Governor Parnell on Huckabee talking about taxes and drilling in Alaska, no mention of the gas pipeline:
Governor Parnell on Huckabee from Office of Governor Sean Parnell on Vimeo.
Also noticed this LNG video this week.
LNG: The Facts from Center for Liquefied Natural Gas on Vimeo.
LOL moment at the 3:58 min mark when the spokesman takes a gulp from a beaker of water cooled by LNG evaporation. Nice video, but imagine OUTBOUND LNG instead of inbound LNG.
In other news: Australia will become the Qatar of LNG. (LINK) By 2020 Australian LNG exports could top 100 mtpa compared to 77 mtpa from Qatar. For comparison, the volume of gas available from Alaska equals 35 mtpa in LNG. A full scale Alaskan LNG export project seems unlikely, but Alaskan gas could supply North American markets if and when shale gas derived LNG is exported from the Gulf Coast.
This week Chevron moved forward with a $28B investment in the Western Australian Wheatstone 8.9 mtpa LNG project (LINK).
Tampilkan postingan dengan label $/MMBTU. Tampilkan semua postingan
Tampilkan postingan dengan label $/MMBTU. Tampilkan semua postingan
Sabtu, 01 Oktober 2011
Minggu, 26 Juni 2011
Shale Gas Exposed?
You can't follow the Alaska Gas Pipeline without following the story of shale gas. On one extreme you'll hear tales of plenty, gas too cheap to meter. The average news story on the Alaska Gas Pipeline would have you believe that shale gas killed all hopes of a gasline. On the other extreme you will hear the occasional doubter - they doubt the reserve estimates, the productivity of the wells over time and the over all economics of shale gas wells.
This week the New York Times has a story titled "Documents: Industry Privately Skeptical of Shale Gas" which falls plainly on the side of the doubters. The story contains a lot of insider documents and the investor presentations of shale gas leader Chesapeake.
As the shale gas story develops some facts are bearing out - at $4/MMBTU you'll need plenty of natural gas liquids (NGL) to make a profit. For the past year or so Chesapeake has made it clear that their goal for 2016 is wells with 38% (NGL + oil) and a NGL+oil production of 250,000 BOE (see page 16 of the Chesapeake June Investor Presentation (LINK)).
The trend away from dry gas wells to wet gas wells is a clear indication that $4/MMBTU won't pay cost of drilling and completing a dry shale gas well. Based on Chesapeake's liquid production goal I estimate that $8/MMBTU is needed to justify drilling a dry gas shale well.
I don't think the Times article spells the end for shale gas but it highlights the possibility that every boom precedes a bust. Tough times for shale gas would glean out the dry gas shale production and make room for Alaska gas.
Update - ExxonMobil/XTO responds (LINK) and Chesapeake responds (LINK) the the New York Times article. As you might guess they are not pleased by the Times story.
This week the New York Times has a story titled "Documents: Industry Privately Skeptical of Shale Gas" which falls plainly on the side of the doubters. The story contains a lot of insider documents and the investor presentations of shale gas leader Chesapeake.
As the shale gas story develops some facts are bearing out - at $4/MMBTU you'll need plenty of natural gas liquids (NGL) to make a profit. For the past year or so Chesapeake has made it clear that their goal for 2016 is wells with 38% (NGL + oil) and a NGL+oil production of 250,000 BOE (see page 16 of the Chesapeake June Investor Presentation (LINK)).
The trend away from dry gas wells to wet gas wells is a clear indication that $4/MMBTU won't pay cost of drilling and completing a dry shale gas well. Based on Chesapeake's liquid production goal I estimate that $8/MMBTU is needed to justify drilling a dry gas shale well.
I don't think the Times article spells the end for shale gas but it highlights the possibility that every boom precedes a bust. Tough times for shale gas would glean out the dry gas shale production and make room for Alaska gas.
Update - ExxonMobil/XTO responds (LINK) and Chesapeake responds (LINK) the the New York Times article. As you might guess they are not pleased by the Times story.
Jumat, 27 Mei 2011
Boone Pickens on CNBC
I follow T. Boone Pickens because his plan will boost gas sales, increase demand and by extension boost gas prices back to a range that will support development of the Alaska Gas Pipeline.
Today Pickens ranted a bit on CNBC (LINK) today. Aside from his remarks about OPEC funding the Taliban and disparaging remarks about the Koch brothers he also attacked the idea of exporting LNG from the U.S., specifically from Cheniere.
By his logic we are importing dirty oil and exporting clean LNG.
I take issue with this - First we import oil, refine it and use it, but we also export refined products (about 450,000 bbls/day) - good lets build our export economy. Secondly we import a lot of high sulfur "dirty crudes". Many of our refineries are designed and tuned to run on these less expensive feedstocks - another good thing let's use technology to exploit the full range of available feeds. Third - I'm all for exporting U.S.A LNG - it will sponge up excess lower 48 shale gas, boost our economy and help build price support for the Alaska Pipeline.
Speaking of sponging up cheap shale gas - I think the free market is catching on to the idea of converting to cheap gas. Follow this link to see all the CNG fueling stations. It's still early days, but CNG may be the breakout alternative fuel.
Today Pickens ranted a bit on CNBC (LINK) today. Aside from his remarks about OPEC funding the Taliban and disparaging remarks about the Koch brothers he also attacked the idea of exporting LNG from the U.S., specifically from Cheniere.
By his logic we are importing dirty oil and exporting clean LNG.
I take issue with this - First we import oil, refine it and use it, but we also export refined products (about 450,000 bbls/day) - good lets build our export economy. Secondly we import a lot of high sulfur "dirty crudes". Many of our refineries are designed and tuned to run on these less expensive feedstocks - another good thing let's use technology to exploit the full range of available feeds. Third - I'm all for exporting U.S.A LNG - it will sponge up excess lower 48 shale gas, boost our economy and help build price support for the Alaska Pipeline.
Speaking of sponging up cheap shale gas - I think the free market is catching on to the idea of converting to cheap gas. Follow this link to see all the CNG fueling stations. It's still early days, but CNG may be the breakout alternative fuel.
Langganan:
Postingan (Atom)