...half over the next two decades. The charts below shows the trends of worldwide energy consumption and the energy consumption of three big giants, USA, China and India till 2040. At present, we rely on coal, oil and gas (the fossil fuels) for over 80% of our current energy needs – a situation which shows little sign of changing over the medium-term without drastic policy changes. The problems associated with an over reliance of non-renewable energy sources is the fear that our energy resources are starting to run out, with devastating consequences for the global economy and global quality of life. At the same time, the tremendous risk of climate change associated with the use of fossil fuels makes supplying this energy increasingly difficult. While the potential for a crisis if we run out of energy is very real, but there is still time before that occurs. In the past two decades proven gas reserves have increased by 70% and proven oil reserves by 40%. At expected rates of demand growth we have enough for thirty years supply. Moreover, better technology means that new oil and gas fields are being discovered all the time while enhanced recovery techniques are opening up a potentially huge array of unconventional sources, including tar sands, shale gas and ultra-deep water. While in the long term, the use of renewable sources of energy like harnessing wind and solar energy is inevitable, at present the costs associated are high and the efficiency of the power generated is...
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...ENGR 2595 | Shale Oil | A Controversial Energy Source | | Gabriel Lessard-Kragen, Daylon Hutton, Nikolai Sie | 12/4/2014 | | Table of Contents Table of Figures i Introduction 1 What is Hydraulic Fracturing? 1 Socio-Economic Impacts 3 Local Economic Impacts 3 U.S. National Economic Impacts 5 International Economic Impacts 6 Environmental Issues 8 Water Impacts 9 Greenhouse Gases 11 Liability 12 Conclusion 13 Bibliography 14 Table of Figures Figure 1: Marcellus Shale 10 Figure 2: GHG Eissions Associated with Oil Extraction 12 Figure 3: Deepwaater Horizon Impacts 12 Introduction The topic of this document is shale oil and gas, and the issues surrounding their extraction and usage. The terms oil and gas are used interchangeably in this article, however they technically are different substances. The issues and economics attached to the two substances are similar, and thus are discussed as a group. This document will begin with an analysis of what hydraulic fracturing (fracking) actually is, as a lot of controversy and misinformation has been released around it. Afterwards the economics of the shale boom will be analyzed, from both a local, national, and international perspective. Finally the environmental impact of shale gas will be discussed, as this is the major concern surrounding the technology. What is Hydraulic Fracturing? Fracking is the term most often used to describe the process of hydraulic fracturing. Unknown...
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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...
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...sword. The production of fossil fuels can harm the environment on foreign soil, or it can have a local impact if domestic fossil fuel production goes unregulated. While the push for cleaner energy production is in full swing, United States shale oil and gas production is one that has resulted in conflicting local environmental choices and economic impacts. President Barack Obama recent remarks on his climate change speech is one that delivers cleaner green energy, at a reduced cost, with positive environmental impacts. It also calls for more aggressive domestic energy practices to ensure we can meet the initiatives intended goals. Yet, U.S. Shale oil and gas production was not mentioned nor included within the climate change speech. One may ask why this is important. The importance comes in the form of transparency, to look at all of the U.S. energy resources production practices the same way. What exactly is Shale oil and gas production and why should we care? The U.S. has an abundance of Shale oil fields that have recently produced gas and oil products that rival prominent oil countries such as Saudi Arabia and Russia. It will continue to do so and add a significant boost to U.S. economy. (Morse, 2014) This has resulted in the U.S not being dependent on foreign oil as much as it used to. Additionally, the consumer also pays less for oil based...
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...Hydrofracking in Marcellus shale: The Consequences of America’s Gas Rush Introduction Demand for fossil fuels in America has led to a flurry of unorthodox methods for the extraction of natural gas. Fracking or hydrofracking in the U.S.A has proven to be an efficient way of extracting natural gas from permeable rock. A new large scale hydrofracking operation has been proposed in the eastern states of Ohio, Pennsylvania and New York. This method of extraction is highly controversial, and is thought to have severe environmental and potential health consequences. This essay will provide further insight into the practice of Fracking in an area of shale known as Marcellus shale, and help to expose the environmental and human implications. What is Hydrofracking? Hydraulic Fracturing is an un-conventional process used in the extraction of gas in permeable rock (David 1973). A horizontal well is drilled into permeable rock such as shale and is injected with millions of gallons a high pressure fluid known as frac-fluid, this fluid is a mixture of sand, water, and an array of lubricating chemicals (Deutch 2011). The high pressure frac-fluid forces open fishers (cracks) within the rock which are kept open with sand granules; this allows pockets of gas to flow more easily from the shale (David 1973). Once the well is depleted all fluid that can be recycled is extracted, and the well is capped to stop any unused gas escaping (David 1973). The process of fracking is expensive and requires...
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...CASE STUDY: FRACTURING THE ENERGY MARKET 1. Which industries gain and which industries lose from the availability of cheap natural gas produced from shale deposits? The industries that gain cheap natural gas produced from shale deposits are United States it is known for the largest deposit of shale gas. It is estimated to be nearly 500 trillion cubic feet of gas which is more than enough for America’s citizen to receive energy for 50 year or further. U.S. is the world’s largest economy that have a good prime market, political stability, military strength, foreign investment, international trade and many more. Plus it all started in 1932 when Joseph Schumpeter an American develop the innovation concept of fracking. France, Bulgaria and Poland have the largest shale reserves in European. France was banned fracking in 2001 due to environmental awareness and Bulgarian too banned in 2012 for the same reasons. Poland also has been banned from using fracking because they are protecting their quality water supplies and currently being managed by coal for power energy. Other than that, China also have a large shale gas reserve at about 1,275 trillion cubic feet. It have not yet been develop so China lose the availability of cheap natural gas. 2. Which countries gain and which countries lose from the availability of cheap natural gas? Based on the case study Germany has gradually shutter all its nuclear power plants and increase reliance on solar and wind energy because...
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...Earth for Clean Energy 1 Name University WGU Student ID# Deep Impact: Fracturing Planet Earth for Clean Energy 2 Shale gas has been acclaimed as the solution for a clean energy alternative. It burns cleaner than both coal and oil. There are vast quantities located in several shale formations domestically, in the United States (U.S.). Natural gas is an odorless, colorless hydrocarbon composed mostly of methane found deep in the earth in formations known as shale. In mid-1997, George Mitchell, an independent prospector made a discovery that would change the natural gas exploration industry for the twenty-first century. (Hinton, 2012). The modification of the well completion technology known as hydraulic fracturing (fracking) and horizontal drilling allowed the oil and gas industry the ability to tap into natural gas reserves trapped in shale deposits miles beneath the earths’ surface. (Hinton, 2012). Mitchell found that forcing fracking fluid at extremely high pressure into the shale formations created fissures in surrounding rock releasing the hydrocarbons and capturing them in the well head. The fracking fluid, also referred to as slick water, is made up of water, chemicals, and sand. Heywood (2012) reports that members of the energy and commerce committee of the U.S. House of Representatives said that between 2005 and 2009 the oil and gas service companies were using over 2,500 fracking products with 750 different chemicals. Some of these chemicals are harmless including...
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...plays in our nation’s ambitions for a clean and sustainable energy future. Due to recent technological advances in horizontal drilling techniques, the vast natural gas reserves found within the shale formations underground in the United States have become easily accessible. Responsible development of these resources is believed to be key to a sustainable financial, and environmentally prosperous future for America. However, recent environmental and health concerns beg to differ, and question whether these new developments pose more of a threat to americans than they are worth. Nature sustains life on our planet. Humans have developed an organization of society that runs on machines. What does it take to run the machines that power our world? Our society also runs on money. So anything that plays into the running of our society must must invariably be tied to how it profits the people in charge of running things. How does it benefit us as a whole? This question is larger than the debate which this paper addresses, yet it is valid in that it is an overarching theme that drives the situation behind the issues within. A big part of what our economy has deemed is important in order to sustain the current level of comfort that we have been sold is largely based on non-renewable energy sources such as oil, coal, and gas. It is a very competitive world. Our level of comfort is key to maintaining an edge over our competitors on the global financial stage. Deep within the earth, there...
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...Robert Hoefer Professor Arenson English 101 17 July 2012 Common Ground Essay The first commercial coal mine in America was started in the 1748. ("History of US Coal Use.") The first commercial oil well in the United States was drilled in 1859. (Yergin, 7) These two fossil fuels were the power behind the American Industrial Revolution, and wealth behind Edward Berwind and John Rockefeller(Brinkley, 435), respectively, that continue to provide power and fuel in present day society. Natural gas is another fossil fuel that helps to provide for the needs of today. Oil, coal, and gas companies tout new technologies that make their products cleaner and safer for the environment. Opponents of fossil fuels say there is no way to burn them cleanly. Proponents for fossil fuels believe there are plenty of reserves to keep America running on fossil fuels for years to come. Advocates for newer technologies, “green” technologies, such as solar power, geothermal energy, and biofuels claim that the time to move on from these fossil fuels has arrived. The new energy sources claim to be renewable so as to never run out. (E.g., the sun would have to supernova for solar power to run out.) They believe the point of “Peak Oil”- the point at which worldwide oil production begins to decline, has already passed and the country will need their new technologies to keep pace during the changing of the energy guard. There are many lenses through which to look at the use of all these energy sources...
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...UNDERSTANDING NATURAL GAS MARKETS Table of Contents PREVIEW Overview ...................................................................... 2 The North American Natural Gas Marketplace ............... 4 Natural Gas Supply ....................................................... 8 Natural Gas Demand ................................................... 12 Natural Gas Exports .................................................... 15 How Natural Gas is Traded .......................................... 16 Conclusion: A New Era For U.S. Natural Gas Markets ... 20 Glossary ..................................................................... 20 References ................................................................. 23 Understanding Natural Gas Markets Overview Natural Gas is an Important Source of Energy for the United States. Natural gas is an attractive fuel because it is clean burning and efficient, and ample supplies of natural gas are available from domestic resources. Recently, natural gas production in the U.S. has increased substantially due to technological advancements in natural gas extraction methods. This increased production has displaced traditional supply sources and resulted in reduced prices for natural gas consumers. The prospect of ample natural gas supplies, continued low prices, and the favorable environmental and economic position of natural gas-fired electric generation plants are leading to expectations of growing U.S. demand for natural gas, especially...
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...Fracking is something heard about regularly on the news, is a topic of discussion many may not completely understand. “Fracking is the process of drilling down into the earth before a high pressure water mixture is directed at the rock to release the gas inside,” (BBC, 2015). The way fracking works is: water, sand, and chemicals are injected into the rock (many times, shale) at high pressure which allows the gas to flow to the top of the well. Fracking can be carried out vertically or, by drilling horizontally into the rock layer which can create new pathways to release gas or can be used to extend existing channels. (BBC, 2015). Hydraulic fracking is unique compared to more common means of drilling due to it being based on finding a large...
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...Filling up at the gas station has been a much more pleasant experience for Americans since last fall. Regular gas is now less than $2 a gallon in many states, down from around $3.30 just a year ago. But how long will that last? It's just one of many questions stemming from the extraordinary drop in crude oil prices — a development that has boosted consumer confidence, hurt once-booming energy states and presented new opportunities — and challenges — for the U.S. and global economy. Q: Why did oil prices fall so much, so fast? A: A confluence of factors has contributed to the more than 50 percent slide in oil prices since September. The biggest is the steady rise in world petroleum supplies, mainly because of the shale-oil revolution in the U.S. Thanks to hydraulic fracturing, or fracking, and other drilling techniques, the U.S. has accounted for more than 80 percent of global crude production growth in the last five years. More recently, an increase in oil output in Iraq and Libya has further boosted capacity. At the same time, there are signs of softening demand. Economies in Europe and Japan have been stagnant, and the Chinese economy, the biggest driver of global oil demand, is slowing down. The strong dollar also has helped pushed down oil prices. Q: How long will it last? A: Low prices at the pump may be short-lived because the cost of crude is likely to start rebounding in the second half of this year. That's based on predictions of future supply and demand...
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...the well. After that, the combined fluids are pressurized and are inserted into the well where it creates cracks that allows for the oil or gas to rise to the top. With the mixed fluids being pressurized into the well, what comes back up is now a combination of that fluid plus the natural gas. The fluid that is collected can be stored usually in tanks or pits where they can be treated, recycled, or disposed. Lastly, disposal can be down by pumping it back into the ground or can be recycled so that it can be used for future hydraulic fracturing operations (The Hydraulic Fracturing Water...
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...The Exportation of U.S. LNG: An Abundance of Shale and Construction of New Export Terminals Section 1: Introduction The shale boom experienced by the United States since the mid-2000s ushered in unprecedented production and reserves estimates of oil and gas in the lower 48 states. This sustained supply and production has been a result of technological advancement, particularly improved techniques in hydraulic fracturing, has kept prices for natural gas extremely low while crude oil prices have fluctuated and changed over time. One reason for this is the different nature of exportation in the two hydrocarbons. As will be discussed below, the transportation and exporting of natural gas is much different than for crude oil. Natural gas must undergo a liquefaction process in order to travel by specialized cargo ship, the alternative to a pipeline, which adds substantial costs to the activity. There are currently no operational natural gas export terminals in the lower 48 states, but a few are under construction. The large sunk costs will be a large part of our consideration of the exportation of natural gas. The U.S. has traditionally been a net importer of gas, and considering the high upfront costs of building export terminals, the sale of American gas has been isolated almost exclusively to the domestic market. The only exception to this has been to export natural gas only where existing pipelines can carry it, which has limited foreign export to North America....
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...Overview of the Oil and Gas Industry – Daniel Ogeto Week 4 - Chesapeake Energy & its four affiliates - Kyle Thompson Week 5 - Chesapeake Company Operations - Misti Smith Week 6 - Chesapeake Company Future - Daniel Ogeto Abstract Chesapeake Energy is headquartered in Oklahoma City, Oklahoma. This independent company is involved in oil and natural gas exploration and production. The company’s operations, shares and debt; affiliations, outsourcing and future will be discussed in this paper. The oil and gas industry overview will also be covered. CONTENTS 1. Overview of the Oil and Gas Industry ------------------------Page 4 – 21 2. Chesapeake Company Operations ----------------------------Page 21-27 3. Chesapeake & Affiliates ----------------------------------------- Page 28-32 4. Outsourcing -------------------------------------------------------- Page 32-37 5. Chesapeake’s Future --------------------------------------------- Page 37-42 References ---------------------------------------------------------- Page 43-44 OVERVIEW OF THE OIL AND GAS INDUSTRY Companies in this industry develop and operate fields to extract crude oil and natural gas. Major players include Apache, Conoco Phillips, and Exxon Mobile (all based in the US), as well as BP (the UK), and Tatneft (Russia), National Iranian Oil Company, PETROBRAS (Brazil), Royal Dutch Shell (the Netherlands), and Saudi Aramco (Saudi Arabia). The global oil and gas exploration and production...
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