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Risk to Independents Exaggerated
A recent article in “World Oil” cites two studies by consulting firm, Wood Mackenzie, which concludes that the independent energy segment of the industry is not in imminent danger. Many industry commentators had predicted dire consequences for small oil and gas producers as a result of this Fall’s recalculation of reserves used in Reserve Based… Read More
No $100 Oil until 2020
“World Oil” reports that Nobuo Tanaka, former head of the International Energy Agency (IEA), predicts that oil prices will not reach $100 per barrel until 2020 to 2025. He anticipates depressed prices until U. S. shale production starts to decline. This, in conjunction with increasing demand from Asia and Africa, will enable prices to eventually… Read More
Murphy Pounds Sand
The recent oil price collapse resulted in massive reductions in capital spending, headcount and rig counts across the entire energy sector. Many industry observers predicted that oil production would decrease precipitously as a result. However, as “World Oil” reveals in a recent article, actual crude output has remained relatively stable. In fact, it is only… Read More
Reducing Freshwater for Fracking
Hydraulic fracturing (fracking), as the name implies, requires water, and lots of it. While this has always been the case, the shale revolution has moved freshwater requirements from a consideration to a major issue. Historically oil and gas are often found in arid regions and major shale plays such as the Bakken in North Dakota,… Read More
Shifting LNG Economics
The shale revolution flooded the domestic natural gas market with large volumes which in turn led to stagnant prices. Consequently, U. S. gas producers have long seen Asian LNG markets as a highly lucrative alternative. Predictably, a number of LNG projects were approved and are under construction. “World Oil” reports that the Chenerie Energy Inc.… Read More
