The Surge in Oil Wells Nationwide --

Link here.

Natural gas drilling has been the dominant energy story in the U.S. for the past few years, but oil is back with a vengeance.

For the first time in 18 years, the number of oil rigs working in the U.S. has exceeded the number of natural gas rigs, according to July rig data compiled by IHS-CERA, covering both land and offshore rigs.

By 2020 this surge in oil drilling could increase U.S. oil production by as much as 3 million barrels per day, Peter Stark, head of IHS-CERA's industry relations said Wednesday during a session launching the start of Summer NAPE, the semi-annual oil and gas prospects expo being held in Houston. 

But:

The surge could slow if natural gas prices continue to rise and make gas projects more attractive -- which many analysts expect in the next year.

And this is why I commented on another post why it concerns me that a well in the Bakken can now cost $9 million:

In some cases drilling for oil can cost less than for gas. Tom Ward, CEO of SandRidge Energy, said his company is spending as little as $760,000 per well in the Central Basin field in the Permian, compared to several million per well in most shale gas fields.

John Christmann, head of Apache Corp.'s Permian Basin operations, said his company has acquired acreage in the Empire ABO field in the Permian, a field where no new wells have been drilled since 1984.

"In some cases you have million-barrel wells that have never had an offset drilled near them," Christmann said, seeing strong potential for large quantities of oil.

Yup, The Permitorium Continues -- This is Truly Incredible -- US Government Playing Hardball

Link here.

Exxon Mobil Corp. and the federal government are fighting over one of the largest oil discoveries in the Gulf of Mexico that could yield billions of dollars of crude in coming years, according to a report in The Wall Street Journal.

The Julia oil field, about 250 miles southwest of New Orleans, may hold billions of barrels of oil and gas equivalent. Exxon, which announced the discovery in 2008, wants to tap that field. But the Interior Department says Exxon's leases have expired and the company hasn't met requirements for an extension.

I've followed this story for months. The Obama administration telegraphed their intentions and they followed through. The government will argue that it is tired of companies sitting on oil reserves and not developing them.

Interestingly it was the same government that put a stop on drilling in the Gulf for the past year.

Eight (8) New Permits -- Bakken, North Dakota, USA

Daily activity report, August 18, 2011 --

Operators: Hess (3), Denbury Onshore (2), Murex, MRO, CLR

Fields: Arnegard, Big Butte, Alkali Creek, McGregor, Murphy Creek and a wildcat.

CLR has the wildcat in Williams County.

Denbury Onshore has a 2-well pad permit in Arnegard oil field; Hess has a 2-well pad permit in Big Butte.

Slawson had two permits canceled (16818 and 17535); probably a typo, but NDIC reported both with the same name: Panther 1-29H, and both located at the identical location: NWNE 29-158N-91W.

This is a long list: Whiting requested and was approved "tight hole" status for seven wells; Oasis "ditto" for four wells. With one exception all of Whiting's wells were in Mountrail County (probably Sanish oil field, its cash cow); with one exception, all of Oasis' wells were in Williams County.

Carpe Diem: "Peak Solar" Hits Tennessee, Oregon

Link here.

Bottom line: solar energy comes to an end in two states as state legislatures cut subsidies. Solar was just getting too expensive.

For the longest time -- on my previous blog -- I posted the cost of solar energy; it was about 5x that of conventional energy (residential electricity: 30 cents vs 6 cents for similar unit of electricity). I finally gave up keeping track: the numbers weren't changing and one of two things was bound to happen: a) states would continue to lose money subsidizing solar energy; or, b) states would quit subsidizing solar energy.

Not once did I see the price of solar energy coming down far enough to compete with conventional sources. The economics were simply not there.

Wind energy might last a bit longer. But there is a huge difference in the economics between solar and wind energy.

This is not to say that solar energy does not have its place in the energy field. It does.

Wow, Wow, Wow! Has America Already Lost Interest in the GM Volt?

Update

This is why folks are losing interest in the electric car: the shocking truth about electric cars -- they are powered by coal, and they cost too much.

Original Post

Link here.

Polls show "early adopters" less inclined to stick with the Volt.

The big problem is the plug-in’s price, CNW data indicate.  When first introduced, the Volt carried a $41,000 sticker, though it qualified for a $7,500 federal tax credit.  For 2012, the Chevy will drop to $39,995, a $1,005 cut, though it is still thousands more than the Nissan Leaf – and nearly double the price of a base Chevrolet Cruze compact, which shares the same underpinnings as Volt.

According to Wiki:

The Edsel was an automobile manufactured by the Ford Motor Company during the 1958, 1959, and 1960 model years. The Edsel never gained popularity with contemporary American car buyers and sold poorly. Consequently, the Ford Motor Company lost millions of dollars on the Edsel's development, manufacture, and marketing. The name "Edsel" has since become synonymous with failure.

Flashback: George Will on the Volt.