<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>

Will the spill kill the deal?

Will the spill kill the deal?

Easter holidays came out to not be very lucky week for the industry. While we were working on new issue of YoungPetro covering ExxonValdez spill from late 80’s North-American oilers got hit by two nasty accidents. First, Canadian Pacific Railway train derailed in Minessota, damaging three tankers and leaking around 15,000 gallons of fuel, then two days later Pegasus pipeline raptured in Arkansas spilling thousands barrels of oil and forcing Exxon to shut it down and evacuate 22 houses.

While response teams are working to clean up the oil, U.S. State Department is considering the fate of the 800,000 bpd Keystone XL pipeline, which would carry crude from Canada’s oil sands to the Gulf Coast. The fact that both events involves crude oil extracted from those sands definitely will not be helpful and even they are the first incidents since North-American oil boom started, it gives perfect argument for opponents of the new pipeline. Keystone XL is designed to relief Pegasus in oil transport from Canada to the south refining center. The 65-years-old Pegasus is 848-mile pipeline used to transport crude oil from Texas to Illinois. In 2006 Exxon reversed it to move crude from Illinois to Texas in response to growing Canadian oil production and the ability of U.S. Gulf Coast refineries to process heavy crude. It can carry more than 90,000 barrels per day.

Nearly two years ago Exxon grappled with another crude oil pipeline rupture that sent 1,500 barrels into the Yellowstone River in Montana. Also in November 2010 U.S. Department of Transportation imposed ExxonMobil Pipeline Co with a fine of $26,200 for allegedly allowing more than 5 years to lapse between inspections of a stretch of Pegasus that underlies the Mississippi River, between Missouri and Illinois, last decade.

Exxon pipeline leaks thousands of barrels of Canadian oil in Arkansas | Reuters

Train hauling Canadian oil derails in Minnesota | Reuters

 It seems like a human factor played huge role in these incidents and that regular inspections and renovations could easily reduce risk of it’s recurrence. What do you guys think was real cause of the problem?

Learn more about pipelines:

PetroGraphics: U.S. Pipelines 101

Photo by: Nasdaf (reddit.com)

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.

What’s your opinion about Polish shale prospects? Fell free to comment at out facebook profile

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:

Image: Canaport LNG

PKN ORLEN begins drilling of new well in the Lublin region

PKN ORLEN begins drilling of new well in the Lublin region

The new well of PKN Orlen is located in Nowy Stręczyn in the Cyców commune.

Stręczyn-OU1 is the fifth well to be drilled by PKN ORLEN in the Province of Lublin, and the third covered by the “Wierzbica” exploration licence. The drilling of the well is expected to take approximately 45 days and planned depth  is over 3,400 metres. Engineers from company going to collect 300 meters of core samples.

“The results of our preliminary geological surveys proved very promising, and so we decided to start a new exploratory well here,” commented Wiesław Prugar, CEO of ORLEN Upstream.

PKN ORLEN begins drilling of new well in the Lublin region  |ORLEN


What do you think about shale gas exploration in Poland? Share your opinion with us.


Photo from Orlen Upstream archive.

New surprising analysis of fracking wastewater

11 February, 2013 News No comments
New surprising analysis of fracking wastewater

Since the beginning hydraulic fracturing is a very controversial matter, having as many opponents as supporters. Main arguments of adversaries are that components of fracking fluid may cause adverse environmental effect and that fracking would disturb natural water equilibrium in the region, because of large amounts of water that are used in the process. New analysis made by researchers at Duke and Kent State Universities shed new light on the matter.

It occurs that hydraulically fractured natural gas wells of Marcellus shale region produce less wastewater per unit of gas recovered than conventional wells would. Actually, shale gas wells produce 10 times more wastewater than conventional wells, but they also produce about 30 times more natural gas. So if Marcellus was a conventional well, the total amount of wastewater from gas production in the region would increase by about 1710% since 2004, not by 570% as it is now.

Another surprising fact shown by the analysis is that only a third of the wastewater from Marcellus is flowback from hydraulic fracturing. Most of it is classified as brine, which is produced also while conventional well exploitation.

The analysis is very important for inhabitants of countries, which plan to exploit shale gas wells and have to face up to discussions concerning hydraulic fracturing.

Analysis of Fracking Wastewater Yields Some Surprises | ScienceDaily

What do you think about results of the analysis? May it refute the theory of fracking’s harmfulness?



sciencedaily.com; Łukasz Ostalski (biznes.interia.eu)

Powerful explosion in the headquarters of Pemex

2 February, 2013 News No comments
Powerful explosion in the headquarters of Pemex

Dramatic accident in Mexico City. In Thursday’s afternoon huge explosion rocked a skyscraper of state oil giant – Pemex. Casualties are high – over 30 fatalities and about 100 injured – reported Miguel Angel Osorio Chong, Interior Minister of Mexico.

The explosion has damaged the ground, first and the second floor of this 214 meter high building. Many people got poisoned by smoke and many panes were broken.
“A really strong explosion and then the glass started raining down,” one of employees said. “There were lots of screams.”
The reasons of the explosion are still unexplained. It could be an explosion of a gas boiler in the near building of Pemex but the investigation is still in progress.

Petróleos Mexicanos (Pemex) has a total asset worth of $415.75 billion and is the world’s fourth largest petroleum concern. It mines about 2,5 million barrels of crude oil every day.

For more information switch to:
Death toll climbs to 32 in blast at Mexico’s Pemex headquarters | LOS ANGELES TIMES

Photo: www.latimes.com