More Of The National Petroleum Reserve-Alaska To Be Opened Up

25/10/17 • •

The U.S. Interior Department will hold a lease sale for land in a federal reserve in northern Alaska to oil and gas drillers. The sale, to be held in December, will involve 900 tracts in part of the National Petroleum Reserve-Alaska. The U.S. Geological Survey said in 2010 that the NPR-A holds about 896 million barrels of undiscovered oil. A further 200 million barrels has been discovered in areas that have been explored. The reserve also contains large amounts of natural gas. Environmentalists, however, have been critical of drilling in the Alaskan wilderness.


Pipeline To Mexico’s West Coast To Export U.S. Gas?

20/10/17 • •

America’s drillers are looking for a cheaper and quicker route to Asian markets than the Panama Canal. And this is where Mexico comes in… Aldo Flores, Mexico’s deputy energy secretary has said that the government is in talks with shale drillers in West Texas about a potential pipeline that would send their gas straight to Mexico’s west coast, where it could then be liquefied and shipped overseas. While Mexico doesn’t have a concrete plan yet, there’s “a lot of interest,” indicated Flores, “It makes total sense for West Texas gas producers.”


Vaca Muerta Shale: Argentina’s Jewel

18/09/17 • •

Vaca Muerta is the most developed shale play outside North America and has attracted over $9 billion in capital investments since 2010 to drill nearly 700 wells in the play. According to Rystad Energy it is of utmost importance for Argentina and the shale industry in general. Spending in Vaca Muerta is expected to increase yearly 35% in both 2017 and 2018 to reach approximately US$2 billion per year. In the coming years, the production from the play is expected to increase 32% annually to reach 165 thousand barrels of oil equivalent per day in 2020 with around 65% gas content.


China To Phase Out Vehicles Using Gasoline And Diesel

10/09/17 • •

China will put an end to the sale of fossil-fuel-powered vehicles – gasoline and diesel – becoming the biggest market to do so in a move that will accelerate the push into the electric car market led by companies including the Chinese BYD Co. and BAIC Motor Corp. While many global manufacturers from billionaire Elon Musk’s Tesla Inc. to Nissan Motor Co. and General Motors Co. are racing to grab a slice of the electric-vehicle market in China, it is the local manufacturers that have found considerable success thanks to generous government subsidies.


Global LNG Glut To Shrink In Early 2020s, New Projects Needed By 2035

08/09/17 • •

According to the international natural gas association Cedigaz, global liquid natural gas capacity is expected to peak at 387 million tons a year by 2021-2022 from 288 million tons this year at existing or under-construction plants. Trinidad and Tobago, the world’s ninth-biggest producer, will stop production in 2029. Algeria, Indonesia, Malaysia, and Australia – which next year will add more capacity than any other nation – will see declines in output by the end of the next decade. By 2035, new LNG projects will be required in all regions, with additional capacity needs estimated at 154 million tons.


France: Bans On Oil And Gas E&P, Restrictions On Coal And Nuclear

07/09/17 • •

France is to ban all production and exploration of oil and natural gas by 2040 on the country’s mainland and overseas territories. France’s oil and gas production, however, represents just 1 percent of national consumption, the rest being imported. There will be a definitive ban on all shale gas exploration and extraction. France will also stop producing power from coal, which is at the moment 5 percent of total output, by 2022, and reduce the proportion of its power from nuclear energy to 50 percent by 2025, from the current 75 percent.


Argentina’s Vaca Muerta: $1.15-billion In Shale Gas Investments

18/07/17 • •

Argentina’s state-run oil firm YPF, France’s Total, Wintershall Energía and BP unit Pan American Energy has announced a $1.15-billion joint investment to increase shale gas production in Vaca Muerta, one of the world’s largest shale formations. The partners had already invested $500 million in the areas between 2014 and 2016. In March, Argentina’s Tecpetrol said it would invest $2.3 billion in the Vaca Muerta shale fields through 2019, marking the biggest announcement related to the formation in years. Vaca Muerta contains 308 trillion cubic feet of shale gas and 16.2 billion barrels of shale oil.


France: All New Oil And Gas Exploration To Be Banned

06/24/17 • •

France is to stop granting licences for oil and gas exploration as part of a transition towards environmentally-friendly energy. Nicolas Hulot, the “ecological transition” minister said a law would be passed in the autumn.​ ​French President Emmanuel Macron said he was opposed to exploration for gas and favoured a ban on fracking during his election campaign, particularly in the overseas territory of French Guiana. Around 75 per cent of France’s electricity is currently provided by nuclear power stations… a law was passed last year, however, to reduce the nuclear proportion to 50 per cent by 2025.


China’s LNG Growth: The U.S. Is Keen For A Slice Of The Pie

05/14/17 • •

A new agreement between the U.S. and China has the potential to alter global LNG trade, opening the door of the world’s largest LNG growth market to the world’s fastest-growing LNG supplier. Falling under the framework of the U.S.-China Comprehensive Economic Dialogue, Chinese companies can now negotiate long-term contracts to source liquefied natural gas from U.S. suppliers. According to Wood Mackenzie: “The wider agreement represents a win for both sides. It allows President Trump to deliver on his pledge of redressing global trade imbalances and China to show its commitment to becoming an equal trade partner.”


Shale Gas: Exploration Licenses In South Africa’s Karoo Basin

05/15/17 • •

Africa’s government may award its first shale gas exploration licenses by the end of September, after environmental objections delayed the process. The five license applications under review are for exploration in the semi-arid Karoo basin. “If the decision is made this year the exploration rights will be valid for a period of three years, exploration activities should commence within three years,” indicated the South African Petroleum Agency, PASA. South Africa is seeking to replace its dwindling offshore gas reserves and reduce reliance on coal to fuel power plants.


IEA: Oil Market Near Balance But US Production Could Rise Again

04/15/17 • •

Now is the halfway point for the 6-month oil production cuts agreed by OPEC and the 11 other oil producing countries, and the market is very close to balance. The International Energy Agency has observed that “Even at this midway point, we can consider what comes next … extending their output cuts beyond the 6-month mark would be bigger implied stock draws. This would provide further support to prices, which in turn would offer further encouragement to the US shale oil sector and other producers.”