Showing posts with label Energy Industry. Show all posts
Showing posts with label Energy Industry. Show all posts

Wednesday, February 12, 2014

Gas shortages amid the natural gas boom: What went wrong?


Some people may be going through one of the coldest winters ever, which may be caused not just by weather conditions. In many parts of the country, natural gas shortages have emerged due to the high demand. As a result, some customers have been asked to power down whenever possible out of fear that there may not be enough gas in power plants.

Image Source: specialevents.com

The shortage may come as a surprise to many because previous updates from the energy industry have highlighted abundance in natural gas. Even Texas, the largest producer of natural gas, has been reported to have issued a state of emergency. Amid the shortages in many states, one has to wonder what went wrong in the nation’s energy resources.


Image Source: processingmagazine.com

Experts note that the shortage is not just about the supply. There is plenty of natural gas in the giant fields of Texas, Pennsylvania, and Louisiana. The problem, however, is that the resources are not being distributed effectively to the places that need them most.


Image Source: usnews.com

Another problem is that with the advent of the natural gas boom, the country seems to have too abruptly dropped its reliance on fossil fuels. While the high supply makes the shift to natural gas sustainable, significant drops in the use of coal to generate power in plants may severely affect areas that natural gas supplies don’t reach.

Dr. Ali Ghalambor has made remarkable contributions to the oil and gas sector. For more news on the energy industry, visit this Facebook page.

Thursday, January 9, 2014

EIA posts optimistic outlook for the US energy industry in 2014

Image Source: sonoraninstitute.org

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.


Image Source: nebb.com

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.


Image Source: imsa-search.com


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.

Sunday, December 8, 2013

The difficulty of widespread water recycling implementation in the fracking industry

Image Source: cenvironment.blogspot.com



For fracking operations to continue in the future without running against much opposition, more oil and gas producing companies must also consider the environmental effects of their operations. Among the pressing issues in the industry is the heavy use of clean water that could severely deplete the supply in an area. There have been efforts to make the recycling of water used in fracking more widespread but the costs involved have discouraged many companies from implementing such measures.

Oil and gas companies can easily obtain fresh water at a low price. In some estimates, the cost is a little over one cent per gallon. Additionally, in some states like Texas, the disposal of wastewater is much cheaper than the costs of recycling. In comparison, recycling adds costs for additional processes and transport and many companies are unwilling to take those on.


Image Source: business.financialpost.com


Necessity has forced many to reconsider, however. For instance, a drought in Texas has convinced more companies to consider produced wastewater as an asset rather than a liability. Meanwhile, the presence of water recyclers in oil fields is noticeably growing but there is still a long way to go before recycling becomes mainstream. With more improvements in this necessary step, what was once considered a revenue-draining requirement may be turned into an opportunity for additional profits.


Image Source: earthtimes.org


Dr. Ali Ghalambor is the author, co-author, and editor of several books and more than 160 technical articles and manuals on hydraulic fracturing and related topics. For more updates on the natural gas industry, visit this Facebook page.

A model for continued fracking operations

Image Source: wyomingoutdoorcouncil.org



If there is a model state for sustainable oil and gas drilling operations, the current bet is Wyoming. The state encourages oil and gas companies to continue with their fracking operations to extract natural gas, but requires them to do so carefully.

Without a doubt, fracking operations and harvesting natural gas lead to significant economic gains. However, as environmentalists fear, the economic boon could be offset by the dangers the method poses to the environment. Done improperly, fracking could adversely affect the clean water supply in a particular area.

For many states, the choice is between a clean environment and energy. For the energy-friendly state, however, there is a need and desire for both. Wyoming currently ranks at around fourth among states in natural gas production. How has it achieved balance?


Image Source: huffingtonpost.com


Recently, state legislators approved another energy production regulation issued by Wyoming. It involves one of the country’s strongest requirements for testing water wells around drilling sites to address fears of water contamination due to drilling operations. Previously, Wyoming also became the first state that required the disclosure of some of the chemicals used in the hydraulic fracturing process. It also recently implemented a measure that required drilling companies to monitor air pollutants at oil and gas production sites.

Implementing a regulation after another may give the impression that Wyoming is making operations hard for oil and gas companies. The aim, however, is to keep the oil and gas industry running smoothly.

Environmental groups are asking for more change but in comparison with other major oil and gas producing states, Wyoming is ahead with its regulations.


Image Source: wyofile.com


Dr. Ali Ghalambor is the author of the “Well Productivity Handbook,” a reference for petroleum engineers for modeling oil and gas production wells. For more updates on the natural gas industry, visit this Twitter page.

Friday, August 30, 2013

An obstacle to natural gas exports



With hydraulic fracturing widespread in the U.S., the country has found an abundance of energy supply. Currently, the effects of fracking to the economy have been felt, with the government recently reporting an improved trade balance for June, which has been attributed to lower oil imports. There are projections of zero energy imports in the longer term.


Image Source: thomaspmbarnett.com


Meanwhile, key players in the energy industry have also been planning to increase the country’s exports of natural gas as they try to optimize economic benefits by taking advantage of the abundance in energy supply. By exporting more natural gas, the U.S. could pull up its standing in the global economy.



Image Source: nytimes.com


However, supporters of increased exportation of natural gas may find an obstacle in Andrew N. Liveris, Dow Chemical’s chief executive, who has launched a campaign against more exportation. Mr. Liveris sees this as a threat to the recovery of the nation’s manufacturing industry, which has gained a lot of ground due to the lower costs of energy.

Mr. Liveris is calling for an energy policy from the government that balances the interests of oil and gas companies and those of domestic industries, themselves big energy consumers. Unrestricted exports, he said, could bring a shortage of domestic gas supplies and bring back higher energy prices.



Image Source: theuticashale.com



Dr. Ali Ghalambor has authored several books on hydraulic fracturing and oil and gas production. Find more links to news articles about the energy industry on this Twitter page.

Tuesday, August 27, 2013

The fracking debate in the UK

Image Source: globalpost.com



The use of hydraulic fracturing to extract shale gas remains a tricky prospect to mainstream. While this is a groundbreaking (literally) manner of harvesting oil or natural gas, it is also decried as an environmental threat by concerned groups.

In the U.K., there are recent reports of this clash. Protesters are rising up against an exploratory oil drilling project at Balcombe. The worries of activists are the same: water contamination and seismic tremors, which fracking could trigger. Apart from these, environmental groups are also against the industrialization of Britain’s countryside and how the influx of industrialists and their equipment and facilities will adversely affect the communities there.



Image Source: theguardian.com


Meanwhile, British Prime Minister David Cameron has voiced his support for the technology, trumpeting potential economic benefits such as lower energy bills and the generation of more jobs. Other proponents of fracking in the U.K. look to the U.S., which demonstrated that exploiting natural gas reserves can reduce fossil fuel emissions.

Exploratory drilling for gas and oil around Britain has been on-going since 2011, but hasn’t commercially produced shale gas on-shore. Observers doubt there will be major developments within the decade. The opposition is stronger in the U.K. and there are still many details to be worked out by British lawmakers and private corporations. Without a solid agenda for how it will extract and export natural gas, the U.K. may end up missing out on the economic benefits that it has set out to attain.



Image Source: theweek.co.uk


Dr. Ali Ghalambor has co-authored several books on hydraulic fracturing and well productivity. Learn more about hydraulic fracturing and how it has affected the global oil and gas market by following this Twitter page.

Wednesday, March 20, 2013

REPOST: Build That Pipeline!

Fareed Zakaria highlights the importance of the keystone project and better solutions to environmental issues on this article on Time.com:


One way to think about the keystone project--the 2,000-mile (3,220 km) pipeline that would bring oil from the tar sands of Canada to the Gulf of Mexico--is to ask what would happen if it is never built. The U.S. Department of State released an extremely thorough report that tries to answer this question. It concludes, basically, that the oil derived from Canadian tar sands will be developed at about the same pace whether or not there is a pipeline to the U.S. In other words, stopping Keystone might make us feel good, but it wouldn't really do anything about climate change.

Given the need for oil in the U.S., Canadian producers would still get Alberta's oil to the refineries on the Gulf of Mexico. There are other pipeline possibilities, but the most likely method of transfer is by train. The report estimates that it would take daily runs of 15 trains with about 100 tank cars each to carry the amount planned by TransCanada. That would be a large increase in traffic from what now goes north to south, but it would hardly be an insurmountable problem. Rail traffic in this corridor is already exploding: the number of carloads of crude oil doubled from 2010 to 2011, then tripled from 2011 to 2012. And remember, moving oil by train produces much higher emissions of CO[subscript 2] (from diesel locomotives) than flowing it through a pipeline.

Canada could also transport the oil by train or pipeline west to British Columbia and then on to Asia, where demand is booming. Right now that seems a distant and costly prospect, but having visited Alberta recently, I can attest that Canadian businesspeople and officials are planning seriously for Asian markets--especially since they have come to regard U.S. energy policy as politicized, hostile and mercurial. Whoever uses the oil, the CO[subscript 2] will be released into the atmosphere just the same.

Also, if we don't use oil from Alberta, we will need to get it somewhere to fuel our transportation needs--from Venezuela, Mexico, Saudi Arabia or California. Some of these oils are heavy crude, and processing, refining and burning them is believed to be even more harmful to the environment than using fuels from refracted Canadian oil sands. Switching from oil sands to, say, Venezuelan crude (the most likely alternative) would reduce greenhouse-gas emissions by a minimal amount or not at all. To the extent that this would make us use more coal for electricity generation, it would be a big step backward for the environment. For many of these reasons, the scientific journal Nature, long a leader on climate change, argued in an editorial that President Obama should approve Keystone. A decision is expected this spring.

Environmental groups are approaching this project much as the U.S. government fights the war on drugs. They are attacking supply rather than demand. In this case, environmentalists have chosen one particular source of energy--Alberta's tar sands--and are trying to shut it down. But as long as there is demand for oil, there will be supply. A far more effective solution would be to try to moderate demand by putting in place a carbon tax or a cap-and-trade system. Ideally we would use the proceeds to fund research on alternative energy. Washington spends $73 billion on research for defense, $31 billion on health care and just $3 billion on energy. Massive increases in research would make a difference. Targeting one Canadian oil field--or one pipeline company--will not.

Some in the environmental movement seem to recognize that the facts don't really support singling out Keystone, so they have turned to more intangible reasons to oppose it. Climate activist Bill McKibben argues that if Obama were to say no to Keystone, it would be a turning point: "He could finally say to the Chinese, 'We've done something significant. Your turn.'" Of all the arguments for blocking Keystone, this is surely the most naive. Is there a shred of evidence from the past 25 years that China would respond to this kind of unilateral concession by limiting its growth? How did Beijing respond to the Kyoto accords, under which European countries curbed their carbon emissions? By building a coal-fired power plant every week since then!

Opponents of Keystone say that the specifics are less important in this case and that it is the symbolism that matters. And it does. If we block this project--whose source is no worse than many others, rebuffing our closest trading partner and ally and spurning easily accessible energy in favor of Venezuelan or Saudi crude--it would be a symbol, and a depressing one at that. It would be a symbol of how emotion has taken the place of analysis and ideology now trumps science on both sides of the environmental debate.


Find more links to news articles on the energy industry through this Facebook page on Dr. Ali Ghalambor.