To those that have been reading and listening to this blog, I would like to personally thank you. I hope you received a large amount of information regarding shale oil and gas and issues involved. This blog is now going into retirement and will not be active any more.
I would like to point you in the right direction if you are looking for future information on the petroleum industry and shale oil information:
1. http://www.tight-oil-shale-plays.com/
2. http://www.carboncapturereport.org/
3. http://www.oilshalefacts.org/
With a closing of the blog..."We usually find gas in new places with old ideas. Sometimes, also, we find gas in an old place with a new idea, but we seldom find much gas in an old place with an old idea. Several times in the past we have thought that we were running out of gas, whereas actually we were only running out of ideas." - Adapted from Parke A Dickey by American Potential Gas Committee
Cheers,
Dr. Chrysoberyl
Wednesday, May 4, 2011
Sunday, May 1, 2011
Back to the Basics
The world energy demand is increasing every day and fossil fuels are a large portion of the resource to supply the demand. Fossil fuels will be used to support the energy demand for multiple years, yet alternative energy will continue to rise and help support the energy demand. Below is a figure that shows a forecast model for energy demand and what will help support that demand.
As you look at the graph, you will notice that we are not at a peak demand in fossil fuels yet. So how are we going to obtain a large enough supply for this large demand? Geologist in the petroleum industry have already started on this problem. Just like there is multiple different forms of energy; there are multiple different systems that hold fossil fuels. The question for the development of all these different types of petroleum systems is political and environmental issues. It is true, "the easy oil is or has been produced." To supply the world with future fossil fuels, it is going to take into account good geology, good petroleum engineering, and good environmental controls. The figure below shows the multiple different types of petroleum systems (conventional: structural and stratigraphic & unconventional: coalbed methane, shale gas, tight sand/carbonate, shallow basin methane, oil shale, tar sands, and hydrates) out there, and the positive aspect of this is that the United States has most of these present in the land which we live.
What Was Said...
A recent AAPG Explorer article, What Did They Say About Climate Change?, talks about a member, Hannes Leetaru, who has setup a great website for all up to date news on energy and climate issues. In the AAPG article, he discuss how scientist have done a poor job of communicating to the public in the past. He makes good points such as, "we live in the public spotlight, unlike most other fields, and we need to heed this and do a much better job." So with that being said, he has created an amazing website that can lead you to all the updated news about climate and energy.
As I scanned the website for most recent updates on oil news in the country, I came across a debate about President Obama's speech about high oil prices. Are you tired of paying extremely high oil prices at the pump? (The video is long but just watching the first few minutes will give you a good idea.)
In the video, it is not clear what President Obama wants to do to help increase the supply of oil to this country. The Fox Reports also are very confused on the prospective of the President's views on drilling. I feel that the President has not made a clear decision on whether or not to allow a vast majority of permits for offshore drilling and oil shale drilling. Prices in the United States are at a high again and there needs to be an increase in domestic drilling to support the decrease in foreign supply. The United States has many resources available. One of the greatest things about the Gulf of Mexico is that it produces oil at a very high rate and is a large contributor to our domestic supply of oil. Therefore, the politics need to understand how the high prices are affecting the average American and need to release permits to drill in areas of high success.
As I scanned the website for most recent updates on oil news in the country, I came across a debate about President Obama's speech about high oil prices. Are you tired of paying extremely high oil prices at the pump? (The video is long but just watching the first few minutes will give you a good idea.)
In the video, it is not clear what President Obama wants to do to help increase the supply of oil to this country. The Fox Reports also are very confused on the prospective of the President's views on drilling. I feel that the President has not made a clear decision on whether or not to allow a vast majority of permits for offshore drilling and oil shale drilling. Prices in the United States are at a high again and there needs to be an increase in domestic drilling to support the decrease in foreign supply. The United States has many resources available. One of the greatest things about the Gulf of Mexico is that it produces oil at a very high rate and is a large contributor to our domestic supply of oil. Therefore, the politics need to understand how the high prices are affecting the average American and need to release permits to drill in areas of high success.
Tuesday, April 26, 2011
What is Enough?
Everyone of us wakes up and turns on the faucet, hoping water will flow out, but most of us don't think about the how much water we use on a daily basis. We don't consisder if there is a scarcity of water out there or not. In a recent article, Oil Shale expert says Obama administration stalling much the way Bush dragged feet on climate change, written by David O. Williams, Dr. Jeremy Boak from Colorado School of Mines expresses his views about the development of oil shale in Colorado, Utah, and Wyoming. The article debates when is there enough answers to move ahead with the development of oil shale, addressing the issue with water, energy, and the environment.
During the process of heating shale rock to extract organic kerogen and refining it into oil consumes a large deal of water and energy. Right now Shell Oil says they can produce about 1 bbl of oil from about 3 bbl of water; Boak believes after research and improved technology that this ratio can be one to one. The article also discusses how the produced natural gas can power the refinery plants to produce oil from the shale rock. The government, including Interior Secretary Ken Salazar, states the BLM needs to have a better idea of the "amount of power needed, water needed and the impact to wildlife habitat and watersheds" before commercially exploiting the Green River Formation for oil shale and opening up around 2 million acres of BLM land for research and development.
“It is a distortion to say we have to have an answer about water use because we have an answer about water use and either that answer is good enough – that three barrels per barrel is something we can live with – or it isn’t,” Boak said. “If it isn’t, then it’s incumbent on both the government of Colorado and the federal government to say why it isn’t and to say what is OK, and they have completely evaded that responsibility.”
Agreeing with Boak, when will the answer be evident? What is good enough? And why is it not good enough? Gas prices are rising drastically and domestic oil is more important than ever. The government needs to take the steps forward. Petroleum companies will continue to research and develop technology associated with oil shale, improving processes shown in a previous post (EPICC).
During the process of heating shale rock to extract organic kerogen and refining it into oil consumes a large deal of water and energy. Right now Shell Oil says they can produce about 1 bbl of oil from about 3 bbl of water; Boak believes after research and improved technology that this ratio can be one to one. The article also discusses how the produced natural gas can power the refinery plants to produce oil from the shale rock. The government, including Interior Secretary Ken Salazar, states the BLM needs to have a better idea of the "amount of power needed, water needed and the impact to wildlife habitat and watersheds" before commercially exploiting the Green River Formation for oil shale and opening up around 2 million acres of BLM land for research and development.
Agreeing with Boak, when will the answer be evident? What is good enough? And why is it not good enough? Gas prices are rising drastically and domestic oil is more important than ever. The government needs to take the steps forward. Petroleum companies will continue to research and develop technology associated with oil shale, improving processes shown in a previous post (EPICC).
Monday, April 25, 2011
EPICC
A large percent of the population have negative views about the production of oil shale because of the refining process and the amount of greenhouse gases released. Adam Brandt and Hiren Mulchandani, Stanford University, might have the answer for this problem -- EPICC (Electricity Production with In Situ Carbon Capture). EPICC is a proposed new technology that combines production of electricity with capture of carbon dioxide, producing electricity with in situ carbon capture in a self-fueled method.
EPICC reduces CO2 emissions by:
1. Utilizing waste heat to retort shale
2. Retoring shale beyond the point of HC production, converting much of the organic carbon in oil shale to char which is left in the subsurface
3. Using the produced HC gas to generate, which provides transportation services with no tailpipe emissions
From the research, the resulting life cycle of GHG emissions from EPICC is ~110 g of CO2 per km; this is ~0.5 times those of conventional fuel cycles and ~.33 time those from other proposed in situ oil shale conversion processes.
Some of the potential negatives of EPICC are: uncertain operation of subsurface fuel cells, potential geophysical impacts without pressure management, and economic concerns associated with the value of stranded energy left in the formation, and the long time period of retorting.
There are ~3 trillion bbl (discovered) of oil trapped within shale oil formations around the world. The United States has potentially 1 trillion barrels of oil; the world's largest deposit is in the Green River Formation right here in Colorado, Utah, and Wyoming. With this new proposed technology, the petroleum industry can better control the amount of greenhouse gases produced and help unlock resources in oil shale formations with better environmental controls.
Related Links:
http://www.eurekalert.org/pub_releases/2011-04/acs-ute042011.php
http://pubs.acs.org/doi/pdfplus/10.1021/ef101714x
http://www.sciencedaily.com/releases/2011/04/110420112104.htm
EPICC reduces CO2 emissions by:
1. Utilizing waste heat to retort shale
2. Retoring shale beyond the point of HC production, converting much of the organic carbon in oil shale to char which is left in the subsurface
3. Using the produced HC gas to generate, which provides transportation services with no tailpipe emissions
From the research, the resulting life cycle of GHG emissions from EPICC is ~110 g of CO2 per km; this is ~0.5 times those of conventional fuel cycles and ~.33 time those from other proposed in situ oil shale conversion processes.
Some of the potential negatives of EPICC are: uncertain operation of subsurface fuel cells, potential geophysical impacts without pressure management, and economic concerns associated with the value of stranded energy left in the formation, and the long time period of retorting.
Related Links:
http://www.eurekalert.org/pub_releases/2011-04/acs-ute042011.php
http://pubs.acs.org/doi/pdfplus/10.1021/ef101714x
http://www.sciencedaily.com/releases/2011/04/110420112104.htm
Wednesday, April 20, 2011
Back Wood Scientist in Motion
Everyone has discussed theories before with peers, family, and friends; but take a look at what this "back wood scientist" has to say about oil and peak oil. He is off his rocker!
This movie is a prime example of bad science communication. His theory has no supporting evidence, and he does not discuss about thermal maturity of petroleum. There are many issues with this video, and I hope most of them are evident to you as well, raising multiple red flags.
This movie is a prime example of bad science communication. His theory has no supporting evidence, and he does not discuss about thermal maturity of petroleum. There are many issues with this video, and I hope most of them are evident to you as well, raising multiple red flags.
Monday, April 18, 2011
Shale Oil Protest in France!
The environment issue of development of Shale oil & gas has struck Meaux, Brie region of France. A recent article, Protesters call for shale oil driling ban, discusses the locals' issues with development of Shale oil. This article and reported conversation (below) shows multiple break downs in Science Communication to the public.
At the beginning of the article it says, "shale oil has presented as a cleaner and more local, alternative to imported petroleum". There seems to be an initial break down; shale oil is not cleaner than conventional petroleum because it must be process/refined at a higher energy than traditional oil. As you read this article, many red flags appear from a geologist point of view-
“The problem with shale gas is the hydraulic fracturing process,” says Eric Vaubourg, from Crécy-la-Chapelle, a town of 4,000 inhabitants a few kilometres south of Meaux. “With this process it’s difficult to extract gas and oil correctly without pollution.”
This quote shows that the general public in this area might not understand fully about hydraulic fracturing. First, in today's petroleum business, one of the first things to permit a well is to understand the water aquifers present. Second, the Petroleum industry today mitigates fracturing into the "water table", which is at a shallower depth than the petroleum, by apply a casing design which allows no penetration into the aquifers. Hydraulic fracturing does use a lot of different chemical compounds to help stimulate the process but petroleum companies are required to disperse of these chemicals properly and make sure there is no contamination.
The locals in this area have every right to argue against drilling for shale oil but must make an educated argument and understand the systems in place. The petroleum companies in the United States are fracturing wells like crazy right now and are doing it without contaminating our water resources. The question to the people of France is- if they could produce there own petroleum, creating domestic supply of oil and lower the amount on importing, why would you not honor the exploration and development of shale oil? And, apply regulations to insure petroleum companies are not polluting or contaminating any water aquifers. Please listen to the broadcast below...
It will be interesting to see what the parliamentary debate decides on shale oil drilling in the France. The debate on shale oil drilling ban starts on May 10th.
At the beginning of the article it says, "shale oil has presented as a cleaner and more local, alternative to imported petroleum". There seems to be an initial break down; shale oil is not cleaner than conventional petroleum because it must be process/refined at a higher energy than traditional oil. As you read this article, many red flags appear from a geologist point of view-
“The problem with shale gas is the hydraulic fracturing process,” says Eric Vaubourg, from Crécy-la-Chapelle, a town of 4,000 inhabitants a few kilometres south of Meaux. “With this process it’s difficult to extract gas and oil correctly without pollution.”
This quote shows that the general public in this area might not understand fully about hydraulic fracturing. First, in today's petroleum business, one of the first things to permit a well is to understand the water aquifers present. Second, the Petroleum industry today mitigates fracturing into the "water table", which is at a shallower depth than the petroleum, by apply a casing design which allows no penetration into the aquifers. Hydraulic fracturing does use a lot of different chemical compounds to help stimulate the process but petroleum companies are required to disperse of these chemicals properly and make sure there is no contamination.
The locals in this area have every right to argue against drilling for shale oil but must make an educated argument and understand the systems in place. The petroleum companies in the United States are fracturing wells like crazy right now and are doing it without contaminating our water resources. The question to the people of France is- if they could produce there own petroleum, creating domestic supply of oil and lower the amount on importing, why would you not honor the exploration and development of shale oil? And, apply regulations to insure petroleum companies are not polluting or contaminating any water aquifers. Please listen to the broadcast below...
It will be interesting to see what the parliamentary debate decides on shale oil drilling in the France. The debate on shale oil drilling ban starts on May 10th.
Thursday, April 14, 2011
Unlocking The Resource
Recently, the Denver Post business section has been writing articles about the exploration and production of the Niobrara Formation here in Colorado, Southern Wyoming, and Eastern Nebraska. A recent article, Energy companies map Niobrara formation for its oil potential, discusses the new positions for exploration and development of the Niobrara. This is one of the hottest plays in the United States right now.
"It all gets back to the geology," said Vince Matthews, director of the Colorado Geological Survey. "The Niobrara has really big potential, but we've seen these finds hyped before."
From the article, you can see that the media is pushing and selling the potential of the Niobrara, covering multiple topics (mapping, success stories, economics, China's position, geokinetics, background information). The Jake well is one of the success stories for the Niobrara formation, producing 1,558 barrels of oil a day in 2009. This well made everyone excited about the Niobrara and its potential as an unconventional reservoir. But, the article makes this well look really good because it compares it to a monthly average of 300 bbls/month. The article also does not discuss about the different levels of thermal maturity throughout the Niobrara, producing gas or oil. The Niobrara may be a very extensive formation, crossing into multiple states, but there is a heterogeneity of hydrocarbon potential throughout the formation. This is why it is important to understand the geology and why the companies involved are more on the conservative side, mapping and taking necessary steps towards development.
From the article, you can see that the media is pushing and selling the potential of the Niobrara, covering multiple topics (mapping, success stories, economics, China's position, geokinetics, background information). The Jake well is one of the success stories for the Niobrara formation, producing 1,558 barrels of oil a day in 2009. This well made everyone excited about the Niobrara and its potential as an unconventional reservoir. But, the article makes this well look really good because it compares it to a monthly average of 300 bbls/month. The article also does not discuss about the different levels of thermal maturity throughout the Niobrara, producing gas or oil. The Niobrara may be a very extensive formation, crossing into multiple states, but there is a heterogeneity of hydrocarbon potential throughout the formation. This is why it is important to understand the geology and why the companies involved are more on the conservative side, mapping and taking necessary steps towards development.
Tuesday, April 12, 2011
The Denver Basin...(Video)
The Denver Basin is an active petroleum producer in the United States. One of the neat things about the Denver Basin is that the geology is easily observed from the outcrops all along the front range area. The Denver Basin, show in the picture below, has multiple fields which produce both gas and oil.
The Denver Basin has been producing oil since 1901 when oil was discovered in the fractured Pierre Shale Formation at Boulder oil field. Since then, thousands of wells have produced trillions of cubic feet of gas and millions of barrels of oil from the different hydrocarbon rich formations in the Denver Basin. Some of these formations are tight sands, chalks, and oil shale units, which require stimulation to economically produce oil and gas, an unconventional play. The video below demonstrates the petroleum geology in our back yard of the Front Range of Colorado. What people don't realize driving to work everyday....OIL!!!
Monday, April 11, 2011
Gas Hydrates: The future of energy or environmental catastrophe?
With energy demands sky-rocketing in recent years, people are turning to more unconventional resources to help bolster conventional energy. Gas hydrates are one such unconventional resource. For those that don't know, gas hydrates are molecules of methane (CH4) bound in a "cage" of ice molecules. In essence, gas hydrates are solid gas. They are typically located in low temperature, high pressure regions, such as permafrost and the ocean floor. A few areas of interest for gas hydrates include: the Nankai Trough off the southeast coast of Japan, the North Slope of Alaska within the permafrost, the Pacific Ocean adjacent to the Cascadia Range of Canada, and the Gulf of Mexico.
Gas hydrates have become such a hot topic for use as a potential energy resource because they may offer up to several hundreds of thousands of trillion cubic feet in-place on the ocean floor alone. If this resource can be accessed and economically exploited, the world's thirst for energy would be satisfied for up to a couple of hundred years.
Until recently, however, gas hydrates have been seen as hazardous to more conventional oil and gas production. Due to changing temperature and pressures, they can clog pipelines and and cause explosions. At depth, gas hydrates that occupy only one cubic foot of space expand to 160-180 cubic feet. Additionally, they may play a role in tsunami formation when they become displaced due to earthquakes. This claim is still being tested, however. Gas hydrates are also likely to be a natural sink for methane, a compound known to influence global warming and climate change. If these deposits were disturbed on a massive scale, the global effect would be greater than 3,000 times the current amount of methane in the atmosphere.
The controversy is relatively straightforward: should we exploit these natural high-energy resources or leave them alone until we understand them better? Gas hydrates have the potential to be the next greatest source of energy for the world, or a global disaster in the making.
Related articles:
Up to 40 percent of gulf oil was potent methane gas, research shows
USGS Fact Sheet: Gas (Methane) Hydrates: a New Frontier
The controversy is relatively straightforward: should we exploit these natural high-energy resources or leave them alone until we understand them better? Gas hydrates have the potential to be the next greatest source of energy for the world, or a global disaster in the making.
Related articles:
Up to 40 percent of gulf oil was potent methane gas, research shows
USGS Fact Sheet: Gas (Methane) Hydrates: a New Frontier
Tuesday, April 5, 2011
Building a Destiny
Last week, I had the pleasure of listening to a lecture on the Fayetteville Shale by one of Southwestern Energy's Geologist, John Jeffers. Southwestern Energy Company is an independent nature gas/oil exploration, development, and production company headquartered in Houston, TX. Southwestern Energy Company focuses on unconventional gas reservoirs. One of their main plays is on the Arkansas side of the Arkoma Basin known as the Fayetteville Shale play. The company also has exploration and production activities in Texas, Pennsylvania, and Oklahoma.
John's lecture on the Fayetteville Shale play showed how the discovery and development of the Fayetteville Shale play launched the company into a rapid increase in growth. The company's stock increase over the past decade was comparable to apple's. From the lecture and previous information about Southwestern, I could see that this company has a great future and a good formula to go with it. |
| The Right People doing The Right Things wisely investing the cash flow from the underlying Assets will create value + |
Wednesday, March 30, 2011
Thinking About a New Career?
Have you been thinking about a new career in something completely different? Recently, IDT corporation, a telecommunications company, has decided to get involved in shale oil. IDT Energy and Genie Oil and Gas believes in a new shale venture and discusses this in the video below. There are some slight un-educated remarks in the video from the CNBC reporters, but you get a chance to listen to the CEO, Howard Jonas. If I was an investor in IDT, I find this video not to be supportive. It almost sounds that they do not know what they are talking about but that might be because of the reporters remarks.
Tuesday, March 29, 2011
Utilizing the Resource
Have you ever wanted to know who was drilling in your back yard of Colorado? The Colorado Oil and Gas Conservation Commission, a division of the department of natural resources, is a great resource to access public information about oil and gas in Colorado. The COGCC has databases full of information from permitting wells to drilling locations to maps and forms. They are a resource that any petroleum engineer or petroleum geologist needs to utilize.
One of the more useful aspect of their site for a petroleum geologist is there map interface. This interface allows you to see well surface locations, directional well bottom hole locations, other oil and gas facility locations, oil and gas permit location, oil and gas field polygons, and wild life habitat maps. From this a petroleum geologist can select a well location which does not affect a possible wild life habitat or any other restricted area for drilling.
One of the more useful aspect of their site for a petroleum geologist is there map interface. This interface allows you to see well surface locations, directional well bottom hole locations, other oil and gas facility locations, oil and gas permit location, oil and gas field polygons, and wild life habitat maps. From this a petroleum geologist can select a well location which does not affect a possible wild life habitat or any other restricted area for drilling.
Wednesday, March 23, 2011
Self Evaluation #2
For the second evaluation period, I have posted a fair number of posts (8) in the time frame and commented on multiple blogs each week. I also recomment on comments towards my blog. I feel my blogging is improving, trying to make a connection to my audience. My posts vary in length from a couple paragraphs to multiple with different visual aids (pictures, movies, links) and supporting articles. One thing that I need to work on is my frequency of posting; I feel I have improved on this but there is still room for more improvement. My posts are on relevant topics and recent news going on in the petroleum industry today, making my blog attractable and up to date with new information and technology. If I had to give myself a grade it would be around a "B+" right now.
A Sweet Deal
Recently, Anadarko petroleum made a $1.55 billion dollar deal with the Korea National Oil Corporation for the interest of the Maverick Basin assets, located in the Eagle Ford Shale of Texas. The Korea Nation Oil Corporation is going to pay for all the capital cost of drilling and completions for the first year, and then, pay 90% of the cost for the next two years. This is a sweet deal for Anadarko, but now Korea is going to be profiting from a United States asset?
The Eagle Ford shale is another hydrocarbon rich producing formation that offers both gas and oil. It is a carbonate shale which is brittle and easily fracable for completions. The Eagle Ford shale is ideal in today's market because it is highly oil prone. The short video below talks about Anadarko's stock market increase due to this joint venture with KNOC.
Tuesday, March 22, 2011
Bituminous Sands vs The Environment
One of the greatest mountain biking, climbing, dirt-biking, four-wheeling, and hiking in the United States is in Moab Utah. It has beautiful geology which attract tourist from all around the globe. Utah also has the potential to be a contributor to producing tar sands or oil sands; naturally occurring mixture of sand, clay, water, and a dense, low maturity, extremely viscous form of petroleum know as bitumen. Earth Energy Resources, a Canadian company, has permitted an area in eastern Utah (north of Moab, south of Vernal) to start mining oil sands. The town of Moab looks at this in a negative impact towards their state and tourist attraction, but the drilling town of Vernal looks at this as an increase in petroleum production and revenue for Utah. Here is a link to a film by CBC News which discusses this issue and some of the environmental impacts (Utah Oil Sands).
As seen in the picture above and from the video, there are multiple environmental and social issues that must be addressed when mining oil sands. EER says that they can mine the oil sands and replace the sand with very minimum chemicals in place by using a citrus based solvent to separate the bitumen from the sand mixture. Mining oil sands, if not done right, can lead to surface water contamination, high water usage, destruction of land, disruption of wildlife, and climate issues from refining.
Related Links to this issue:
http://www.westernresourceadvocates.org/land/oilshale.php
http://www.sltrib.com/sltrib/opinion/51389205-82/oil-energy-sands-bitumen.html.csp
Neon green runoff sits at the bottom of Earth Energy Resources' PR Springs mine in Utah.
WRA filed an appeal on EER's commercial mine permit due to concerns
about groundwater contamination from mine operations.
As seen in the picture above and from the video, there are multiple environmental and social issues that must be addressed when mining oil sands. EER says that they can mine the oil sands and replace the sand with very minimum chemicals in place by using a citrus based solvent to separate the bitumen from the sand mixture. Mining oil sands, if not done right, can lead to surface water contamination, high water usage, destruction of land, disruption of wildlife, and climate issues from refining.
The Salt Lake Tribune discuss how the refining process is energy and water intensive, "about 10 parts water per part oil are added and heated to 100 degrees, an energy-intensive step. The resulting slurry is agitated and then allowed to settle. The water is drained, centrifuged and about 80 percent recycled, leaving damp sand with water-soluble chemicals and residual citrus oil-bitumen to be redeposited in the ore body. The citrus oil is distilled from the bitumen and recycled, another energy-intensive step. What’s left — bitumen — must be heated to get it into barrels for trucking to a heavy oil refinery and heated again to get it out. As in Canada, bitumen must be upgraded to make synthetic crude oil, and upgrading requires roughly 17 percent of a barrel of energy. It uses water as well to cool the porous coke to get it in and out of transportation carts."
Mining oil sands can help supply the large oil demand of the world. For the health of the environment, companies who are getting involved in mining oil sands need to be aware of their impacts and minimize their footprint. Companies need to continue to research and develop cleaner techniques and processes which could help with the high energy inefficiency of mining oil sands.
Related Links to this issue:
http://www.westernresourceadvocates.org/land/oilshale.php
http://www.sltrib.com/sltrib/opinion/51389205-82/oil-energy-sands-bitumen.html.csp
Monday, March 21, 2011
Travel the Oregon Trail
Did you know that you can not pump your own gas in Oregon? Did you know that there is no sales tax in Oregon? Well...I just spent the last week in Oregon on a lacrosse trip and found out many new things about the northwest coast. It rains a lot during the spring or maybe all the time! But, as I drove through the state of Oregon as a young geologist, I noticed that there was a massive amount of Basalt. As a petroleum geologist, I wondered if there is any gas and oil production in the state of Oregon, and if there is, where are they producing?
Apparently, according to the Bureau of Land Management, there are no active drilling or exploration sites in Oregon. There are multiple lease sales though for the potential exploration to take place. The thick basalt flows could potentially be a good seal for marine type reservoirs below, but drilling through basalt is very costly. Maybe in the near future "when" oil and gas prices increase more exploration drilling will take part in the State of Oregon. Another thought was drilling and production offshore of Oregon, but the Oregon state House bill 3613 bans offshore Oregon coast drilling until year 2020. With no sales tax and no domestic petroleum production where does Oregon collect for its states financial needs? ...it must be from all the tourist going to Crater Lake :)
(The Greatest Game for Computer, early 1990s)
Apparently, according to the Bureau of Land Management, there are no active drilling or exploration sites in Oregon. There are multiple lease sales though for the potential exploration to take place. The thick basalt flows could potentially be a good seal for marine type reservoirs below, but drilling through basalt is very costly. Maybe in the near future "when" oil and gas prices increase more exploration drilling will take part in the State of Oregon. Another thought was drilling and production offshore of Oregon, but the Oregon state House bill 3613 bans offshore Oregon coast drilling until year 2020. With no sales tax and no domestic petroleum production where does Oregon collect for its states financial needs? ...it must be from all the tourist going to Crater Lake :)
Monday, March 7, 2011
A Day in the Life
All of us at school run into the days, weeks, of work on a single project and lose connection with the rest of the world. We spend countless hours working days and nights, exhausting our bodies and minds. Lately, the past eight weeks, I have spent a large portion of my life working on a project for an international competition in the Great Bight Basin, Australia. The competition is call the Imperial Barrel Award sponsored by AAPG. This Thursday the team and I will be presenting our investigation of oil prospective properties in the basin for a school review. The region competition will be on March 19, and then the international competition in Houston will be on April 9, 2011.
The Bight Basin is a highly prospective area for oil and gas exploration. There has only been a few unsuccessful well drilled in the basin; therefore, most of the exploration is done through seismic data. Our Team and other teams are evaluating this basin for the best locations to drill the next well. We are mapping multiple units that have the potential to act as a reservoir and areas that contain all the petroleum elements and systems for hydrocarbon potential. This article (Regional Geology of the Bight Basin) is a good source about the geology of the basin and exploration history. With that being said...I hope the team and I find the best spot, and we find the billion dollar well.
Tuesday, March 1, 2011
Dont Miss the Boat
With all the recent activity around the globe and conflicts going on in the eastern countries, there will be a decreasing of oil supply importing into the United States. Some of these countries (such as Libya and Egypt) have some of the largest oil fields and reserves known in the world. With that being said, it is important to recognize the importance of domestic oil and start targeting oil reserves in the United States to keep our oil prices within reason. Below is a movie from Thomas Petrie, Vice Chairman of Bank of America, talking about the opportunities in US Shale oil right now. He also discusses about investment opportunities into medium and smaller companies that are focusing on these shale plays today. Please take a look at the video...I would like to here your thoughts on it with the current situations of higher oil prices relative to the conflicts going on in the east right now.
Wednesday, February 23, 2011
"Shale Oil Plays Blog"
So...This Shale Oil Plays Blog discusses about new oil discoveries in shale oil and gas, providing maps and additional information. One of the recent post (U.S. Shale Plays Not Just About Natural Gas But Oil As Well) talks about how some of the shale formations in the United States are not just capable of producing gas (biogenic) but are mature enough to produce oil.
The article discusses that most of the shale formation contain kerogen and some bitumen (oil). Kerogen is simply a solid material that is insoluble organic matter which is a diagenetic alteration product of organic material laid down with sediments. Bitumen is the fraction of the organic matter in sedimentary rocks which is soluble in organic solvents. One of the diagrams below shows the three types of kerogen and different types of petroleum. The other one shows you relativily the amount of bitumen in a shale rock.
Therefore, to convert the the kerogen to bitumen it must be heated up or thermally matured. The petroleum industry is starting to find certain shale plays (such as the Eagle Ford) which contain a higher amount of bitumen than kerogen due to being at a deeper depth and mature level.
But, you also have to think about being over mature? If the formation is too deep, it could possibly pass the oil window and fall into a gas generation window. The Van Krevelen Diagram below shows the maturation paths of the three different types of kerogen. The diagram shows the path ways through Diagenesis-Catagenesis-Metagenesis of the three types of kerogen. (The diagrams were provided by Dr. Curtis, Colorado School of Mines)
With an understanding of oil generation, companies can target more oil prone shale formations while the price of oil is high.
Wednesday, February 16, 2011
Volatile Natural Gas Market...(follow up)
To follow up with a comment on a previous post about the volatility in the natural gas market, the Wall Street Journal published are article called Big Oil Bangs the Drum for Natural Gas. This article discusses how companies have done a good job providing natural gas reserves for the future of energy, but they also point out the fact that the boom in production has created a "global gas glut", possibly lasting until 2020, keeping the prices at a low. And therefore if the United States produces such a large supply of natural gas, exporting might be a good idea?
Looking at the environmental benefits of natural gas, the world should take advantage of the low prices and high supply, creating a shift in energy consumption. Coal is cheap and abundant but natural gas is cleaner. Unlike oil though, there has to be an infrastructure in place to transport gas, pipelines must be installed. So what are the dis-advantages to use natural gas more?
From a business perspective, the market for natural gas can be very risky right now in the short run. The potential for a quality long term investment would be a good idea. The future for natural gas looks good.
As stated in the article, "In its 2030 energy forecast last month, ExxonMobil predicted a shift toward natural gas by businesses and governments precisely because it is so reliable and affordable."
Looking at the environmental benefits of natural gas, the world should take advantage of the low prices and high supply, creating a shift in energy consumption. Coal is cheap and abundant but natural gas is cleaner. Unlike oil though, there has to be an infrastructure in place to transport gas, pipelines must be installed. So what are the dis-advantages to use natural gas more?
From a business perspective, the market for natural gas can be very risky right now in the short run. The potential for a quality long term investment would be a good idea. The future for natural gas looks good.
As stated in the article, "In its 2030 energy forecast last month, ExxonMobil predicted a shift toward natural gas by businesses and governments precisely because it is so reliable and affordable."
Tuesday, February 15, 2011
Bring the Gulf Back to Life
Since the BP oil spill is a hot topic in class recently and up for discussion the rest of the semester, drilling in the gulf is still at a halt due to the offshore accident. A lot of people do not realize that the gulf is a major asset to our domestic oil and job market in the petroleum industry. The moratorium has been lifted to start drilling in the gulf, but the issuing of new permits has not started. Therefore, drilling companies are only able to finish any existing projects and most companies are just sitting still (some have even sent there drill ships and rigs to other countries). The video below is with ATP CEO, who discusses the status of drilling in the gulf and the return to normalcy.
The BP oil spill was a tragic event and specifically to the offshore regions of the petroleum industry. It will be interesting to see what happens in the near future to offshore drilling. A large number of conventional plays in today's world are being drilled in offshore and shelf environments. If the U.S. continues to restrict the permitting of drilling in the deeper sea horizons, there might be a large influx in price and supply of oil.
The BP oil spill was a tragic event and specifically to the offshore regions of the petroleum industry. It will be interesting to see what happens in the near future to offshore drilling. A large number of conventional plays in today's world are being drilled in offshore and shelf environments. If the U.S. continues to restrict the permitting of drilling in the deeper sea horizons, there might be a large influx in price and supply of oil.
Thursday, February 10, 2011
Self Evaluation
For the first evaluation period, I have posted just above the minimum number of post (9) and have commented on multiple other blogs (10-12). I have also responded to many comments on my blog within a reasonable time. For never blogging before, I feel that my blogs has started to move away from the deficit model to more interaction from the audience with questions and changing of writing style. I have used multi-media tools (photos and videos) to build my posts with visual aids. I have also always linked my posts to publish articles related to the material if necessary. I use recent events and ideas to attract and engage an audience who want to stay up to date with the technology and science about shale oil and gas. My posts are written at a manageable length and the information is organized for my audience. One thing that I need to work on is the frequency of my posts, making sure I am posting throughout the week. If I have to give myself a grade it would be around a "B" right now.
Wednesday, February 9, 2011
Oh no...China is in the back yard!
Recently Chesapeake Energy Corp. and Chinese oil giant (CNOOC Limited) have partnered up to work the Niobrara shale formation in our back yard. Breing prospected and drilled, the Niobrara shale (located on the eastern side of Colorado, southern Wyoming, and western Nebraska) provides one of the hottest plays in Colorado right now; multiple companies and institutions conduct research and are exploring potentials in the Niobrara shale formation.
China is a one of the power houses of the world, and they are continuing to buy resources around the world to support themselves, including precious mineral deposits, REE deposits, base metal deposits, and oil and gas prospects. This creates a scary situation. China will be controlling some of our own major resources within the United States. What are we going to do?
To read more about this partnership on the Niobrara play take a look at this article by Wyoming Business Report - Cheasapeake energy, China team up for Niobrara play.
China is a one of the power houses of the world, and they are continuing to buy resources around the world to support themselves, including precious mineral deposits, REE deposits, base metal deposits, and oil and gas prospects. This creates a scary situation. China will be controlling some of our own major resources within the United States. What are we going to do?
To read more about this partnership on the Niobrara play take a look at this article by Wyoming Business Report - Cheasapeake energy, China team up for Niobrara play.
Tuesday, February 8, 2011
FRAC THAT ROCK
Below is an informational video on what exactly hydraulic fracturing is in a horizontal well....
Hydraulic fracturing of well now allows exploration and production companies to enhance the reservoir. Hydraulic fracturing allows exploration companies to go after targets such as tight sands, shales, and other unconventional reservoirs and make them economically viable. In some well bores, they are doing multiple stage fractures, sometimes up to 30 or more fractures in one horizontal well! This is a great technological advancement to the petroleum industry, and the petroleum industry will need to continue advancing their methods to extract and supply the world with petroleum products (oil and gas).
So what will be next? Has anyone heard of any new ideas/technologies in drilling, enhancing reservoirs, or recovery in unconventional plays?
So what will be next? Has anyone heard of any new ideas/technologies in drilling, enhancing reservoirs, or recovery in unconventional plays?
US...Natural Gas Exporters?
In a recent article from Business Insider (Oil has joined the Past...NG is the Future!), they discuss about the changing of the market in the near future from Oil to Natural Gas. The article talks about how Russia's natural gas cartel is over, and European nations are investigating there own geology and resources to provide domestic gas.
Is this possible? Can the US actually support themselves in the natural gas market and become an exporter of natural gas? With basin centered gas accumulations, shale gas, and coal bed methane deposits all within the US boarder, this might be possible. Technology now allows us to drill multiple horizontal legs from a vertical well, extending up to about two miles and having around 30 fracture stages, stimulating the reservoir. This allows the well to more efficiently drain the reservoir and extends the life of the well production. Below is a picture show the shale gas plays that the US are prospecting and already drilling.
As you can see, some of the fields have an estimated reserves potential and some don't. Some of the fields are still being examined geologically for the potential gas reserves. But, just from this picture, this is evidence that the US can potentially provide enough gas to support itself (with the help of conventional, BCG, and CBM).
Natural gas is not going to completely replace oil, but it can substitute for certain situations, such as the ones that were discussed in the article. Right now gas is around $4/Mcf and oil is around $95/bbl; the energy ratio of gas to oil is about 16 times. So if you do the math, most companies today are prospecting more for oil than gas because there is a larger profit to be made. What will it take for more companies to pursue and drill for natural gas within the US?
Is this possible? Can the US actually support themselves in the natural gas market and become an exporter of natural gas? With basin centered gas accumulations, shale gas, and coal bed methane deposits all within the US boarder, this might be possible. Technology now allows us to drill multiple horizontal legs from a vertical well, extending up to about two miles and having around 30 fracture stages, stimulating the reservoir. This allows the well to more efficiently drain the reservoir and extends the life of the well production. Below is a picture show the shale gas plays that the US are prospecting and already drilling.
As you can see, some of the fields have an estimated reserves potential and some don't. Some of the fields are still being examined geologically for the potential gas reserves. But, just from this picture, this is evidence that the US can potentially provide enough gas to support itself (with the help of conventional, BCG, and CBM).
Natural gas is not going to completely replace oil, but it can substitute for certain situations, such as the ones that were discussed in the article. Right now gas is around $4/Mcf and oil is around $95/bbl; the energy ratio of gas to oil is about 16 times. So if you do the math, most companies today are prospecting more for oil than gas because there is a larger profit to be made. What will it take for more companies to pursue and drill for natural gas within the US?
Wednesday, February 2, 2011
Blog Self-Interview
What is the purpose of this blog?
The purpose of this blog is to help me learn how to effectively and improve my science communication skills. Also, this blog is to educate myself and the readers about an idea that is a rising interest in the world today.
Who is the imagined audience(s) of this blog?
The imagined audiences for this blog are students and people who have an interest or study in future energy and petroleum. I want to engage an audience who speculates about the energy crisis and continues to wonder about future energy sources.
Have my posts matched up with my purpose/audience? What/who might I be overlooking in defining my purpose/audience this way?
My posts have matched up with my audience, but I might be overlooking those who are interest in other energy sources, showing them how oil shale is another option to support the demand for oil in the future. Also I might be overlooking people who don't have any interest in the topic; therefore, I need to draw them in with better leads and titles.
What can I do to encourage more reader participation with my blog?
I can ask more questions that will engage the reader to answer and debate about the topic. Also, my writing style needs to be more active and with better titles and leads.
How can I expand my audience in this class? Outside of this class?
I can expand my audience in this class by connecting ideas between their blogs and creating interesting topics to discuss about. Outside this class, I can also connect ideas to other blogs and try to build a reputation with comments on other's to comment on my.
How would I characterize the tone of my blog?
I characterize the tone of my blog as an individual with a positive attitude towards shale oil and gas, but one that realizes there are many negatives and costs to be involved in the future.
What do I hope to get out of writing this blog?
What do I hope to get out of writing this blog?
I hope to educate myself with the topic more, become a better writer, learn how to frame an issue towards an audience, and leave with the knowledge of better practiced science communication.
What would I like others to get out of it?
I would like others to also educate themselves with the topic, and I would like them to take the ideas from my blog and continue to educate themselves about the topic through other research. I hope others will be interested in the topic after being involved in the blog.
What are the strengths of my blog/my blogging?
The strengths of my blog are the educational aspects and the visual content.
What are the weaknesses?
The weaknesses are the audience's engagement back and the ability to really grasp my readers.
Have I used a deficit model in my writing, or something else? How would I know?
I have used a deficit model in my writing; I know this because some of my post are strictly information that I have thrown at my reader without any interaction back.
How have I characterized (implicitly or explicitly) science, engineering, and/or technology in my blog?
I have characterized most of my blog explicitly about the science, engineering, and/or technology in my blog.
How have I characterized myself?
I have characterized myself as someone who is studying shale oil and gas but does not have all the answers to the topic; yet, I have many questions/concerns with the topic.
End of Oil
Peak oil production is a highly debatable topic. Marion King Hubbert created the idea of peak oil production on a global level and was nearly right on. The video below is a short debate about oil production and peak oil.
Studying geology and having gone to multiple talks about different research topics and lectures, relating to the reading, I have found myself in many formal 'talks'. There has only been a couple "talks" that the speaker has questioned the audience throughout the whole lecture, not just asked a few questions. As a student, informal dialogue or lectures can be very beneficial because for one you are more involved and you are processing thoughts the entire time. But, at the same time, the information that is shared between students may not be validated or accurate.
The video above shows how a small debate and new communication techniques can influence a topic to the listener. I feel that if you were at this debate about peak oil and you were able to engage in the topics, you would learn and acquire more information than if just the speaker gave you a lecture on peak oil. I have actually attended a lecture on peak oil, and I hardly remember anything because I was most likely day dreaming a bit. With new media tools and new methods of engaging the audience to make it "fun" and "exciting", I believe more students and people would really grasp the concepts and knowledge being expressed.
By the way, if you want to watch a crazy arithmetic lecture by a seasoned professor at CU take a look at the link below and watch the videos...it might give you a little bit of a scare about energy consumption. http://www.youtube.com/watch?v=F-QA2rkpBSY
Studying geology and having gone to multiple talks about different research topics and lectures, relating to the reading, I have found myself in many formal 'talks'. There has only been a couple "talks" that the speaker has questioned the audience throughout the whole lecture, not just asked a few questions. As a student, informal dialogue or lectures can be very beneficial because for one you are more involved and you are processing thoughts the entire time. But, at the same time, the information that is shared between students may not be validated or accurate.
The video above shows how a small debate and new communication techniques can influence a topic to the listener. I feel that if you were at this debate about peak oil and you were able to engage in the topics, you would learn and acquire more information than if just the speaker gave you a lecture on peak oil. I have actually attended a lecture on peak oil, and I hardly remember anything because I was most likely day dreaming a bit. With new media tools and new methods of engaging the audience to make it "fun" and "exciting", I believe more students and people would really grasp the concepts and knowledge being expressed.
By the way, if you want to watch a crazy arithmetic lecture by a seasoned professor at CU take a look at the link below and watch the videos...it might give you a little bit of a scare about energy consumption. http://www.youtube.com/watch?v=F-QA2rkpBSY
Tuesday, February 1, 2011
The Energy Solution?
So what is going to be the energy solution for the future? Is it going to be offshore drilling? How about oil shale? Shell Petroleum company runs a test plant for in-situ recovery for oil shale in western Colorado; there has been some success but the costs are extreme. What will it take for oil shale to fall into production and politics help push the idea forward? Check out this video by Fox News below...
The idea of 100 million bbl of oil from one acre is pretty good (At what thickness and quality of shale though?). But, they really don't talk about the environment impacts, and the amount of water needed for the recovery process. What is going to be worth more - a bbl of water or a bbl of oil?
I find it amusing how the news caster tries to show an example of oil shale burning with a torch and does not even where a glove. Shale oil can definitely help our dependence on foreign oil; but, it is going to take all variances of production to support our growing demand for oil.
Does anyone know if the moratorium is still active on production of shale oil? I know that drilling for shale gas has slowed down a lot in western Colorado due to low prices and also more companies are directing their focus to the DJ Basin.
The idea of 100 million bbl of oil from one acre is pretty good (At what thickness and quality of shale though?). But, they really don't talk about the environment impacts, and the amount of water needed for the recovery process. What is going to be worth more - a bbl of water or a bbl of oil?
I find it amusing how the news caster tries to show an example of oil shale burning with a torch and does not even where a glove. Shale oil can definitely help our dependence on foreign oil; but, it is going to take all variances of production to support our growing demand for oil.
Does anyone know if the moratorium is still active on production of shale oil? I know that drilling for shale gas has slowed down a lot in western Colorado due to low prices and also more companies are directing their focus to the DJ Basin.
Tell Ertl Oil Shale Repository reopened
"The Tell Ertl Oil Shale Repository, located in Arthur Lakes Library, Colorado School of Mines, is now accessible and open for research use! The open hours of the Tell Ertl Oil Shale Repository are Mondays and Tuesdays, 2:00pm to 4:00pm, but tours and repository use at alternative times can also be reserved with the COSTAR Librarian, Julie Carmen. Please contact her at; jcarmen@mines.edu. The repository houses over 23 special collections about the oil shale industry and include technical materials of architectural drawings, engineering drawings, maps of oil shale reserves, specialty journals, government and contractor reports, original research, charts, and data compilations. Non-technical materials include photographs, manuscripts, personal papers of key oil shale players, newspaper clippings, and memorabilia." (Julie Carmen)
I did not even know that we had an Oil Shale Repository before. This is a great resource provided by our school if you want to know more about the industry and the research that is going into it. I will definitely have to go check this out...
I did not even know that we had an Oil Shale Repository before. This is a great resource provided by our school if you want to know more about the industry and the research that is going into it. I will definitely have to go check this out...
Tuesday, January 25, 2011
Resource Plays
Some opinions say anything that is not a conventional reservoir is considered to be a resource play (unconventional); and others believe that anything that has to be stimulated (such as hydraulic fracturing) is considered to be a resource play. Below is a picture of a resource pyramid (from Dr. Steve Sonnenberg, Colorado School of Mines). It is important to know that oil and gas can be produced from multiple different types of reservoirs. This pyramid shows the world has only touch the "top of the iceberg" and is just know starting to target what is under the water. But, as you can see as you move down the pyramid technology and cost of production increases; OH NO, that means there will be higher oil and gas prices. Three years ago resource plays contributed about 3-5% of the domestic gas; today, resource plays contribute around 20% and it is increasing every day.
If you are unfamiliar about oil shale and how it is produced please take a look at the link below...
http://ostseis.anl.gov/guide/oilshale/
This link discusses briefly about oil shale, the oil shale industry, mining and processing, surface retorting, and insitu retorting.
Another good article that was published by The Energy Insider about The Rise of Unconventional gas will give you some idea of how important shale gas is going to be for the energy demand in the future. This article also discusses about what is unconventional gas (shale gas), and how unconventional gas will affect the gas market, pointing out that gas prices will most likely continue to increase until new and improved refining processes or new production techniques are created.
Brought to you by,
Chrysoberyl
If you are unfamiliar about oil shale and how it is produced please take a look at the link below...
http://ostseis.anl.gov/guide/oilshale/
This link discusses briefly about oil shale, the oil shale industry, mining and processing, surface retorting, and insitu retorting.
Another good article that was published by The Energy Insider about The Rise of Unconventional gas will give you some idea of how important shale gas is going to be for the energy demand in the future. This article also discusses about what is unconventional gas (shale gas), and how unconventional gas will affect the gas market, pointing out that gas prices will most likely continue to increase until new and improved refining processes or new production techniques are created.
Brought to you by,
Chrysoberyl
Monday, January 24, 2011
Welcome
"To keep a lamp burning we have to keep putting oil in it" ~Mother Teresa of Calcutta
The petroleum industry is adjusting more and more of their prospects towards oil shales and shale gas plays. The world does have a limited supply of oil, but in today's world, the supply of oil and gas fosters companies to pursue unconventional prospects, which require advancements in technology and cost more to produce.
I have created this blog to educate and open up the opinions of people about the idea of the future prospects in the petroleum industry, focusing on oil shales and shale gas. I encourage you to express your opinions about the petroleum industry, but please leave out any vulgar remarks. The demand for oil and gas in this world is incredibly large and growing every day, and therefore, exploration and production must continue to develop new technologies and new ideas to harvest a large enough supply to feed the growing demand.
Brought to you by...
Chrysoberyl
The petroleum industry is adjusting more and more of their prospects towards oil shales and shale gas plays. The world does have a limited supply of oil, but in today's world, the supply of oil and gas fosters companies to pursue unconventional prospects, which require advancements in technology and cost more to produce.
I have created this blog to educate and open up the opinions of people about the idea of the future prospects in the petroleum industry, focusing on oil shales and shale gas. I encourage you to express your opinions about the petroleum industry, but please leave out any vulgar remarks. The demand for oil and gas in this world is incredibly large and growing every day, and therefore, exploration and production must continue to develop new technologies and new ideas to harvest a large enough supply to feed the growing demand.
Brought to you by...
Chrysoberyl
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