while protecting human health and the environment. And while several groups oppose the use of fracking, the fact still remains that it has been done safely for decades and that it has great potential in significantly increasing domestic resources and improving the economy.
Dr. Ali Ghalambor has delivered numerous technical presentations on various aspects of petroleum production such as drilling, well completion, well planning, and well integrity. For more updates on policies affecting the energy industry, follow this Twitter page.
So much has been said about the development of the energy industry in the US, particularly with the growth of the shale gas industry. The boom in natural gas supplies could usher in accelerated growth of the economy as the industries that heavily use the resource could benefit greatly from lower costs.
Meanwhile, protests from environmentalists have also been trying to block further efforts to take advantage of the shale gas revolution as there are dangers present in the haphazard growth of the industry, which could reverse whatever progress the nation has had in environmental protection and battling climate change.
President Obama has made it clear that he wants to pursue an ‘all of the above’ energy strategy – a strategy that focuses on both the growth of clean energy and the development of domestic oil and gas resources.
The problem is that such strategy does not seem to be feasible. Sacrifices will have to be made in favor of one agenda over another. If clean air is the priority, then efforts made for the development of the shale gas could be hindered.
Experts and analysts, however, have noted that there may still be an option that takes both sides of the debate into account and will result in better outcomes. Good regulation seems to be the key to the conundrum, and it will take high standards and regulation, the participation of environmental groups in policy-making, and the strict compliance of those involved in the energy industry to ensure that shale gas development remains sustainable.
Tightening the rules on the operations of companies in the shale gas industry may be seen as a hindrance but, ultimately, it is necessary to ensure upward development that is safe and non-hazardous to the environment.
There are two sides to the coin in the development and growth of the shale gas industry. On one side, there are plenty opportunities for the growth of the economy, ushered in by the boons granted by an upsurge in the nation’s supplies for natural gas. As covered in previous entries, this advantage may give the US enough leverage to influence the global oil market and promote free-market principles.
On the other side, there are the protests against the extraction of natural gas as the process used could do more harm to the environment than continued dependence on fossil fuels. Environmentalists argue that, because natural gas is mostly methane, if a lot of it escapes into the atmosphere, then it could trap much more heat in.
Fracking wells are known to leak and there are no conclusive studies yet that prove that the leakage amount is small enough not to affect the atmosphere and the climate. But even if it is indeed a small amount, the speedy growth of the industry could change the situation drastically.
This is why experts argue that the shale gas industry could do much more with strict regulations in place. As shown by a pact made for fuel drilling in Pennsylvania, environmentalists have some conditions for the energy industry, and a cooperative relationship can indeed be achieved.
With the growth of the industry, it is important to put certain restrictions in place to direct the movement toward positive outcomes instead of continuing to do things haphazardly. The difference between the rules currently in place and better regulation isn’t very large, however, and with combined efforts of the industry, the government, and the citizens, better outcomes for the natural gas boom can be achieved.
Near the end of last year, the public saw opportunities and problems with the shale energy revolution. On one hand, it was viewed to be largely beneficial to the U.S. as it could help the nation strengthen its influence in the global market and help the country become more secure and more prosperous amid its economic recovery.
On the other hand, there were the alleged environmental dangers to the drilling technique known as hydraulic fracturing and some concerns over the regulation of the amount of the nation’s gas to be shipped abroad. Experts argue that a review of the nation’s current energy policies is necessary due to the new reality brought on by the new abundant supply.
Unchecked exportation of liquefied natural gas could negatively affect U.S. manufacturing and competitiveness due to demand shocks and price volatility, said Andrew Liveris, chief executive of Dow Chemical, in a report on CNBC.com. Naturally, the local industries want to reap the benefits of cheaper energy sources.
However, pundits have pointed out that the shale revolution’s true impact lies in the effect that it may have on the oil market itself. By focusing on foreign policy and trade pacts that would stem from America’s new energy supplies, the nation could promote free-market principles on the oil market and gain enough influence on global gas prices, which would benefit all consumers.
