Shale gas output growth just beginning
Matt Smith, commodity analyst at Schneider Electric says that the shale-driven growth in U.S. natural gas production is still likely “in the first half” of the game. He went on to say, “As natural gas prices gradually increase, we should see more production coming online because it’s incentivized by these higher prices. And so the unconventional gas story in the U.S. has a log way to run yet.” Although some countries can experience surging production from shale, they will not be able to replicate the U.S. boom, he added.
North Dakota tops 1M barrels per day
North Dakota oil production rose from 977,000 barrels per day in March to more than 1 million barrels per day in April, data from the state Department of Mineral Resources shows. Most of the output came from the Bakken Shale play and the Three Forks formations.
Domestic petrochemical exports expanding because of increased U.S. shale production
ExxonMobil Chemical President Steve Pryor said that the U.S. is joining the Middle East as a major petrochemical exporter because of the shale boom. Eventually, U.S. shale gas will find its way to Asia and Latin America in the form of resin pellets, according to the article. The American Chemistry Council estimates a total of $71.7 billion in new shale-related petrochemical investments.
Iraq’s impact on oil prices mitigated by U.S. shale boom
Nansen Saleri, CEO at Quantum Reservoir and former head of reservoir management at Saudi Arabian Oil said that the U.S. shale boom, which has driven growth in crude oil production, has prevented oil prices from increasing at a higher rate amid the crisis in Iraq. “Were it not for the increase in U.S. production that’s gained close to 2 million barrels a day, we would see a $20 to $30 rise in prices,” he said.
Even non-producing states benefit from U.S. gas boom say industry experts
In a Fuel Fix article, IHS Vice Chairman Daniel Yergin told Congress’ Joint Economic Committee that the surge in domestic natural gas production is contributing to the economic growth of U.S. states, even in states that don’t drill. Yergin said that approximately one-fourth of the 2.1 million jobs related to unconventional production can be found in those nonproducing states. Business leaders also noted that other industries are gaining from the boom.
Study reveals that oil and gas capital spending declined in 2013
According to an Oil & Gas Journal article, Deborah Byers, oil and gas leader at Ernst & Young said that capital expenditures by U.S. oil and natural gas firms in 2013 decreased by 7% from 2012, leading to a 9% gain in oil and gas reserves and strong energy prices. The decrease “is due in part to the advancement in technologies and processes that are making exploration and production less expensive and more efficient,” she said.
ExxonMobil shale gas exploration with Turkey almost certain
Turkish energy ministry official Salami Incedalci said that ExxonMobil and state-controlled Turkish Petroleum Corp. could team up on shale natural gas exploration in parts of Turkey.
The Reuters Newswire confirmed the claim in a report that quoted a Turkish energy official as saying that U.S. oil firm ExxonMobil is in talks with state-run Turkish Petroleum Corporation over a venture to explore for shale gas in the country’s southeast and northwest regions.
According to the report, Exxon held talks with TPAO in 2012 to cover a partnership in shale, but the negotiations were inconclusive. Turkish officials say talks have since advanced and are likely to result in an agreement.
The partnership could take the sting out of the possible loss in revenues suffered in the Iraq conflict if the crisis is not resolved in the near future.