Joined: Mar 26, 2008 Posts: 1030 Location: Seattle
Posted: Tue Apr 15, 2008 12:53 am Post subject: Chesapeake Energy CEO: US soon to be awash in natural gas
This article focuses on Oklahoma City where Chesapeake is located, but this paragraph was interesting:
--> LINK <--
Quote:
McClendon said the nation can now count on a 5-percent annual supply increases for the immediate future. That would not only negate forecast needs for increasing liquid natural gas imports, but provide enough surplus to begin serious commercial applications for our nation’s transportation sector.
If he's right, maybe all those plans for LNG terminals will be mothballed?
Posted: Tue Apr 15, 2008 1:57 am Post subject: Re: Chesapeake Energy CEO: US soon to be awash in natural ga
So, is Julian Darley now all wet went it comes to natural gas production in North America?
I thought we had been poking holes all over the place and we were just barely keeping production level. Everything I had been reading was suggesting that North American natural gas production was going to fall off a cliff around 2015 - 2020 or so.
Now, it appears that there has been a breakthrough in freeing gas from shale and we will have all the gas we want or need? What's the story?
Joined: Mar 26, 2008 Posts: 1030 Location: Seattle
Posted: Tue Apr 15, 2008 2:07 am Post subject: Re: Chesapeake Energy CEO: US soon to be awash in natural ga
Schadenfreude wrote:
So, is Julian Darley now all wet went it comes to natural gas production in North America?
I thought we had been poking holes all over the place and we were just barely keeping production level. Everything I had been reading was suggesting that North American natural gas production was going to fall off a cliff around 2015 - 2020 or so.
Now, it appears that there has been a breakthrough in freeing gas from shale and we will have all the gas we want or need? What's the story?
Yes, as I've posted a few times in other threads, the success of the Barnett Shale play in Texas more-or-less proves that large quantities of natural gas can be extracted from shale. I believe the Barnett alone now provides something like 7% of US natural gas supplies. Since the Barnett started booming, there have been a bunch of other shale plays popping up - the Marcellus Shale (which could be a real doozey), the New Albany Shale, the Fayettevile Shale, the Utica Shale (mostly in Quebec), and several others, including the one the Chesapeake CEO mentioned in the article.
Texas Barnett Shale Gas Production
(1993 through 2006) Source
Posted: Tue Apr 15, 2008 4:07 am Post subject: Re: Chesapeake Energy CEO: US soon to be awash in natural ga
OilFinder2 wrote:
Yes, as I've posted a few times in other threads, the success of the Barnett Shale play in Texas more-or-less proves that large quantities of natural gas can be extracted from shale. I believe the Barnett alone now provides something like 7% of US natural gas supplies. Since the Barnett started booming, there have been a bunch of other shale plays popping up - the Marcellus Shale (which could be a real doozey), the New Albany Shale, the Fayettevile Shale, the Utica Shale (mostly in Quebec), and several others, including the one the Chesapeake CEO mentioned in the article.
Texas Barnett Shale Gas Production
(1993 through 2006) Source
This is the first I've heard of it. The only other cornucopian comment I've heard recently about natural gas has come from Jim Cramer of 'Mad Money' who was saying that we ought to just switch all our transportation over to NG because we've got mind-boggling gobs of the stuff. At the time, I remember thinking what a liar he was. That must have only been a week or two ago.
And this apparently new extraction technique is completely lost on Julian Darley, author of High Noon For Natural Gas who has been up to his old tricks as recently as The New Urbanist Conference in Austin this past week. He gave a PP illustrating are impending NG doom:
http://postcarbon.org/files/JD_CNU_Presentation_2006-06-03.pdf
Why isn't it bigger news? How come it hasn't been reported on MSM? And if the news was as big as it appears, why hasn't Chesapeake's stock exploded? I know the chart looks good, but it doesn't reflect the enormity of the good news.
Just noticed that TOD also has an intriguing brand new guest post by Jean Laherrere on Hydrates. _________________ Cogito, ergo non satis bibivi
I'm just gonna find a cash machine.
Joined: Mar 26, 2008 Posts: 1030 Location: Seattle
Posted: Tue Apr 15, 2008 2:06 pm Post subject: Re: Chesapeake Energy CEO: US soon to be awash in natural ga
Schadenfreude wrote:
Why isn't it bigger news? How come it hasn't been reported on MSM? And if the news was as big as it appears, why hasn't Chesapeake's stock exploded? I know the chart looks good, but it doesn't reflect the enormity of the good news.
Wuzzup?
You just showed a chart showing Chesapeake's stock exploding! It looks like it really went up after the CEO announced the new shale deposit in Louisiana that could be bigger than the Barnett.
As for the Barnett Shale itself, if you do a google search you'll find stuff about it all over the place. It's real big news if you live in Texas, especially around Fort Worth. The Fort Worth paper has a page dedicated just to cataloging the new Barnett drilling rigs for each week. I just counted 54 new ones for this week.
In addition to the Barnett, the Marcellus Shale in the Appalachians could hold a staggering 516 trillion cubic feet, with at least 50 tcf of it extractable. This was really just "discovered" late last year.
Even more recent is the Utica Shale where just one company's acreage is estimated to hold 4 trillion cubic feet.
Here's a thread I started on Chesapeake's Haynesville Shale, which is the one Chesapeake said could be bigger than the Barnett, and which the company says could hold 20 trillion cubic feet just on its 500K acre leases.
I recently read an article in a local Texas paper that Chesapeake and some other company are furiously-but-quietly snapping up leases in an area west of San Antonio, which makes me think they've discovered yet another one of these.
Then there is the Horn River Shale in NW British Columbia which EnCana and EOG Resources are going ga-ga over. According to this it's got an estimated 6 tcf.
And as I mentioned before, there are many more in addition to these. They seem to be popping up all over the place.
Regarding TheDude's comment, yes, this stuff is more expensive to drill than conventional natural gas. It would be interesting to see a situation where we have a resource that is abundant, but somewhat expensive.
Joined: Mar 26, 2008 Posts: 1030 Location: Seattle
Posted: Tue Apr 15, 2008 2:15 pm Post subject: Re: Chesapeake Energy CEO: US soon to be awash in natural ga
Here's a map I found on this document here (PDF) showing some of the shale gas plays in the US, and the estimated sizes for some of them. There are already several more discovered since they made this map.
Posted: Tue Apr 15, 2008 2:23 pm Post subject: Re: Chesapeake Energy CEO: US soon to be awash in natural ga
An interesting situation this is. Diesel will keep going up in price, its already far exceeded gasoline's price rise and it would seem natural gas will stabilize.
A good opportunity for vehicle engines which can run on natural gas.
He cites using our own country’s abundance of natural resources – natural gas in particular – to reduce the import of foreign oil by as much as 30 percent. Specifically, using natural gas as a transportation fuel will not only decrease the country’s foreign dependencies, but will also make great strides towards cleaning up the environment.
Joined: Apr 05, 2005 Posts: 1620 Location: Springsteen Country (NJ)
Posted: Tue Apr 15, 2008 2:57 pm Post subject: Re: Chesapeake Energy CEO: US soon to be awash in natural ga
So what? We keep the machine running a few more years and then what? It collapses harder and faster than it would have anyway. These wonderful discoveries just prolong the agony, all so a few can reap enormous profits at the expense of people, wildlife and the land.
Sometimes it seems Oil-Finder just wants to stretch out the crash until after he's dead so he doesn't have to deal with it. _________________ Joe P. United Political Debate
"Only when the last tree is cut; only when the last river is polluted; only when the last fish is caught; only then will they realize that you cannot eat money." - Cree Indian Proverb
Posted: Tue Apr 15, 2008 3:06 pm Post subject: Re: Chesapeake Energy CEO: US soon to be awash in natural ga
Who knows how much oil and gas is out there, but I always keep in mind this - that it would take a decade or longer to transition our transportation to NG. Look at Pickens quote above. He's big on NG as a transportation fuel, but even he says it would only reduce oil imports by about 30% or whatever the quote is. In other words, NG Pickens does not see NG as a panacea to oil. Even for oil, if Brazil ultimately can pump out 30 billion barrels, they won't start producing for another six years, and the next six years can be very painful with Russia now in decline and Saudi Arabia apparently not opening new finds and reserving them for future generations. So, even with the finds in NG and oil that are hopefully coming, its at best an amelioration of the pain and will not be business as usual. Some day, we'll all look back at the waste of the all you can eat American Buffet.
Joined: Apr 05, 2005 Posts: 1620 Location: Springsteen Country (NJ)
Posted: Tue Apr 15, 2008 5:02 pm Post subject: Re: Chesapeake Energy CEO: US soon to be awash in natural ga
OilFinder2 wrote:
Head for the hills!
That's what the smart people around here are doing. _________________ Joe P. United Political Debate
"Only when the last tree is cut; only when the last river is polluted; only when the last fish is caught; only then will they realize that you cannot eat money." - Cree Indian Proverb
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