<a href="http://youngpetro.org/2013/03/06/how-is-it-possible-to-produce-oil-from-sand/"><b>How is it possible to produce oil from sand?</b></a> <a href="http://youngpetro.org/2011/10/09/people-engineers-and-spe-members/"><b>People, Engineers and SPE Members</b></a> <a href="http://youngpetro.org/2012/12/19/if-i-were-a-prime-minister/"><b>If I Were a Prime Minister…</b></a> <a href="http://youngpetro.org/2012/12/26/polish-shales-delayed/"><b>Polish shales delayed?</b></a> <a href="http://youngpetro.org/2013/01/11/russia-continues-the-policy-of-states-companies-monopoly/"><b>Russia continues the policy of state companies’ monopoly</b></a>
 

Why Saudi Arabia can not produce Its own shale gas?

Why Saudi Arabia can not produce Its own shale gas?

According to estimates by Baker Hughes Inc., Saudi Arabia may hold even about 645 trillion cubic feet of technically recoverable shale gas. It gives this country the fifth place in the world in terms of shale gas reserves, behind China, the U.S., Argentina and Mexico.

Several oil and gas majors, including Halliburton Co. and Schlumberger Ltd. are already invested in Saudi operations. Presently, both firms have research centers up and running in Saudi Arabia, hoping to discover how best to develop and exploit that country’s rich shale reserves.

Nevertheless, Saudi Arabia may need at least a decade to develop shale-gas production  to a wide scale due to the desert kingdom’s short supplies of water.

Finding the necessary amount of water in the regions where Saudi Arabian Oil Co. is exploring for shale gas will be difficult, according to Amin Nasser, senior vice president of upstream at the company known as Saudi Aramco. “The infrastructure cost will go down with time but water is going to remain a challenge” he said March 10 at an oil and gas conference in Manama, Bahrain.

Saudi Arabia’s shale plans may be slowed by lack of water |fuelfix

How about you? What’s your opinion about it? Don’t hesitate to share your opinion with us.

Photo: AP file

Talisman Energy may withdraw from Poland

Talisman Energy may withdraw from Poland

Yesterday’s announcement made clear that Talisman Energy is changing its policy on Polish shales. After ExxonMobil it would be the second player recalculating shale resources unfavourably for Poland’s economy.

“Talisman Energy is changing its operation strategies for the coming years as the result of changes on the oil and gas market,” said Tomasz Gryzewski, director at Talisman Energy Poland

“Divestment options, including in Poland, are being considered. The management will release its decisions together with first-quarter results,” he said.

Since 2010 Calgary-based Talisman Energy holds 60% of three shale concessions in Pomerania. Possible divestment would probably mean Polish entrepreneur taking Canadian place.

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Canada’s Talisman Energy says may quit Poland shale gas || Reuters

First successful gas extraction from frozen methane deposits

First successful gas extraction from frozen methane deposits

Japan has successfully extracted natural gas from frozen methane hydrate deposits under the sea, in the first example of production of the gas offshore, officials said on Tuesday. This is the milestone  and could be a step toward potential commercial production, though the costs of extracting gas from the seabed are much higher than for other forms of production.

Japaneese scientists used a specialistic technology relayed on reducing pressure in the underground layers which hold the methane hydrate 1,330 metres below the sea surface and then they dissolved it into micture of gas and water. In final step They were collecting the gas through a well.

“Ten years ago, everybody knew there was shale gas in the ground, but to extract it was too costly. Yet now it’s commercialised” said Ryo Minami, director of the oil and gas division at Japan’s Agency for Natural Resources during the performance, compared shale gas to frozen methane resources.

Methane hydrate is a form of methane gas frozen below the seabed or in permanently frozen ground called permafrost.  ‘Frozen methane’ may be compared to ice but burns like a candle if a flame is applied.

Japan Becomes first nation to extract ‘frozen gas’ from seabed |The Guardian

Are methane hydrates the next big energy source? What do you think about it? Share your opinion with us.

photo by JOGMEC

How is it possible to produce oil from sand?

How is it possible to produce oil from sand?

Have you ever heard about oil sands? This geologic formation is mixture of water, clay and viscous, heavy oil known as bitumen. Majority of the oil sands reserves are located in Canada where have been intensively exploiting for about 50 years. The largest accumulation of them is located across 54,000 square miles in three Alberta deposits. Oil is derived from the oil sands and may be refined and used to make e.g. jet fuel, gasoline or asphalt.
Canadian oil sands’ production has grown and nowadays is estimated to be more than 1 million barrels per day of U.S. oil imports.
Depending on depth of the reserves, producers used to deploy one of two methods: Surface Mining and In Situ drilling.
First of them is using when oil sands reserves are close to surface. Huge mining shovels dig into formation, then transport sandy mixture to large trucks. During the transport, bitumen begins to separate from the sands and other formations. Finally, the bitumen is removed and transported to refinery.
If reserves are deeper than 250 feet, using of mining shovels is unprofitable. In that case, producers use second method called In Situ Drilling. Average depth of single well drilled into the ground is about 1,300 ft. Bitumen oil is too heavy to flow automatically without being heated or diluted. Therefore, in  majority of in situ operations, steam is injected into the well to liquefy the bitumen, which is  pumped to the surface through another well.

What are Oil Sands? |oilsandsfactcheck

How about you? What is your opinion about oil sands? Share your opinion with us.

Photo from buffalopost.net

Royal Dutch Suspends Arctic Drilling in 2013

Royal Dutch Suspends Arctic Drilling in 2013

Recent announcement from Shell claims to pause offshore drilling in the Beaufort and Chukchi Seas following series of accidents. In result two drillships are being transported for repairs and would not be able to be done this year.

“We’ve made progress in Alaska, but this is a long-term programme that we are pursuing in a safe and measured way,” said  Marvin Odum, Director, Upstream Americas.  “Our decision to pause in 2013 will give us time to ensure the readiness of all our equipment and people following the drilling season in 2012.”

What is worth to consider ships were damaged in movement, not while drilling. Kulluk’s hull has undergone from heavy storm, Noble Discoverer suffered from explosion and fire in port.

“This pause — and it is only a pause in a multiyear drilling program that will ultimately provide great benefits both to the state of Alaska and the nation as a whole — is necessary for Shell to repair its ships and make the necessary updates to its exploration plans that will ensure a safe return to exploration soon,” Ms. Murkowski, Republican Senator from Alaska said in a statement.

How do you feel about Arctic offshore drilling?

With 2 Ships Damaged, Shell Suspends Arctic Drilling || NYTimes

Shell announces pause in Alaska drilling programme || Shell

Photo: gCaptain Forum // Alamy

Shell – the LNG King

Shell – the LNG King

Although it is enormously hard nowadays to acquire operating L.N.G. installations, Royal Dutch Shell recently made lucrative deal with Repsol which puts its assets ahead of Western L.N.G. competitors. The $6 billion deal will amount approximately 30 percent of Shell’s L.N.G. supplies (up to 6.6 million tons of gas) and increase its influence in Canada, Caribbean and South America.

This concludes decreasing Repsol’s financial burden with more than $4 billion in cash and $2 billion in assumed debt, which is crucial for Spaniards after nationalisation of YPF by Argentinian government.

Shell states deal would allow them to add $1 billion net income annually. “Shell’s worldwide L.N.G. supply position and customer base means we are uniquely positioned to add value to Repsol’s L.N.G. portfolio” Peter Voser, Shell’s chief executive, said in a statement.

More information at:
NYTimes
Bloomberg

Image: Canaport LNG