Friday, October 19, 2018

On Average, New England Will Have Enough Electricity This Winter -- October 19, 2018 -- Nothing About The Bakken

If you came here looking for the Bakken, skip this page, scroll on! 


Updates

October 22, 2018: in the original post, I asked what happened to coal in New England? The last coal plant was shut down in early 2017. Link here.

October 20, 2018: a graphic that might help. PJM stands for Pennsylvania, (New) Jersey, and Maryland)


October 20, 2018: maybe New England can buy electricity from PJM if push comes to shove. From oilvoice.com:
The average annual capacity factors for natural gas-fired generators in the PJM Interconnection—the largest competitive wholesale electricity market in the United States—have increased in recent years, reflecting greater use of natural gas-fired generators in the region.
The increase in PJM's capacity factors for natural gas-fired generators is the largest of any regional transmission organization in the country in the past five years (2013–2017).
Similar to the rest of the country, the share of natural gas-fired electricity generation in PJM has increased during the past five years as relatively low natural gas prices have made natural gas more cost-competitive with coal.
Much of the increase in generation from natural gas is from generating units using combined-cycle technology. By comparison, the use of natural gas-fired combustion turbines in PJM has remained relatively constant.
Average annual capacity factors for natural gas-fired combined-cycle generators in PJM first surpassed those of coal-fired generators in 2015. Relatively lower natural gas prices—in part because of PJM's proximity to Appalachian natural gas production—have been a primary driver for increasing natural gas capacity factors. 
October 20, 2018: from an earlier link, the core of PJM (Pennsylvania, Maryland, New Jersey, Delaware, Virginia, West Virginia and Ohio).

Original Post

This is what happens when you don't build wind towers and solar farms -- you risk running out of electricity. Hmmm. Sure.

This is a regional story; I've blogged about it often but if one doesn't keep reading about it, one forgets all the details. It gets confusing.

This is up in New England, Boston, specifically.

From The Boston Globe.

Link here.
Balance of power: Brisk enough for you yet? Try going without electricity. As the heating season arrives, the cooler weather again brings concerns that we could run out of juice on chilly days.

Just yesterday, the CEO of grid overseer ISO New England, Gordon van Welie, said we were precariously close to 
rolling blackouts -- “one large contingency away,” as he put it to an Associated Press reporter -- during last winter’s cold snap. Yes, it’s his job to tell everyone the sky is falling; ISO’s priority is ensuring the lights stay on across the region. But his warnings are sounding starker.

The giant Mystic gas-fired plant in Everett could hold the key -- especially now that it’s on the brink of closure. Owner Exelon is already retiring two smaller turbines there. The fate of its larger natural gas-fired units, Mystic 8 and 9, remain up in the air.
Archived. 

Data points as I understand them. Note: I could be way wrong on a lot of this stuff. I don't follow the New England electric grid all that closely.
  • the largest power plant in New England is Milstone, in Connecticut
  • the second largest power plant in New England is Mystic
  • over the years, ISO New England has relied more and more on natural gas
  • Mystic power plant is owned by Exelon, based in Chicago
  • source of natural gas for Mystic is a natural gas import terminal literally next door
  • the import terminal was formerly known as Distrigas, but is now also owned by Exelon -- the article didn't say if the terminal had a new name; maybe Mystic Terminal?
  • so Exelon, Chicago-based, owns both the fuel source and the power plant
  • Exelon, Chicago-based, says Mystic is no longer economic to run
  • in an attempt to make it more economic to run, Chicago-based Exelon has already retired two smaller gas-fired (?) turbines at Mystic (the article did not say whether these turbines were gas-fired or coal-fired or run by hamsters on a tread mill)
  • Chicago-based Exelon is considering unplugging two larger natural gas-fired units, Mystic 8 and 9, to bring the plant back to profitability
  • apparently, Exelon plans to shut down Mystic entirely by 2022
  • did we mention that Mystic is the second largest power plant in New England?
  • the writer of the linked article seems to be as concerned about the fate of the natural gas import terminal as the power plant
  • if the power plant is closed, the import terminal is no longer needed
  • the import terminal imports LNG from "foreign shores"
  • Exelon says it needs $1/month/each customer to keep the plant open until .... drum roll ... 2024  -- but it cannot increase rates without federal government (FERC) approval
So many questions not addressed in this article:
  • was Boston also the home of the Big Dig? 
  • the writer does not mention that as recently as Labor Day, 2018, an "anomaly" pushed the grid "to the brink"; link here.
  • why is the writer so worried about the import terminal? after all, if Mystic is closed, apparently there's no need to import foreign LNG
  • why is New England importing foreign LNG when this country, the US, has a glut of LNG and is exporting same?
  • why is Mystic unable to make a profit? where are customers getting their electricity? 
  • did this happen overnight? Or is this simply poor planning?
  • why is solar energy and/or wind energy not making up the difference?
  • is ISO England learning the same lessons that Germany and Spain learned? If so, were those lessons being taught a decade ago?
  • can Milstone provide the necessary power to preclude rolling blackouts?
  • it sounds like "everyone" is being alarmist; apparently ISO New England can purchase electricity from outside the region based on other articles; not sure if that is true; if so, no need for "rolling blackouts" -- there are other sources for electricity
ISO New England is linked here. 
  • What happened to coal?
  • On the "fuel mix" graphic today, coal is not even shown (I keep looking, assuming I'm missing something).

    Last December 27, 2017, coal made up 5 - 6% of the mix. What happened to the coal in less than a year?

    Bottom line: 

    It looks like to me that there really isn't a problem for the customers served by Mystic. On average, Mystic has more than enough electricity. On average, Mystic has so much excess electricity, the utility "gives it away" -- at least giving away enough to preclude profitability. So, on average, Mystic's customers will do just fine. On average they have more than enough electricity, enough that on average they don't need the region's second largest power plant any more. 

    Wow. When you think about it -- when you put it that way -- that's amazing. A region able to shut down its second largest power plant and still have enough electricity on average for all its customers. Imagine all the CO2 that won't be emitted. And the sacrifice? Occasional rolling blackouts. David Henry Thoreau would be supportive. 

    By the way, we're talking "blackouts," not "brownouts." 

    But my understanding is that this will be a mild winter in New England. What, me worry?


    **********************************
    More On Mystic

    This was from a post on July 12, 2016. To save you the trouble of having to click on the link and leave this page, here is that post:
    This is a cool story from Bloomberg. Again, I would not have known about this story had it not been for the blog and readers who alerted it to me sometime ago.
    I've actually blogged about the Mystic River (once) before. See these other posts regarding the linked Bloomberg story above:
    Here's the most recent article, titled "Pipeline Phobia Keeps New England's Unlikely Trade Route Open" -- reminds me of the rum and molasses trade during the Revolutionary War:
    Thanks to the shale revolution, the U.S. has plenty of natural gas of its own. All along the eastern seaboard, a chain of import terminals -- built when the country expected to get its fuel from abroad -- now lie idle.

    Except one.

    For reasons that have to do with environmental politics and geology, New England is bucking the trend. Three or four times a month, a police helicopter escorts giant ships through Boston Harbor, as they deliver liquefied natural gas from Trinidad to a terminal on the Mystic River. [And spewing all that CO2.]
    Why buy from the Caribbean, when so much cheap gas is pumped out of Pennsylvania and Ohio? One objection is the new pipelines needed to bring it to New England. The Northeast is famously cold in winter, and it sits on beds of granite that make underground fuel storage a problem, so gas and power prices typically spike way above the rest of the country when there’s a freeze. But using shale gas to cut the bills means a longer-term commitment to fossil fuels, and any proposed pipeline route triggers local objections: it will leave a scar along the Catskill Mountains, or pose a safety risk to residential neighborhoods. That’s the dilemma that has given Engie SA’s import facility near Boston, unlike all its peers, a new lease on life.

    “We’ve been competing with pipelines since we opened,” Carol Churchill, a spokeswoman for the French utility in Massachusetts, said by phone. Once the gas arrives in Boston, some of it goes straight to an adjacent Exelon Corp. power station and the rest is transported via existing pipes or by truck. “It doesn’t make sense to build a pipeline to satisfy demand for 30 to 40 days a year,” Churchill says.

    That argument has seen off a few potential rivals. Kinder Morgan Inc. scrapped its proposed $3.3 billion Northeast Energy Direct project in April, after failing to sign up enough customers. The Constitution Pipeline, intended to bring Marcellus gas from Pennsylvania, has been held up because New York denied a water permit, amid concern about contamination of the city’s supply.

    Solution or Stopgap?

    Instead, New England relies on tankers like the BW GDF Suez Everett, a regular visitor, whose logbook reflects the surge in Yankee demand. It used to roam the world’s seas, putting in at places like Singapore, Nigeria and Yemen; this year, it’s been plying a straight shuttle between Trinidad, where it loads up with LNG, and Boston.

    Engie’s terminal there looked like it was sliding into disuse a couple of years ago, but now it’s taking in more cargoes than at any time since 2012. It supplied 11 percent of New England’s gas in January.

    To pipeline-builders, that’s a stopgap not a solution. They point out that New England, like other parts of the U.S., has a growing appetite for natural gas in homes and power plants, as dirtier fossil fuels like coal and oil are phased out. Gas-fired plants are providing more than half of the Northeast’s power supply this month, up from 15 percent in 2000.
    Wow, I did not know it was a French utility. Now, it finally all makes sense. LOL. This is how the 13 colonies continue to thank France for their help in the Revolutionary War.
    ********************************
    The Mystic River or As The Native Americans Call It: The Big River River

    From wiki:
    The Mystic River is a 7.0-mile-long (11.3 km) river in Massachusetts, in the United States. Its name derives from the Wampanoag word muhs-uhtuq, which translates to "big river." In an Algonquian language, missi-tuk means "a great river whose waters are driven by waves," alluding to the original tidal nature of the Mystic. The resemblance to the English word mystic is a coincidence.  
    And no, the "original Pocahontas, being from "Virginia" was not Wampanoag. Again from wiki:
    ... Pamunkey Indian Tribe, descendants of the Powhatan chiefdom, of which Pocahontas was a member, became the first federally recognized tribe in the state of Virginia.
    The more recent "Pocahontas" is probably of Wampanoag heritage. Or, more than likely, not.

    *****************************
    Whales

    Whales can be divided into two large groups: baleen whales and toothed whales. Baleen whales split from toothed whales (Odontoceti) around 34 million years ago. Hard to believe, but that would be some years before Bernie Sanders arrived on the scene. 

    Baleen whales (systematic name Mysticeti), known earlier as whalebone whales, form a parvorder of the infraorder Cetacea (whales, dolphins and porpoises).

    When we "lived" in Boston many years ago, I was always struck by the common root word for the Mystic River and the Mysticeti. I never did fully understand the relationship between the two if there was one. I visited the best whale museum in the world in New Bedford, MA, but I don't recall if I asked about that when I visited. If I didn't, it was another missed opportunity.

    If you are in the area, the three things you cannot miss when visiting New Bedford, MA:
    • the Whaling Museum;
    • Seamen's Bethel; and,
    • the little soup and sandwich shop that is overcrowded in the summer and empty in the winter across the street from Seamen's Bethel
     No one ever gives John D Rockefeller enough credit for saving the whales.

    Idle Rambling On Natural Gas Imports Around The World; Wow, Look At Italy -- October 19, 2018

    From wiki, natural gas imports, ranked by country (the data is not the most current, but looking at several sources, it's fairly accurate on a "currency" basis):

    I assume the Canadian and US imports are pretty much based on region and cost; one might consider US-Canada one natural gas market (supply and demand).

    I was curious about this after reading this in oilprice.com regarding China, from April, 2018:
    Earlier this month Sinopec said it had plans to boost its LNG import capacity to 26 million tons annually over the next six years from the current 9 million tons. 
    China’s total of LNG import capacity is 17 million tons. State energy companies have also begun turning depleted gas fields into gas storage facilities to avoid a repeat of this winter’s supply crunch.
    Plans are to have all 25 underground gas storage sites before winter, and to increase LNG imports: according to Wood Mac, China’s LNG imports are set for a 25-percent increase this year, to 48-49 million tons. 
    And this from same source, today:
    Last year, China became the world’s second-largest LNG importer, taking in some 38 million tons of the fuel, a 46-percent increase on 2016. Even so, some parts of the country suffered shortages because the gas could not reach them fast enough.
    As a result, China is now actively working on expanding its LNG storage capacity and pipeline network. It is also expanding its domestic natural gas production and storage capacity.
    In the past 10 years China’s natural gas consumption has risen fourfold to more than 25 billion cu ft daily. Now, companies are turning depleted gas fields into storage facilities as part of efforts to avoid a repeat of last winter’s shortage.
    After reading that China moved into the #2 position when ranked by natural gas imports, I was curious what country was #1. A lot of the data is "old" and, I assume, some of the data is questionable. Having said that, I was amazed to see where Germany, Italy, Great Britain, and France were on the list. I was amazed. Especially with Italy. How do they afford to pay for all that energy? Wow. 

    I've talked about the growing gap between energy-rich countries (pretty much only the US) and the energy-poor countries (pretty much the rest of the world). Yes, the Mideast countries are energy rich but they are hardly major economic players in the big scheme of things; even Russia and Saudi Arabia are not giants in the overall global economy.

    Also, Italy at this link also -- at the top of the list. It's 2014 / 2015 data but Italy is right up there with China (of course, China, back in 2014/2015 was using a lot of coal, but that's another story).


    71 Active Rigs In North Dakota -- October 19, 2018

    A recent high: 71 active rigs.

    Active rigs:

    $69.28→10/19/201810/19/201710/19/201610/19/201510/19/2014
    Active Rigs71563166190

    Four permits today:
    • Operators: Hess (3); Southwestern Production
    • Fields: Ross Mountrail); Tracy Mountain (Billings)
    • Comments: Hess has permits for a 3-well pad in SESE 8-56-91
    And that was all -- I guess "everyone" went hunting.

    Random Update Of Another CLR "R For Replacement" Well -- #24096, Jay In Banks Oil Field -- October 19, 2018

    Yesterday, I wrote at length about this well. Link here for an "R" well:
    • 33863, 2,805, Equinor, Gunderson 15-22 5H-R, Banks, t9/18; cum --
    Now today, I run across another Equinor (Statoil) "R" well. For newbies, look at how great this well is. I've been running through the 2015 wells and it is amazing how good the Bakken wells are; absolutely amazing. The well, a half million bbls of crude oil in three years; this well will likely produce for 30+ years:
    • 24096, 3,148, Equinor/Statoil, Jay 24-13F 1H-R, Banks 49 stages, 11.6 million lbs, t10/15; cum 426K 8/18;

    From the geologist's report: the geologist's report was very bland until I saw this
     ... "where we had a maximum visual flare reaching 50+ feet." For newbies, we generally see flares of 3' to 5'. They were drilling this well over the 4th of July period -- I am not making this up .. "while we circulated, the rig crew by-passed the gas detector system by running all returns through the gas-buster where we had a maximum visual flare reaching 50+ feet. The flare maintained an average height of 15 - 20 feet while circulating continued. Once circulating was completed we resumed drilling the lateral portion of the wellbore at 1945 CST on 8 July 2015, where we saw our gas reach upwards of 8,000 units with a flare averaging 10 - 12 feet in height." Yup, it was quite a show for "July 4th." Clearly a great sense of humor out in the oil patch.
    The graphic: it appears #24096 was a "replacement" well for #21791 which has been permanently abandoned due to liner problems and "complications." That was back in 2015.

    Production profile:
    PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
    BAKKEN8-20183112795126921196440185351094972
    BAKKEN7-20182612623121021365033181250878018
    BAKKEN6-20180000000
    BAKKEN5-20180000000
    BAKKEN4-2018003520000
    BAKKEN3-201828106251106110062399862465315305
    BAKKEN2-20182812030121229888406552424916378
    BAKKEN1-20183113310132718928407762655714188
    BAKKEN12-201731137201335910585379622707310858
    BAKKEN11-20173012576130389425326491925213367
    BAKKEN10-20173111405109799424275501551812001
    BAKKEN9-2017146318579352841358976085960
    BAKKEN8-20173153554139814781268193
    BAKKEN7-201710314142213145987585501305
    BAKKEN6-2017301124310542942328752273221400
    BAKKEN5-20173112720132031006533887306863170
    BAKKEN4-20173012557125101001033035304442561
    BAKKEN3-2017311118311103928827862430723524
    BAKKEN2-201728147491473510878399751922920718
    BAKKEN1-20172815602148791159339315333305957
    BAKKEN12-2016241265813453919134990299854975
    BAKKEN11-20163013811135691112135645323983217
    BAKKEN10-20163116609165591383143620349548635
    BAKKEN9-2016301722217138993845260394155815
    BAKKEN8-20163116263165961311142499379544514
    BAKKEN7-20163118059179141471745220368858335
    BAKKEN6-20162915970160901257839483333696114
    BAKKEN5-20163115451151321356236869323914478
    BAKKEN4-2016301382813918137133349432688806
    BAKKEN3-2016311339213328120633082430408416
    BAKKEN2-2016291381614190125653216731462705
    BAKKEN1-20162916509158341514130326303260
    BAKKEN12-20153115256159471576433588335880
    BAKKEN11-20153020233202032176532765327650
    BAKKEN10-20153119386183863792711286112860

    The XTO Klamm Wells

    The Klamm wells:
    • 30816, 589, XTO, Klamm 34X-9DXA, Siverston, t2/16; cum 204K 8/18;
    • 30815, 705, XTO, Klamm 34X-9H, Siverston, t2/16; cum 162K 8/18;
    • 30814, 95, XTO, Klamm 34X-9D, Siverston, t2/16; cum 204K 8/18;
    • 30813, 294, XTO, Klamm 34X-9GG, Siverston, t2/16; cum 119K 8/18/
    • 18698, 216, XTO, Klamm 34-9NWH, Siverston, t7/10; cum 215K 6/18; off-line as of 6/18 (as of 8/18)
    Note: an Oasis Klamm well one section to the east:
    • 17952, 406, Oasis, Klamm 13-10H, Siverston, t6/09; cum 191K 8/18;