Natural Gas

U.S. shale gas: Less abundance, higher cost

by

Shale gas has become an important and permanent feature of U.S. energy supply. Daily production has increased from less than 1 billion cubic feet of gas per day (bcfd) in 2003, when the first modern horizontal drilling and fracture stimulation was used, to almost 20 bcfd by mid-2011. There are, however, two major concerns at the center of the shale gas revolution. Despite impressive production growth, it is not yet clear that these plays are commercial at current prices because of the high capital costs of land and drilling and completion. Reserves and economics depend on estimated ultimate recoveries based on hyperbolic, or increasingly flattening, decline profiles that predict decades of commercial production. With only a few years of production history in most of these plays, this model has not been shown to be correct, and may be overly optimistic.

When oil and gas are depleted

by

In this year, 2011, we are enjoying a lifestyle beyond the most optimistic dreams of past generations. We are benefitting from the whirlwind of achievements in science and technology during the last hundred years. There has never been a century like the one just passed, and there will never be another like it. Lifestyles will be very different when oil and gas are depleted.

ODAC Newsletter – July 29

by

Profits were up at the supermajors again in Q2 as high oil prices offset the rising cost of new production. Shell’s Peter Voser said that high prices were having an effect on demand for oil, especially in Europe – this could be seen reflected in flat UK growth figures and weak numbers even for major German manufacturing companies.

Cut energy demand to meet shortage

by

Between April last year and March this year, the world was struck by three Black Swan events that ‘everyone’ knew would happen, yet, strangely, seemed unprepared for when they did. The Gulf of Mexico oil leak, the political upheavals in the Middle East and North Africa (Mena) region and the earthquake-tsunami-nuclear tragedy in Japan are already inflicting history-altering impacts, not the least, because they have significantly and immediately reduced the world’s supply of cheap energy.

Impacts of shale gas and shale oil extraction on the environment and on human heath – Report

by

At a time when sustainability is key to future operations it can be questioned whether the injection of toxic chemicals in the underground should be allowed, or whether it should be banned as such a practice would restrict or exclude any later use of the contaminated layer (e.g. for geothermal purposes) and as long-term effects are not investigated. In an active shale gas extraction area, about 0.1-0.5 litres of chemicals are injected per square metre.

This holds even more as the potential shale gas plays are too small to have a substantial impact on the European gas supply situation.

The present privileges of oil and gas exploration and extraction should be reassessed in view of the fact that the environmental risks and burdens are not compensated for by a corresponding potential benefit as the specific gas production is very low.

Review: The End of Growth by Richard Heinberg

by

In the several years or so since peak oil began generating significant literature and debate, it has attracted a diverse array of thinkers. To name a few, there are insiders like Colin Campbell and Ken Deffeyes who sounded the first warnings; a clinical psychologist in the field of “peak oil blues,” Kathy McMahon; an archdruid practiced in nature’s less readily perceptible energies, John Michael Greer; and a couple of highly engaging social critics, Jim Kunstler and Dmitry Orlov. Richard Heinberg’s distinction is that he’s hands-down the most prolific peak oil author, now having written half a dozen books on the subject and a few others touching on it tangentially. His latest, The End of Growth, is yet another grand performance.

La transición alimentaria y agrícola

by

A spanish translation of the Post Carbon Institute report ‘The Food and Farming Transition: Toward a Post-Carbon Food System’.El sistema alimentario norteamericano descansa sobre unas bases inestables de insumos de combustible fósil masivos. Ante la disminución de las reservas de combustible el sistema alimentario se debe reinventar. El nuevo utilizará menos energía, y la energía que use vendrá de fuentes renovables. Podemos empezar la transición al nuevo sistema inmediatamente mediante un proceso de cambio planificado, graduado y rápido. La alternativa no planificada –la reconstrucción desde la base tras el colapso- sería caótica y trágica.

Energy and peace: the dangers of our slow energy transition

by

Resource scarcity and climate change should be driving forward our transition to the energy systems of the future. Though this transition has started in important ways in several locations, change is not being undertaken at either the scale or speed required.

Unburnable Carbon – Are the world’s financial markets carrying a carbon bubble? (Report)

by

The Carbon Tracker initiative is a new way of looking at the carbon emissions problem. It is focused on the fossil fuel reserves held by publically listed companies and the way they are valued and assessed by markets. Currently financial markets have an unlimited capacity to treat fossil fuel reserves as assets. As governments move to control carbon emissions, this market failure is creating systemic risks for institutional investors, notably the threat of fossil fuel assets becoming stranded as the shift to a low-carbon economy accelerates.

Shale gas gives no emissions edge over coal

by

For years now, everyone thought that natural gas was cleaner than coal and more benevolent than oil. The blue flame just burned purely and wasn’t nearly as complicated or carboniferous as a lump of, well, bituminous coal…But shale gas, methane trapped in hellishly deep rock formations, has challenged this dated perception. In fact, the very stuff that energy experts champion as North America’s new energy wunderkind may be dirtier than coal, if not as extreme as Alberta’s dirty bitumen.

Rising hydrocarbon costs: A quick summary for policy makers

by

During the past century, world economic growth has depended largely on ever-expanding use of hydrocarbon energy sources: oil for transportation, coal and natural gas for electricity generation, oil and gas for agricultural production. It is no exaggeration to say that the health of the global economy currently hinges on increasing rates of production of these fuels.