China, Shale, Natural Gas, Schlumberger, HIWAY

It's all here - this article at the Oil Drum.

Data points in the article and in the comments:

• China's consumption of natural gas will triple by 2020 -- that's about eight years from now
• China hopes to find some of that necessary natural gas inside their own country
• for a large part of their country, natural gas makes more sense that coal
• Schlumberger has bought into a Chinese oilfield services company

Some of the folks who commented on the article got off-topic and started asking about whether HIWAY was cracked up (fracked up?) to be all that great. I'm just impressed folks know about HIWAY and even reference Petrohawk's publicized experience with the process.

Wind Power Update in England -- And, Yes, a Connection to the Bakken

Updates

November 27, 2013: the Atlantic Array is scuttled; it was to have been the world's largest; west coast of England. Would have provided enough electricity for 2.5 million homes (compare to half million for the London Array).

July 4, 2013: the world's largest off-shore wind farm, The London Array, is up and running.

The fleet of 175 wind turbines stationed in the salty waters of the outer Thames estuary, where the river Thames empties into the North Sea, boasts a nameplate capacity of 630 megawatts, which is enough to power nearly half a million homes.

Previously, the world’s largest offshore wind farm was the 500 MW Greater Gabbard wind power facility off the coast of East Anglia.

The UK currently boasts more than 3.6 gigawatts of total offshore wind power capacity, which is forecast to more than quintuple in size by 2020.

Be sure to put this story into perspective.  We'll see if the Brits follow through on increasing the number of off-shore wind farms at the huge expense they incur.

Original Post 

First electricity produced by the London Array. First phase should be completed by end of 2012; 151 of planned 175 turbines have been constructed. Phase II (another 166 turbines) has not yet been approved. The risk of Phase II to the red throated diver (a duck) is holding up the approval. October 29, 2012 (first link); October 26, 2012 (second link).

The London Array is almost ready to provide electricity to citizens in southwest England.

When the first phase of the London Array is complete by the end of this year, it will generate 630 megawatts of electricity – enough power for more than 470,000 homes, or two thirds of the homes in Kent. 

Onshore wind farms, heavily criticised for their visual impact on the landscape, have generated a great deal of vocal opposition in recent years. In 2010 32 out of 66 applications for onshore wind farms were rejected. Offshore wind power, however, is expanding rapidly. Britain’s first offshore wind farm, near Blyth in Northumberland, opened in 2000, and since then another 14 farms (about 570 turbines and counting) have been built around the country, including three others in the Thames Estuary between the Kent and Essex coasts. Another six are under construction; a further seven have planning approval.

The linked article was published in the (London) Telegraph on July 28, 2012.

Now this, posted on the internet at the Oil Drum on September 9, 2012.

On occasion, the British Government goes through an internal shake-up that leads to various pundits trying to explain to us lesser mortals what it all means. Thus, with changes in the Ministers who work in the Department of Energy and Climate Change, there is a suggestion that the UK is pulling back from their commitment to wind energy, and instead beginning to look more seriously at shale gas supplies.

The UK is not unique. The success of the American development of long horizontal well drilling, with follow-on multiple fracture of the shale beds to release gas at economic volumes into the well, has caught the world’s attention, and with it a desire to emulate that success. Though it should be said that the American success comes in part with the volume of the release in supply and the consequent fall induced in the price of natural gas. That, in turn, is providing a less well-recognized boost to the US economy, through lower energy costs.

This sentence: The success of the American development of long horizontal well drilling, with follow-on multiple fracture of the shale beds to release gas at economic volumes into the well, has caught the world’s attention, and with it a desire to emulate that success -- that's the link to the Bakken.

Now, back to England. This was posted at Mail Online back in May, 2011.

Cash-strapped families face a stinging 50 per cent rise in their gas and electricity bills in the next four years, analysts warned last night. 

The hike in fuel bills is expected as Britain becomes more reliant on imported gas. 

It will also be needed to pay for the new generation of nuclear power stations, the upgrading of the national grid, and the creation of thousands of wind turbines to meet Europe’s tough climate change targets.

After the Japanese nuclear disaster, some countries are re-thinking nuclear. It will be interesting to check back on England's energy program during the next two years.

What You Will Be Talking About Monday; Frac and Trade; Wells Coming Off Confidential List -- Looks Like XTO Has a Nice Well, OXY - A Nice Well; Shipping NG To Europe? Already Happening - WSJ

School's Out in Chicago: summer vacation extended

Chicago teachers have the highest average salary of any city at $76,000 a year before benefits. The average family in the city only earns $47,000 a year. Yet the teachers rejected a 16 percent salary increase over four years at a time when most families are not getting any raises or are looking for work. Three months summer vacation? Liberal vacation during the school year -- all federal and state holidays; four-day Thanksgiving; two-week winter holiday; one-week spring holiday. What am I missing?

GOLF: BMW Champion -- Rory
NASCAR: Richmond short track -- Jeff Gordon, 3rd, and in the Chase! NFL: Peyton doesn't touch the ball for almost an hour (half-time included) and scores his 400th career touchdown pass in 36 seconds!

******************** Housekeeping: Stony Creek oil field has been updated.

*******************

Energy Links for Monday; Other Links

Bakken buyout candidates, Part IV -- Mike Filloon
RBN Energy: Part II on natural gas processing economics.
Chevron's dividend: I generally don't care for this kind of article, but I assume some readers do
Japan's growth worse than that of France? Japan cuts GDP estimate to 0.7%; Hollande said French GDP will probably be 0.8% for 2013 (about 0.3 percent now)

********************
Wells coming off confidential list over the weekend and Monday:

• 22421, drl, WPX/Dakota-3, George Evans 11V, Van Hook,
• 21738, 536, Hess, BW-ABM 149-100-1819H-1, Ellsworth, t7/12; cum 9K 7/12;
• 21861, 1,388, BEXP, Myron 9-4 1H, Squires, t5/12; cum 19K 7/12; 
• 22080, 781, Hess, EN-Fretheim 154-93-0508H-2, Robinson Lake, t6/12; cum 41K 7/12; 
• 22243, 1,313, Zenergy, Martin 16-21H, Trenton, t5/12; cum 34K 7/12; 
• 20078, 632, OXY USA/Anschutz, Robert Sadowsky 1-2-35H-143-96, Manning; t3/12; cum 25K 7/12;
• 21364, 130, CLR, Nordness 1-18H, Wildrose, t6/12; cum 5K 7/12; 
• 22311, drl, XTO, Thompson 44X-20E, Blue Buttes; cum 60K -- no IP yet;
• 21207, 182, Petro-Hunt, Stromme Family Trust 157-101-11C-2-1H, Otter; t5/12; cum 13K 7/12; 
• 21737, 571, Hess, BW-KKMP-149-100-0706H-1, Ellsworth, t7/12; cum 14K 7/12; 
• 21955, drl, BEXP, Cvancara 20-17 3H, Alger,
• 22056, drl, BEXP, Wagenman 29-32 2H, Todd,
• 22151, 1,538, Denbury, Tobacco Garden 41-18SH, Tobacco Garden, t6/12; cum 34K 7/12; 
• 22226, 819, G3 Operating, Johnson 1-25-36H, Strandahl, t5/12; cum 24K 7/12; 
• 22455, 1,780, MRO, Mylo Wolding 24-11H, Reunion Bay, t6/12; cum 29K 7/12; 

A lot of wells coming off the confidential list these last three days; noticeably absent: EOG.

********************* US Shipping Natural Gas to Europe (sort of) The first new plant to export natural gas from the US may not be completed by 2015, but yet the WSJ (p. C14) suggests it's already happening -- it's a stretch and the kind of circuitous thinking of which I am often accused. Here are the dots:

a) US switching from coal to natural gas --> excess coal b) Europe switching to coal c) US sends excess coal to Europe (this is the "NG export) d) natural gas costs $9 per mcf in Europe; $2.50 in the US e) Europe's coal-fired plants generate margins five times higher than those burning gas (wind/solar?) f) US coal exports to Europe were up almost 30% yoy in 1Q12, and up more than 70% than the 4Q10

On the same page, there is an article suggesting oil supplies are not all that tight. The SPR holds 700 million bbls; by international agreement, Citi sees the US requiring only 117 million bbls by 2020; between now and then the US could dump a fair amount of oil on the open market; at $100/bbl could help with US budget. Hey, more spending. Deficit? What deficit?

********************* What the president's fracking regulations will cost us: $1.5 billion/year.

The Obama administration’s plan to tighten regulation of hydraulic fracturing for natural gas on public land may cost more than 20 times U.S. estimates, energy companies and local governments said.

The $1.5 billion is manageable. What will be frustrating to the hundreds of thousands of small mineral rights owners:

“The proposed rule will also place undue economic burdens and time delays on independent oil and natural- gas producers that will inevitably drive many smaller companies away from exploring for oil and natural gas on federal lands.”

Note: the article was posted exactly 2 minutes after the end of the business day on the last day of the business week. A reader noticed that; I did not. Little matter: even had this been posted during the news cycle, the mainstream media would not have picked up on it.

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For Chester.

There's a long story how I came back to this video, but I will spare you the pain of reading. Enjoy:

Extreme Sheepherding

It seems to me this video was removed from YouTube at one time; regardless, it is here.

********************** School's Out, Alice Cooper

Graphic of the Day -- A Non-Bakken Story: Avoid This Post If You Came Here for The Bakken

Graphic of the day for source, or go directly to the graphic:

http://www.ijreview.com/wp-content/uploads/2012/09/Screen-shot-2012-08-02-at-10.45.36-AM.png_.jpg

So you don't miss the point, be sure to scroll to the bottom of the graphic; it can be easy to miss.

WARNING: the link will take you to a non-Bakken story. If you came here for the Bakken, scroll down, and avoid this link.

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Barack Obama: I'll work with Republicans if they agree to raise taxes.

Bill Clinton: Fool you once, shame on me; fool you twice, shame on you. 

Barack has already raised taxes. See ObamaCare.

The Russian Bakken -- Re-Visited

Updates

September 26, 2021:

• The Bazenhov: reader brings it up again.
  

• wiki;
• from 2014, from Reuters;

January 3, 2017: Gazprom Neft strives to go it alone in Russian shale oil. 

There is nothing outwardly remarkable about oil well cluster number 933 in the South Priobskoye field: Siberian marshland stretches out to the horizon, dotted with birds and drilling rigs. But beneath the surface, this spot is at the forefront of the Russian oil industry’s efforts to deliver a shale energy revolution that could be just as transformative as the one witnessed in the US over the past 15 years.

Gazprom Neft, the oil division of state-controlled gas giant Gazprom, set a Russian record in the summer by completing 30 hydraulic fractures along the length of one well at cluster 933.

June 2, 2015: update. References the Bakken. 

December 8, 2012: an update on the Bazhenov, and comparing it to the Bakken. Quite a story. 

Original Post

There have been a lot of headlines at Rigzone, others regarding Rosneft, most of which I don't follow. My mistake. Here's a story I missed:

Bazhenov’s geology is similar to North Dakota’s Bakken shale, where crude oil production has more than doubled in two years.  

As part of the alliance with Exxon, Moscow-based Rosneft in April said it acquired a 30 percent stake in a Texas tight oil project to gain experience with the technology.  

“The in-place potential is enormous -- billions of barrels,” Exxon CEO Rex Tillerson said in an April 18, 2012, conference call. “The real issue is can we develop it in a cost effective way? -- same as the issue we have with tight oil and unconventional resources in North America.”  

Exxon will be able to book reserves in a mature oil province without taking on the exploration or environment risk it faces in its offshore projects with Rosneft, which will require an initial $3.2 billion investment to explore in the Arctic Kara Sea and the Black Sea.  

While Exxon and European rivals such as Statoil ASA have generated more media interest in their projects to develop virgin deposits in the Arctic by the 2020s, fracking Soviet-era Siberian wells may yield crude sooner.

I posted a story about the Bazhenov in June, 2012.

I believe "Bazhenov" (pronounced "Baa-ze-nof" with stress on first syllable, least stress on middle syllable) is Russian for "Bakken."

Just joking.