shale

Oil & Gas

Oil trims rally as investors weigh OPEC’s inaction on supply

West Texas Intermediate crude fell, trimming the biggest rally since August 2012 as investors weighed OPEC’s decision to let the market curb a global supply glut. Brent slid in London. Futures dropped 0.7% in New York, decreasing for the fifth time in six days. The Organization of Petroleum Exporting Countries may hold an emergency meeting in the first quarter of next year, Venezuela’s Foreign Minister Rafael Ramirez said in an interview. The group’s failure to cut output at a gathering last week bodes well for US producers, according to billionaire wildcatter Harold Hamm, a founding father of the nation’s shale boom.

Oil & Gas

UK can benefit from shale experience in the US

Last month at PETEX in London, the hunt for shale gas resources in the UK was a hot topic and among the companies offering their expertise and wares at the show was CGG, currently being stalked by fellow French group Technip, and US energy services giant Baker Hughes, which arch rival Halliburton ha made a $35billion bid for. While companies such as these cannot easily answer the social and political questions, or indeed even wish to engage that way, they can contribute to the debate on technical feasibility and potential. And both Baker and CGG are well equipped to do this. Firstly, and according to CGG, we in Europe and not just the UK have the opportunity to benefit from the latest developments in North America. Integrated workflows, which bring together a broad range of geoscience data, have shown great potential for the comprehensive reservoir characterisation required to optimise drilling and completion activities in heterogeneous unconventional resource plays.

Other News

Farmers informed of UK shale potential

The NFUS (National Farmers Union Scotland) has been informing its members about what fracking could mean for its industry. A meeting was held for 80 members from parts central Scotland where drilling for unconventional gas could occur in the next few years. Speakers from potential fracking developers including Ineos and environmental regulator SEPA spoke at the event.

Oil & Gas

Shale provides largest share of US gas production

Shale gas provided the largest share of American natural gas production last year, new figures have shown. The US Energy Information Administration said withdrawals reached a new high of 82billion cubic feet per day (Bcf/d) last year. Shale gas well withdrawals jumped from five bcf/d in 2007, to 33 bcf/d in 2013, representing a 40% increase in total gas production and surpassing production from non-shale gas wells.

Oil & Gas

Ineos investment: Scottish Government warns of cautious approach

The Scottish Government said a "cautious approach" should be taken to the announcement by Ineos that it plans to invest £640million in shale and gas exploration in the UK. The move by chemicals giant Ineos could make it the biggest player in the industry in the country. The company already has two licences near its plant at Grangemouth in Scotland but is applying for more in Scotland and the north of England. It plans to use the gas as a raw material for its chemicals plants, including Grangemouth in Stirlingshire.

Markets

Ineos to invest £640million in UK shale gas

Chemicals giant Ineos has announced plans to invest £640 million in shale gas exploration and appraisal in a move which could make it the biggest player in the industry in the UK. The company already has two licences near its plant at Grangemouth in Scotland but is applying for more in Scotland and the north of England. Chairman Jim Ratcliffe said he wanted Ineos to become the biggest company in the British shale gas industry.

Opinion

Opinion: Falling oil prices sparks industry restructuring

Almost in line with falling global oil prices share value of oilfield service companies have slumped by around 25% over the past four months. These are the same companies that have benefited greatly from the US fracking boom that transformed the standing of the US as an oil and gas producer; its position as number one oil consumer has never been at risk. But the halcyon days of unfettered profits for US frackers and service companies look to be over.

Opinion

Opinion: A fund for human capital

The proposal from the Department of Energy and Climate Change (DECC) to establish a sovereign wealth fund based on future revenues from the extraction of shale gas, is, in principle a good idea. Many countries now have such a fund, turning current oil and gas revenues into a national asset for the long term. Norway's fund is most often quoted as an example; another lesser known example is the state of Texas in the US which has such a fund for its universities. The details of the proposal from DECC are yet to be released so its final shape and impact is unknown. Given the size of the UK economy, and our budget deficit, the idea that we can build a large financial fund of the type enjoyed by Norway is unrealistic. However, I would argue that there is still a great deal that could be done with a shale gas fund. Most sovereign wealth funds build financial capital taking revenues from the oil and gas industry and investing them in the stock exchange. I would propose DECC consider a fund for human capital, not financial capital.

Opinion

Opinion: Lessons from Norway

Most countries in Europe look on Norway with envy. As the UK and other European countries struggle with reducing public spending, Norway benefits from a sovereign wealth fund worth around £500 billion. It has wisely invested the income from its oil and gas reserves, with its fund considered by many to be the world’s largest.

Oil & Gas

Fracking regulations “uncessarily restrictive” experts claim

The regulations imposed on shale gas fracking are “unnecessarily restrictive”, according to research by two University of Glasgow academics. In a new paper, Dr Rob Westaway and Professor Paul Younger from the School of Engineering, claim widely applying restrictions similar to those in force on fracking would require a ban on heavy vehicles from passing houses or walking on wooden floors. The report also states that the threat of serious earthquakes caused by fracking activity is considerably lower than commonly feared.

Americas

Applus opens hub close to Marcellus shale formation

Technology services company Applus RTD has opened a new office in Pennsylvania driven by its operations surrounding the Marcellus Shale formation. The new offices, based in Pennsylvania, are part of the company’s strategic growth plan following demand for its non-destructive (NDT) services in the area.

Oil & Gas

Rose Petroleum pulls out of German shale licences

Rose Petroleum has pulled out from some of its German exploration licences, citing the current political situation, which it said remains “unclear” in regard to exploration for hydrocarbons. The company said its subsidiary Parkyn Energy has withdrawn from its Konstanz and Biberach exploration licences in Baden-Wurttemberg. It will now focus efforts on licences in the US.

Oil & Gas

Ineos snaps up second shale investment in Scotland

Petrochemical company Ineos has bought its second licence for shale exploration just two months after acquiring land at Grangemouth. The acquisition means the company now has an 80% interest in a petroleum exploration and development licence for PEDL 162, which covers a 400 km2 are of the Scottish central belt.

Oil & Gas

CEOs tout reserves of oil, gas revealed to be much less to SEC

Lee Tillman, chief executive officer of Marathon Oil told investors last month that the company was sitting on the equivalent of 4.3 billion barrels in its US shale acreage. That number was 5.5 times higher than the one Marathon reported to federal regulators. Such discrepancies are rife in the US shale industry. Drillers use bigger forecasts to sell the hydraulic fracturing boom to investors and to persuade lawmakers to lift the 39-year-old ban on crude exports. Sixty-two of 73 US shale drillers reported one estimate in mandatory filings with the Securities and Exchange Commission while citing higher potential figures to the public, according to data compiled by Bloomberg. Pioneer Natural Resources' estimate was 13 times higher. Goodrich Petroleum's was 19 times. For Rice Energy it was almost 27-fold.

Oil & Gas

Young people prefer renewable energy to shale gas

Young people are much more in favour of renewables than fracking for shale, a poll suggests. The survey revealed that 18-24-year-olds who were aware of fracking wanted the Government to develop other sources of energy in the UK, with 44% backing solar as one of the technologies they most favoured, 41% for wind and 38% for tidal power.

Oil & Gas

Chevron sells shale stake for billion dollar sum

Chevron will sell a 30% stake in one if its ventures to produce oil and natural gas in North America to the Kuwait Foreign Petroleum Co for $1.5 billion. The agreement will create a partnership for the appraisal and development of liquids-rich shale resources in an area of 330,000 acres in the Kaybob area of the Duvernay.