Oil Prices Likely to Keep Falling as US Output Booms
A Bloomberg News article posted in Newsmax and several other industry publications reported that new U.S. pipelines and a revival in Libyan supply are increasing the likelihood that oil prices will slump through year-end after climbing in the first six months.
Wall Street analysts tracked by Bloomberg predict West Texas Intermediate oil, the U.S. benchmark, will average $100 a barrel in the fourth quarter, down 5.1 percent from June 30, while Brent drops 4.8 percent to $107. Violence in Iraq sent Brent to $115.71 in June, its highest level since September, on concern supplies would be disrupted.
Obama Opens Eastern Seaboard to Oil Exploration
Jason Dearen posted on ABC News announced that the Obama administration is reopening the Eastern Seaboard to offshore oil and gas exploration, approving seismic surveys using sonic cannons that can pinpoint energy deposits deep beneath the ocean floor.
Friday’s announcement is the first real step toward what could be a transformation in coastal states, creating thousands of jobs to support a new energy infrastructure. But it dismayed environmentalists and people who owe their livelihoods to fisheries and tourism.
The cannons create noise pollution in waters shared by whales, dolphins and turtles, sending sound waves many times louder than a jet engine reverberating through the deep every ten seconds for weeks at a time. Arguing that endangered species could be harmed was the environmental groups’ best hope for extending a decades-old ban against drilling off the U.S. Atlantic coast.
Europe Risks Losing 30 Million Jobs to U.S. Shale Boom
According to a Bloomberg News article by Priyanka Sharma and Lananh Nguyen,the U.S. shale-gas boom is placing 30 million jobs at risk in Eurooe as companies with greater reliance on energy contend with higher fuel prices than their American counterparts, the International Energy Agency said.
Manufacturers of petrochemicals, aluminum, fertilizers and plastics are leaving Europe to take advantage of booming U.S. production of natural gas from shale rock formations, Fatih Birol, chief economist for the International Energy Agency, a Paris-based adviser to 29 nations, said at a conference in London today.
“Many petrochemicals companies in central Europe are moving out,” Birol said. “Thirty million jobs are in danger.”
The U.S. has become the world’s largest producer of oil and gas as hydraulic fracturing and horizontal drilling help producers extract resources from shale rock. The country’s refineries processed a record volume of crude last week as plants took advantage of cheaper domestic crudes. Chemical makers from Germany’s BASF SE to Brazil’s Braskem SA plan to invest as much as $72 billion in U.S. plants to take advantage of low-cost natural gas feedstock.
Shale gas brings U.S. manufacturing resurgence
An ACC Smartbrief report said that U.S. manufacturing is strengthening, in large part because of cheap shale gas, which manufacturers are increasingly turning to as a primary energy source. As evidence of the manufacturing comeback, the American Chemistry Council estimates there are 125 pending chemical projects that will expand U.S. capacity and add $84 billion to the economy.
E.IA: Marcellus gas output to surpass 15 Bct/d in July, Aug
The Energy Information Administration reported on Monday that natural gas production in the Marcellus Shale will reach an average of 15.235 billion cubic feet per day this month, an increase of 28% from the previous year, and further rise to 15.482 billion cubic feet per day in August. Gas output from the region makes up approximately 16% of total domestic gas production.
Horizontal drilling is real driver of U.S. Shale revolution
A Reuters Newswire article said that while hydraulic fracturing is touted as the driver of the U.S. shale revolution, the more significant innovation is horizontal drilling, writes John Kemp, senior market analyst at Reuters. He notes that the process was first used for water more than 2,000 years ago and was more recently combined with fracking after a decade of experimentation. Kemp argues that technologies that will transform future oil and natural gas production might already be present, “waiting to be improved and discovered more widely.”
Chile’s ENAP to import U.S. shale gas fro BG Group in 2016
Reuter’s Newswire reported that Chile’s state-run oil firm ENAP said in a statement Tuesday that it reached a deal to purchase U.S. shale natural gas from British oil and gas company BG Group in the first half of 2016. BG Group “will be in conditions to supply the fuel once the Sabine Pass terminal starts operating at the end of 2015 or beginning of 2016,” the company said.
Shell discovers oil in Gulf of Mexico’s deepwater Norphlet play
The Times-Picayune reported that Royal Dutch Shell announced Tuesday that it found oil for the third time in the Norphlet play in the Gulf of Mexico. The exploration well, drilled 75 miles offshore, is expected to hold 100 million barrels of oil equivalent. Test results of the well are still being finalized, the company said.