Natural Gas: The Immediate Future

kyle_R · Jan 31, 2012

I came here for the fart jokes, and I leave disappointed.

Cohete Rojo · Feb 1, 2012

The current shale gas/oil boom was lead by small independent operators though now many big names like Chevron, Exxon and Marathon are getting into both the domestic and international shale craze.

Bloomberg said:

Exxon’s Shale Gas Well Failures in Poland May Lengthen Gazprom’s Shadow

Exxon Mobil Corp. (XOM)’s failed shale-gas wells in Poland may hobble the nation’s effort to become one of the world’s major energy sources and dismantle Russian dominance of Eastern European natural-gas markets.

Exxon, the world’s largest energy company by market value, said two exploratory wells drilled in a Polish shale formation last year weren’t commercially viable. The gas discovered in the wells, Exxon’s first in Poland, failed to flow in sufficient quantities to justify bringing them into production, David Rosenthal, vice president for investor relations, said during a conference call yesterday.
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http://www.bloomberg.com/news/2012-...shale-wells-were-not-commercially-viable.html

While adverse weather in the US has lead to a decrease in typical winter energy use, it is not the same in Russia.

EUObserver said:

Russia cuts EU gas, blames cold weather

BRUSSELS - Gazprom has begun cutting gas supplies to the EU in order to meet higher demand in Russia caused by severe cold weather.

Italy said on Tuesday (31 January) that volumes dropped by 10 percent but that its underground gas reserves are 65 percent full and that it can pull in extra volumes from Algeria, the Netherlands, Norway and liquid gas markets.
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http://euobserver.com/19/115097

pgabriel · Feb 1, 2012

natty has lost about 10% of its value in just the last two days. i really think the government should make a push for more usage, replacing coal in the near term.

part of it is the winter, but natural gas never really boomed last year in a record cold winter. there is just too much of the stuff already.

pgabriel · Feb 5, 2012

anti energy administration energy secretary backs natural gas production

to keep up production and start exporting the fuel

The low price of natural gas is hurting domestic job growth, and exporting a small amount of the fuel will boost the economy, U.S. Energy Secretary Steven Chu told a Houston audience Thursday.

Speaking at a town hall at Houston Community College, Chu said a modest increase in the price of natural gas wouldn't significantly raise its cost to U.S. consumers who use it to heat their homes and manufacturers who need it to make products.

Natural gas futures closed at $2.55, up 17 cents, in trading Thursday on the New York Mercantile Exchange. It brings much higher prices in other countries.

"Exporting natural gas means wealth comes into the United States," Chu said.

The Energy Department's Office of Fossil Energy is reviewing several applications to export liquefied natural gas. The exports would relieve the glut of natural gas on the domestic market and raise revenue, but also potentially increase prices for domestic consumers.

Several U.S. energy companies have announced plans to close their natural gas wells and curb spending in natural gas fields, as its price has fallen from more than $13.50 in 2008.

In his State of the Union speech last week, President Barack Obama called for an "all-of-the-above" approach to domestic energy production, including investment in oil, natural gas and renewable energy sources.

Chu said it's important that the United States be at the forefront of innovations and technologies in renewable energy.

"We have a choice. When all these things become cost-competitive, do you want to buy or do you want to sell?" he asked. "If we are buying, that is wealth out of the country. If we are selling, that's wealth into the country."

Before the hour-long session with students at the college, Chu met with oil and gas executives and explored the Texas Medical Center's energy efficiency upgrade.

At the college, he answered questions about the Obama administration's rejection of the Keystone XL pipeline and Iran's threat to close the Strait of Hormuz, among other topics.

Chu said the administration is open to exploring alternate routes for the pipeline that would carry oil from Canadian tar sands to Gulf Coast refineries.

It's become a touchstone issue for supporters who say it will create jobs and reduce U.S. dependence on oil from hostile nations, and opponents who argue it could threaten water supplies and promote use of an especially dirty form of oil.

Chu said he supports construction of pipelines nationwide, particularly to relieve the glut of oil at the hub in Cushing, Okla., a major price point for domestic oil.

"There is such a shortage of pipelines between Cushing and Houston," Chu said. "There will be major construction of pipelines in the next decade or so. All the job creation from Cushing to Houston is being done now."

Chu touted government investment in wind, solar and other renewable energy sources, as well. He said he expects the cost of solar power to fall by 50 percent within six to eight years.

Chu also dismissed Iran's threats to close the Strait of Hormuz, a key oil shipment channel, in retaliation for international sanctions aimed at the nation's nuclear program.

"I don't think they can really shut down the Strait of Hormuz," Chu said. "We certainly have capabilities to reopen it."

simone.sebastian@chron.com @SimonesNews
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BetterThanEver · Feb 5, 2012

pgabriel said: ↑

however, a guy who manages a refinery told me that cars running off natural gas is kind of an unrealistic prospect. he said it doesn't provide enough power or whatever. i don't know.
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It has already been used for decades in city buses. UPS is using it for delivery trucks. You need alot more power for trucks and buses than cars. In the past, it didn't make financial sense to opt for natural gas over gasoline. Now that the prices may be cheap for several years, it's being used in fleets. Fleet vehicles can return to a refueling station at company headquarters, so they don't have to worry about finding a station that supports NG.

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