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 »

Will Regulation of ‘All of the Above’ Energy Cost 20X More on Public Lands?

Federal Lands

More than 96% of the domestic energy production growth from shales has taken place on private lands safely out of the reach of the Federal government bureaucrats and regulators.  That energy production growth is transforming America’s energy future by increasing supply reliability and driving down the price of natural gas from more than $13 per MMBTU to less than $3 per MMBTU in a period of less than five years. Meanwhile, on public lands production has actually slowed as the Department of …Continue Reading »

American Shale E&P Growth is Creating a Global Energy Independence Transformation

SOURCE: US EIA

The growth of oil and gas exploration in shales begun in North America is setting off a global race for shale E&P development and threatens to turn the old conventional energy order on its head. Based primarily on the phenomenal growth of domestic energy production from shale E&P in the United States, the world is waking up to realize that we are not running out of oil or natural gas. As in every revolution there are both opportunities and risks.  Here in America our politicians are …Continue Reading »

Death by a Thousand Fracking Rules: An Update

On June 26, 2012 the US Department of the Interior extended the comment period on its proposed rules of hydraulic fracturing on federal lands for sixty days to September 10, 2012 at the request of the Governor of Wyoming and others who said they needed more time to study the implications of the proposed rules.  Governor Matt Mead had asked for ninety days.  Advocates for the rules also wanted more time in order to stiffen the proposed requirements to include forced disclosure of the chemicals …Continue Reading »

Risk is Still a Four Letter Word

EIA STEO May 2012 Non OPEC Oil Production

The convergence of forces creating profound changes in domestic energy production is being driven by technology, globalization, demographic changes and by economies turning things upside down. But only recently and only in selected places across the energy value chain has it hit critical mass.  One of them is reflected in the graphic above from the US EIA showing the growth in US domestic oil production. Opportunity is born today out of the risk-induced realization that insight can be extracted …Continue Reading »

Energy Economic Realities: Spare Productive Capacity, Lower Gasoline Prices and Jobs

The success of unconventional oil and gas production from shale formation is reshaping the US energy industry and may yet prove to be a major factor pulling US GDP growth up off the floor. Comparing the relative performance of the conventional and unconventional oil and gas sectors of the industry is a study in contrasts. The conventional oil and gas sector was setback by the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Now two years later, Federal permitting of new drilling is …Continue Reading »

The ‘Death Rattle’ of Carbon Policy

In both the EU and the US carbon policy correctness has run its course having been discredited by scandal, the persistence of scientific method, and public pressure to recognize market realities. The proponents of carbon policy changes are caught between panic and despair. They came so close to implementing their policy regimes, and cannot now accept that the world has said ‘No!’ The evidence of the death rattle of carbon policy has been presenting itself for a while but like a degenerative …Continue Reading »

Ohio is Open for Business from Unconventional Oil & Gas

That was the unmistakable message from Ohio Governor John Kasich on September 21, 2011 as he spoke at a conference at The Ohio State University produced by Battelle about the future of Ohio’s energy policy and the opportunities for energy, economic development and job creation to leverage Ohio’s substantial opportunities from unconventional oil and gas development in the Utica Shale. The panel of experts at the conference included Aubrey K. McClendon, CEO of Chesapeake Energy.  Chesapeake is …Continue Reading »

Unconventional Choice for EU Energy Security

Do you remember the fears of European countries that they were becoming too dependent upon imported natural gas from Russia? Those fears would spike every time there was a dispute that saw Russia shut off the gas to the non-paying miscreant.  Imported natural gas from Libya helped to mitigate some fears until the recent turmoil in that country. While Eni says the gas near-term gas imports are not threatened, Europe still worries. Other supply options include long-running negotiations over …Continue Reading »

Unconventional Oil & Gas Technology: America's Strategic Advantage Sweet Spot

One of the “sweet spots” for America’s domestic energy production has been the substantial growth in unconventional oil and gas production.  And while it offers plenty of opportunity it is not for the risk averse. Today, weak natural gas prices especially compared to rising oil prices have combined with a shortage of hydraulic fracturing services due to higher demand is forcing the industry to quickly shift to higher profit oil drilling from lower profit natural gas drilling.  The payoff is …Continue Reading »