Two More US-LNG-Export Stories -- April 28, 2017; Look At the Number Of Jobs One LNG Export Facility Will Generate -- President Obama, What Were You Thinking?

This past week has been an incredible week for LNG and the US and exports. Here are two more stories sent to me by a reader:

Cheniere ships LNG to Poland as Europe seeks less reliance on Russian gas. From FuelFix. Data points:

• will be first shale gas to a member of the former Soviet bloc
• Europe seeks to cut its dependence on fuel from Russia
• this is the first such contract for Central and Eastern Europe
• no LNG has been shipped to northern Europe since Sabine Pass started exports more than a year ago
• Poland may offer a new outlet for Cheniere

For those with a long memory, Poland put too many obstacles in the way for E&P operators to explore for shale gas in their own country (I believe it was ExxonMobil that inally gave up trying; this was not that many years ago; within the lifetime of the blog).

By the way, where is Sabine Pass shipping US LNG? Glad you asked. From that link from Bloomberg:

Second story: Golden Pass LNG cleared to export, also at FuelFix. Data points:

• DOE approved
• up to 2.21 billion cubic feet of gas per day
• located outside Sabine Pass, was originally built to import LNG from abroad in 2009
• following the Bakken boom (memo to Jane Nielson), a joint venture between Qatar Petroleum, ExxonMobil and ConocoPhillips shifted gears
• the number of export facilities continues to grow; now there are seven under construction; another four that have been approved but not yet begun
• US SecEnergy Rick Perry gives the credit to President Trump
• Golden Pass not yet completed
• will provide 45,000 direct and indirect jobs over five years; another 3,800 direct and indirect jobs over the next 25 years  

Meanwhile, no new jobs under President Obama, but now he's giving speeches that fetch him $400,000. To date: one. Another one scheduled. Even Pocahontas expressed concern.

Multi-Zone Gas and Oil Discovery in Poland's Eastern Baltic Basin -- And A Coincidental Link to the US Alberta Bakken

Updates

A few hours later: it is always amazing what dot connects to another dot. I had no idea there was a connection between Poland and the Bakken -- the Alberta Bakken, in this case.  See first comment ("thank you" to "anon 1." First: this link to FX Energy.

FX Energy, Inc., is an independent oil and gas company focused on Poland.  We believe Poland’s hydrocarbon producing areas are underexplored because the country was closed to competition from foreign exploration companies for many decades.  FX Energy has accumulated a large land position in known productive areas, assembled a sophisticated technical team, and generated a number of attractive gas prospects.

Then a link to their corporate presentation.  Slide 28/30 shows the company's link to the US Alberta Bakken.

• FX has a joint venture with American Eagle Energy, Inc., and Big Sky Operating LLC to participate in a broader area of the southern Alberta Bakken play
• The joint venture holds an acreage spread of approximately 75,000 net acres, including FX’s Cut Bank acreage below the Cut Bank horizon; each party holds a one-third interest
• In 2011 the FX JV parties drilled 3 vertical wells and tested oil in the Lodgepole, Bakken and Three Forks; the parties also drilled and fracked a 3,600’ lateral (currently testing) on one of the three wells
• Starting in March the parties plan to drill two more vertical wells and drill, frac and test a 4,000’ lateral on one of the vertical wells drilled in 2011

Original Post

I normally would not have posted this as a stand-alone post, but the timeliness of the article is too good to pass up.

I am an eternal optimist (one of the reasons why I am not a great investor -- smile) and don't have much tolerance for 24/7 pessimists. So this is too much "fun" to pass up.

Yesterday, I linked a story about the Polish shale gas story and how it might upset the Russian gas monopoly in eastern Europe. A realist reminded me that just 'cause there's shale there (in Poland) doesn't mean it can be productive, noting that XOM had drilled two dry holes.

So, it was great to receive this link about a multi-zone gas and oil discovery in Poland's eastern Baltic basin.

Talisman Energy Inc. has set production casing at an indicated multizone discovery in Poland’s eastern Baltic basin.

Partner San Leon Energy PLC said the Rogity-1 well on the Braniewo S concession went to 2,788 m and encountered continuous gas shows over more than 500 m of the Lower Silurian, Ordovician, and Middle Cambrian sections. The rich gas shows consisted of heavy hydrocarbons, including C1-nC8, San Leon said.

The richness of the gas shows is consistent with a wet gas system, confirming the company’s regional model of the eastern side of the basin being in the oil window, San Leon said. The strongest gas shows, along with indications of oil, were encountered in the Lower Silurian interval, estimated to be more than 100 m thick. Oil shows were also found in Ordovician limestones and shales and in Middle Cambrian sandstone.

Poland Shale Gase Could Upset Russia's Monopoly --- Using American Technology

Updates

February 14, 2012: multi-zone discovery well announced in Poland's east Baltic basin.  See comment.

Original Post

Link here to Reuter's:

But the shale gas push [in Poland] is about more than energy. Poland wants to break its reliance on Russian energy and reduce Moscow's power over Europe. That is one reason why Warsaw has welcomed U.S. oil majors such as Chevron, Exxon Mobil, Conoco and Marathon, even though it risks igniting tensions with Russia.

"If this thing comes true, if the American technologies deployed here at some point are really able to produce this gas, then this means a winning situation for the whole of Europe really," Radzieciak said in an interview in his small office filled with sports trophies, banners from local teams and a large map of Poland on the wall. "It would create more competitiveness on the gas market, which is now dominated by Russia, and one side would not be able to force anything unilaterally anymore."

I really don't care about the geo-political issues here. What is most interesting to me is that it is American technology being bought and it is CVX, XOM, COP, and MRO that are being emphasized. 

In the big scheme of things, I am glad that the president does not emphasize US leadership in oil and gas technology; it would only invite the anarchists to target our overseas operations.

Right or wrong, my "myth" is that a lot of this technology was developed and is being developed in the Bakken.