The International Energy Agency’s Annual Energy Outlook provides modeled projections of U.S. domestic energy markets through 2050, and includes scenarios with different assumptions of macroeconomic growth, world oil prices, technological progress, and energy policies. With strong domestic production and relatively flat demand, the United States becomes a net energy exporter in most Outlook cases as petroleum liquid imports fall and natural gas exports rise over the projection period under consideration. Energy-related carbon dioxide emissions decline in most of the cases, with the highest emissions projected in the “no Clean Power Plan” projection.
While the plan lacks specifics about implementation, it lays out a foundation for US energy policy for at least the next four years: “Energy is an essential part of American life and a staple of the world economy. The Trump Administration is committed to energy policies that lower costs for hardworking Americans and maximize the use of American resources, freeing us from dependence on foreign oil.” Highlights are: Eliminating “harmful and unnecessary policies such as the Climate Action Plan”; Embracing US shale and gas; Having a commitment to clean coal technology; Eliminating US dependence on OPEC; Protecting the environment.
Petra Nova is the world’s largest post-combustion carbon capture system, being able to capture more than 5,000 tons of CO2 per day. It is built on an existing coal unit, and delivers captured CO2 through an 80-mile pipeline to the West Ranch oilfield. This captured CO2 will boost production at the oilfield through Enhanced Oil Recovery operations. Over the next few years, oil production at the field is estimated to increase from approximately 300 barrels per day to up to 15,000 barrels per day using captured carbon dioxide.
Critical U.S. infrastructure, including oil and gas pipelines, is vulnerable to cyberattacks. Because no major breaches have recently been announced, the topic of cybersecurity in the oil and gas space has been quiet. That doesn’t mean that the threat of cyberattacks has gone away, Ken Talanian from Evercore said. The Saudi Aramco hack in 2012 – when an unleashed virus erased data from three-quarters of Aramco’s corporate personal computers – would have served as a wakeup call for the industry if the Stuxnet attack in 2010 on an Iranian nuclear facility didn’t.
In the early 2000s, presidents Putin and Bush convened two U.S. – Russia Commercial Energy Summits. Igor Yusufov, Russia’s energy minister from 2001 to 2004 now emphasizes how the two countries could cooperate to stabilize a volatile oil market and hopes that President Donald Trump will restart the high-level meetings…
ExxonMobil has developed cMISTTM technology, which dehydrates natural gas using a patented absorption system inside pipes and replaces the need for conventional dehydration tower technology. This new technology reduces corrosion and equipment interference helping to ensure the safe and efficient transport of natural gas through the supply infrastructure and ultimately to consumers. It has been licensed to the Chemtech division of Sulzer, a leading player in separation technologies, to facilitate deployment across the oil and gas industry.
OPEC is not the name it was compared to the early 1970s when it controlled more than 50% of global market share. Its recent deal to cut production has kept the oil price above $50 a barrel, but gains will be effectively capped once low-cost shale producers ramp up production again. And this is happening when oil is waning in importance in the global energy mix; when U.S. domestic production has almost doubled because of the shale revolution; and when Canada has become the major supplier of oil to the U.S.
U.S. field production of crude oil increased in 2015 for the seventh consecutive year, reaching 9.42 million barrels per day. This was the highest crude oil production level since 1972. In 2015, production gains were highest in Texas, the Gulf of Mexico, and North Dakota, as these three regions accounted for 77% of the country’s total increase. Although annual production for 2015 grew, monthly U.S. crude oil production has declined since April 2015. Lower oil prices led to slower development activity, and production fell to 8.74 million b/d in August 2016.
The Wolfcamp shale in the Texas’ Permian Basin province contains an estimated 20 billion barrels of oil, 16 trillion cubic feet of associated natural gas, and 1.6 billion barrels of natural gas liquids. “The fact that this is the largest assessment of continuous oil we have ever done just goes to show that, even in areas that have produced billions of barrels of oil, there is still the potential to find billions more,” said Walter Guidroz, program coordinator for the U.S.Geological Survey Energy Resources Programme.
This 2016 Energy Outlook from the company JLL looks at global macroeconomic trends and considers the recovery timeline to expect once oil prices stabilize. The net effect on property markets of the structural changes that are currently redefining the energy industry is then discussed, focusing on the performance of office and industrial inventories in energy-centric cities. The influence of renewable energy on the health of real estate markets today and into the future is also covered. Lastly, U.S. and Canadian trends, deals and fundamentals are presented.
Tesla Motors has unveiled plans to collaborate with Panasonic to make solar-energy components for SolarCity Corp., bolstering Elon Musk’s final push to merge the automaker and solar company. Production of photovoltaic cells and modules for solar-energy systems used by SolarCity will begin in 2017 at SolarCity’s factory in Buffalo, New York. Musk, who is Tesla’s chief executive officer and chairman and chief financier of SolarCity, has proposed combining the two companies to give consumers one-stop shopping for an electric car as well as the solar-powered electricity that will power it.
Crude oil inventories are near record high levels and are rising on a year-on-year basis. Gasoline and ultra-low-sulfur diesel inventories are increasing to a lesser extent. Inventories of all three remain near seasonally-adjusted record highs. However, the pace of this increase – even though still growing – is slowing rapidly, and this is, on balance, welcome news for energy producers and those who have financial exposure to them. It’s a sign that energy supply and demand are moving more closely into alignment.
Very informative charts help illustrate the extent to which the Permian basin is outstripping its rivals in terms of investor interest and deal flow. Confidence is not only illustrated in merger and acquisitions activity but also in how much companies are currently willing to invest in their own future. Capital expenditure plans are lower and less bullish than a year before, but operators are still displaying a greater level of confidence in being able to fund robust capex spends.
The James M. Barry Electric Generating Station, a 2.7 gigawatt mixed-use coal and gas-fired power plant operated by Alabama Power will host pilot plant tests of a fuel cell carbon capture technology, which uses carbonate fuel cells to concentrate and capture carbon dioxide streams from power plants. “The fuel cell carbon capture solution we are advancing with ExxonMobil could be a game-changer in affordably reducing carbon dioxide emissions from coal and gas-fired power plants globally,” said Chip Bottone, president and CEO of FuelCell Energy, Inc.
Donald Trump’s Energy Plan: Make America energy independent, Conserve our natural habitats, reserves and resources,Declare American energy dominance a strategic economic and foreign policy goal, Unleash American untapped shale, oil, and natural gas reserves, plus hundreds of years in clean coal reserves, Become totally independent of any need to import energy from OPEC or any nations hostile to our interests, Open onshore and offshore leasing on federal lands, eliminate moratorium on coal leasing, and open shale energy deposits, Encourage the use of natural gas and other energy resources that will reduce emissions, reduce the price of energy, and increase our economic output, Rescind all job-destroying Obama executive actions, Reduce and eliminate all barriers to responsible energy production.
California company SolarReserve plans to build the largest solar power plant in the world on a 25 square-mile plot in the Nevada Desert. The 10-tower concentrated solar array known as “Sandstone Energy X” will produce enough electricity to power around 1 million homes, producing between 1,500 and 2,000 megawatts of electricity, comparable to a nuclear power plant or the Hoover Dam. The project is designed to store heat without backup fuels or batteries to deliver electricity even in darkness, with zero emissions, little water use and no hazardous waste.
OEF REVIEW:The first wave-produced electricity in the US goes online in Hawaii. The ocean packs enough power to meet a quarter of America’s energy needs and reduce the nation’s reliance on oil, gas and coal. But wave energy technology lags behind wind and solar power, with important technical hurdles still to be overcome. Both the solar and wind industries received substantial government investment and tax credits that helped them become energy sources cheap enough to compete with fossil fuels. Wave energy test sites run by other researchers are being planned in Oregon and California. One of those projects, Cal Wave, run by California Polytechnic State University, hopes to provide utility-scale power to Vandenberg Air Force Base. But while the U.S. government and military have put about $334 million into marine energy research over the last decade, Britain and the rest of Europe have invested more than $1 billion, according to the Marine Energy Council.
OEF REVIEW:The Brookings report “Lower Oil Prices and the U.S. Economy: Is This Time Different?” explores the effect on U.S. real GDP growth of the sharp decline in the global price of crude oil and hence in the U.S. price of gasoline after June 2014. This decline produced a stimulus of about 0.7 percentage points of real GDP growth by raising private real consumption and an additional stimulus of 0.04 percentage points reflecting a shrinking petroleum trade deficit. However, the net stimulus since June 2014 has been effectively zero. No evidence of an additional role for frictions in reallocating labor or the price of gasoline in explaining the sluggish response. Neither was there evidence of lower oil costs stimulating other business investment, nor an increase in household savings, nor of households deleveraging.
Nimble U.S. shale oil producers continue to show an uncanny ability to squeeze more and more crude from new wells, allowing them to do more with less as they try to weather another dip in oil prices to $40 a barrel, so they are still seeing output gains from improved well designs and fracking techniques. The pace of innovation is increasing. Pioneer Natural Resources said it was introducing its third generation of well completion techniques, called version 3.0, using even more sand and water than the super-sized volumes introduced as version 2.0 earlier in the price crash to pull more oil out of rock. For its part, Devon Energy Corp has cut costs to drill and complete new wells by 40 percent and plans to cut $1 billion in costs this year.
OEF REVIEW: Mid-August saw the longest period of rig expansion since the final days of the drilling boom in early 2014, according to World Oil, marking the longest period of oilfield expansion since April of that year when drillers added oil rigs nine weeks in a row, reported Baker Hughes Inc. Prompted by an oil price recovery from a 12-year low in February, producers have begun returning parked rigs to service after idling more than 1,000 rigs since the start of last year. The long-term decline in drilling expansion has led to a slowdown in production. Crude output fell by 15,000 barrels per day to 8.45 million barrels per day during the week ended August 5th. “I think it’s just a matter of time before we come into balance,” Paul Crovo, a Philadelphia-based oil and equity analyst at PNC Capital Advisors said. “We think the fundamentals will take care of themselves as we come into the third quarter and later into the fourth quarter and early 2017.”