The Global Energy Game Changer @ Work

USEnergy Boom Infographic McClatchy

The Global Energy Game Changer @ Work The US oil and gas business is booming because of the shale revolution at work, but in many parts of the industry there are growing pains.  The super majors face rising costs for finding and developing new reserves.  The midstream players face infrastructure bottlenecks.  Refineries face a glut of light crude or condensate that does not fit the refining process demand for heavy crude and thus must be pre-processed out.  Even the shale pioneers who …Continue Reading »

Shale Gas Supply Growth Shakes Up Everything

EIA World Shale Resources

SOURCE:  US EIA Data and Reuters graphic The shale revolution is a full reversal of energy fortunes in the United States.  It might have similar potential in other parts of the world if as projected global LNG prices decline over the decade ahead and indexing gas prices to oil erodes from competitive pressures on existing oil-indexed LNG suppliers. Large volumes of global gas supplies are expected come to market at prices below oil price parity (assuming oil prices at or above $90/bbl). …Continue Reading »

Light Sweet Crude Displacement

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I live in the San Francisco Bay Area and despite its well-deserved ‘tree hugger’ image the inland part of the Bay is home to a concentration of refineries essential to California’s economic vitality.  These refineries produce the boutique blend of gasoline not available anywhere else.  The EPA’s insistence on these unique regional gasoline blends is one reason fuel prices are higher here in California than elsewhere in the country.  When one of our California refineries burps or has …Continue Reading »

The Big Shift in Energy is a Complete Reversal of Fortunes

As we all read the 2012 economic reports last year we collectively thought of the right technical terms---the results sucked!  GDP growth had slowed to 1.5%, unemployment rates remained stubbornly high at 8.2% over average nationwide but the damage to youth, black and Hispanic and those with less than college educations are still horrible.  Clearly we need an economic shot in the arm. How could there possibly be any good news on the horizon? The good news is the big shift in energy is a …Continue Reading »

Lessons from the Front Lines of Disruptive Innovation

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Tech and Creative Labs (TCLABZ) was born out of the disruptive innovation realization that insight about this energy market volatility could be extracted from the online dynamic interaction of people trying to figure out what is going on, what might happen next, and what if I do “X” instead of “Y”? We believe disruptive innovation technologies help us see new opportunities among the volatility and risk in the world around us.  By helping us play better defense in our volatile world, …Continue Reading »

The Big Shift in Energy is Underway

TCLabz O&G Extraction Analytics Platform

The United States is engaged in a fierce debate over energy strategy, policy and production. Today there is wave after wave of new Federal regulation designed to favor clean energy strategies at the expense of fossil fuels that still provide most of our energy resources.  These rules are being promulgated as a consequence of a Supreme Court Decision in EPA vs Massachusetts which held that EPA does have authority to regulated carbon dioxide emissions under the Clean Air Act even though there is …Continue Reading »

The Dirty Little Secret of Economic Impacts of Federal Rules

“We, the U.S. Fish and Wildlife Service (FWS) and the National Marine Fisheries Service (NMFS) (collectively referred to as the ‘‘Services’’ or ‘‘we’’), propose to revise our regulations pertaining to impact analyses conducted for designations of critical habitat under the Endangered Species Act of 1973, as amended (the Act). These changes are being proposed as directed by the President’s February 28, 2012, memorandum, which directed us to take prompt steps to revise our …Continue Reading »

The Duke Mess

Do you remember when you were a kid and got into trouble with your siblings?  At my house, at least, my Dad would line us up and say ‘I don’t know which one of you caused this mess, but if I use my belt on each of your backsides I’ll know I got the guilty party and the other two will know not to do the same thing your brother did.’ This kind of rough justice swiftly applied worked in my house---and there were no appeals from my Dad’s decision.  You messed up, your behind faced …Continue Reading »

The Revenge of Competitive Markets and the Big Shift in Energy Economics

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The economy, jobs and the debate over the direction of the country dominate 2012 political campaigns.  Nowhere is the political rhetoric fiercer than on energy issues. Today there is wave after wave of new Federal regulation designed to favor clean energy strategies at the expense of fossil fuels that still provide most of our energy resources.  There is broad public support for environmental quality but we see Federal energy industrial policy as hugely expensive, highly disruptive with …Continue Reading »

Too Much of Two Good Things

The Pacific Northwest is experiencing too much of two good things.  The region is blessed with high quality, low cost hydropower generation which serves as the backbone of the power generation system.  Over the past decade, the Colombia River corridor has sprouted a sizable fleet of wind generation. So what’s the problem, you ask? The forces of nature do not always choreograph their energy dance.   Power generation happens in a run of the river system when the winter snow pack begins to …Continue Reading »