Shale Oil & Gas

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All eyes are on falling oil prices and related markets—mainly, the price of gas at the pump. However, industry insiders are concerned with how, why and the near future of the oil and gas market. Apparently, the price of oil by the barrel and gas by the gallon are the only two things falling. The economy is up, the stock market is up, and the price of oil-based chemicals is holding its own.

OPEC can afford to lower its prices because they don’t have the high costs of fracking. Consequently, OPEC will keep producing as will the US and consumers will enjoy the benefits, at least for a little while until the playing field levels. The complicated confluence of the value of the American dollar, the price of drilling vs. fracking, and the world demand for oil-based energy are the necessary elements for everything from sensationalizing the daily news to plots for political action movies.

Read on and see what the alleged pundits have to say.

Falling Oil Prices Doesn’t Bother Opec—Why?

Trish Regan, anchor and editor-at-large for Bloomberg TV answered this question in a special report for USA Today. After explaining the high cost of harvesting US oil through fracking and the relatively low cost of securing Mideast oil, Regan asserts that the cost of drilling difference is the primary reason OPEC will not budge on production. Read the full story and see if you agree.

FULL STORY

Dollar Reaches 7-Year High as Energy Stocks, Oil Fall

A Bloomberg article by Joseph Ciolli and Stephen Kirkland claims that the strength of the US dollar against the yen despite falling oil prices is proof positive that assertions of a strong US economy are justified.

FULL STORY

U.S. Oil Stockpiles Rise as Saudi Prices Fall

Heesu Lee addresses oil futures, Saudi prices, and oil stockpiles in a comprehensive Bloomberg article explaining the state of the seemingly volatile market.

FULL STORY

Halliburton CEO Expects Shale to Reverse Falling Oil Prices

According to David Wethe in a recent Business Week article, Halliburton CEO David Lesar is joining other oil executives who claim to not be concerned about falling oil prices that they expect to climb next year. As the world’s biggest supplier of fracking services, Halliburton has perhaps the best perspective on what’s driving the U.S. shale boom.

The article goes on to say that Lesar believes the country needs only three elements to make shale drilling a worthwhile pursuit: good rock soaked in oil and natural gas, ample infrastructure such as pipelines to carry the petroleum to market and a profitable price.

FULL STORY

The Economy

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Everyone seems to cautiously agree that the economy is in better condition than it has been for nearly a decade, but the question of sustainability has as many answers as it has opinions. And the reasons for the modest growth are as disparate as the people giving them.

Isn’t it ironic that one of the driving forces of the economic upturn is the U.S. oil boom—the harvesting of the one resource that environmentalists fear the most? Nonetheless, it is difficult to argue against an industry that is injecting billions in revenues and annual job growth that exceeds 200,000 jobs a month into an economic system that was all but doomed less than ten years ago. But has this blooming economy improved the lives of the middle class and narrowed the gap between the oligarchy and the proletariat? Read on and see if you concur with the alleged experts.

The Price at the Pump May Do Little for the U.S. Economy

A Quartz article by Brian Browdie says that the decrease in gas prices doesn’t amount to bigger profits because Americans are driving less. However, the money that isn’t pumped into gas tanks can now be spent elsewhere. Then comes the question of whether the money saved at the pump is enough to compensate for the escalating cost of living.

FULL STORY

Are iPhones and Oil Prices Championing Our Improving Economy?

Forbes reporter Mark Rogowsky appears to think so. According to the article, the average citizen is taking the money saved at the pump and racing to buy an Apple iPhone.

Rogowsky admits that the article is not the result of a scientific study, but falling gasoline prices have put upwards of $10 billion into the hands of consumers. Chief economist for the U.S. at JPMorgan Chase was recently quoted in another article as saying the iPhone sales have added as much as 1/3 of a point to the GDP. And it stands to reason that $10 billion can buy a lot of iPhones.

FULL STORY

U.S. Economy—Best Growth in Nine Years

Market Watch reporter Jeffry Bartash joined the ranks of the economically optimistic when he said “the U.S. economy continues to chug along and it could soon register its longest and strongest period of expansion in nine years.”

Although most Americans remain pessimistic five years after the end of the Great Recession, it’s difficult to argue against statistics. The U.S. economy is indeed successfully chugging along despite the economic woes of the rest of the world.

Although the economy is enjoying a long awaited upturn, that does not mean the profits are falling into the hands of consumers.

FULL STORY

Income Redistribution—Are Economists Ready?

Mark Thomas was brave enough to address this provocative question in an article recently published by the Fiscal Times. Apparently, the economists assessing the complex damages to the economy during the Great Recession were negligent to include macroeconomic research on fiscal policy. This means that the growing problem of inequality was not addressed, leaving the policymakers inadequate information to make informed fiscal policy decisions. According to Thomas, “The question of redistribution is coming, and we need to be ready when it does.”

Full Story

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Shale Oil & Gas: October 2014

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From an oil glut causing a possible bear market threatening to pop the U.S. oil bubble to Canadians circumventing Keystone XL, and China sitting on the world’s largest oil and gas reserve but helpless to extract so much as a profitable drop—shale oil & gas owns the forefront of every news outlet in the industrial world. According to the experts, big changes could be in the very near future.

Is Saudi Arabia Forcing a Bear Market for Oil?

Wall Street Daily writer Karim Rahemtulla thinks so. In an Oct. 8 article, he said that Saudi Arabia proved that actions speak louder than words.

With no explanation, the Saudis dramatically cut the price of oil they sell to the world market forcing oil prices below $90 a barrel. The Kingdom’s only source of revenue is oil, and the Saudi’s will do anything to protect their grip on the world market. They have no choice. It’s their only source of revenue. They could send the market into a tailspin.

According to Rahemtulla, there are three saving graces in this situation.
FULL ARTICLE

Sub–$90 Oil: Big Threat to U.S. Oil Drillers

Although demand is weakening, U.S. oil drillers keep producing record amounts of new oil, driving the price down, writer Isaac Arnsdorf reported in a Bloomberg article.

Ralph Eads, vice chairman and global head of energy investment banking at Jefferies LLC, which advised 38 percent of U.S. energy mergers and acquisitions this year, said in an Oct. 1 interview: “If prices go to $80 or lower, which I think is possible, then we are going to see a reduction in drilling activity.” He went on to say, “It will be uncharted territory.”

Although consumers at the pump are enjoying the early price cuts, the U.S. oil producing industry is watching production, demand, and price per barrel very closely.
FULL ARTICLE

Canadians Don’t Need Keystone—They Have Their Own Route

Sending Canadian oil from Alberta to the U.S. Gulf Coast via the Keystone XL pipeline was a great idea when America desperately wanted Canadian oil. Nonetheless, when it came time to build the pipeline, politics got sticky and the political battle pitting Nebraska farmers and environmentalists against the oil industry delayed the project for more than a decade.

The Canadians found a solution. Build a pipeline to the Pacific and ship their crude to oil thirsty Asia. Bloomberg writers Rebecca Penty, Hugo Miller, Andrew Mayeda and Edward Greenspon wrote a full report.
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Windy Cove Energy to Develop CO2 Enhanced Oil Recovery Assets

A Penn Energy article on Windy Cove Energy, LLC announced that the company made a commitment to invest up to $700 million of equity to acquire and develop CO2 Enhanced Oil Recovery (EOR) assets in the U.S.

Chuck Fox, President and CEO of Windy Cove said, “I am delighted that Blackstone has chosen to partner with Windy Cove. More than 20 billion barrels of oil are estimated to be recoverable from CO2 flooding in the U. S. . . .”
FULL ARTICLE

Extracting Chinese Shale Gas Presents Major Difficulties

State oil and gas giants and foreign investors are less than enthusiastic about being involved in Chinese Shale Gas extraction according to a South China Morning Post report. Geography, abundant and readily available water close to the reserves are just a small part of the obstacles that stand in the way of a possible thriving oil industry. Although China has 50 percent more oil than U.S. resources, extracting it is close to impossible.
FULL ARTICLE

The Future of Shale Oil & Gas—Opinions Differ

Shale Plays in the Lower 48
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Ohio shale and gas production shifts south

A Columbus Dispatch article by Dan Gearino said that the Ohio Department of Natural Resources report on second-quarter results show the center of Ohio shale development shifting south to Noble County and Antero Resources Corp.

The top two natural-gas wells are located in Monroe County; both are owned by Hall Drilling.

Carroll County presently has the most oil and gas wells and the largest production. However, it lags in new development and in production per well.

FULL ARTICLE

 

Arguments for and against shale oil & gas developments may surprise you

An oilprice.com article by Euan Mearns questions whether we understand the concept of the controversial so-called energy debate. Whereas many think it is about the pros and cons of renewable energy and the environmental sensibilities of shale developments, the crisis may not be about those issues at all.

The crises for many countries could be abut the legal imperative to reduce their carbon dioxide (CO2) emissions relative to the value of 1990. The second order of importance is economic.

FULL ARTICLE

 

Why the shale oil and gas revolution won’t end any time soon

The Bangkok Post’s writer John Kemp questions the sustainability of the North American oil and gas boom. He says that doubts center on rapidly declining output from many shale wells after they are initially drilled. Although that may be true, supporters have every reason to believe that is not an issue. Kemp convincingly presents both sides of the issue in his comprehensive report.

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Are drillers producing more debt than oil as they pursue fortunes in shale?

Asjylyn Loder seems to think so in a Bloomberg News article addressing that question.

Floyd Wilson, chairman and CEO of Halcon Resources Corp. wrote off $1.2 billion last year after disappointing results in two key prospects. Since Wilson took over the company, Halcon’s shares have dropped by about half, trading at $5.67 on Sept. 5.

Apparently this does not discourage Wilson, who claims that politicians and investors are buying into the vision of a domestic energy renaissance.

FULL ARTICLE

 

The long supply chain, not Big Oil that keeps the industry pumping

That’s what Jennifer A. Dlouhy reports in a fuelfix.com article on Sept. 9.

The American Petroleum Institute released a report documenting the nearly 30,000 businesses across the country that supply the oil and gas industry with products, equipment, and services, Dlouhy said.

Does that offset the losses suffered by investors in the oil fields where production is dwindling?

READ THE FULL ARTICLE AND SEE IF YOU AGREE

Economy

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Shippers Balk at Soaring U.S. Rail Shipping Rates

According to the America Chemistry Council (ACC), the average shipping cost per railcar has gone up 93% since 2001. Consequently, the buyer of a custom-order from Diversified gas didn’t want the expense of the huge freight bills, so it brought the manufacturing in-house. The report in Bloomberg News went on to say that shippers such as Diversified and Dow Chemical Co. are asking for U.S. government intervention to help them fight back.

FULL ARTICLE

Has the current M&A cycle peaked?

According to Plastics News Senior Staff Reporter Frank Esposito, that may very well be true. Plastics M&A veteran Thomas Blaige, chairman and CEO of the Blaige & Co. financial firm in Chicago said that the six-year investment cycle ends this year. This means that the valuations for plastics businesses have peaked and could be trending down.

FULL ARTICLE

Offshore oil auction set to pay U.S. government $110 million

A Fuel Fix article reports that an auction for leases in the western Gulf of Mexico last Wednesday resulted in oil and gas companies set to pay the U.S. government $110 million for 81 blocks spanning 433,823 acres. Until a recent treaty between the U.S. and Mexico, the territory was off limits for development.

FULL ARTICLE

Gulf Coast refineries set record for volume of crude last week

According to Platts, Gulf Coast refineries hit a record high for production with 8.74 million b/d, countering analysts expectations. The increase drove regional refinery utilization to a record 96.9% of operable capacity, up by 2.5 percentage points from the previous week according to the data.

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The Housing Market appears to be back on track

A New York Times Article reported that the nation’s modest housing recovery appears to be on the rebound. The Commerce Department reported on Tuesday that Home Depot announced a strong quarter, which is a good omen considering their close ties with the housing market. Home construction also increased dramatically during the month of July. Starts were up 16 percent over June and nearly 22 percent from12 months ago.

FULL ARTICLE

Oil Industry tells Obama to go big on offshore drilling

The Hill reports that the oil and gas industry along with its allies and affiliates are encouraging the Obama administration to grant offshore drilling permits wherever possible. Offshore producers claim that safety precautions have dramatically improved, making environmental concerns a non-issue according to Shell and Chevron oil companies. Chevron also purports that the current scope of the leasing program is also not sufficient to meet the domestic energy demand.

FULL ARTICLE

Business is booming at small K Street lobby shops

According to an article in The Hill, eight of a dozen firms interviewed said that their lobbying revenue was up during the most recent quarter from April to June.Sam Geduldig, a partner at the firm of Geduldig, Cranford & Nielsen and a former senior aide to House Speaker John Boehner said “It’s the realization that the House is going to stay Republican and the Senate could flip.”

FULL ARTICLE

Chicken Little—Is the sky really falling?

Economy - The Chemical Company

Whenever a market peaks, investors, financial advisors, and the media raise the alarms about a major sell-off. The S&P 500 and Dow Jones Industrial Average peaked less than two weeks ago. The Wall Street media in its unconscionable effort to sensationalize information and sell news at any cost immediately predicted a market collapse that will dwarf the great depression, sending everyone into panic mode.

Fortunately, cooler heads occasionally prevail and look at the overall picture more realistically. According to Jon C. Ogg of 24/7 Wall Street, a market correction is inevitable, but there are several key indices to watch that put the condition of the marketplace in perspective. Keep in mind that no matter what the indicators say, none of them signal serious or grave concerns for the broader markets in unison. The entire market is not going to collapse overnight.

Nonetheless, if half of the key issues to watch grow beyond the threshold levels, then there will be too many items occurring simultaneously to ignore. The eight items to watch are: The 10-year Treasury; Russia and Ukraine: gold prices; oil, black gold; alternative energy; market volatility—the VIX; momentum stocks; and biotech.

Ogg concluded his article saying there are more things to consider. However, the aforementioned appears to be a reasonable guide to predicting trends so investors can respond to the market appropriately instead of reacting to hype generated by the Wall Street media. Chicken Little and Henny Penny have time to put their eggs in the right baskets. The sky is not falling today.

Liquefied Petroleum Gas (LPG)—U.S. Supplies China

Liquefied petroleum gas tanks

If the pump jacks and wells seen operating in an oil field near McKittrick, California are any indication, the Monterey Shale formation is on the verge of a boom using hydraulic fracturing, or fracking to extract gas and oil.

Sinopec & Pillips Deal

Huge finds of shale oil and gas in the U.S. resulted in a deal between China’s most productive refiner Sinopec and Phillips that could make the U.S. one of the top suppliers of liquefied petroleum gas (LPG) to the world’s biggest user and second-biggest economy.

Although Washington restricts crude oil exports and limits liquefied natural gas (LNG) shipments, sales of liquefied petroleum gas have no constraints.

However, like the U.S. and Europe, China has ambitions to wean itself from energy imports and reduce its overwhelming dependence on coal that has made China the world’s largest contributor to global warming.

Unfortunately for China, the path to energy independence is fraught with obstacles and pitfalls. In China, companies must drill two to three times as deep as in the U.S., making the process significantly more expensive and dangerous. China’s energy companies operate in strict secrecy and accidents allegedly claim a high death toll.

 Jiaoshizhen Valley Rig Explosion

Villagers reported that eight people died when a rig exploded in the middle of the night in the Jiaoshizhen valley, an area so remote that residents speak a dialect that is different from anywhere else in China. Village leaders and Sinopec officials ordered them not to discuss the event.

Until China can overcome these hurdles or find more favorable oil and gas fields, the trade deal between Sinopec and Phillips to supply liquefied petroleum gas could be its best hope of reducing its carbon footprint and dependence on coal.

 

Composite Materials Supplier

 Composite Materials Supplier

 

Silica Fabric

Silica Fabric is high temperature woven fabric used in  various high temperature applications. It can withstand temperatures of up to 2000F.  Offered in both 18  oz .and 36 oz per sq yard weights, it is a commonly sewn into welding blankets, heat shields and fire blankets. It is available in 36” widths, and is shipped in 50 yard rolls.

Glass Fabrics

Glass fabrics are woven fabrics made from e-glass.  These fabrics are commonly coated with various resins becoming a laminate. Laminates are then pressed together and can be machined into many different parts.   Common applications are electrical insulation, and fire walls. Common styles are 7628, 7781, and 7642.

Chopped Strands

Chopped strands are chopped up forms of a drawn fiberglass. They are commonly used in various reinforcement applications, and are compounded with plastic pellets. We offer several types depending on resin compatibility. They are available in 9, 13 and 17 microns widths, and are shipped in 25 KG bags or super sacks.

Woven Rovings

Rovings are a form of drawn fiberglass that can be woven or in wound up form. These are common in marine reinforcement applications. We offer all types.

Succinic Acid Supplier

Leaders in Succinic Acid Supply

The Chemical Company is the leading Succinic Acid supplier in the United States. Yes, we still offer one-on-one personal service every time, all the time. The Chemical Company is one of the most respected global chemical suppliers and chemical distributors because we focus on anticipating the needs of the marketplace. Our response network never closes. We stock our inventory in a network of warehouses throughout the world. We have procurement offices in NAFTA, Latin America, and Southeast Asia. When you call The Chemical Company, you get one-on-one service from a real person, the procurer. Middlemen are never involved. We are recognized worldwide for our advanced, accurate solutions.

Succinic Acid from The Chemical Company

Succinic acid from The Chemical Company is a dicarboxylic acid comprised of four carbon atoms. This four carbon dicarboxylic acid has uses in a number of industries including polymers (clothing fibres), food, surfactants and detergents, flavors and fragrances and as a starting material for any number of chemicals including adipic acid, N-methyl pyrrolidinone, 2-pyrrolidinone, succinate salts, 1,4-butanediol, maleic anhydride, tetrahydrofuran and gamma-butyrolactone, which are used in the pharmaceutical industry. Succinic acid has many uses in the pharma industry – too many to mention, but some examples are as a starting material for active pharmaceutical ingredients (APIs), as an additive in formulation, succinic acid monoethyl ester has been used as an insulinotropic agent, and the compound has also been used as a cross linker in drug control release polymers.

Succinic Acid Uses

The estimated 2010 worldwide use of succinic acid is around 20,000 to 30,000 tonnes per year and this is on the increase by around 10 per cent a year. It occurs naturally in plant and animal tissues. Succinic acid plays a significant role in intermediary metabolism (Krebs cycle) in the body. The Krebs cycle (also known as citric acid cycle) is a sequence process of enzymatic reaction in which a two-carbon acetyl unit is oxidized to carbon dioxide and water to provide energy in the form of high-energy phosphate bonds.

Succinic Acid Properties

Succinic acid is a colorless crystalline solid with a melting point of 185-187° C. It is soluble in water, slightly dissolves in ethanol, ether, acetone and glycerine. It does not dissolve in benzene, carbon sulfide, carbon tetrachloride or oil ether.
Carboxylic acids can yield acyl halides, anhydrides, esters, amides, and nitriles for applications in the drug, agriculture, food products, and other industries.

Succinic Acid Shipping Info

Succinic acid from The Chemical Company is available in 25kg bags, 1 met ton supersacks, and in bulk throughout the continental United States. Special packaging is available upon request.

The Chemical Company 44 Southwest Ave. Jamestown, RI 02835 (401) 360-2800