...Advantages and disadvantages of Hydraulic fracturing in the USA Advantages Increase in natural gas production in US, department of energy indicates that shale gas in 2010 made up 23% of the total US natural gas supply, estimates show that by 2035 shale gas production may constitute 49% of total US natural gas supply (Annual Energy outlook 2012, early release) (Gillleland) Reducing carbon emissions, through the fracturing method of extracting natural gas, US carbon emissions have fallen. This process has been termed as a bridge between carbon systems of the past and a cleaner future. Extraction of shale gas through fracturing has been credited with delivering clean energy. Employment creation, statistics from the department of energy shows that the industry through the use of hydraulic fracturing creates more than 1.2 million jobs. In addition, 65% of natural gas resources have increased as a result of using hydraulic fracturing. Reduced cost of drilling, the dramatic success of hydraulic fracturing has greatly lowered cost of drilling some have described it as “smart drilling” technology due to its combination of horizontal drilling, computer aided underneath monitoring and hydraulic fracturing techniques (“Hydraulic Fracturing: A Game Changer for Energy and Economies.” Pg 1). Disadvantages Requires huge amounts of water itself a limited resource, during the various stages of the fracing processes large amounts of water are required and in many cases less than a third...
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...The demand for natural gas has increased in the past decade and that has lead to exploration into unexplored areas of the United States. These explorations lead to the Fernow Experimental Forest in West Virginia. The Fernow is well known for long-term Silviculture, watershed, and ecological research (Kochenderfer 2006). As the preparation drilling a total of over 700 hundred trees were removed. During hydraulic fracturing which is a process in which fractures in rocks below the earth's surface are opened and widened by injecting chemicals and liquids at high pressure to extract natural gas ("hydraulic fracturing," 2012). During this process many of the trees and shrubs showed signs of being affected by the process. The trees started to brown early, they stared weltering and fell to the ground earlier then they should have. One would think that due to drilling and the release of natural gases that you wouldn’t find signs of wildlife. That’s not the case with the white tail deer. The white tail deer require the intake of salt and other minirals especially during the summer and spring months. The water coming from the gas site had a high concentration of minerals that the deer liked. That’s the one unqie thing about deer is they are an adaptive species. The black bear population did see a slight decrease in activity around the drill site. According to the CIA world fact book the U.S. has the highest demand for natural gas with 683,300,000,000 cubic meters of gas in 2010, with...
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...Economic Analysis of Shale Gas an Industry Alternative By Lillian Ashford & Bridget M. Chow Professor Nelson Altamirano, Ph.D. National University ECO 607 Economics for Managerial Decision-Making December 11, 2011 Introduction Shale gas is natural gas that is trapped in shale formations. Shale particles are fine grained sedimentary rocks that are rich sources of petroleum and natural gas. In the past, it was not economically viable to produce shale gas; however, with technological advances and the forward thinking perceptions of reducing our ecological footprint, the process has become more economical due to horizontal drilling and fracturing. The natural gas industry in the United States has been revitalized as a result of the production of natural gas from shale formations. In 2009, shale gas represented approximately 14% of the United States total natural gas supply. The production of shale gas is expected to increase and make up approximately 60% of the (U.S.) total natural gas supply by 2035. The question to ponder is whether or not shale gas is a viable energy option for the United States to consider in reducing the energy dependence of the Organization of Petroleum Exporting Countries (OPEC) while increasing fiscal responsibility and economic viability in both the short and long run analysis? Economic Analysis The shale gas industry has contributed to the economy in terms of jobs, economic value...
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...are continually causing in this world today. With research showing the potential solution for methane hydrate to change the world’s dependency on fossil fuels because of the abundance of the hydrocarbons found. With this new discovery, along with the abundance, and the availability, there is such an exciting potential to make a big change around the world to eliminate the need of the old fossil fuel. How Methane Hydrates Are Formed The discovery of methane hydrates in 1982, during a deep sea scientific drilling expedition. Scientist became interested after several samples were taken, causing the focus on several studies. Because of the discovery of methane hydrates, there has been a tremendous amount of resources of this gas found over the world including the east and west coast the United States, the Gulf...
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...Fracturing, Shale Plays and Natural Gas Executive Summary U. S. Steel Tubular Products has been serving the energy industry since 1901 as North America’s largest fully-integrated tubular products manufacturer. Today, we manufacture more than 1,500 different types of steel and have an annual tubular products capacity of 2.8 million net tons. Dedicated to fostering energy-independence in North America, U. S. Steel is proud to offer an array of products and services that are developed, tested, and produced in the United States. U. S. Steel has full control over every step of the pipe manufacturing process, from melt to final product. U. S. Steel is continually making strides to serve the energy industry and promote the development of clean, abundant energy sources with high-quality, high-strength tubular products, including standard and line pipe products and oil country tubular goods and services. (About U. S. Steel Tubular Products, 2015) The past century has been a whipsaw for U.S. energy policy. Fifty years ago, the country was a confident exporter of petroleum. By the early 1970s, it suddenly had become dependent on oil imports and suffered at the hands of its suppliers. Ever since, U.S. energy policy had been a balancing act between reducing oil consumption, cultivating friendly oil-exporting nations, and developing substitutes for petroleum. Indeed, the last time liquefied natural gas received interest in Washington, it was as a means to import gas as a supplement for dwindling...
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...oil and natural gas producers in the world. The government is a monarchy and has been ruled by the Al Thani family since the mid 1800’s. The current Emir is HAMAD bin Khalifa Al Thani who took power from his father in 1995. The previous Emir was crippling the economy by siphoning off oil revenues; HAMAD overthrew his father in a bloodless coup and then filed a lawsuit requiring him to pay back the money he had taken from the country. The case was settled and HAMAD bin Khalifa Al Thani stayed in power. In 2001, Qatar settled a land dispute with Saudi Arabia with the help of the International Court of Justice (ICJ). Since this time, Qatar has managed to stay out of the conflicts that have plagued the region as of late. Recently, Qatar has become the world’s wealthiest country in terms of GDP. In 2011, they passed Luxembourg with a per capita GDP income totaling $102,700. The country has plans to continue growth, announcing a plan to invest $60 billion in infrastructure and will host the 2022 World Cup. The country is expecting 18% to 20% growth in the economy as they near the World Cup. This type of growth rate is scary as Qatar has already experienced large inflation rates in 2007 and 2008. Those years, the inflation rate was around 17% and consumers were having a hard time keeping up with the growing country. As of 2011, the inflation rate is at 1.9%, providing a strong outlook for the current economy. Another reason the economy has a healthy outlook is due...
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...The Shale Gas Revolution in the U.S. - Aspect of Domestic Market - Prepared for Microeconomics May 6, 2014 "The all-of-the-above energy strategy I announced a few years ago is working, and today, America is closer to energy independence than we’ve been in decades," Obama said during his fifth State of the Union speech on January 2014. In a fact sheet accompanying the speech, the White House called on Congress to establish "sustainable shale gas growth zones." As mentioned by the U.S. president Obama, “The Shale Gas Revolution” is hot topic in the energy industry recently. Previously, the U.S. has imported large amounts of natural gas from other countries, but now it is expected to be an exporter of natural gas because of shale gas production. (Reference: Annual Energy Outlook 2011, May, 2011) Exporting shale gas would bring economic benefits. Gross Domestic Product can be increased, employment on LNG supply chain would be increased, and there will be no import of LNG anymore. Nevertheless, there is some limitation which will not favor to domestic LNG market. For exporting the shale gas, there are many researches to determine the associated costs. The price U.S. LNG exporters can afford to charge can be separated into the following components. Price = Wellhead price + Pipeline + Liquefaction + Shipping + Regasification Based on the above formula, experts’ estimate that the minimum price the U.S. and afford to export LNG to Asia, mainly Japan and Korea...
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...and to get insight into practical situation. Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to advance a single step in the absence of Petroleum Industry. The Petroleum Industry is divided into two segments namely Upstream Sector consisting of Exploration and Production of crude oil while the Downstream Sector consists of Refining, Processing, Storing, Marketing and Distribution of petroleum products. The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways. Hence, for these reasons, we have chosen the Downstream Sector of the Indian Petroleum Industry for our Macro Analysis project. As this is a Macro Analysis project, we have concentrated on the Indian Petroleum Industry and that too focusing on the Downstream Sector for our study and not gone into the in depth analysis of the various players and their functioning. This project is prepared for academic purpose and inspite of our best efforts there may be some errors, which may please be excused. ACKNOWLEDGEMENT This Comprehensive Project Report is a result of contribution received from a number of people. No amount of words written will be sufficient and...
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...What is shale gas and why is it important? Shale gas refers to natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich sources of petroleum and natural gas. Over the past decade, the combination of horizontal drilling and hydraulic fracturing has allowed access to large volumes of shale gas that were previously uneconomical to produce. The production of natural gas from shale formations has rejuvenated the natural gas industry in the United States. Does the U.S. Have Abundant Shale Gas Resources? Of the natural gas consumed in the United States in 2011, about 95% was produced domestically; thus, the supply of natural gas is not as dependent on foreign producers as is the supply of crude oil, and the delivery system is less subject to interruption. The availability of large quantities of shale gas should enable the United States to consume a predominantly domestic supply of gas for many years and produce more natural gas than it consumes. An analysis in the Annual Energy Outlook 2012 (released June 2012) indicates that the uncertainty in the size and economics of the domestic shale gas resources could have a considerable impact on future domestic natural gas production and that 2035 shale gas production could be between 9.7 trillion cubic feet and 20.5 trillion cubic feet. U.S. total natural gas production is projected to range between 26.1 trillion cubic feet and 34.1 trillion cubic feet. Where is Shale Gas Found? Shale...
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...Will Davis July 13, 2014 Week 1 Homework Assignment Which economic system is best suited for handling a crisis of epic proportions (hurricane, flood, blizzard, forest fire, etc.)? Why? NIMS (National Incidence Management System) also known as FEMA. When there is a natural disaster, emergency crews (fire department, ambulance, police etc.) is usually the first help on the scene to help people out. Socialism system offers the best solution for handling emergency situations because the government takes care of paying the people who work there so everyone can focus on helping the people in need. Being a not for profit organization means that everyone doing what they are supposed to and looking after injured people's best interest. Socialism in its perfect form (which rarely ever happens) seems to be the best economic system because it teaches people how to share things with your neighbor and to help out on the time of need. Describe and explain why a socialist system might be the best in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January 2010. A socialist society is more likely to have immediate and controlled impact on an emergency situation like the ones suffered in recent years throughout the world. Socialist societies are base in the good of the nation and the human needs of the people making them more efficient in regrouping and reorganizing their efforts. In these societies, each person has a role...
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...world’s known reserves of natural gas are in just five countries, and more than 80% of global oil reserves are located in nine countries, often distant from the hubs of energy consumption. Continued advances in technology and energy-industry productivity are required to deliver affordable, sustainable and secure energy. The shale gas revolution demonstrates the potential impact of such developments. Effective policy We believe governments must set a stable framework to encourage private sector investment and to help consumers to choose wisely. This includes secure access for the exploration and development of energy resources; mutual benefits for resource owners and development partners; and an appropriate legal and regulatory environment with an economy-wide price on carbon. Energy efficiency Greater efficiency helps with affordability – because less energy is needed; with security – because it reduces dependence on imports; and with sustainability – because it reduces emissions. Innovation can play a key role in improving technology, bringing down cost and increasing efficiency. For example, we believe that energy efficient technologies and biofuels could offer the most cost-effective pathway to a secure, lower-carbon future for transport. A diverse mix We believe a diverse mix of fuels and technologies can enhance national and global energy security while supporting the transition to a lower-carbon economy. Oil and natural gas Oil and natural gas are likely to play a significant...
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...Preparing to Conduct Business Research Michael Pedragosa, Roshelle Santiago, Darin Capps, Jimmie Rogers, Marlon Ector RES 351 June 1st, 2015 Debra Bacon Preparing to Conduct Business Research This paper will address the problem facing Exxon, an oil company, as the world’s supply of oil becomes more exhausted. We will describe the significance of this as it pertains to Exxon, and the importance of performing business research in order for Exxon to figure out how to adapt to the coming change. Questions like “should they continue in the energy business but switch over to renewable energy sources, like the sun and wind, or abandon the energy business altogether” will also be explored. Description of the issue; is oil is running out? Since oil was discovered, it has been used for several things to improve our quality of life. These improvements such as petroleum, tires, perfume, shoes and few others items that we use in our every day life. After decades of oil consumption, companies like Exxon, have to have the idea of innovation in order to keep its business on the top and provide the same services as always. Why is a company like Exxon running out of oil? As we know the oil is a non-renewable resource made by the nature, thus that means that once it is spent it cannot be generated again. As the matter of fact, Exxon company, as many others, have been facing some struggles to find enough oil to cover consumer demand. Basically the bottom line is that it is replacing...
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...The Future of Energy Unit 4 Assignment Kaplan University Cleaster McConnell SC300: Big Ideas in Science: From Methods to Mutation Professor Michael Allen October 16, 2012 According to the Iowa Department of Natural Resources, the fuels Iowans use fall into two main categories: nonrenewable in the form of fossil (coal, petroleum, and natural gas) and nuclear fuels and renewable energy resources (water for hydroelectricity, biomass, wind, and solar). The use of energy is divided into four sectors: Commercial usage is 15%, Residential usage is 22%, Transportation 22%, Industrial 41% Energy, in all its varied forms, is an essential part of every aspect of our lives. It’s the foundation for our economy and our lifestyles. In my home, most of my energy dollars goes to heat my home in the winter and make hot water. During the summer months the dollars spent on heating the home is switched to cooling the home. A small percentage goes to powering appliances and electronics. We use natural gas as a single heat source and all of my appliances are electric including the stove, washer, and dryer. I am very conscious about energy conservation in the home. We adjust the thermostat by lowering it in the winter to 68 and raising it in the summer to 78 by day and 60 and 82 during the evening. We change the furnace filter every 3 months and unplug TV’s, cell phone...
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...the world are almost innumerable, ranging from political stability to exhausting reserves. At the same time, demand for petroleum based energy has become very inelastic in the modern world, and its supply has at times both propelled and suppressed economic growth. When these two realities clash, it is sure that a shortage of supply ultimately brings one certain result: skyrocketing prices. At the heart of this circumstance is the issue of security, and its associated effects on economies and living standards often bring it to the forefront of political stages around the industrialized world. The gravity of this reality is so substantial that even forecasted supply can have dramatic effects on the market. Anxiety and speculation over oil and gas futures cause prices to rise and fall exaggeratedly, creating a perilous game of long and short for money managers willing to take the risk. Today, the market is no less volatile. The most recent developments are raising hopes that energy security is becoming a worry of the past for the largest consumers around the world. The growth of global energy demand has all but come to a grinding halt, a result of economic and social circumstances throughout consuming markets that has consequently decreased energy prices. Meanwhile producers continue to expand production wherever it is conceivably lucrative to do so. While expanding production is nothing new to the industry, it is happening at an unprecedented rate today. While some of this is simply...
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... Memo To: From: CC: Date: Re: Part II Team Paper Tennessee Natural Gas Pipeline The use of natural gas is the cleanest burning hydrocarbon currently being used as a fuel. With over 49% of households relying on natural gas for everyday heating of their homes it has become just as important as the standard crude oil. With Oil prices taking a rise and fall in the most recent years the move to natural gas has become an important decision for the regular consumer. Even though U.S retail price for all grades of gasoline fell this month to 6.8 cents from the prior week to $3.662 per gallon in accordance to the Energy Information Administration (EIA), it still remains at a high average for the regular consumer (American Petroleum Institute Statistic, 2011). Although the resources for natural gas pumps are not readily available Chesapeake Energy, Inc. plans to break ground and be at the forefront of this venture, and make natural gas an affordable commodity to all levels of income brackets. Components of Retail Regular Gasoline Prices [pic] Sources: U.S. Dept of Energy, U.S. Dept of Labor, and API This memo will recommend and introduce a new project to be considered for implementation into the SBU portfolio. This project will be the combination of an offering of a crude oil and natural gas mixture of fuel; that will be offered to the public sector as another alternative to the use of...
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