Thursday, May 17, 2012

Thursday Energy Links

1. WSJ -- "Energy intensive industries in Europe and Asia are becoming increasingly envious of the huge competitive advantage their U.S. rivals have gained from a boom in natural gas production. The gap between U.S. and international gas prices has expanded to all time highs, giving American industries a competitive advantage that could be worth as much as $1 billion a day."

2.  "The development of the Eagle Ford shale continues to prompt dazzling assessments and predictions from experts, who said at an energy symposium Wednesday that in four years, the oil-rich formation could become the nation’s second-most productive shale play. Production in the Eagle Ford could reach 1 million barrels a day by 2016."

3. China Petrochemical Corp. will start pumping thenation’s first shale gas from a project in Sichuan province next month.  

4. "The shale energy boom in North America will lead to an industrial revival in the region while Europe could benefit from a conventional gas glut that will help decouple it from surging global oil prices, according to industry leaders and analysts.

A boom in North American shale gas production in the past five years has resulted in sharp falls in domestic power and gas prices there and could turn North America from a gas importer into a large exporter, and a similar development is seen as underway in the oil sector.

“It fundamentally modifies the geopolitical landscape, and this is bullish for the U.S. They will have the cheapest power, gas, and oil and that could lead to an industrial revival as its industry becomes globally competitive again because of cheap energy, said Daniel Jaeggi, co-founder and Head of Global Trading of Geneva-based commodities trading house Mercuria." 

2 Comments:

At 5/17/2012 7:04 PM, Blogger SBVOR said...

Production in the Eagle Ford could reach 1 million barrels a day by 2016.

Where is VangelV (leader, in his own mind, of the intergalactic peak oil cult)?

I cannot WAIT to hear him ever so eruditely pounce upon the word "could"!

Come on, VangelV, enlighten us with your intergalactic wisdom! Your cult needs you!

 
At 5/19/2012 11:03 AM, Blogger VangelV said...

Production in the Eagle Ford could reach 1 million barrels a day by 2016.

Where is VangelV (leader, in his own mind, of the intergalactic peak oil cult)?


COULD? Is that what you are pinning your hopes on? And what matters is the cost of production and the return on energy invested. If you are using up as many BTUs to get the oil out as the oil contains you are not further ahead no matter how much you produce.

I suggest that all of the optimists who are hyping this story look to the Elm Coulee field in Montana. Five years after development began the field production peaked and it is now at half that peak.

 

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