Note: somehow I accidentally deleted this comment. This comment should have been published:
Anonymous has left a new comment on your post "A Story Out of the Mideast About the Bakken":I posted a reply in the comment section below. This whole thing has gotten very confusing. Sorry. I will try to do better in the future.
Bruce, you’re site is so complete, thorough and organized I stopped posting back in June of 2010. Somehow you missed a 08/30/10 blurb about the Bakken Shale oilfield from The National in Abu Dhabi entitled, “A new US oil rush could rock OPEC” that is really old old news, except for this “gem” at the end of the article.
“ The effects of that have rippled around the world, weighing not only on North American gas prices but also on international markets for the liquefied natural gas now shipped across oceans from states such as Qatar. OPEC producers would do well to remember that; the next threat to oil price stability may come not from market speculation or renewable energy but from a new North American oil rush.” tcarlisle@thenational.ae
For the full article see my 8/30/10 post on the IV HES BB at
http://www.investorvillage.com/smbd.asp?mb=4307&mn=253&pt=msg&mid=9458325
Good Luck and Good Investing. HLW3333 08/30/10
If you click on the link above ("This story is from an English website" out of the Mideast), it is the article you are referencing.
ReplyDeleteThank you for your very kind words. I have to thank many folks for sending me links I would otherwise miss. "Don" is, by far, the most helpful.
Thank you for your link.
Short of federal change in policies that would destroy the US oil industry, I think the Bakken has a long, long way to run.
Under five percent of US/North American Natural gas is LNG. Pipelines or the lack thereof are the key component here. US and Canadian coastal areas have relatively poor natural gas access because they can get oil via tanker-ship which is relatively cost effective. We would need to approve and build huge natural gas pipeline systems so we could export the gas as LNG.
ReplyDeleteHello!. The US and Canada can eventually absorb any potential natural gas increase with a little time. LNG is expensive. You might compare it to truck versus pipeline transport of oil.
I worked nights a few blocks from the Minneapolis Energy Center (the parking ramp rooftop in the movie "Fargo". Sometimes they would have a dozen oil tanker semi trucks lined up to unload. They prefer natural gas. (I checked one time). One thing T Boone Picken got right is urban commercial vehicles running of natural gas. Supposedly a big garbage truck uses the energy of more than two-hundred personal automobiles.
There is also the "political" aspects because the majority of Americans and Canadians use natural gas for heating and cooking. An opponent of exports would argue that this would drive the costs up for consumers.
Basically, Bakken and the US and Canada will never be significant players in the LNG market.
Here is a map of coal in the Bakken region. http://en.wikipedia.org/wiki/File:Us_coal_regions_1996.png