Could US and Canadian gas exports lead to a weakening of the oil/gas link and an eventual world gas price? I said this over a year ago, but when Platts talks about the deputy head of the IEA positing the move, this time it’s serious:
The $10/Mcf premium for natural gas in Asian markets compared with the US could shrink if North American LNG exports become established, the deputy chief of the International Energy Agency said Monday in Singapore.
“If it does happen and the US does become an exporter, that will help bring the global markets together,” said Richard Jones, IEA’s deputy executive director, during the Singapore International Energy Week.
“But that’s a big if. So we don’t really know the answer, but the potential is certainly there for prices around the world to begin converging as the LNG trade grows.”
Continue reading US Gas exports: Impact on Price
Shale Gas: A UK Energy Miracle?
The phenomenon of shale gas is both topical and controversial. Its proponents claim that it is a clean, environmentally friendly and abundant source of cheap natural gas; its opponents believe the opposite. In various countries it is a fast growing industry and operations have begun in the UK.
Europe can reach its 2050 80% greenhouse gas reduction target at lower cost, with less risk, and with less challenging implementation than has been suggested by other recent studies such as that of the European Climate Foundation’s Roadmap 2050.I The solution lies in defining the most economically attractive technology mix to meet the targets in the first twenty years, including the 20/20/20 targets, while avoiding any restriction of the available options or any increase in costs for the continued abatement in the second period to 2050
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What a difference a few years can make in one of the world’s major energy markets. Advances in the production of unconventional gas – shale gas, tight gas and coalbed methane (cBm) – coupled with growing lNG capacity have changed longstanding assumptions about natural gas markets around the world. Gas has long been recognized as the preferred www.isotretinoin-online.org fossil fuel from an environmental standpoint, with lower emissions of GHG and other pollutants than coal or oil. recent advances in gas production technology mean that gas is also likely to be more available, and even potentially less expensive, than was assumed just a few years ago.
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David Suzuki Foundation/ Pembina Institute July 2011 – Does a “bridging” role for natural gas stand up to scrutiny? For instance, might im- provements in energy efficiency avoid the need to use more natural gas, even if there is a delay in moving to large-scale non-fossil energy? Could investing in long-lived natural gas infrastructure leave us “locked in” to that energy source, creating a barrier to moving to deeper GHG reductions? Or would power producers willingly accept the retirement of gas-fired plants after a couple of decades? Is the urgency of cutting GHG emissions such that we should move very quickly to end the burning of all fossil fuels? Or might continued combustion of natural gas with carbon dioxide (CO2) capture and storage (CCS) remain viable?
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The article in the Daily Mail today on shale is not only the longest I’ve seen on UK shale in the main stream media but generally remarkably well balanced and informed :
Some U.S. firms have been reluctant to disclose the substances used, inviting the charge that underground aquifers and rivers may become polluted. In one notorious incident in the town of Dimock, Pennsylvania, in the heart of the Marcellus field, fracking fluid leaked into several households’ private wells.
‘But that was because the company wasn’t using proper pipe lining,’ says Chris Carney, who has lived in Dimock for most of his life and until last year represented the town and surrounding district as a Democratic member of the U.S Congress.
‘There was a row of houses along one of the local roads which had their wells polluted, so I guess they’re having to get water from somewhere else. But if it’s done right, fracking has little impact.’
Continue reading UK shale gas as right-wing favourite
Ahead of this week’s Shale Gas Environmental Summit in London, this from the US caught my eye. I think that not only is it important for UK/European greens to have a balance between shale fact and emotion, but they should also pull themselves out of the narrow UK based view that many of them hold. For organisations that pretend to care for the earth, they often seem to have very outdated views of the rest of it. The most common one seems to be the outdated view of China as some kind coal spewing energy sucking evil squid taking over the world. Another place where European Greens should look is California. The state is one of the most advanced in energy efficiency, renewables and a public policy of many years dedicated to sustainable development. If ambitious climate targets need a reality check in sunny, windy and liberal minded California, aren’t we overdue? Continue reading Reality check needed in California. What does that tell us about Europe?
I’ve been asking lately where the other oil plays in Europe will be found. A strong hint here contained within the recent ExxonMobil earnings call:
Turning now to an update on our unconventional activities on Slide 10. ExxonMobil’s global portfolio of unconventional assets contains a growing number of highly-prospective liquids-rich plays….We are also involved in multiple emerging liquids-rich shale plays, the most active of which is the Woodford shale in the southern Oklahoma Ardmore Basin area. Continue reading ExxonMobil, oil and German shale
This story from the Australian is notable in that we see someone who previously has been quoted as wanting to leave shale in the ground looking like he has turned his views upside down. Or is that only the view from down-under? First we set the stage:
IT was the sort of discovery that might make a minister for energy feel he had won the lottery in a world of rising energy prices and relentless pressure to reduce carbon emissions.
Chris Huhne, Britain’s Secretary for Energy, was told last month that Cuadrilla Resources, a 41 per cent Australian-owned exploration firm, had discovered massive deposits of clean, cheap gas in shale rock around Blackpool in northern England.
But Huhne has not been celebrating loudly. Continue reading UK Shale opponent changes tune?
The implications of this story from China Daily are fascinating on several levels. Firstly, it’s worth remembering that China Daily is state-owned and considered as reflecting official policies. Bear that in mind and the implications of this op-ed headline cut away some gas market fundamentals world wide:
It makes sense for China to walk away from gas deal Continue reading Shale changes China and Russia gas