<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>
 

South Africa: Shale gas as an opportunity for economic growth.

South Africa: Shale gas as an opportunity for economic growth.

The full spectrum of new and emerging technologies connected with the unconventional sources of energy give consecutive countries an opportunity to supply their domestic budget. For instance the Republic of South Africa is a state whose government gives the green light to companies looking to explore for shale gas under the semi-desert Karoo basin. Up to now five companies have applied for exploration permission. Among them are Royal Dutch Shell, Falcon Oil & Gas and Bundu Gas & Oil. Most probably, first explorations will have been started by the end of next year.

 “One area of real opportunity for South Africa is the exploration of shale gas”. said South Africa’s finance ministry (Mar 8, 2016). “Exploration activities are scheduled to commence in the next financial year. This will lead to excellent prospects of beneficiation and add value to our mineral wealth”

It is believed that deposit contains around 390 trillion cubic feet of technically recoverable gas reserves. Shell analysts predict that 50 trillion cubic feet can provide about $20 billion to the South Africa economy every year for 25 years.

Furthermore, additional source of financing will stimulate employment market and ensure about 700,000 jobs. Nevertheless, opponents claim that hydraulic fracturing will make an impact on environmental stability and expansion of pollution.

Sources:

www.reuters.com

www.colourbox.com

Disrupting ISIS oil network after attacks

Disrupting ISIS oil network after attacks

After the Paris attacks last November, today dozens of innocent people have lost their lives in Brussels; more than 200 are wounded. The city is in pain and mourning and the mass media keep on informing about disrupting ISIS oil network.

The U.S. military is urged to find ways to disrupt the oil production that helps fund the insurgent group ISIS. “In an age where energy is a precious commodity, their energy production not only funds crimes against humanity, but it also forms the means by which would-be ‘states’ like ISIS survive,” Olson (U.S. Rep.) said in a statement. “We must take every measure to cut off ISIS funding at the source.”

In December, the Los Angeles Times reported ISIS now controls approximately two-thirds of oil production in Syria, which analysts estimated at around 35,000 barrels a day. At current market prices, ISIS’s share of that oil is worth more than $900,000 a day.

Well, it’s all great. However, wouldn’t be much more essential to close european borders to refugees or simply and more effectively change immigration policy in order to avoid such situations? Unfortunately, we’re overwhelmed with political correctness and european politicians are willing to accept the immigrants culturally enriching society.

Sources:

www.theguardian.com

www.fuelflix.com

North Sea Oil and Gas Industry during the global crisis of low raw materials prices

North Sea Oil and Gas Industry during the global crisis of low raw materials prices

Low oil and gas prices mean a difficult time for the entire industry. North Sea Oil and Gas Industry must find a way to survive the crisis, because the current costs are too high. Analysts say that even 146 oil platforms in the waters of the UK may be scrapped over the next decade.

The solution may be to embrace a new marketplace. Some oil companies are investing in the military industry, creating military equipment for example thermal imaging cameras detecting pipelines.

However, the main objective is to reduce costs and increase efficiency . Some commentators argue that the oil industry does not use its potential , eg. computer hardware and the only way to solve this problem is to restructure .

Another solution sees Mr Ewing, president of Industry Leadership Group (ILG): “While it is clear that the oil and gas industry faces severe challenges from a low global oil price, there are still opportunities that Scotland can capture from new discoveries and through our world-class supply chain.”

Many experts and industry analysts wondering how to solve the current problems associated with the low raw materials prices. There are many ideas that are supported by the government of the UK. The companies bring new technologies into new markets. Let’s hope that these actions will help to survive the crisis.

COULD UK SHOW OFF THE LARGEST OFFSHORE WIND FARM SOON?

COULD UK SHOW OFF THE LARGEST OFFSHORE WIND FARM SOON?

    Positive Final Investment Decision for Hornsea One offshore wind farm off the coast of Grimsby in Nothern England was confirmed early February by DONG Energy. That means construction can now go ahead. It will be located 75 miles off the Yorkshire coast and will be capable of powering over 1 million UK homes with a capacity of 1.2 gigawatts. There haven’t been as huge this type undertaking before. The wind farm is going to has the potential to create around 2000 jobs during its construction, with up to 300 additional jobs supported throughout its 20-25 year operational phase. Hornsea One is expected to be fully operational in 2020. Energy Secretary Amber Rudd said: “Dong Energy’s investment shows that we are open for business and is a vote of confidence in the UK and in our plan to tackle the legacy of under-investment and build an energy infrastructure fit for the 21st century. [….] This project means secure, clean energy for the country, jobs and financial security for working people and their families, and more skills and growth boosting the Northern Powerhouse.”

Hornsea-FID-map

sources: hornseaprojectone.co.ukgov.uk

South Korea: A new chapter in the economic relations with Iran.

South Korea: A new chapter in the economic relations with Iran.

The lifting of nuclear-related sanctions on Iran allows this country to tighten international economic relations, especially with Asian countries. South Korea wants to increase imports of Iranian oil, mostly condensate, in order to overcome growing internal demand and ensure better conditions (lower prices) in comparison to Qatars’ one.

 “We will increase oil and natural gas (liquids) imports from Iran, especially Iranian condensate,” said South Korea’s trade and energy ministry (Mar 1, 2016).

Currently, South Korea is one of the largest importer of crude and a big buyer of condensate. Their industry uses a super light oil for production of fuels and petrochemicals. Iran is providing about 100, 000 barrels of oil a day to South Korea and executives predict to double that amount by the end of 2016.

Both countries plan to establish efficient payment systems to simplify trade of crude and condensate. Contract will be concluded between National Iranian Oil Company and South Korea’s SK Energy.

A new partnership in the economic relations among Iran and South Korea is essential for them. Financial contracts may generate workplaces, accelerate development of the chemical sector and additionally wipe out bad appearance of Iran as isolated and fundamentalist state.

Sources:

http://www.reuters.com/article/us-southkorea-iran-oil-idUSKCN0W40P8

http://www.windows10update.com/wp-content/uploads/2015/10/flag_south_korea.jpg

Crisis goes on

Crisis goes on

Crisis in oil and gas industry goes on and thus energy firms keep on downsizing production instead of investing in drilling new wells. Interestingly, it is 10th week in a row when U.S. producers cut oil rigs. Drillers from Baker Hughes removed 13 rigs in the week ended Feb. 26, bringing the total rig count down to 400. That compares with 986 oil rigs operating in same week a year ago.

Eagle Ford might be another example of negative low crude price influence on making profit. So far this year, drillers have sidelined 29 rigs. Oil production from U.S. shale fields, including the Eagle Ford, is expected to keep dropping this year, which should take some pressure off of storage.

Sometimes downsizing production is not enough and cutting jobs is essential to survive on the market. Halliburton is about to lay off another 5000 workers which equals about 8 percent of its workforce.

Well, it is just business… Owners of oil companies are forced to make hard decisions in order to avoid a collapse. But surely this will not last forever when production is unprofitable for many.

Sources:

http://www.rigzone.com/news/oil_gas/a/143259/Baker_Hughes_US_Oil_Drillers_Cut_Rigs_For_10th_Week_In_A_Row

http://fuelfix.com/blog/2016/02/26/eagle-ford-rig-count-down-70-percent-in-the-last-year/

http://fuelfix.com/blog/2016/02/25/halliburton-cutting-5000-more-jobs-worldwide/#36089101=12

Oil prices will rally according to IEA report

22 February, 2016 News No comments
Oil prices will rally according to IEA report

Though trying to predict oil prices is said to be a fools game it is very hard to stay away from questioning. Especially because this market is volatile and the political situation is the main determinant. After watching prices crash through floor after floor in the worst slump for a generation, the industry is eager for answers and it gets it- the IEA predicts that global oil supply and demand to rebalance in coming years.

International Energy Agency is at the heart of global dialogue on energy, providing authoritative statistics and analysis. In its annual report, which was released today, says that the market will begin rebalancing in 2017 – and by 2021 the United States and Iran are seen leading production gains among non-OPEC and OPEC countries, respectively. This view is predicated on the expectation that U.S. shale oil production drops 600,000 bpd this year, and by 200,000 bpd in 2017. The IEA projects that global oversupply will be wiped out by 2018. Once the market will start to rebalance, prices will rise also, the availability of easy resources will rally. Thanks to efficiency gains IEA speculates growth of production by 1.2 million bpd in U.S. and global oil supply to rise by 4.1 million bpd from 2015-2021.

According to energy market long-term speculations are the most suitable. So far, shale bankruptcies have been limited to smaller outfits, the one thing the stress on companies hasn’t done is destroy production. Meanwhile, on the international scene, the Saudi-Russian accord announced Tuesday, to which Venezuela and Qatar have also signed up, would cap production at January’s levels.

See more: www.iea.org; www.bloomberg.com, www.oilprice.com

First marine LNG fueling terminal in North America opened

15 February, 2016 News No comments
First marine LNG fueling terminal in North America opened

Some time ago we wrote about LNG Terminal in Swinoujscie, Poland (see). Today we come along with theme related news. First marine liquefied natural gas fueling terminal in North America is now opened. The operator of this undertaking is Harvey Gulf International Marine, New Orleans. They inaugurated the LNG terminal at its operating base in Port Fourchon, Louisiana.

The bunkering included the transfer of 43,000 gallons of LNG in about 2.25 hours, the company said. The terminal is able to deliver LNG at a pumping rate of 550 gmp, total on-site storage is approximately 270 000 gals., contained in three 90 000 gals. USG type “C” vacuum insulated tanks. According to Shane Guidry, Chairman and CEO of Harvey Gulf, it should help with promoting the use of LNG as a clean, abundant, and cost-effective alternative marine fuel. Also it provides a LNG bunkering point at the epicenter of marine operations for the Gulf of Mexico, which is vital to continuing the shift to LNG as a marine fuel. Chad Verret, executive vice president in charge of Harvey Gulf’s Alaska and LNG operations, says easier maintenance, longer intervals between overhauls, and cleaner engines and boats were all part of the company’s decision to commit to building an LNG-fueled fleet – along with the promise of long-term lower fuel costs with gas.

Will be LNG only or predominant marine fuel someday? Time will tell whether yes or no. But opening first marine liquefied natural gas fueling terminal in North America was definitely worth to mention.

Source: workboat.com

Image source: oilonline.com

Nord Stream 2 – what is it all about?

12 February, 2016 News No comments
Nord Stream 2 – what is it all about?

Nowadays we have tough times in Oil and Gas industry. Prices fly pell-mell, OPEC is showing their strong either USA and Russia have they own business. The game is played for high stakes due to market demand is still high. In recent days we can hear a lot of news about German and Russia project, Nord Stream 2. What is the controversy and why do not we all want to get him to agree?

Gas pipeline from Russia to Germany through the Baltic Sea, called Nord Stream works with the use of both threads with a total capacity of 55 billion m3 per year since 2011. Gas flows from Russia to Germany bypassing transit countries in Eastern Europe. The third and fourth thread planned under the Nord Stream 2 may allow to double the bandwidth and increase the export of gas in this part of Europe. This will lead to an increase in the importance of Gazprom on the market, the weakening of diversification of supply for Germany and thus other recipients such as Poland, Lithuania, Latvia, Estonia. It will also lead to a weakening of the role of transit Ukraine, making it difficult to stabilize the region.

Opponents of the Nord Stream 2 show the direct, negative impact on the energy security of several countries of the European Union, especially for the diversification of supply sources – one of the key objectives of the, still being created, Energy Union. In addition, it is questionable economic interest behind the construction of the new capacity for the supply of gas, the current shape of the market and the significant risks of long-term investments in co-operation with Russia after the aggression against Ukraine.

Nord Stream 2 was also one of the main topics of conversation between Polish Minister of Energy Krzysztof Tchórzewski and the Minister of Industry and Trade of the Czech Republic Jan Mladek, which took place during the meeting of February 5. Visegrad group should have a unified position in that very case. It is obvious that the pipeline project is not the nature of the business, and the only political. Strengthen the dominant position of Gazprom in the EU markets will make the more difficult will be to build a competitive gas market in the EU – said Tchórzewski.

However, many of the countries of western Europe supports Nord Stream 2. A large part of this project would be Germany and Finland, through whose territory the pipeline would run. The project also was supported by France and the Netherlands. We do not know yet if Denmark will give their permission, which is addicted to decision on the environmental impact assessment (EIA).

Today, 12.02.2016 Polish Prime Minister, Beata Szydło, during a visit to Berlin spoke with Angela Merkel, among other things about Nord Stream 2 and expressed concern about the project – We are concerned about support for the project Nord Stream 2, it is not incompatible with sanctions on Russia – said Szydło.

It is certain that Russia will exert pressure and try to soften opposition eastern and central parts of Europe in this topic. Whether it comes to the installation Nord Stream 2 depends on many factors, but primarily policy. The European Commission is currently investigating a case against the law. The next few months will probably be intensive treatments supporters and opponents.

Sources:  Szydło in BerlinBiznesalertBiznesalert

U.S. The hidden value of cheap gas.

U.S. The hidden value of cheap gas.

Technological developments in recent years have changed world energy market and allowed the revitalization of chemical and steel industry, especially in the U.S. The latest decline in global oil prices has accelerated expansion of chemical and manufacturing plants despite enhanced OPEC efforts to undercut it. The hidden value of cheap gas is more suitable for economy growth than for international mining companies. The U.S emergent economic development can be comparable to the Industrial Revolution which took place from the 18th and 19th centuries.

Steel sector.

The American steel industry has been facing up to the impact of the global crisis since 2007. Internal markets have struggled to stay profitable among stagnant domestic demand, low prices and increasing Chinese imports.

Asian countries, principally China and Taiwan have been offering cheaper labor and sufficient amount of the raw materials for many years. The U.S domestic production of steel decreased 11 percent between 2007 and 2013, while Chinese production during that period increased 57 percent.

Unconventional sources of energy has enabled the American steel industry to get  back on track. The largest companies have made diversifications and established appropriate investments. A titan of industry Nucor Corp spent $750 million in an iron-ore devices in St. James Parish, Louisiana. Simultaneously, influential Austrial steel maker Voestalpine invested about $634 million in a new factory.

Currently, market analysts predict that new investments can provide about 1 million new jobs by 2035. “Low natural gas prices are spurring new manufacturing investment and creating jobs” said Katherine Miller, a Nucor spokeswoman.

Chemical sector.

The chemical sector was another branch of an American industry which was modernized. The hydraulic fracturing of shale formation has led to a rapid growth of chemical plants mainly in Louisiana and Texas. Modern factories have used natural gas to produce a wide variety of products including plastics and liquid fuels. “Plants use natural gas like a bakery shop uses flour”, said Dan Borne, president of the Louisiana Chemical Association.

The most influential chemical companies such as: Du Pont, Dow Chemical, Eastman Chemical or Westlake Chemical have boosted their production and prepared ground for foreign funds.

According to The American Chemistry Council 238 U.S chemical companies have declared money for new projects. Investment spending in the industry increased 64% from 2010 to 2014, to $34 billion. The ACC assumes spending to rise another 37% by 2018.

This jump in industrialization will stimulate stock market and provide higher employment . However, too high environmental degradation and revolution in energy policy can cut optimistic expectations.

In conclusion.

To sum up new technologies, low gas prices and considered diversifications can  make a great influence on an American society. New plants will generate not only profit but also workplaces. In spite of all the advantages, government and companies can’t forget about environmental challenges and their future impact on safety standards and health.

Sources:

http://www.forbes.com/sites/kensilverstein/2015/05/10/flood-shale-gas-spilling-into-communities-across-america/#22918c41ed83

http://e360.yale.edu/feature/natural_gas_boom_brings_major_growth_for_us_chemical_plants/2842/

Shale Revolution Accelerates Chemicals Industry

http://www.smh.com.au/business/shale-gas-revolution-a-major-boost-for-us-steel-sector-20130101-2c4co.html

http://www.ft.com/intl/cms/s/0/4dacb6a0-10f8-11e5-9bf8-00144feabdc0.html

http://www.micromotionblog.com/wp-content/uploads/2015/09/iStock_000023984130_Small.jpg