Still Trial and Error! Unconventional resource leaders believe that traditional petroleum geophysics, developed over 150 years, needs a makeover to most effectively exploit shale/tight reservoirs. The behavior of hydrocarbons in extremely low porosity rock may require an understanding of hydrocarbon, water, and rock surface behavior at a near atomic level – much like the difference …
It Gets Worse!! Everybody knows about the regional energy/geopolitical enigmas – subsidized energy, power, and water driving wasteful consumption. Add the forced addition of subsidized oil-fired power as cheaply valued associated gas production tops out. Mix in the usual conflicting politics where each country has its own reason not to ‘play well with others,” and …
….and Where Natural Gas Goes, Coal Can follow (but when??)! If you believe in higher gas prices, it might be worth the effort to revisit future coal fundamentals. After a horrible few years (stocks down 70-90%), it’s extremely difficult to find a coal bull. However: 1) Natural gas, at $4.50, is, for most power generators, …
Light at the End of a L-O-O-N-G Tunnel??? Cold weather aside, the multi-year outlook for US natural gas supply looks fairly glutted, leading to a “BTU Bargain” as far as the eye can see. Even off the bottom, the 2015-2020 futures trade, between $4-4.50 per million BTUs – about a quarter of energy parity with …
Its not news that the Shale Revolution has the potential to bring the Glory Days back to the US Chemical Industry. – IF the industry doesn’t kill a cyclical AND secular opportunity by overbuilding domestic capacity. There are almost dozen mega (billion pound or more) expansion projects in the planning stages, but this has been …
New Solutions for US Stranded Gas? There is increasing entrepreneurial effort to monetize stranded/low value gas in North America’s oil/liquids-based basins, as well as highly mature gas wells. A range of startups, including ‘micro-refineries,’ mini-LNG, low cost micro-turbines, and lower cost compression (with higher liquids capability) are all aiming at the same opportunity. A major …
The answer might surprise you. An enterprising research analyst has determined, from grass roots work, that significant funding behind the anti-fracking movement comes from the Middle East – Saudi, UAE, and Qatari funds. Apparently, the prospect of significant oil and gas production has caught the interest of the world’s largest producers of each hydrocarbon. …
inevitable collapse or cyclical victims? Solar fundamentals continue to deteriorate, despite increasing project economics. Module prices are about 20% lower than a year ago, and ahead of forecasts that they slip below $1/watt (module) by early 2012. However, for the first time in memory, price elasticity is not helping the sector. As expected, first …
Fundamentals getting better all the time A well known LNG glut to 2015 has evaporated as Japan struggles to offset lost nuclear power with both oil and gas imports. Secular demand beyond 2015 is also rising and at extremely attractive prices. India’s Petronet, the country’s leading operator of LNG regas assets in country, projects that, …
Transportation – Inter-Concept Competition Coming? US gasoline prices have retreated from early May highs (see above), but are likely to move with underlying crude as the next spike unfolds. Meanwhile, auto, truck, and engine manufacturers rush to develop battery and natural gas-based transport options, as the US oil/gas ratio continues well over 20x (versus historical …