... a pioneer among Marcellus Shale wells in the use of a new, more cost-efficient and environmentally friendly way to frac gas.
Canonsburg-based CNX has signed a three-year contract to use Evolution Well Services’ all-electric frac fleet, which is used in the hydraulic fracturing process and includes a natural gas-fired engine to run the machinery and a turbine that pumps sand and water to bring gas up out of the ground.
CNX is the first producer in the Appalachian basin to use an all-electric frac fleet, and the Richhill well is one of the first to use the new equipment.
Traditionally, hydraulic fracturing is a complicated, energy and labor-intensive process, one that requires engines that have lots of horsepower, a multitude of pipes and constant attention by workers to make sure it’s going right.
But walk around Richhill 13, or any of CNX’s other all-electric frac operations, and you’ll notice how quiet it is. That’s because instead of using diesel fuel and diesel engines to run the equipment, Evolution uses natural gas produced on site to fuel the jet engine-like turbines that power the fracking operation. Natural gas not only is plentifully available at the site, but it also removes from the roads the constant flow of diesel trucks to keep the 24/7 operation running.
Remember: electricity demand will surge in the Bakken over the next 20 years.
Wow, that Drudge Report banner yesterday -- revision in number of jobs created over the past two years ... something is rotten in .... and it's not in Denmark ....
Before getting started (by the way, if you ever want to find this clip quickly, search "doofus"):
Doofus-in-Chief
We just can't drill our way to lower prices -- we also have to build pipelines. Gasoline is twice as expensive in California as it is in Texas (or so I'm told by my brother-in-law) --
Now, back to the Global Witness story. By the way, this story has now gone viral: Nick Cunningham took credit for contributing this story to zerohedge.
Peak oil? What peak oil? oilprice rewrites Global Witness
article with headline that "US will drown the world in oil." Global
Witness is an international NGO established in 1993 that works to break
the links between natural resource exploitation, conflict, poverty,
corruption, and human rights abuses worldwide -- according to wiki. Wiki
states the organization does not have any political affiliation. I'm
resisting posting links, etc. but I've given up. Good, bad, or indifferent, it's an interesting article -- I'll re-post as a stand-alone.
Talk about cognitive dissonance for Nick Cunningham. My hunch is that many "peak oilers" who make their living off newsletters, consulting, etc., which will gradually morph into "global warming" experts. It's hard to stop a train.
The first graph that caught my attention, the graph below based on data from Rystad Energy. Note which countries are not on the list. This is very, very accurate based on previous reports, and explains why oil is an existential issue for some (most) Mideast countries. There is a great interactive graphic at the linked site, but the graphic below really
catches one's attention. Note Pennsylvania and then remember that New
York bans fracking.
Russia will barely produce more NEW oil and gas than Ohio.
Neither California nor Alaska are in the graphic.
Wyoming, Utah did not make the list but Colorado did, again for NEW gas and oil.
Pennsylvania, at 7%, is more than twice that of Russia -- that's huge, but when Ohio will produce almost as much NEW gas and oil as Russia ...
For new oil and gas production, seven out of the top 10 biggest oil and gas
producers would be US states, with only Canada, Brazil and Russia making it
onto the list. Pennsylvania is set to be the third, producing more than double new gas and oil that that of Russia.
I don't know how many ways one can show it, but here's another graphic. It's not so much that the US will contribute 60% of the new global production, but rather:
it's how puny Russia's new production is in comparison
it's that Saudi Arabia becomes a net importer (other sources) by 2029
it's that no Mideast country is significant enough with regard to new oil and gas to get on the chart
it's that Norway is not significant enough to get on chart either
The big question is when did the movers and shakers in the oil industry know this? When did Saudi Arabia know this?
2029: only ten years from now. Even most seniors reading the blog will still be alive in 2029.
In May 2019, the first-ever propane unit train from the Bakken to
Mexico reached its destination, and since then, three more of these
100-car, single-commodity “bulk” trains have made the same trip.
Facilitating these shipments by Twin Eagle Liquids Marketing is Marathon
Petroleum Corp.’s (MPC) unit train-loading terminal in Fryburg, ND,
which was initially set up to load crude oil but was recently expanded
to handle propane too. And soon, the terminal in Torreón, Mexico, that
has been receiving these unit trains will have a new loop track too,
enabling producers and marketers to take full advantage of the bulk
transport option. Today, we look at the economics and challenges of this
relatively new propane export route.
As we discussed earlier, Mexico’s need for propane — widely used for cooking and heating water —
is on the rise, even as local supply has been dwindling. That’s boosted
propane imports to the country, including from the U.S. and Canada in
recent years. While most of those imports come to Mexico via ship (~52%
or 83 Mb/d in 2018) or are trucked across the U.S.-Mexico border (33
Mb/d or 21%), a good portion (29 Mb/d or 18%) of it is railed in. [Only
14 Mb/d, or less than 10%, of it was transported via pipeline last year,
owing to the limited pipeline capacity and routes available to reach
key markets in interior Mexico.]
Peak oil? What peak oil? oilprice rewrites Global Witness article with headline that "US will drown the world in oil." Global Witness is an international NGO established in 1993 that works to break the links between natural resource exploitation, conflict, poverty, corruption, and human rights abuses worldwide -- according to wiki. Wiki states the organization does not have any political affiliation. I'm resisting posting links, etc. but I've given up. Good, bad, or indifferent, it's an interesting article -- I'll re-post as a stand-alone.
Headline at Rigzone today, no links:
GoM leases:
BHP, largest bid; $42 million; 20 tracts
Anadarko: $23 million; 14 tracts
Chevron: $23 million; 17 tracts
Equinor: $17 million; 23 tracts
BP: $15 million; 21 tracts
Pipe: Pembina to buy Kinder Morgan's Canadian unit and the US portion of the Cohin Pipeline system; $3.3 billion
A review of 29 fracking-focused oil and gas companies revealed “meager” cash returns in the second quarter of 2019.
The report, which was carried out by Sightline Institute and the
Institute for Energy Economics and Financial Analysis (IEEFA), noted
that only 11 of the 29 companies under review registered positive free
cash flows and that the 29 companies combined generated $26 million in
aggregate free cash flows.
These aggregate free cash flows were said to be “far too modest to
make a significant dent in the more than $100 billion in long-term debt
owed by these companies, let alone reward equity investors who have been
waiting for a decade for robust and sustainable results”.
***********************************
Back to the Bakken
Only one well coming off the confidential list today -- Thursday, August 22, 2019: 60 for the month; 107 for the quarter:
35935, conf, XTO, Badlands Federal 21X-13H, North Fork, Active rigs:
In May 2019, the first-ever propane unit train from the Bakken to
Mexico reached its destination, and since then, three more of these
100-car, single-commodity “bulk” trains have made the same trip.
Facilitating these shipments by Twin Eagle Liquids Marketing is Marathon
Petroleum Corp.’s (MPC) unit train-loading terminal in Fryburg, ND,
which was initially set up to load crude oil but was recently expanded
to handle propane too. And soon, the terminal in Torreón, Mexico, that
has been receiving these unit trains will have a new loop track too,
enabling producers and marketers to take full advantage of the bulk
transport option. Today, we look at the economics and challenges of this
relatively new propane export route.
As we discussed earlier, Mexico’s need for propane — widely used for cooking and heating water —
is on the rise, even as local supply has been dwindling. That’s boosted
propane imports to the country, including from the U.S. and Canada in
recent years. While most of those imports come to Mexico via ship (~52%
or 83 Mb/d in 2018) or are trucked across the U.S.-Mexico border (33
Mb/d or 21%), a good portion (29 Mb/d or 18%) of it is railed in. [Only
14 Mb/d, or less than 10%, of it was transported via pipeline last year,
owing to the limited pipeline capacity and routes available to reach
key markets in interior Mexico.]
