U.S. Department Of Defense Moves Ahead With Green Energy

lweb.es/f2640 03.01.2017


The largest U.S. government agency – the Department of Defense, which is also the world’s largest single petroleum buyer – plans to forge ahead under the new administration with a decade-long effort to convert its fuel-hungry operations to renewable power. Why? In combat zones, green energy saves lives. The military’s zeal for renewable power has already had broad impacts on energy contractors, generating hundreds of millions of dollars in contracts for solar companies and helping to reduce fuel consumption. Trump’s Secretary of Defense, Jim Mattis, has long supported efforts to reduce troop dependence on petroleum.

EIA: U.S. Expected To Become Net Exporter Of Natural Gas By 2018

lweb.es/f2648 02.29.2017


The transition of the U.S. to net exporter of natural gas by 2018 is to be driven by declining pipeline imports, growing pipeline exports, and increasing exports of liquefied natural gas. The Sabine Pass facility in Louisiana became the first operating LNG export facility in the Lower 48 states in 2016. By 2021, four LNG export facilities are expected to be completed with a combined operational export capacity of 9.2 billion cubic feet per day. The EIA also projects the U.S. to become a net exporter of total energy in the 2020s.

Shale Break-Even Price Drops 55% On Average

lweb.es/f2644 02.28.2017


Since 2013, the average wellhead break-even price (BEP) for key shale plays has decreased from $80 a barrel to $35/bbl. This represents a drop of over 55%, on average. The wellhead BEP decreased across all key shale plays, with Permian Midland falling by over 60% from $98/bbl in 2013 to $38/bbl in 2016 (for horizontal wells only). Rystad Energy forecasts an average WTI oil price of $60/bbl, which implies a 40% improvement in the cash from operations. This improvement will result in higher investments of the shale operators.

$70 Billion Each For Shale Plays And Offshore Projects This Year

lweb.es/f2650 02.20.2017


For every dollar invested this year in North American shale plays another dollar will be allocated for planned projects offshore racking up spending of $70 billion in each sector, analysts at Rystad Energy said: “Offshore projects that were uncommercial at $110 per barrel in 2013 are now commercial at an oil price of $50 per barrel.” However, Rigzone Data Services said offshore investment declined 30-35% in 2016 and offshore capital expenditure is expected to decline for the current year. According to Diamond Offshore, it’s difficult for deepwater operators to compete with the unconventional space.

T. Boone Pickens: True Energy Independence For America

lweb.es/f2654 02.17.2017


Oil expert T. Boone Pickens says that America is in the midst of an energy renaissance, and President Donald Trump will have the opportunity to set the nation on a course toward self-sufficiency: “We are still a long way from securing our nation’s energy future and are not without risk of failing” he states. “I suggest President Trump pursue an energy plan with two parts. The first part is to not screw up what we have going for us. The second part is to not settle for what we’ve done so far.”

Permian Basin: $60,000 An Acre, But A Gold Mine For Oil Drillers

lweb.es/f2664 02.09.2017


Record prices for drilling rights in the Permian Basin, the most fertile U.S. shale field – where wells can generate profit with crude selling for less than $40 a barrel – are prompting oil companies and private equity investors to look elsewhere for the next big gushers. Explorers eager to tap the basin’s mile-thick stack of oil-soaked rock layers have paid as much as $60,000 an acre. That marks a 50-fold explosion in deal prices over four years. It also pushes the cost 10 times higher than in the Bakken of North Dakota.

EIA Energy Outlook: The U.S. To Become Net Energy Exporter

lweb.es/f2532 01.08.2017

iconThe 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.

President Trump’s Energy Plan

lweb.es/f2585 01.20.2017

iconWhile 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.

CO2 Captured From Coal Unit To Boost Oilfield Production

lweb.es/f2619 01.19.2017

iconPetra 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.

Oil And Gas Sector Vulnerable To Cyberattacks

lweb.es/f2584 01.19.2017

iconCritical 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.

cMISTTM : ExxonMobil’s New Natural Gas Technology

lweb.es/f2527 01.05.2017

iconExxonMobil 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.

How U.S. Oil Imports Have Changed Over The Last Decade

lweb.es/f2504 12.23.2016

iconOPEC 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.

EIA: U.S. Oil Production In 2015 Highest Since 1972

lweb.es/f2223 12.05.2016

iconU.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.

USGS: 20 Billion Barrels Of Oil In Wolfcamp Shale Formation

lweb.es/f2222 12.05.2016

iconThe 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.

Downstream Real Estate Reflects ‘Silver Lining’ In Oil and Gas

lweb.es/f2220 12.05.2016

iconThis 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 And Panasonic Plan Ties With Solar Parts Deal

lweb.es/f1827 11.11.2016

iconTesla 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.

U.S. Oil Inventories: A Mixed Picture

lweb.es/f1823 11.11.2016

iconCrude 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.

The Permian Outstripping Rival U.S. Oil Producing Regions

lweb.es/f1821 11.11.2016

iconVery 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.

FuelCell Energy and ExxonMobil Plan Fuel Cell Carbon Capture

lweb.es/f1819 11.11.2016

iconThe 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.