Shale Gas is Creating a Tsunami of Change for the Industry

It’s been theorized that should a sizable meteorite or asteroid strike the earth mid-ocean, it could create a pressure wave in the water that would travel in all directions, ultimately rising up into a tsunami wherever the sea met land. The resultant wave would permanently reshape land forms along the coasts and would force itself into rivers, streams and tributaries, displacing the flow of fresh water that had traveled hundreds or thousands of miles from the interior of the continent…

It’s a frightening scenario and one that has seen its fair share of play in Hollywood blockbusters. It’s also a useful, though imperfect, analogy of what’s currently happening in the North American natural gas markets as new production from shale formations continues its dramatic increase.
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Challenging and Expanding the Innovation Paradigm

The word “innovation” is commonplace in the oil and gas industry. It’s the element in the alchemy that can turn stiff competition, high risk, volatility, and capital intensity into rewards. But are we limiting ourselves by defining and pursuing it under current assumptions and practices?
Innovation is an upstream imperative for scientists and engineers. It is not surprising that the units that make up this sector are the provinces of innovation culture; the professionals that inhabit it are its keepers, and with good reason: Higher oil prices over the past decade and a half have shifted the onus of value creation upstream. In addition, the sheer rate of change has put great pressure on the pace of innovation.
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The Shifting Energy Infrastructure is Impacting North American Natural Gas Traders

Cheap natural gas brought about by increased production and flagging demand due to low economic growth is challenging producers and traders across the US. Production increases in existing fields and new discoveries in the last 5 years have reshaped the markets, reducing pipeline spreads and forcing many companies to rethink their strategies and reshape their portfolios of transportation and contractual assets.
In particular, increased production from the Marcellus Shale in the Appalachian region is having a significant and potential long lasting impact (with nearly 32 tcf of proven reserves according to the EIA[1]) on gulf coast gas producers who have traditionally sold their production to what were once lucrative Midwest and Northeast markets. [Read more…]

How much is a “Dead Cow” worth? ©

“Vaca Muerta” (literally “Dead Cow” in Spanish) is a potentially huge shale field that may hold the key to Argentina’s energy future—not only because of the resources within (estimated 23 BBOE) but how its development sets the tone for private investment in the country as a whole.  Vaca Muerta, if fully realized, would give Argentina the third largest shale potential of any country in the world behind the U.S. and China.
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