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.

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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.

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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.

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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.

EIA posts optimistic outlook for the US energy industry in 2014

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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.

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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.

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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.

Top natural gas stocks for 2014

After a solid year for the energy sector in 2013 and with natural gas usage seen to surge in the coming years, many investors are now training their sights on the right fuel that can rake in profits in 2014.

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As a year ender, listed below are some natural gas stocks projected to drive the U.S. energy markets throughout 2014:

Oasis Petroleum. Through acquisitions and well completions in, Oasis has increased its proved reserves by more than 80 percent for the past two years. Exploring oil and natural gas in the Montana and North Dakota regions of the Williston Basin, the per-share profits of the company in 2014 are projected to grow 33 percent.

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Chesapeake Energy Corp. According to analysts in Morning Star, Chesapeake has long been one of the most aggressive operators in U.S. exploration and production. Surviving near collapses in the late 1990s and in 2008, the natural gas company has positioned itself dominantly in emerging plays through its vast network of land brokers and a general willingness to offer more favorable lease terms than its competitors.

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Devon Energy Corp. The company is projected to receive a big payoff in 2014 with its recent acquisition in Eagle Ford Shale, which has been one of the most actively drilled targets for oil and gas in the United States since 2010. According to Devon, the company’s current 25 percent oil production could climb closer to 31 percent next year with the inclusion of the new Eagle Ford position, which sits on an estimated reserve of 691,000 barrels of oil a day.


With more than 30 years of industrial and academic experience, Dr. Ali Ghalambor has been contributing studies about the efficient production of natural gas. Learn more about his insights about the natural gas industry by following this Twitter page.

The difficulty of widespread water recycling implementation in the fracking industry

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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.

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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.

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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

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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?

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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.

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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.

Industry survey: Natural gas producers optimistic, safety still a top concern

According to this recent Black & Veatch’s second 2013 Strategic Directions in the North American Natural Gas Industry survey, about 95 percent of pollsters across all segments rated their general outlook of the industry’s growth to the year 2020 as “optimistic” to “very optimistic.” What is in fact remarkable in this survey, according to Peter Abt, Black & Veatch Managing Director, is that a significant part of midstream and downstream representatives shared the positive outlook.

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There are three major sectors in the oil and gas industries: upstream, midstream, and downstream. Upstream players are those connected to the exploration and production side; the midstream sector is composed of the players involved in the transportation, storage, and wholesale marketing of the products; and finally, the downstream players are those who generally sell at retail.

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More than 85 percent of respondents also expect growth on demands in power generation to “materially increase natural gas consumption by 2020.” They also see exports in the Europe and Asian regions to be at an upswing.

Still, a major concern across sectors is safety. Major categories rated under safety were: cybersecurity, aging infrastructure, and pipeline integrity and reliability.

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Respondents believe that “improving technologies, from drilling applications to monitoring and data acquisition, are enabling the industry to better manage assets, reduce costs and be better positioned to meet evolving regulations.”

Dr. Ali Ghalambor is a well-respected figure in the oil and gas industry. He was a former director of the Society of Petroleum Engineers. More details about him can read in this Twitter page.

Natural gas: Strengthening local economies

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Experts of the oil and gas sector consider natural gas a key to not only help improve environmental conditions but also strengthen local economies by decreasing their dependence on imported oil and fueling job growth.

As in the case of Pennsylvania, natural gas is lifting the state’s rural areas from poverty. This article from Topix attests that companies, like Marcellus Shale, have provided significant economic contribution to the natural gas sector sustaining Pennsylvania’s economy even in difficult times. They have also helped revitalize rural fortunes and have put things in perspective.

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Over the years, the use of natural gas extracted from shale rock formations has been gaining recognition in the United States and in several other countries as well. Oil experts are looking into more possibilities of how they can put this sustainable energy source into good use. Many oil and gas companies, like Chevron, recognize that natural gas has become a popular source of alternative energy for many industries. The reason being is that it generates multiple benefits, including safety, affordability, and easy distribution. That is why Chevron has partnered with Marcellus Shale in developing more natural gas to benefit other local economies.

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Drs. Ali Ghalambor and Boyun Guo’s book The Natural Gas Engineering Handbook is a great resource that discusses more about this matter. This Facebook page, meanwhile, contains more updates and other related topics on the natural gas and petroleum industry.

Livestock waste produces natural gas to power trucks and barns

How natural can natural gas be? Fair Oaks Farms, one of the largest dairy farms in the US, knows the extent. For several years now, a limitless supply of cow manure runs the farm’s equipment that milk 30,000 cows three times a day and power 10 barns, a cheese factory, a cafe, a gift shop, and other facilities, like a 4D movie theater.

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Not only that, Fair Oaks Farms turns its excess livestock waste into natural fuel used by its delivery trucks and tractor trailers on a daily basis. Furthermore, the farm has opened two fueling stations, making cleaner and safer gas available for the public.

Considering that natural gas costs almost half the price of diesel, the farm’s move—of using agricultural waste to run machines—is a game changer not just for the dairy industry, but also for the whole natural gas sector. The farm saves two million gallons of diesel each year.

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“As long as we keep milking cows, we never run out of gas,” says Gary Corbett, chief executive of Fair Oaks.

Sustainable energy solutions and more commercially viable natural gas projects such as this are valid environmental responses to growing concerns about climate change and worsening pollution. Keeping up these sustainable practices will power technologies and industries of future generations.

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Oil and gas expert Dr. Ali Ghalambor has authored and co-authored books that have contributed to the education of students and professionals worldwide to accomplish the efficient production of natural gas. To learn more about his expertise, follow this Twitter account.

A portable gas detector tracks and measures leaks boosting a fuel’s green qualities

Natural gas is known as the cleanest burning fossil fuel, and the least hazardous to the environment. It works best in regions where pollution undermines energy sources by improving the quality of air and water. It is also a factor in reducing the negative effects of climate change. However, The New York Times reports that its power to restrain climate change decreases because it’s prone to leak into the air.

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 Fortunately, Picarro, a manufacturer of scientific instruments, has built a gas detector designed to measure leaks. This laser technology is a crucial new tracking tool for engineers and scientists in energy research and monitoring..

This gas detection system is an advantage to the oil and gas sector as it can be used on public roads. Aside from that, the gas tracking measures gas leaks right away and prevents damage buildup.

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 How does natural gas leak in the atmosphere?

It breaks out into the air in two ways. One would be from natural sources, like marshes and swamps. Another source is manmade structures such as wells and pipelines.

With the deterioration of the environment, it is high time humans step up on greener initiatives. As Michael R. Woelk, President and chief executive of Picarro puts it:

“Natural gas is the new green energy, supposedly, but finding and fixing the leaks would make it greener.”

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Oil and gas expert Dr. Ali Ghalambor has received various technical awards from the Society of Petroleum Engineers and the American Petroleum Institute. To learn more about his professional background and industrial pursuits, visit this Facebook page.

BG looking to become largest seller of natural gas by purchasing Canadian gas fields

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BG Group Plc, a UK energy company seeking to become the world’s largest seller of liquid natural gas by 2017, is planning to purchase natural gas fields in Canada to supply a proposed liquefied natural gas plant on the nation’s Pacific Coast.

The plan to build a liquefied natural gas plant on British Columbia’s Ridley Island was made so the company can ship liquefied natural gas to growing markets in Asia. The company has already partnered with Spectra Energy Corp, one of the area’s largest natural gas producers in North America, to build a 525-mile (850 km) pipeline that will pump gas into the facility. It is currently looking for additional resources to fuel its growth.

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The proposed Prince Rupert plant foresees two production units with a combined capacity of 14 million metric tons annually. BG even plans to add another production unit should the need arise. Several terminals are planned for Canada’s Pacific Coast to liquefy natural gas for shipping to Asia via tanker, and the proposed terminal is just one of those.

BG is exploring options with promoters of other LNG companies to see if cooperation on the pipeline’s development can be found and expects to make a final decision on the proposed Prince Rupert plant venture in 2016.

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More updates on the natural gas and the petroleum industry can be found at this Twitter page for Ali Ghalambor.

Restoring South Sudan's maximum crude output will take three months

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South Sudan can restore maximum crude production output from its oilfields in three months. The reduced production output is due to the country’s recent dispute with neighboring Sudan that shut down oilfields.

Petroleum Minister Stephen Dhieu Dau said that an agreement had been forged between the two countries last week to enable the resumption of cross-border oil flows, which will restore South Sudan’s crude oil production back to its fullest capacity of 350,000 barrels a day.

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Data from the World Bank show that South Sudan is a sub-Saharan country with the third largest oil reserves, next to Nigeria and Angola. As the country is landlocked on all sides, the country exports its gas reserves through Sudan, and disputes over exports between the two countries last year halted all oil production, which effectively halved the size of South Sudan’s economy to just a little more than nine billion dollars.

Mr. Dau believes that in three months, South Sudan’s current crude production output of 170,000 barrels a day will increase to 300,000 barrels a day.

In 2011, South Sudan declared independence from Sudan and took with it three quarters of the previously united country’s crude oil output. Pumped mainly by India’s ONGC, Malaysia’s Petroliam Nasional Bhd, and China National Petroleum Corporation, South Sudan’s crude oil has low sulfur content and are relatively clean-burning, so it is prized by Japanese power-generating companies.

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Ali Ghalambor is an expert in natural gas and petroleum production, and has released books that are highly regarded by both petroleum engineers and students. More updates on the petroleum industry can be found at this Facebook page.

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.

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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.

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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.

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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.

The fracking debate in the UK

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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.

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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.

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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.

Economic misconceptions about the energy sector, as reported by media

"The US shale gas phenomenon has transformed global energy markets," said David L. Goldwyn, US State Department coordinator for International Energy Affairs at a 2010 Global Shale Gas Initiative Conference in Washington, DC.

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"Because we have discovered and we have the technology to develop efficiently large quantities of gas from shale, global prices of liquefied natural gas have decreased,” Mr. Goldwyn added.

This statement confirms that the shale gas boom has been around as early as several years back and has been a major economy booster for the country.

Meanwhile, David Blackmon tries to halt media excitement over hydraulic fracturing’s economic promises in his Forbes commentary. With the shale gas boom well in place, the United States’ economic prospects tied in with its energy activities, particularly hydraulic fracturing, of late, are largely sensationalized by the media as a long-awaited salvation. Such assertions ignore the benefits put to work by the existing shale gas boom.

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Mr. Blackmon also critically questions the chronology of US energy independence as the media tells it. While the media still sees energy independence as a future, Mr. Blackmon asserts that it has already happened, citing his years participating in natural gas supply and demand studies. In general, Mr. Blackmon paints an energy sector different from media presentations, an image disparity that does not accurately inform the public of the state of the country’s energy sector, and the economic phenomena that succeed its developments.

Even oil and gas professionals like Dr. Ali Ghalambor and Dr. Kermitt W. Walrond would agree that the international media’s portrayal of the oil and gas industry and its economic effects do not reveal precise situations in the sector.

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For more updates and industry news about shale natural gas and other related topics, visit this Facebook page.

Hydraulic fracturing: Turning unproductive shales into large natural gas fields

State Impact, a reporting project of NPR, defines hydraulic fracturing as a process of extracting natural gas and oil by drilling into the earth’s underground. Natural gas is mostly trapped in coal beds and shale formations, and hydraulic fracturing is used to stimulate these wells and penetrate rock formations. The drilling process utilizes advanced equipment to fracture or crack the ground and the underlying earth layers to ease the flow of natural gas and oil and tease them out.

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This article from Geoscience News and Information illustrates how the combined work of hydraulic fracturing and horizontal drilling has transformed unproductive shales into some of the largest gas fields worldwide. Previously unproductive rock units that are now potent gas and oil fields are the Bakken Formation, The Marcellus Shale, and Barnett Shale. These rock units have been stimulated and turned into viable gas fields through hydraulic fracturing.

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The combination of hydraulic fracturing and horizontal drilling can yield significant results, and it usually targets previously thought unprofitable rock formations. The technology has been around since 1940, and has gone through controversies such as its possible hazards to groundwater that people convert to drinking water.

In the past, natural gas used to be flared off in oil fields for its little use. But now, with hydraulic fracturing, it has become a substantial international commodity.

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Get more information about hydraulic fracturing and other related topics through the ‘Frac Packing Handbook’ by Ali Ghalambor, Ali Syed Ali, and W. David Norman. For more information about the industry, access this Facebook page.

EPA conducts a study on the potential impacts of hydraulic fracturing on drinking water

Natural gas has a vital role in the world’s pursuit of clean energy. The United States is home to several reserves of commercially viable natural gas exploited through horizontal drilling and hydraulic fracturing technologies, which allow access to gas in shale formations. This accessibility allows for a vast number of uses for natural gas varying from domestic benefits, power generation, transportation, fertilization, to manufacturing.

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The United States Environmental Protection Agency (EPA) hopes to frame the current clamor for natural gas in terms of boosting the economy, laying out energy security, and keeping it friendly towards the environment and public health. In doing so, it works with stakeholders to make sure that gas extraction proceeds according to environmental standards and laws. Among such efforts is the agency’s ongoing study to explore the plausible impacts of hydraulic fracturing on water resources. The research scope focuses on the full cycle of water use in hydraulic fracturing and the impact to drinking water safety of each step of the process.

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The study’s progress report was released in December 2012. While this progress report summarizes the details of the study, it does not present conclusions yet on the impacts of hydraulic fracturing on drinking water safety. Congress awaits the definitive results of the study in 2014.

EPA has worked with stakeholders and industry leaders so that the study would be based on contemporary hydraulic fracturing practices and trends.

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The ‘Natural Gas Engineering Handbook’ authored by Ali Ghalambor and Boyun Guo, illustrates more concepts about natural gas production. For more information about the subject, follow this Twitter page.

REPOST: Officials working to secure natural gas rig off Louisiana coast

Federal regulators are finding a way to secure the coast of Louisiana after the natural gas rig blow out incident. Read the story in this Los Angeles Times article.

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Officials said on Friday that they are continuing to study the scene of a blowout and fire at a natural gas well 55 miles off of the coast of Louisiana to decide how to secure the site.

A slight sheen associated with spilled oil is still being detected on the water’s surface but is dissipating, according to a joint statement by the federal Bureau of Safety and Environmental Enforcement, the Coast Guard, and the company involved, Walter Oil & Gas Corp.

On Tuesday, the natural gas well had a blowout, forcing 44 workers to evacuate. That led to a fire. Late Wednesday, the Coast Guard and federal officials took emergency measures to control the fire, which went out after sand and sediment cut off the flow of gas.

Officials are still investigating the cause of the accident.

Authorities also have to find a way to permanently secure the well.

Federal regulators said they are reviewing permit requests to drill a relief well. The relief well would be drilled “to intercept the target well. Once intercepted, drilling mud followed by cement will be pumped into the well to secure it,” the statement said.

 This Dr. Ali Ghalambor Facebook page contains information on production operations and completion technologies in the oil and gas industry.

The importance of the US natural gas pipeline to Mexico

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One of the problems that developing countries have to deal with is the increasing demand for energy. As people’s financial capacity to buy consumer electronics and appliances increases, so does their appetite for energy to power those devices. High energy consumption equals a high demand for fuel used for power generation. This is probably why these countries have been importing natural gas and other fuels from other countries at a higher rate.

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Mexico is one such country looking to import more natural gas as possible, especially since most of its electricity comes from thermal plants, which use natural gas as a fuel source. The country used to import natural gas from other countries, but it is now increasingly reliant on US natural gas exports. In fact, the Los Ramones pipeline, which stretches from southern Texas to Guanajuato, was developed due to Mexico’s increasing demand for natural gas exports.

As of 2012, natural gas delivered via US pipelines accounted for 80 percent of Mexico’s natural gas imports, which makes the US a valuable supplier. Furthermore, Mexico benefits financially from the US as natural gas imported from the latter is fairly cheap.

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More updates about the petroleum and natural gas industry can be accessed by visiting this Twitter page for Dr. Ali Ghalambor