<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>
 

U.S. has lost 70,000 oil jobs in the past year

U.S. has lost 70,000 oil jobs in the past year

Sadly, it has been a poor year for oil industry. Oil prices not only stayed at very low level but also were systematically dropping down to 35$ a barrel. Cheap crude affects global economy and makes current oil market environment unsunstainable. Global crude supplies are highly outweighed and crude storages may not start to deciline until 2017.

The Dallas Fed estimates in a new report that U.S. has lost about 70,000 oil and gas jobs since October 2014 what equals 14.5 percent drop in the 14 months after the domestic shale drilling boom that drew thousands to Houston’s oil hub began a steep decline.

Iran wants to pump an additional 500,000 barrels a day when western sanctions on its oil exports happen to be eased next year. Goldman Sachs believes that OPEC, which includes Iran, will boost its daily production in 2016 by 640,000 barrels. Additional barrels on market certainly will not enhance chances for crude to be more expensive.

These factors make high extraction unprofitable for oil companies and consequently less people are needed to control this process. Workers from huge companies such as; Schlumberger, Halliburton, Baker Hughes and British Petroleum were made redundant.

Apart from consumers with high transportation and manufacturing costs cheap crude worries entire world. Current market situation makes future uncertain especially for students and recent graduates who are seeking for opportunities in oil companies. However, we do know that such low prices are not beneficial for many and will eventually start to increase.

http://fuelfix.com/blog/2015/12/24/dallas-fed-says-u-s-oil-bankruptcies-at-great-recession-era-levels/

oil jobs lost 3

U. S. lifted a four-decade oil export ban

U. S. lifted a four-decade oil export ban

The United States decided to make a historic move and lifted a forty-year long ban on oil export. Mentioned restriction was a response to the Arab oil embargo in 70s which caused heavy shock to US economy. This was a solution to keep oil price on a relatively constant level in the future and also to secure the energetic sector of the country. Latest increase in oil production was the main reason why congress decided to lift the oil export restriction.
The United States currently generate about 9.2 million barrels of oil a day, about half of which is shale production, but the US also imported about 7 million barrels a day this year. With the world flooded in crude, nobody expects much demand for US exports. While new oil exports are not likely to amount to much immediately, they would provide another challenge to already sick OPEC. The Organization of the Petroleum Exporting Countries has been allowing the market forces to set prices for the past year, abandoning its previous policy of manipulating prices through the use of output quotas. That policy has cut into some US production,but the world is still overproducing by more than 1 million barrels a day.
This move is definitely an improvement, but is unlikely to have an influential impact on the global oil market. Andy Lipow of Lipow Oil Associates argued that the benchmark of the US crude is too close in price to the Brent’s. “The narrow price gap doesn’t encourage exports from the US to other parts of the world when transportation costs are factored in”, Lipow said.

crude-oil-pipe-NNPC.jpg1_-640x431

 

Sources:

http://www.wsj.com/articles/congressional-leaders-agree-to-lift-40-year-ban-on-oil-exports-1450242995

http://www.bbc.com/news/business-35136831

 

Lower oil prices bode well for their growth

17 December, 2015 News No comments
Lower oil prices bode well for their growth

Constantly falling oil prices cause deeper cuts to spending and drilling. With WTI dipping to mid-$30s per barrel may even more significantly contribute to deterioration of the situation in the industry and consequently accelerate pace of adjustment.
This might be a sign of faster rebound than we have expected.

Read more

First ship with liquefied natural gas from Qatar came into the Swinoujscie terminal

12 December, 2015 News No comments
First ship with liquefied natural gas from Qatar came into the Swinoujscie terminal

   Yesterday, on 11th of December 2015, an Quatar’s LNG carrier (tank ship designed for transporting LNG) “Al Nauman” came into the Swinoujscie LNG terminal (also referred as Terminal LNG in Swinoujscie, Polish LNG or Baltic LNG). This terminal is operated by Polskie LNG S.A., a subsidiary of Gaz-System. The terminal was inaugurated by prime minister Ewa Kopacz on 12 October 2015, so it’s a relatively fresh investment. It is equipped with an unloading jetty for large LNG tankers, two storage tanks and regasification train. The terminal’s initial regasification capacity is 5 billion cubic meters per annum (180 billion cubic feet per annum), and with the construction of the third tank its capacity is due to expand to reach 7.5 billion cubic meters per annum (260 billion cubic feet per annum) satisfying approximately 50% of Poland’s annual gas demand. The total cost of the terminal is €950 million (PLN 3.5billion).

That was the first LNG delivery, and it landed exactly the day it was expected. Delivered fuel is going to help with technical startup of system. After regasification it will reach Polish recipients. Regasification is a process of converting liquefied natural gas (LNG) at −162 °C (−260 °F) temperature back to natural gas at atmospheric temperature. LNG gasification plants can be located on land as well as on floating barges. In a conventional regasification plant, LNG is heated by sea water to convert it to natural gas / methane gas. In Swinoujscie air-heating system is applied because Baltic sea is too cold. It works by diving the LNG pipelines in heated water.

 swino

View of the terminal

Marek Gróbarczyk, minister of Polish Maritime Economy, said that it is significant moment for Polish Energy independence: it will allow to research when the flotation of the gas port will be possible. First implementation of the fuel and cooldown the tanks will show if there are any defects and will determine the date of the end of the investment. He emphasized that there are plans for another investment such as building one more tank in Swinoujscie or the new LNG terminal in Poland, even floating one like in Lithuanian Klajpeda.

   Poland is now available to import LNG from all over the world. Difficult time of testing and startup works is against us. Qatar’s partnership will be supplying LNG into Poland for next 20 years, so it elevates Polish-Quatar’s relations to a strategic level. Commercial exploitation LNG terminal in Swinoujscie is going to reach its destination in half of 2016. What’s more, it is a great tourist attraction and very perspective  undertaking for Polish economy.

https://en.wikipedia.org/wiki/Świnoujście_LNG_terminal

https://en.wikipedia.org/wiki/Regasification

www.google.pl/maps

www.polskieradio.pl

Shale World Europe conference

Shale World Europe conference

   On 17­th-18th of November 2015 in Warsaw, 6th annual Shale World Europe conference took place. Presentations contained valuable topics such as differences in type of shale gas resources in various parts of world. Chinese, UK and European (especially Polish shales) were mentioned. The considerations were about: how could it be exploited, what is the approach of the community, what are geological terms, process of getting licenses etc. Moreover, several companies presented their business profile and actual position in shale gas industry. Speakers presented their material and confronted with the questions from the audience during this two-day event.

   Regarding content of the conference, several topics were raised. First, taxation scheme is preventing potential activity not only in Poland but in Hungary too. Governments need to be more realistic and lower the fees. As for Ukrainian shale, western and eastern areas of country are perspective for unconventional gas production. It’s similar to Polish but the approach is different. Technology, policy, military and environmental issues are involved too, that shows how many factors are hindering the potential exploitation. Secondly, it’s worth to emphasize that large companies such as Chevron, abandoned Ukraine and Poland. The reasons could be demand of large capital investments and discouraging taxation. On the other hand, it was claimed that European conventional sources are running out and it’s the best time for research programs. Also, natural gas should be in coexistence with renewables because there is no future without any hydrocarbons. The last thing to deal is social license – companies needs to engage local communities and then maintain that engagement.

20151117_155941

   Summing up, how can we solve the problems? No matter which part of world we choose, technology needs to be localized and companies needs to be prepared to involve themselves in a long-term relationship as it comes to invest and exploit shales. At Shale Gas World 2015, a group of professionals and people linked with industry created a summative point at the end of the year as for current shale situation. This topic is of course much more elaborate, we recommend to stay tuned for more detailed report from conference in upcoming YoungPetro issue.

www.terrapinn.com