Jul 12

Shale Gas in Poland Sparks Hopes of Wealth, Energy Security

By Curve energy independence, energy market, Europe, natural gas in Europe, natural gas in the USA, Poland, shale gas, shale gas in Europe No Comments »

Warsaw, Poland - The rush for shale gas in Poland is attracting some of the world’s biggest energy companies, giving the country hopes of energy security and strengthening ties with the United States.

Recent finds in northern Poland appear to confirm what experts have suspected for years – that Poland has Europe’s largest reserves of shale gas.  The news promises to encourage what has become a feeding frenzy of major gas companies and Polish hopes of energy independence from Russia.

Shale gas is natural gas trapped in shale rock.  In April, a report by the U.S. Energy Information Administration said Poland could have the largest and most accessible shale gas reserves on the continent.  But up to now, no one could be sure Poland had any gas at all.

Recently-drilled wells indicate the gas is there, says Pawel Poprawa of the Polish Geological Institute.  But, he adds, it is still impossible to tell whether or not it will ever be extracted.

“A couple of these wells altogether seem to confirm the concept,” he said.  “Yes, we think there is gas in the formation.  However, we need to figure out if we are able to get it to the surface, and if we do, then it is a question of if it will be commercial.”

Poprawa says it will be several years before anyone knows exactly how much gas Poland has, and at least a decade before large-scale production can begin.  But in the mean time, exploration concessions have been granted to some of the biggest energy companies in the world.

“We have on our market real majors, the biggest companies globally,” he said.  “We have here Exxon, Chevron, ConocoPhillips, Total – this is kind of unique, really.  This place a couple of years ago was empty.  Now everybody from the world comes here to make their exploration.”

Many of these companies are American, which has sparked the interest of U.S. policy makers.  On his recent visit to Warsaw, U.S. President Barack Obama said the United States is eager to cooperate with Poland in producing shale gas.

“Shale gas is an important opportunity,” the president said.  “We believe that there is the capacity technologically to extract that gas in a way that is entirely safe, and what we want to do is to be able to share our expertise and technology with Poland in a fully transparent and accountable way.”

Agata Hinc, of the Warsaw-based research organization Demos Europa, explains that collaborating on shale gas could also lead to closer political ties between the United States and Poland.

“For American companies it means money,” she said. “But it also means stable international cooperation on important issues that will last longer than two months.”

But when it comes to energy, Poland’s main geopolitical concern lies to the east.  The country has long been dependent on gas from Russia, and Hinc says that for many Poles, independence from their former communist rulers is a major concern.

“Energy security has meant for a very long time, and for some still means, independence from Russian gas here in Poland,” she said.  “This is a very big political issue.  I would not say the younger generation thinks about it that much, but certainly the older generations and our policy makers want to ensure that we are totally independent from our big neighbor”

Shale gas has become controversial in recent years.  Environmentalists claim that during the process of hydraulic extraction – known as “fracking” – gas and other contaminants from the process can seep into the ground water, damaging the environment and posing a health risk.  In the United States, New York State has imposed a moratorium on fracking, and France has forbidden any new exploration.

Spokesman Jacek Winiarski of the Warsaw branch of Greenpeace says companies in Poland need to take the environmental impact into account.

“We know what are the American experiences with drilling and extracting shale gas,” he said.  “It causes water pollution, animal diseases, and other environmental pollution.  We perceive gas as a temporary transition fuel between coal and renewables, so we are not against gas, but gas extracted in a safe way.”

But Hinc explains Poland’s priorities tend to be different from those in the West, and that for now, environmental concerns are likely to take a back seat when faced with the prospect of energy independence.

“In the richest countries in Europe, green groups are very strong because people want to live in a clean environment, which is not the case in Poland, at least not yet,” she said.  “As for now, cheap electricity and energy security are the most important issues.”

Fracking may begin later this summer, and for now, the size of Poland’s shale gas reserves can only be guessed at.  But with 120 new wells planned for the coming years, it appears the eyes of the world will be on Poland for a long time.

 

Source: Voice of America

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Jul 11

Smart Fracking

By Curve hydraulic fracturing, natural gas in the USA, shale gas, USA No Comments »

 

The following article was written by John E. Sununu, a former US senator from New Hampshire and a regular contributor to The Boston Globe:

Extracting natural gas from shale is safe and economically sensible

Enlightened moments in politics are few and far between. Populism has a lot to do with it; playing to fear, anger, and other emotions is a safe move politically, and what the media love most.

That’s why New York Governor Andrew Cuomo’s decision to lift a ban on hydraulic fracturing – also known as “fracking’’ – should be celebrated as a victory for rational thought. His administration is now preparing regulations allowing access to 85 percent of the shale gas beneath the state. This has members of the hard-core environmental lobby gnashing their teeth. Their dramatic, and often misleading, claims drove last year’s ban in the first place. Cuomo’s move also strikes a blow for states’ rights and encourages a balanced approach to energy policy – and highlights some cool engineering as well.

Fracking uses high-pressure fluid to crack open shale rock formations thousands of feet below the surface. The resulting fractures allow gas and oil to flow more freely and be recovered economically. In their effort to stop the practice, environmental groups raised the specter of drinking-water contamination, excessive water use, and other supposed risks. The hyperbole about this method comes somewhat unexpected, given that the process has been around for over 50 years.

Almost three decades ago, I spent the summer in a hydraulic fracture lab in a musty basement a stone’s throw from the Charles River. As a rookie, I mostly cast cement blocks used to simulate the shale formations. Researchers injected fluid into the blocks at high pressure and measured the speed at which cracks would grow. Over months of trial and error, we learned to predict and even control the direction of the cracks by putting pressure on the outside of the cement blocks.

For a few weeks each year, the professor supervising the lab would head out to the field to conduct larger-scale tests on working wells. Back then, high operating costs coupled with low oil prices meant that fracking was limited to specific, high-yield areas. About five years ago, however, improvements in horizontal drilling finally came together with better simulation and monitoring of crack growth to make the entire process a big economic winner.

The results have been dramatic for production of both oil and gas. During the past three years, proven reserves of shale gas have more than tripled. Estimates of recoverable reserves in the United States have soared to over 800 trillion cubic feet – roughly 35 times America’s annual consumption – from shale gas alone. North Dakota’s Bakken oil field, a marginal producer five years ago, now pumps 400,000 barrels per day. And yet the full potential of reserves such as the Marcellus shale beneath Pennsylvania and New York still haven’t been fully measured.

In New York, rhetoric came face to face with hard facts. Despite decades of use, fracking fluids – which typically contain small amounts of acids, anti-microbials, petroleum distillates, and other chemicals – have never been found to contaminate groundwater. That’s because the shale formations are typically thousands of feet down, far below aquifers and isolated by impermeable rock. Over 99 percent of the fluid used is water, but to address the potential for surface spills, most states regulate its transportation and now disclose its contents. The environmental records of both the process and the gas it produces are pretty strong, but the economics are even more compelling.

Job creation and tax collections in Pennsylvania counties producing shale gas have increased significantly during the past three years. Their neighbors have not fared so well. Governor Tom Corbett calls the investment boom, started under Democratic Governor Ed Rendell, “the foundation of a new economy.” New York could either ignore the economic development occurring in its own back yard or participate.

Above all, this transformation is a lesson that energy policy shouldn’t pick winners and losers. No Senate committee or presidential order declared natural gas “the energy of the future’’ (that would be hydrogen, cellulosic ethanol, carbon-free coal, and unicorn tears). Gas is cleaner than coal or oil, but as a fossil fuel, it still makes purists wince. Some critics even use today’s low natural gas prices as a knock against fracking. In other words, high fossil fuel prices are a reason to subsidize renewable energy production, but low fossil fuel prices are a reason not to invest in fossil fuel production. Please, let them invest.

Against these odds, a mostly sensible outcome has been reached. Fracking will go forward in New York. The industry will continue to innovate, improve productivity, and reduce production costs. Consumers will benefit, the economy will grow, and America will use more natural gas.

And that, in the end, will drive the environmental lobby crazy.

 

Source: The Boston Globe

 

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Jun 29

Unconventional Gas: A Reasoned View From France

By Curve France, natural gas in Europe, natural gas in the USA No Comments »

 

ParisTech Review, an online English language magazine, has published the following addition to the French debate on shale gas extraction:

Thoughts on Unconventional Gas Development

“Are we entering a golden age of gas?” The question was posed in the latest IEA report and if the experts are to be believed the response is firmly positive. They have made predictions of a bright future based largely on the emergence of unconventional natural gas. The United States has witnessed a gold rush more commonly associated with the nation’s frontier past, one that is raising some serious concerns for the environment.

In the recently published report, the International Energy Agency (IEA) presented a scenario under which the global use of natural gas could rise 50% by 2035, at which point it would represent one quarter of global energy demand. The resource hungry emerging economies will play a significant role with demand in China expected to reach parity with the entire European Union by 2035 and India’s current demand multiplied four-fold.

What logic underpins these spectacular claims? Sheltered from the general opprobrium leveled at the oil and nuclear industries in the wake of the blowout at Deepwater Horizon and the disaster at Fukushima, natural gas has emerged as the energy sector’s unlikely poster child. Cleaner and more flexible than other hydrocarbons natural gas possesses a number of advantages that other technologies are finding hard to match.

Global natural gas resources are vast and widely distributed. In recent estimates the IEA has predicted supplies sufficient for the next 250 years at current levels of production. Across five continents the potential is there and in a statement made by Nobuo Tanaka, Executive Director at the IEA during the presentation of the aforementioned report he indicated that recent developments have shifted more attention to the increased role natural gas could play in the global energy mix. Indeed, he stated the potential for, “the global gas market to become more diversified, and therefore improve energy security.”

Unconventional gas, a key role in the expansion

Only a few years ago it was rare to hear such optimistic claims and it has been the rise of unconventional gas that has completely reshaped the playing field. Reserves have been estimated by the IEA to be at least as widespread as the conventional natural gas that currently accounts for 85% of world production. One of the primary sources is shale gas named for the non-porous rock in which it is found. Another is the so-called “tight gas” produced from reservoirs with low permeability, under extremely high pressure, and grouped in compact pockets throughout rock deposits. Less promising sources are coal bed gas found in seams underground or methane hydrates, buried in the sediment of the world’s oceans.

The existence of these resources buried just beneath the earth’s surface has been known for years but it is only recently that advances in exploration techniques intersected with rising energy prices to force them from the shadows. “The petroleum industry has known about unconventional gas for years but because of the available technology and the market conditions was unable to exploit the resource,” notes Jean-Michel Gauthier, Chair in Energy and Finance at HEC and Senior Partner in charge of Energy and Resources at Deloitte. “In the trade, some were heard to say [the market] would arrive ‘post-nuclear’ …”

Thinking underwent a radical shift over the course of the last decade and “suddenly, we began to witness significant levels of unconventional gas and were made aware of the vast potential represented by structures such as the Barnett Shales in Texas,” explains Gauthier. “Forecasters have completely changed their tune and are now making predictions that unconventional gas will represent at least 45% of production within the next few years.”

Shale gas, rising star

The exploitation of shale gas ignited a genuine revolution in the United States. In a country that only recently witnessed massive investment in terminal infrastructure to receive imports of liquefied natural gas the Americans now find themselves sitting on enormous reserves. Economist Jean-Marie Chevalier of the Centre of Geopolitics of Energy and Raw Materials (CGEMP) at University Paris-Dauphine notes, “The United States was viewed as a massive importer and now finds itself on the verge of becoming an exporter. Gas prices have been cut in half.”

With doubts over the potential of these new resources, large oil multinationals played a negligible role in the initial development of the sector. “Unconventional gas has arrived by way of small American firms,” admits Gauthier. He mentions that the North American petroleum industry presents a stark contrast to the European market and is populated by a multitude of small independent operators, particularly in Canada. “They are in many ways the ‘cowboys’ of the exploration, of which they are the masters, putting new techniques to the test.”

As possibilities have become clearer, there has been a rush of activity as other actors attempt to catch up. “Over the last two or three years shale gas has become a major component in the strategy of large multinationals,” confirms Gauthier. “The recent wave of mergers and acquisitions, the large transactions on the Oil & Gas market, are for the most part related to unconventional gas. Look at ExxonMobil on XTO or Total on Synenco and UTS Energy. Large groups are either signing joint ventures with small operators or buying them. Most of the current investment in unconventional gas is coming from large multinationals.”

At the moment, the United States is the only country to have made significant strides in the development of the new resources but other countries with promising conditions are making up ground. In Asia, China is in the process of approving a first wave of permits for exploration, and Indonesia has plans to do the same by 2012. In Europe, Poland is leading the way due to its promising geological characteristics and has already granted 86 permits.

And yet shale gas has seen its image somewhat soiled in recent months by a foul smelling odor that colors otherwise enviable qualities. The reason: a whiff of danger surrounding the practice of hydraulic fracturing, or “fracking”, a key technology at the heart of the entire process of exploration and exploitation.

The controversy surrounding hydraulic fracturing

Conventional natural gas deposits are found in pockets of porous and permeable rock and can be extracted through a simple vertical well. Shale gas, like tight gas, requires a different approach as gas containing cavities are scattered throughout the rock and are not interconnected.

“If you just dig a hole you won’t get anything,” states Hedi Sellami, Director of Research in the Geosciences Department at Mines ParisTech and a specialist in underground mining techniques. Sizable quantities of trapped gas must be released through drains that are drilled horizontally to form pathways over which the gas can flow into the well. Yet this is only part of the picture, in order to really ‘suck up’ the natural gas hydraulic fracturing needs to be used. Fluids are pumped into the shale under high pressure to create fissures. “Cracks need to be created and the fractures must remain open,” specifies Sellami. “The composition of the material injected, the ‘propellant’, plays a key role, relying on mixtures composed largely of water and sand.” These techniques are what make the whole process possible.

Hydraulic fracturing and horizontal drilling have been deployed on a much smaller scale in the exploration and production of conventional gas deposits, primarily as a means to “push” wells nearing the end of their productive life. For use exploiting shale gas “the difference in relation to conventional gas is that a much larger number of wells are required.” This is done to multiply points of contact with the reservoir, explains Jean-Louis Durville, a member of the French corps of engineers responsible for bridges, water resources, and forests, and co-author of a report ordered by the French ecology ministry on the subject.  France could indeed possess significant reserves and to draw inspiration might want to cast a glance east. In Poland, “wells have sprung up very two, three, or four kilometers.”

Recently, the repeated process of well digging and hydraulic fracturing has been accused of causing significant and unpredictable consequences to the subterranean world, particularly in respect to underground aquifers. Criticism was heard from specialist corners as early as the mid-2000s but the rapid diffusion of the documentary Gasland , release in 2010, served as the fuse for the firestorm that followed. The film depicts areas where the industry has already matured and where residents are crying out about the rapid degradation of their health following the implantation wells. A number of the subjects of the film possess carefully guarded samples of brownish water as evidence of their claims. In one spectacular scene a homeowner demonstrates his ability to ignite the water that flows from the household tap and the image is emblematic of the film’s overall tone.

The film received the Special Jury Prize in the documentary category at the 2010 Sundance Film Festival and created a media sensation over the way energy concerns, in their heady rush to exploit the new resource, neglected the implementation of sufficient environmental safeguards.

A poor understanding of environmental consequences

American activists have raised an outcry over a number of incidents but have yet to provide any definitive evidence for their claims. Under the Bush administration, the American authorities initially made an assessment that the environmental consequences of hydraulic fracturing would have a negligible impact on groundwater supplies. A loophole in the 2005 Energy Bill exempts drillers from Environmental Protection Agency (EPA) guidelines such as the Safe Drinking Water Act. The agency has since reconsidered its position and was directed to launch a far reaching investigation in 2010 to determine if there are any shortcomings in the current policy.

In the meantime, public wariness in the face of the new technology has grown more animated, particularly in France where an initial offering of exploration licenses had only just been approved. The government has since ordered a moratorium on all permits for exploration until further review.

Some observers have expressed regrets over the level of public outrage and its arrival before the extent of reserves has even been determined. Jean-Marie Chevalier reflects this disappointment and has orchestrated a debate on the subject for the newspaper Le Monde. “I believe we should first make an estimate of the potential,” he explains. “As an economist, I’m very sensitive to the fact that right under our feet there could be a cheap and abundant source of gas, as well as opportunities for job creation.”

“In the United States the lack of any real controls along with the rapid pace of [well digging] has led to incidents that are clearly linked to gas exploration,” Durville states. “And yet, it could also be said that in relation to the level of activity the number of incidents has in fact been negligible.” The specialist advised a cautious approach until the release of results from the American study but would also like to underline that, “the causes are not always linked to hydraulic fracturing and can often be traced to problems cementing the well.”

An opinion that is shared by Hedi Sellami, who emphasizes the depth at which hydraulic fracturing takes place: “in the well architecture [for shale gas extraction], a vertical hole is drilled as with any other type of well, and this is what passes through any superficial aquifers. Once a depth of about two kilometers is reached a fork is created, a horizontal well […], then fracturing. Fractures commonly extend some ten meters, sometimes more. It’s difficult to imagine how reserves buried so deeply underground could have an impact on superficial aquifers. On the other hand, problems with cement and well casings have been known to arise in the vertical shaft, and gas can escape.” This problem, while it remains rare, becomes more probable when thousands of wells are being installed as has been the case in the United States.

Other dangers exist in addition to the problems with fissures. Hydraulic fracturing requires incredible amounts of water and chemicals to be blasted into the rock in order to optimize the process. For all wells the risk “that weighs most heavily is for contamination of ground water supplies through poorly sealed wells or accidents at the surface,” explains Jean-Louis Durville. “The number of big rigs required to service a well, for example, is staggering. We could easily imagine a tanker carrying dangerous chemicals overturning or pipe leakage during routine transfers.”

Continuing research within a structured regulatory framework

Today, with a lack of any competing technology to hydraulic fracturing for the exploitation of shale gas resources, natural gas companies have been compelled to develop their capability for so-called “clean exploration”. “In the face of increasing environmental and media pressure, companies have made the decision to invest in R&D as a way to improve their practices ,though given the stakes involved many have remained rather quiet on the subject,” explains Jean-Louis Durville. A number of possibilities exist, particularly through restricting the number of chemicals involved or reducing water dependence through recycling programs.

A more extensive investigation into the mechanism of fracturing could lead to greater control of the technology, and could be achieved through techniques like seismic monitoring. “Through an analysis of acoustic emissions during fracturing we arrive at a more nuanced understanding of where the fissures are located,” Hedi Slimani explains. “The technology is advancing rapidly and promises a range of improvements, allowing treatments to be targeted accurately and ensuring they affect only the desired zones.”

In the opinion of Jean-Louis Durville, the American experience has clearly demonstrated the need for a robust regulatory framework. He continues, “if regulation is weak, we shouldn’t be surprised if problems arise.”

In the report he authored along with three other specialists, Durville has suggested a research phase based on strictly regulated exploratory work and recommends “waiting for results from this initial research phase, before allowing any further use of the most controversial technique, hydraulic fracturing, restricting its use solely to what is necessary for scientific purposes.”

Source: ParisTech Review

 

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Jun 03

Natural Gas Futures Surge to 10-Month High

By Curve natural gas, natural gas in the USA No Comments »

NEW YORK— Natural-gas prices jumped to a 10-month high after the U.S. posted a smaller-than-expected increase in the amount of the fuel in storage, relieving some pressure on a well-supplied market.

The heat wave that hit the East Coast, Southeast and Gulf Coast regions last week spurred widespread use of air conditioning for the first time this year, resulting in increased electricity demand. While this seasonal shift was expected, market participants underestimated how much natural gas was used in electricity generation, as many nuclear power plants are down for maintenance, said Pax Saunders, an analyst with Gelber & Associates in Houston.

Futures surged in the seconds following the Department of Energy’s release of natural-gas storage data on Thursday and were up as much as 4.9% intraday before settling 16.5 cents, or 3.6%, higher at $4.794 a million British thermal units on the New York Mercantile Exchange. This is the highest close since July 2010 and the biggest one-day dollar gain in more than two months.

The amount of gas in U.S. storage rose last week by 83 billion cubic feet, according to the Energy Information Administration, a wing of the Energy Department. Expectations were for a increase of 93 billion cubic feet. Natural-gas inventories usually fall in the winter due to heating demand and rise in the summer as supplies are replenished.

Mr. Saunders attributed the price spike to “a lot of itchy, trigger fingers” in the market, meaning that Thursday’s number—and a “big miss” by analysts’ estimates—was just the sign of robust summer demand bullish traders were waiting for.

Natural gas accounts for about a quarter of U.S. electricity generation, and power demand typically rises along with air-conditioning use as warm summer weather arrives.

The reaction to Thursday’s inventory report highlights the data’s relevance to the isolated U.S. natural-gas market. Gas-futures prices tend to closely track developments in the physical market, so traders pay attention to weather forecasts and the status of power plants. Gas prices tend to show little reaction to moves in currency markets and foreign economic news because the U.S. lacks terminals capable sending the fuel to global markets.

In contrast, crude-oil futures ended higher Thursday despite Energy Department inventory data showing an unexpected rise in oil stockpiles and a larger-than-seen increase in gasoline inventories.

Robust power-sector natural gas use is expected to continue this month, with hotter-than-normal temperatures seen from the Southwest through the Midwest and East Coast for the next two weeks, according to private forecaster WSI Corp.

“You’ve got early indications that we’re going into a hotter-than-expected summer,” said Rich Ilczyszyn, a senior market strategist with brokerage Lind-Waldock. “That may give us an increase in demand.”

Under the burden of the persistent supply glut, natural gas was among the worst-performing commodities in 2010. Prices of raw materials from crude oil to copper and agricultural staples such as wheat and cotton have all touched multiyear highs in recent months, and natural gas may be receiving a boost as investors look for cheaper physical assets, Mr. Ilczyszyn said.

Natural gas is up 8.8% year to date, while crude oil is up 9.9%.

“Natural gas has not really participated in these huge commodity moves,” he said. “As an investor, do I want to buy oil at $100 [a barrel], or natural gas at $4.50?”

Source:  Wall Street Journal Online

 

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May 31

Realm Energy and Halliburton Evaluate and Rank Shale Plays in Emerging Markets

By Curve natural gas in the USA, Realm Energy No Comments »

White Rock, Canada, May 31, 2011 – In an effort to accelerate shale gas development, Realm Energy International Corporation (“Realm Energy” or the “Company”) (TSX-V:RLM) (www.realmenergy.ca) has contracted Halliburton’s Consulting and Project Management team (“Halliburton”) (NYSE: HAL) to work with Realm Energy to significantly expand the technical evaluation and ranking of the highest-potential shale deposits found in emerging prospective basins globally.

Realm Energy and Halliburton Consulting began their collaboration in 2009 with an emphasis on European basins. During this initial effort, Realm Energy, supported by Halliburton, targeted ten discrete sedimentary basins in four European countries for evaluation.  The collaboration identified key prospect trends and Realm successfully acquired 650,000 gross acres and has 4.4 million acres under government application of contiguous tracts of land over significant shale resources.

“Realm Energy is now moving into an operational phase with our European leasehold and will contract with Halliburton to leverage their extensive shale-development knowledge, gained from their significant presence in the North American market,” said Realm Energy Chairman, Craig Steinke. “We could not have achieved the quality of our European portfolio without the help of Halliburton’s consulting organization; this is why we have expanded our collaboration to assess and rank shale resources globally.”

Source:  Realm Energy

 

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May 21

DEP Report: Marcellus Operations in Northcentral Region Show No Impact on Short-Term Air Quality

By Curve natural gas in the USA No Comments »
No Emission Levels Found that Constitute Public Health Concern

An air quality study near Marcellus Shale natural gas operations in Bradford, Lycoming, Sullivan and Tioga counties found no emission levels that would pose a public health concern, according to a report released today by the Department of Environmental Protection.
“The results show there are no emission levels that would be of concern to the health of residents living and working near these operations,” DEP Secretary Mike Krancer said. “They are consistent with the results of our air monitoring in southwest and northeast Pennsylvania, the other two areas of the state with the most Marcellus drilling.”
The report notes that the sampling effort, conducted between August and December 2010, was not meant to address potential cumulative impacts.
DEP’s assessment focused on concentrations of volatile organic compounds, including benzene, toluene and xylene, which are typically found in petroleum products. The department also sampled for other pollutants, such as carbon monoxide and nitrogen dioxide, near natural gas extraction and processing sites.
DEP first conducted background sampling in early August 2010 at the Sones Pond parking lot in Loyalsock State Forest, Sullivan County.
The air quality sampling was conducted the weeks of Aug. 30, Nov. 15 and Dec. 6. An evening sampling event was held Nov. 17. DEP used its mobile laboratories and the equipment was set up downwind of the target sources during early morning and late evening hours.
“This study provides us with additional valuable information as part of our ongoing effort to determine the impact of these operations on air quality, public health and the environment,” Krancer said.
The air monitoring surveys were located next to Talisman Energy’s Thomas Compressor Station in Troy Township, Bradford County; East Energy’s Shaw Compressor Station in Mainesburg Township, Tioga County; East Energy’s Chicken Hawk well south of Mainesburg; and Anadarko Petroleum’s Hagemeyer well in Gamble Township, Lycoming County.
Those surveys detected the main constituents of natural gas—including methane, ethane, propane and butane—as well as low levels of other compounds, such as MtBE, carbon monoxide and methyl mercaptan, the odor-producing compound.
DEP’s sampling did not find concentrations of any compound that is likely to trigger air-related health issues associated with Marcellus Shale drilling activities in the northcentral region.
Results from DEP’s previous air monitoring studies near Marcellus facilities in southwest and northeast Pennsylvania were announced in November 2010 and January 2011, respectively.
To view the report, log onto www.depweb.state.pa.us and click “Regional Resources,” then Northcentral Region and choose the “Community Information” link on the right side of the page.
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Jan 03

Oil field services providers go greener on fracturing

By Curve natural gas in the USA No Comments »

A recently posted article at FuelFix, a source for news and analysis on the energy business by business reporters at the Houston Chronicle, reported on some of the innovative techniques being put in place by operators to increase the sustainability and decrease the environmental impact of shale gas extraction.

The article prominently Realm Energy collaborator Halliburton who, as mentioned in a previous post, are at the forefront of this innovation:

Halliburton is redesigning the storage containers to stand upright, atop the blenders, and operate without the complicated controls. Instead, they will have a solar-powered battery powering a system that transmits a signal when supplies are low. That upgrade would eliminate several big diesel engines, cutting emissions and maintenance time, and enable the company to dispatch delivery trucks only when needed.

In addition, the company is building more reliable pumping engines, lessening the need to have as many backup units on site. It’s experimenting with automated equipment that can be run from remote operations centers.

And, in answer to concerns about toxic chemicals in fracturing fluids leaching into groundwater supplies, it has developed a formula made up of ingredients sourced from the food industry.

To read the complete article, visit FuelFix.com.

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Oct 26

The Science of Shale Gas: National Geographic

By Curve energy market, National Geographic, natural gas, natural gas in the USA, shale gas, Shale gas production No Comments »

A new pictorial spread by National Geographic is lending some scientific insight into the process of drilling for shale gas in the US.

Highlighting some of the key differences between oil production, and shale gas production, the article provides pictures and descriptions of some of the highly specialized equipment needed to extract shale gas.

“Just above the target, the driller begins to “land the curve,” and continues to drill horizontally into the shale—typically a distance of 3,500 feet (1,070 meters) or more,” the magazine writes below a photo of dozens of green pipes. “By reaching more surface area, the producers are able to capture more fuel. Using the measure “Mcf,” which translates to “thousand cubic feet,” energy companies say horizontal wells in the Marcellus shale yield from 1 million Mcf to as high as 10 million Mcf or 15 million Mcf per day, compared to just 100 Mcf to 500 Mcf of natural gas per day for conventional Pennsylvania wells.”

The pictorial also talks about the recent shale boom in the US, the role of both independent and major companies in the exploration and extraction of shale, and the potential lucrative benefits of this new energy market.

More pictures: National Geographic

Source: Natural Gas For America

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Feb 10

Environmentalist should take heart in shale

By ckeddy natural gas, natural gas in Europe, natural gas in the USA, shale gas, shale gas in Europe No Comments »

The last few months may have been disheartening to the environmental movement — a weak outcome from Copenhagen, broader attention to “climategate” and then the addition of “Himalayagate.”

But all this clamor may have some forgetting the better environmental story of late, notes Michael Economides at Energy (Geo)-Politics:

” This is the triumphant second coming of the supply of clean, far less polluting and far lower-emitting natural gas.

The International Energy Agency in Paris last November released its world outlook report http://www.worldenergyoutlook.org/. While some found controversy in the oil forecasts, it was the gas that shocked even the experts: “The long-term global recoverable gas resource base is estimated at more than 850 tcm [trillion cubic meters].” That translates to just over 30,000 trillion cubic feet (Tcf) of gas. That’s more than double the 2008 IEA estimate of 400 tcm.

The difference comes from unconventional gas headed by shale gas, arguably the shiniest recent success in the petroleum industry. Deploying technology that incorporates the latest in drilling and steering long horizontal wells and the spacing and placing of many large hydraulic fracturing treatments, made a mockery of peak gas theories. This is even more dramatic than what the massive offshore oil discoveries in Brazil and the forecasts of Iraqi oil production reaching 11 million barrels per day in ten years have dealt on peak oil alarmism. ”

Source: NewsWatch Energy

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Jan 29

European unconventional gas attracts firms

By ckeddy natural gas in the USA No Comments »

The Ukraine unit of EuroGas Inc., New York, acquired three unconventional gas concessions in eastern Ukraine’s Donbas basin and increased activities in the Lublin basin that extends from Poland into western Ukraine.

The acquisition brings to five the number of shale gas and coalbed methane concessions held by EuroGas Ukraine Ltd. in eastern Ukraine under a joint activity agreement with Nadra Luganshchiny Ltd.

The five concessions total 512 sq km, and the largest, Marijewvskogo Poligon, covers 251 sq km. Horizontal drilling is to start this year.

Meanwhile, EuroGas GMBH signed a memorandum of understanding to explore for unconventional gas, such as shale and CBM gas, in the Lublin basin where it was the first foreign company to successfully drill a CBM well in the Ukrainian sector in the late 1990s.

Meanwhile, Realm Energy International Corp., Vancouver, BC, said it applied for oil and gas rights in eight undisclosed basins in seven unidentified European countries where it plans to exploit shale gas on more than 1.5 million acres.

Realm Energy, which is collaborating with Halliburton Consulting to apply North American shale gas technology in Europe, is evaluating other undeveloped shale plays and intends to make more applications in early 2010.

By OGJ editors

SOURCE: OIL & GAS JOURNAL

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