Unconventional oil and gas activity is already revolutionizing America’s energy future and bringing enormous benefits to its economy, Director of Consulting Energy and Natural Resources at IHS Jerry Eumont said. Net petroleum imports have fallen from 60 percent of total consumption in 2005 to 42 percent in October 2012.
The recent surge in unconventional oil and gas and its effect in the United States was the topic of discussion at the American Petroleum Institute’s (API) Houston Chapter luncheon Tuesday.
Development in Pennsylvania’s Marcellus Shale accounted for one-fifth of the nation’s natural gas reserve increase in 2010, and the new numbers on how much gas is trapped in the formation lead one industry group to predict the Marcellus soon will be the new leader in domestic shale plays.
The Energy Information Administration (EIA) recently announced that oil and natural-gas proven reserves jumped in 2010 by the highest margin in at least three decades. Proven reserves of crude oil increased by 13 percent (2.9 billion barrels) and proven reserves of natural gas rose by 12 percent (33.8 trillion cubic feet). Oil reserves at the end of 2010 were 25.2 billion barrels and natural gas reserves at the end of 2010 were 317.6 trillion cubic feet– the first time they reached a level over 300 trillion cubic feet. The increases were the highest recorded by EIA since it began publishing the estimates in 1977.
THE bargain-basement US gas prices that forced a $US2.8 billion devaluation of BHP Billiton’s Fayetteville shale assets last week look set to continue for the short-to-medium term, analysts say.
Wood Mackenzie head of oil and gas Noel Tomnay told BusinessDay last week that the US market was ”disconnected from the rest of the world” with the Henry Hub gas price trading around $US3/mmbtu while European prices were at $US8-9/mmbtu and Asia-Pacific spot prices at $US14/mmbtu.
U.S. natural gas futures ended higher on Tuesday for a second straight day, backed by buying ahead of Thursday's weekly inventory report and slightly warmer revisions to extended weather forecasts. Gas demand perked up this year after prices in the spring slid to 10-year lows below $2 per mmBtu and prompted many utilities to switch from coal to cheaper gas to generate power.
Worldwide liquids fuels consumption will grow by 800,000 b/d this year and by 900,000 b/d in 2013, according to the latest outlook from the US Energy Information Administration. In last month’s Short-Term Energy Outlook (STEO), EIA projected that global oil demand would climb by 700,000 b/d during both 2012 and 2013.
The abundant supply of North American natural gas has resulted in increased attention to one part of the development process, hydraulic fracturing. Hydraulic fracturing is an advanced technology that has brought energy production into areas that are less familiar with this work, including the heavily populated Northeast.
Tuesday, March 6: Sheraton Denver Tech Center (map)
Speaker: Dr. Ken Carlson, Associate Professor, Civil and Environmental
Topic: The Center for Energy and Water Sustainability: Water Issues and Oil and Gas
Due to technological developments like horizontal drilling and hydraulic
fracturing, oil and gas development in Colorado may increase significantly
over the next decade. How might this increased development impact water
resources? CSU has partnered with Noble Energy to form the Colorado
Energy-Water Consortium, to study water issues relating to hydraulic
fracturing and other practices, communicate complex information to the
public, and educate the next generation of students in this
rapidly-evolving field. Dr. Carlson discusses the Consortium, who it
is, what it is doing, and how to get involved.