Summer NAPE: Industry Advocate Urges Energy Sector To Challenge Critics

Anti-energy groups are spending millions of dollars, galvanizing their followers and often winning the battle of public opinion. But HBW Resources Managing Partner David Holt challenged the pro-energy groups to speak up and take back the court of public opinion during his 50-minute talk at the Summer NAPE Business Conference on Aug. 15. Holt’s firm provides energy companies with counsel and guidance on governmental and energy industry initiatives. “Put them on their back feet,” he said. “They don’t have a solution to meeting our energy needs.”

Source: Oilandgasinvestor.com Feeds

Production At Libya’s Largest Oil Field Risks Shutdown, Again

Just as Libya’s oil production recovered to a two-month high of over 1 million bpd, fresh protests at the oil terminal and refinery servicing the country’s largest oil field, Sharara, threaten to shut down production again, just days after output had been nearly restored to the levels before the kidnapping of oil workers last month. Sharara, which has the capacity to pump 340,000 bpd, has seen production recovering to around 300,000 bpd this week, ramping up from around 218,000 bpd last week. But renewed protests by workers who threaten…

Source: Oilprice.com

Production At Libya’s Largest Oil Field Risks Shutdown, Again

Just as Libya’s oil production recovered to a two-month high of over 1 million bpd, fresh protests at the oil terminal and refinery servicing the country’s largest oil field, Sharara, threaten to shut down production again, just days after output had been nearly restored to the levels before the kidnapping of oil workers last month. Sharara, which has the capacity to pump 340,000 bpd, has seen production recovering to around 300,000 bpd this week, ramping up from around 218,000 bpd last week. But renewed protests by workers who threaten…

Source: Oilprice.com

Equinor Completes Successful Appraisal of Sigrun Discovery in PL 025 (Friday, 17 August 2018)

Equinor Energy AS, operator of production licence 025, has concluded the drilling of appraisal well 15/3-11 on the 15/3-4 (Sigrun) oil and gas discovery.

The well was drilled about 10 km southeast of the Gudrun field in the North Sea, and about 225 km west of Stavanger.

The objective of the well was to delineate the 15/3-4 discovery in three reservoir zones in the Middle Jurassic (the Hugin formation).

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The discovery was proven in reservoir rocks from the Middle Jurassic in the Brent group in 1982. Before well 15/3-11 was drilled, the operator’s resource estimate for the discovery was between 0.3 – 1.4 million Sm3 of recoverable oil equivalents.

The well encountered a total oil column of about 35 metres in the Hugin formation, of which about a 15-metre thick sandstone layer with poor to moderate reservoir quality. The oil/water contact was not encountered. Preliminary estimates of the size of the discovery after the delineation well are between 1.1 and 2 million standard cubic metres (Sm3) of recoverable oil equivalents.

The well was not formation-tested, but extensive data acquisition and sampling have been carried out.

The licensees in production licence 025 will assess the profitability of the discovery with regard to a potential development over the Gudrun field.

This is the 9th exploration well in production licence 025. The licence was awarded in licensing round 2-A in 1969.

Appraisal well 15/3-11 was drilled to a vertical depth of 3991 metres below the sea surface, and was terminated in the Sleipner formation in the Middle Jurassic. Water depth at the site is 109 metres. The well has been permanently plugged and abandoned.

The well was drilled by the Deepsea Bergen which will now drill wildcat well 35/10-4 S in production licence 630 in the northern part of the North Sea, where Equinor Energy AS is the operator.

Source:www.youroilandgasnews.com/

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Production At Libya’s Largest Oil Field Risks Shutdown, Again

Just as Libya’s oil production recovered to a two-month high of over 1 million bpd, fresh protests at the oil terminal and refinery servicing the country’s largest oil field, Sharara, threaten to shut down production again, just days after output had been nearly restored to the levels before the kidnapping of oil workers last month. Sharara, which has the capacity to pump 340,000 bpd, has seen production recovering to around 300,000 bpd this week, ramping up from around 218,000 bpd last week. But renewed protests by workers who threaten…

Source: Oilprice.com

U.S. Drillers Turn On The Brakes—Rig Count Remains Unchanged

Baker Hughes reported no change to the number of active oil and gas rigs in the United States on Friday. Oil and gas rigs stayed at 1,057, according to the report, with the number of active oil rigs and the number of gas rigs staying the same. The oil and gas rig count is now 111 up from this time last year. Oil prices had been trading up earlier on Friday, but prices were still on track to end the week in the red. In fact, this week marks the seventh weekly loss as trade wars, unrest in Turkey, and anticipated Iranian production loss sparked fears…

Source: Oilprice.com

US Oil Rig Count Holds Steady This Week

U.S. energy companies kept the oil rig count unchanged this week amid a steady decline in crude prices, which hit a near two-month low earlier this week. The rig count, an early indicator of future output, held at 869 in the week to Aug. 17, Baker Hughes, a GE company (NYSE: BHGE), said in its weekly report. U.S. crude futures were on track to fall for the seventh straight week as global trade disputes fueled concerns about slowing economic growth, which could hurt the demand for energy. The U.S. rig count is much higher than a year ago when 763 rigs were active. Energy companies have been ramping up production in tandem with OPEC’s efforts since the start of 2017 to cut global output.

Source: Oilandgasinvestor.com Feeds

Saudi Aramco Remains Committed To Meeting Future Oil Demand

Saudi state oil giant Saudi Aramco remains committed to meeting future oil demand through continued investments, the kingdom's Energy Minister Khalid Al Falih said in a company report Aug. 17. Aramco, which is slated for a public share sale, “continued to prepare itself for the listing of its shares, a landmark event the company and its board anticipate with excitement,” said Al Falih, who is also chairman of Saudi Aramco. Despite an improved market picture, the oil industry’s preparedness for the future remained in question as the sector had lost an estimate $1 trillion in planned investments since the start of the market downturn, Al Falih wrote. “Significant new investments are required in additional capacity and expended and upgraded infrastructure, as well as the development of pioneering technology to make petroleum energy more sustainable and accessible,” he said.

Source: Oilandgasinvestor.com Feeds

Total To Boost Nigeria Oil Production By 200,000 Bpd

French supermajor Total will increase Nigeria’s oil production by 200,000 bpd by the end of the year, a senior official from the local unit of the company said at an industry event, adding the increase will come from the development of the Egina Deep project. “Our plan is to maintain aggressive exploration and appraisal wells-drilling to play a part in increasing the hydrocarbon resource base of the nation,” Ahmadu-Kida Musa said at the National Association of Energy Correspondents’ Conference. Total currently accounts for…

Source: Oilprice.com

Total To Boost Nigeria Oil Production By 200,000 Bpd

French supermajor Total will increase Nigeria’s oil production by 200,000 bpd by the end of the year, a senior official from the local unit of the company said at an industry event, adding the increase will come from the development of the Egina Deep project. “Our plan is to maintain aggressive exploration and appraisal wells-drilling to play a part in increasing the hydrocarbon resource base of the nation,” Ahmadu-Kida Musa said at the National Association of Energy Correspondents’ Conference. Total currently accounts for…

Source: Oilprice.com

Nigeria’s State Owned Oil Company To Go Public

The Nigerian National Petroleum Corporation will float 40 percent of its stock on the local stock exchange once the President signs the Petroleum Industry Governance Bill, Nigerian media report. The PIGB is at the heart of an energy sector overhaul aimed at making the corruption-ridden state company profitable. To do this, NNPC group managing director Maikanti Baru said, the company needs to be more commercially driven. For this, it needs cash, which will be raised through the listing. As part of the overhaul, the NNPC will be split into two: the…

Source: Oilprice.com

Summer NAPE: Oil Companies Look To Form Partnerships

HOUSTON—Nearly a dozen companies took center stage during Summer NAPE to each give eight-minute pitches, hoping to lure partners for exploration, development and production opportunities in the U.S. Among them was Josh Cornell, vice president of land for Panther Energy Co. III, who presented a Louisiana Austin Chalk opportunity—the Bloodhound prospect—in Vernon and Beauregard parishes. “We have 50,000 net acres, mostly 100% ownership tracts. It’s a large contiguous, scalable footprint,” Cornell told a crowd gathered Aug. 15 to hear the prospect preview pitches. “We project over 26 operated DSUs [drill spacing units].” He added the deep overpressured Austin Chalk Formation is built for long laterals with the company’s asset having a TVD range between 14,000 ft and 16,000 ft. The Austin Chalk, which spans over 600 miles from the Mexico border into Mississippi, has sparked renewed interest from oil and gas players such as ConocoPhillips and Marathon Oil Corp., which added the play to their exploration portfolios. Others are already seeing success. EOG Resources, which completed five wells in the South Texas Austin Chalk in second-quarter 2018, captured the spotlight in 2017 when the Eagle Ranch 14-1H well in Avoyelles Parish tested at a rate of 1,120 barrels of oil per day and 1,157 million cubic feet of gas per day.

Source: Oilandgasinvestor.com Feeds

Alarmist Headlines Obscure Context of Duke Study on Water Use and Fracking

A new report by researchers from Duke University has triggered some unnecessarily alarmist media reports. Popular Science, for example, ran a story under the headline “New fracking wells are using hundreds of times more water than their predecessors.” While headlines about the report are alarmist, most media accounts fail to put the data into context or note the cause of the increase in water use.

Though it’s true that today’s horizontal wells use more water than their predecessors they also produce significantly more energy. Record-breaking energy, in fact.

And despite the alarmist headlines,  the data still confirm that water usage from oil and natural gas development amounts to a remarkably small percentage overall usage.

Water Usage for Hydraulic Fracturing

The Duke report stresses the increase in the amount of water used per well from 2011 to 2016 — years when the U.S. was producing much more per well — across six different shale plays.

One way that producers have increased output in each well is use of horizontal laterals significantly longer than those used in the earlier years of shale development. The increase in length allows for a single well to extract more oil or natural gas while minimizing surface impact.

Naturally, the longer the lateral, the more water is required to hydraulically fracture the well. This is something the authors of the Duke study clearly acknowledge at the onset of their report:

“Over the period of 2011–2016, the median length of lateral section of horizontal wells also increased, most likely due to technological development and economic considerations to increase the extraction yields from individual wells. We show below that the hydrocarbon extraction intensity has similarly increased during this period. Parallel to the increase in lateral lengths of the horizontal wells and hydrocarbon extraction yields through time, the water use has also increased.”

This is a decade-long trend also highlighted by the Energy Information Administration (EIA) in a report released this spring:

“The average new well in each DPR region in 2017 produced more oil than wells drilled in previous years in those same regions, a trend that has persisted for nearly ten consecutive years. More effective drilling techniques, including the increasing prevalence of hydraulic fracturing and horizontal drilling, have helped to increase these initial production rates. In particular, the injection of more proppant during the hydraulic fracturing process and the ability to drill longer horizontal components (also known as laterals) have improved well productivity.”

The Duke authors also confirm that the amount of water used by the oil and gas industry is negligible in comparison to other industrial uses for water.

“Despite higher water intensity (the amount of water used to produce a unit of energy; for example, liters per gigajoules) of hydraulic fracturing compared to conventional vertical oil and gas wells, it has been shown that the overall water withdrawal for hydraulic fracturing is negligible compared to other industrial water uses on a national level…”

However, they authors still single-out the industry in a hypothetical scenario that, at some point in the future, water used specifically for the purpose of hydraulic fracturing could cause conflict in areas with “arid” conditions.

One such arid region is the booming Permian Basin. Unsurprisingly, the report expends a significant portion of its word count on Texas’ great natural resource.

“Concern is especially high in semiarid regions where water withdrawals for hydraulic fracturing can account for a significant portion of consumptive water use within a given region, even contributing to groundwater resource depletion.”

The report finds that water usage in the Permian has increased 770 percent, and that figure that sounds alarming and has, unfortunately, been used in the media to describe the increase in water usage industry-wide as opposed to being specific to the Permian. The vague wording of the accompanying press release did nothing to help curb that impression.

Here again, just as the use of longer laterals increased production elsewhere, operators in the Permian adjusted their recovery techniques and as a result are producing more energy, according to the EIA.

“The geological structure in the Permian region is more complicated than in other regions, and it took producers more time to advance the drilling and completion technology in the region. However, the Permian region is larger and has more potential for oil production than other regions. Total production and production per new well have increased in the Permian for 11 consecutive years.”

Though the increase in water use in the Permian managed to get the attention of the media and was inaccurately attributed to overall U.S. shale development, the fact remains that shale development’s water impact represents a very small percentage of total water use both in the Permian and throughout the country.

In fact, water used for Texas energy development amounts to slightly more one percent of all water used in the Lone Star State, while water used for fracking specifically amounts to only about 0.5 percent.

As is the case nationwide, more water is used for irrigation than anything else. The Bureau of Economic Geology noted that in Texas “[w]ater use for shale-gas production is relatively minor (<1%) when compared to that for mostly consumptive irrigation (56%) and municipal (26%) water use in Texas in recent years.”

Not unwittingly, media coverage – and the accompanying press release – downplay the good news coming from the Marcellus Shale, where the researchers found the lowest percentage increase. As the report notes, water usage in development of the country’s largest natural gas play has grown by 25 percent, roughly the same pace as production has increased as a result of using longer laterals and flowback water recycling. During this same time frame, natural gas production in the state increased exponentially, as State Impact reports:

“The Duke study is in line with one by Pennsylvania State University in 2015 showing that fracked wells in Pennsylvania used about three times as much water in 2014 than they did in 2009 as drilled laterals extended to an average of 7,000 feet from 2,200 feet.”

As a result of these longer laterals, the wells produced about three times as much gas as before, co-author Dave Yoxtheimer explained to State Impact. He also noted the “roughly ten-fold increase in gas production in the Appalachian Basin since 2010.”

Likewise, EIA data confirms the rise in natural gas production from the Marcellus in the timeframe posed by the Duke study:

Conclusion

Activists and some in the media continuously attempt to paint the oil and natural gas industry as gluttons for water. Reporting on the Duke study mirrors the previous attempts, but the fact remains that the oil and gas industry is using but a small fraction of the nation’s water supply as it produces an energy abundance thought to be impossible even 15 years ago. In fact, the same Duke research team released a study in 2015 that found fracking accounts for just 0.04 percent of total U.S. freshwater use

While we will undoubtedly continue to see reports like this packaged and presented in a way that sound unique and alarming, the fact remains the oil and natural gas industry is continuing to lift America’s economy and its workforce, reduce energy costs for consumers and businesses, and provide long-sought energy security – all while remaining good stewards of the environment.

The post Alarmist Headlines Obscure Context of Duke Study on Water Use and Fracking appeared first on .

Source: Energy In Depth

U.S. Judge Orders Review Of TransCanada's Keystone XL Pipeline Route

A federal judge in Montana has ordered the U.S. State Department to do a full environmental review of a revised route for the Keystone XL oil pipeline, possibly delaying its construction and dealing another setback to TransCanada Corp. For more than a decade, environmentalists, tribal groups, and ranchers have fought the $8-billion, 1,180-mile (1,900-km) pipeline that will carry heavy crude to Steele City, Nebraska, from Canada's oilsands in Alberta. U.S. District Court Judge Brian Morris ruled late on Aug. 15 for the Indigenous Environmental Network and other plaintiffs, ordering the review of a revised pipeline route through Nebraska to supplement one the State Department did on the original path in 2014.

Source: Oilandgasinvestor.com Feeds

SEC Tesla Probe Not New: Report

The Securities and Exchange Commission has been investigating Tesla for misleading statements about its Model 3 for months, unnamed sources in the know told the Wall Street Journal, long before CEO Elon Musk attracted the watchdog’s attention with his tweet about taking Tesla private. At the time, the SEC subpoenaed a parts supplier working with the electric car maker, one of the sources said. Another adds that now the SEC has also subpoenaed members of Tesla’s board of directors to try and find out if and how much they knew about Musk’s…

Source: Oilprice.com

Would The U.S. Sanction China For Buying Iranian Oil?

A U.S. State Department official has suggested that Washington could impose sanctions on China if it continues to buy Iranian oil after November 4 when sanctions specifically targeting Iranian oil sales abroad will kick in, the Wall Street Journal reports. The WSJ quotes newly appointed special representative and head of an Iran Action Group at the State Department as saying that, “The United States certainly hopes for full compliance by all nations in terms of not risking the threat of U.S. secondary sanctions if they continue with those…

Source: Oilprice.com

SEC Tesla Probe Not New: Report

The Securities and Exchange Commission has been investigating Tesla for misleading statements about its Model 3 for months, unnamed sources in the know told the Wall Street Journal, long before CEO Elon Musk attracted the watchdog’s attention with his tweet about taking Tesla private. At the time, the SEC subpoenaed a parts supplier working with the electric car maker, one of the sources said. Another adds that now the SEC has also subpoenaed members of Tesla’s board of directors to try and find out if and how much they knew about Musk’s…

Source: Oilprice.com