<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>
 

New Discoveries in North-Western Poland

New Discoveries in North-Western Poland

Polish Oil and Gas Mining Company in collaboration with LOTOS Petrobaltic have started drilling exploratory well on a concession Kamień Pomorski. According to the estimates in the area of work being prepared, in commune Golczewo (West Pomeranian voivodeship) may be 7.5 million boe.

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Q2 Results – Oil Companies Make Profit in Tough Times

Q2 Results – Oil Companies Make Profit in Tough Times

During last few days major Oil & Gas Companies revealed their second-quarter earnings and believe or not, almost all of them are higher than expected. Is it sign of the end of downturn and back to wealthy times? I wouldn’t say so, but reported results shows that Oil Companies adapted to the market conditions and now they can make profit from diverse sources like downstream or manufacturing and not only from Upstream. Furthermore, in many cases Upstream is now not the strongest branch. The price around $50 per barrel isn’t that bad for companies to prosper well. The biggest companies managed it by making redundancy and savings.

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Drilling Into A Volcano in Iceland

Drilling Into A Volcano in Iceland

Iceland is known for its ability to produce renewable energy which covers 100% of energy demand. The largest share is geothermal and hydropower energy whereas fossil fuels are still in use but this share is constantly declining. What stands behind such good statistics, it is definitely Iceland’s unique geology which makes it fairly cheap to produce energy from a variety of natural sources. Recently, a massive drill project, named “Thor” has been in the spotlight.

Actually, drilling into volcano is an incentive that brings one’s attention. A depth has reached 4,659 kilometers and is expected to generate up to 10 times more energy than conventional methods. The drilling had begun in August, 2016 and was completed on January 25 of this year.

At the very bottom of the wellbore the temperature reaches 427 Celsius degrees and the pressure outweighs 200 atmospheres. In such conditions occurs bizarre fluid that behaves both as gas and liquid but is neither of them. This well can provide a tremendous supply of energy. It has been estimated that the capital of Iceland, Reykjavik would require between 30 and 35 usual conventional wells to provide its inhabitants hot water whereas only three to five wells like Thor could do the same.

Projects like Thor put Iceland in a role model position of a renewable energy superior producer ahead of any other country in the world. It appeals to be stunningly interesting how this small country has been pioneering in energy field.

Sources:

iflscience.com

wikipedia.org

LNG from USA

LNG from USA

In June 2017 for the first time in history the LNG from USA will arrive to Poland. Short-time spot type transaction was contracted between PGNiG SA (Polish Oil and Gas Company) and Cheniere Energy – the American company which is the only one that has a permission to export gas. The cargo will ship out from Sabine Pass liquefying terminal in Louisiana and in the first half of June will arrive at the Polish LNG terminal in Świnoujście. This is first one-time supply of American gas to Central-East Europe. The volume of transported source probably won’t be huge – the type of LNG carrier used by Cheniere Energy (with capacity less than 200 000 cubic meters) shows that. The price of gas is classified because of a trade secret.

-This is a historical moment for PGNiG. We have gained a new partner in trade of LNG, and North America is becoming a next reign whence we import this source, after Middle East, and Norway. We constantly realize strategy of diversification supply to Poland. In that way we build a safe and competitive gas market for Polish economy – said Piotr Woźniak, the CEO of PGNiG

-This supply to Poland  testifies of existing demands for American LNG and need for complex business model of Cheniere Energy, which covers a supply of this source straight to the customers – said Jack Fusco, CEO of Cheniere. – We are happy that PGNiG is our partner with this transaction and we support Poland in access for LNG gas with pleasure.

Nowadays Polish government solicits long-term contracts for import of American gas. Recently Deputy Prime Minister Mateusz Morawiecki, and Minister Piotr Naimski have been in Washington. Polish companies are also active: Gaz System (natural gas transmission system operator) in fall have organized a LNG congress with American companies, and CEO of PGNiG SA, Piotr Woźniak, is currently visiting USA

Such moves shows that Warsaw is largely interested in American gas, which in the first time in history will be exported to this part of Europe. There are a few reasons explaining this conjuncture. Firstly PGNiG have paid for reservation of terminal in Świnoujście, and they want to use it effectively. Moreover Poland has to decide about the future of Jamal Contract (Polish-Russian trade agreement about exporting to Poland circa 10 bln m3 of natural gas per year, which covers about 70% of Polish annual demands) which ends in 2022. According to this info Polish government is searching for some alternative to Russia. Shipments of this source from USA could mostly increase diversification of Polish requests and improve position in renegotiation a new contract with Moscow. They could also change the role of Poland – from passive recipient to active trader and Poland could reexport gas to other countries in Central and East Europe which are (or have been) buying blue energy from east direction, for example to Ukraine which has totally cut the gas supplies from Russia.

References:

http://www.energetyka24.com/586773,pierwsza-dostawa-amerykanskiego-lng-do-polski-realny-sukces-analiza
http://www.pgnig.pl/aktualnosci/-/news-list/id/pierwsza-dostawa-lng-od-amerykanskiego-dostawcy-do-polski/newsGroupId/10184
http://www.reuters.com/article/energy-poland-lng-usa-idUSL5N0RB3J720140910
https://www.bloomberg.com/news/articles/2017-04-27/u-s-lng-expands-to-eastern-europe-as-poland-avoids-russian-gas

YoungPetro 20th Issue Summer 2017

YoungPetro  20th Issue  Summer 2017

The new semester has arrived, spring is also already here and ‘East Meets West’ – International Student Petroleum Congress & Career Expo starts in 3 days. All that signs encouraged YoungPetro Team to deliver fresh and full of content the 20th issue of YoungPetro Magazine. We hope that you will find joy in reading articles developed by our authors and ambassadors. Should you have any questions, do not hesitate to contact us.

Canada’s first exports of liquefied natural gas may soon be heading overseas

Canada’s first exports of liquefied natural gas may soon be heading overseas

In 2016 Cheniere Energy Inc. built an LNG export terminal along Louisiana’s coast and became the only company shipping U.S. shale gas by tanker. Now it’s looking for supplies to send abroad.

It’ll receive supplies from the Montney shale play, which straddles Alberta and British Columbia. “We recently entered into our first supply deal to receive Montney gas, on a Henry hub index, from a Canadian producer,” Chief Commercial Officer Anatol Feygin said on a conference call, referring to the Louisiana gas price benchmark.

“We’re able to build a portfolio of supply from domestic gas producers and take full advantage of the cost-competitive basins across the U.S. […] In fact, it doesn’t stop at the U.S., as we recently entered into our first supply deal to receive Montney gas.” – he also said.

Screen-Shot-2013-11-07-at-8.32.34-AM
The Montney Formation is a stratigraphical unit of Lower Triassic age in the Western Canadian Sedimentary Basin in British Columbia and Alberta

 

Canada’s gas explorers are having great lengths go to get their fuel to market as they face escalating competition from U.S. shale drillers at home. liquefied natural-gas export terminals have been proposed along Canada’s West Coast, but it’ll be years before any are up and running (as a result of environmentalists and native groups protests). According to Victoria Zaretskaya, an analyst with the Energy Information Administration, no Canadian gas has ever been exported as LNG.

Cheniere_Platform

Who knows, maybe one day tanker with Canadian LNG will arrive at Polish LNG Terminal in Swinoujscie.

sources: boereport.comcheniere.combloomberg.combreakingenergy.com

 

BG Group acqusition by Shell

BG Group acqusition by Shell

In times of a downturn, oil and gas market was unstable and a number of companies suffered. Nowadays, oil price is double it was a year ago. Crucial decisions had to be made and some were brutal, especially in upstream where companies such as Schlumberger, Halliburton and Baker Hughes cut jobs and made their employees redundant. Obviously, at that time downstream did not thrive but large fuel margins helped companies survive. Surprisingly, in spite of unpleasant situation one of the supermajors – Royal Dutch Shell decided to bid for BG acquisition.

In April 2016, Royal Dutch Shell announced that BG acquisition had been agreed for 70$ billion. Nearly a year past, in February 2017, the takeover was completed with a final price $52 billion.

When it comes to focus areas, Shell is known for its highly advanced fuels and lubricants produced and sold with substantial margins in downstream. Talking about BG, its operations are mainly exploration and extraction of natural gas and oil as well as the production of liquefied natural gas (LNG). Clearly, such a merger creates an interesting business and what is more, new opportunities in oil and gas industry.

Acquisition of BG seems to be a new strategy and significant chance for development in upstream. The merger made Royal Dutch Shell the world’s largest producer of LNG. The market reacted positively on merger news. Both Shell and BG Group shares increased rapidly. Even though, Shell has deepend its debt the advantages of the acquisition were considered worth acquiring. Surely, it is a big deal and hopefully this happening will enhance competition among other supermajors.

Sources:

fuelfix.com
wikipedia.org