Post Tagged with: "Hydraulic fracturing"

It’s Official, Hydraulic Fracturing Produces More than Half of U.S. Crude Oil: EIA

It’s Official, Hydraulic Fracturing Produces More than Half of U.S. Crude Oil: EIA

Crude from tight oil now the primary source of oil from the U.S. Hydraulically fractured wells now account for the majority of the crude oil produced in the U.S., according to the EIA. Based on the most recent data available, crude oil produced from hydraulic fracturing now makes up 51% of total oil production in the country. The information compiled by the EIA showed that in 2000, approximately 23,000 hydraulically fractured wells produced 102 MBOPD in the U.S., making up less than 2% of the national total. By 2015, the number of hydraulically fractured wells grew to an estimated 300,000, and production from those wells had grown to more than 4.3 MMBOPD, 42-times more than at the turn of the century. The oil produced from hydraulically fractured wells comes primarily from tight oil formations including the Eagle Ford and Permian Basin in Texas, and the Bakken and Three Forks formation[Read More…]

Is the Shale Boom Finally Taking a Breather?

Is the Shale Boom Finally Taking a Breather?

Heavy hitting U.S. shale producers lower production guidance 10% or more for ‘16 U.S. shale producers are beginning to announce production cuts as the global glut is keeping prices lower for longer. There is a marked difference as companies begin to report their 2016 guidance from this time last year when prices were still in the $40-$50 range. Many U.S. shale producers last year stressed that they could continue pumping, and indeed shale production proved much more resilient than many expected. A year later, however, with oil prices thus far fighting to stay in the $30s, many of the preeminent shale producers are beginning to lower production guidance. Already Continental Resources (ticker: CLR, ContRes.com), Devon Energy (ticker: DVN, DevonEnergy.com), EOG Resources (ticker: EOG, EOGResources.com), Marathon Oil (ticker: MRO, MarathonOil.com) and Whiting Petroleum (ticker: WLL, Whiting.com) have announced lower expected levels of production this year compared to 2015. Continental, Devon and[Read More…]

Seven More Anti Fracing Initiatives Struck from Colorado’s Ballot

Seven More Anti Fracing Initiatives Struck from Colorado’s Ballot

Dead initiatives focused on setbacks Coloradans Resisting Extreme Energy Development (CREED), an anti fracing group in Colorado, has removed seven more of its proposed ballot initiatives this week, most of which focused on mandatory setbacks up to 4,000 feet. CREED also removed an initiative from the ballot earlier this month that which sought to ban fracing outright in the state. Tricia Olson, a spokeswoman for CREED, said the group was in the process of selecting the strongest proposals for the 2016 ballot box earlier this month. “While we didn’t want to eliminate any proposals, we always knew that we could only run one or two,” Olson told Denver Business Journal. Three initiatives remain CREED has just three anti fracing ballot proposals remaining at this point: RIGHT TO A HEALTHY ENVIRONMENT: No. 63 would ask voters to approve a right to a “healthy environment,” defined as “safe and sustainable conditions for[Read More…]

Anti Fracing Group Removes Outright Frac Ban Attempt from Colorado Ballot

Anti Fracing Group Removes Outright Frac Ban Attempt from Colorado Ballot

Ten anti fracing ballot propositions remain; group hopes one or two make the Nov. ballot Coloradans Resisting Extreme Energy Development (CREED) has removed one of its eleven anti fracing measures from the 2016 ballot. The measure removed by the group was for a full ban of hydraulic fracturing in the state, a proposal that would have been difficult to pass considering the size of the oil and gas industry in Colorado. According to research conducted by the University of Colorado Boulder, in 2014, the oil and gas industry generated a total economic impact of $31.7 billion, with taxes generating roughly $1.2 billion in public revenue. “We’re going to pull the one that’s the ban, not the other ones,” Karen Dyke, listed on the state documents as the contact person for the 11 initiatives, told the Denver Business Journal. “We’re down to 10, but we still have plenty to work with.”[Read More…]

The U.K. Awards Nearly 70 Licenses to Explore Shale

The U.K. Awards Nearly 70 Licenses to Explore Shale

New laws allow for exploration and hydraulic fracturing under national parks The United Kingdom’s Oil and Gas Authority awarded 93 new licenses to explore for oil and gas last week. Around 75% of those exploration licenses relate to shale oil and gas, which will likely require companies to use hydraulic fracturing to produce. The areas covered by the licenses include 159 blocks of land located mostly in the North East and North West of England, reports BBC.    “We need to get shale gas moving,” said Britain’s Energy Minister Andrea Leasdsom. The new licenses were offered one day after the British Parliament approved new legislation that will make it possible for companies to explore for shale gas under national parks. Companies will still need to apply for permission to build rigs and drill from local and central authorities before beginning operations. Companies awarded licenses last week include Cuadrilla Resources, IGas[Read More…]

OPEC a Year Later: Who Will Adapt and Survive?

OPEC a Year Later: Who Will Adapt and Survive?

A shot heard round the world Last November 27, OPEC sparked the decline in crude oil prices that would see both international benchmark Brent crude, and U.S. benchmark WTI crude, lose more than 50% of their value. The group decided to move away from its traditional role of maintaining a reasonable crude oil price in order to protect its market share around the world in the face of higher production from hydraulic fracturing in the United States. The OPEC decision, which the group finalized on Thanksgiving Day 2014, fundamentally changed the landscape of global oil markets. Producers were forced to focus on their most economic acreage and find ways to increase efficiencies in order to maximize their well economics. U.S. E&P companies in EnerCom’s E&P database saw their market capitalization decline by approximately 30% from November 26, 2014, the day before the OPEC decision, to the end of October, 2015.[Read More…]

Hydraulic Fracturing Lowered Unemployment 0.5% During the Great Recession

Hydraulic Fracturing Lowered Unemployment 0.5% During the Great Recession

Study finds hydraulic fracturing added 725,000 jobs during the Great Recession The energy boom brought on by hydraulic fracturing helped to soften the blow from the Great Recession, a new study conducting by the National Bureau of Economic Research found. Between 2005 and 2012, 725,000 jobs were added to support the oil and gas industry as it rapidly expanded thanks to hydraulic fracturing. Researchers conducting the study analyzed data from over 3,000 U.S. counties and determined that within 100 miles of new production, $1 million of extracted oil and gas generated $243,000 in wages, $117,000 in royalties and 2.49 jobs. “Aggregating to the national level we conclude that aggregate employment rose by 725,000 jobs due to fracking, causing a reduction in the U.S. unemployment rate of 0.5 percent during the Great Recession,” according to the study. The study did not take into account the impact of lower energy prices to[Read More…]

Local Control: Colorado Releases Draft Regulations

Local Control: Colorado Releases Draft Regulations

New regulations aimed at mitigating effects of oil and gas near urban areas The Colorado Oil and Gas Conservation Commission (COGCC) released the draft proposal for two new regulations after more than a year of consideration from the Colorado Oil and Gas Task Force with local stakeholders. In September 2014, Colorado Governor Hickenlooper created the task force in order to reach a compromise over pro- and anti-hydrocarbon development initiatives from a November ballot. The goal of the task force was to allow for an open dialogue, Hickenlooper told Oil & Gas 360 during an exclusive interview. “You can resolve 99% of the problems, the conflicts you see, just by sitting down at the table,” he said. In February of this year, the task force voted to send nine recommendations to Gov. Hickenlooper. Many of the proposals require legislative action to enact, but two of the largest ones, Nos. 17 and[Read More…]

Wyoming Court Files Injunction against Federal Fracing Rules

Wyoming Court Files Injunction against Federal Fracing Rules

Judge Scott Skavdahl Blocks Proposed Government Regulations The final day of September marked the end of Q3’15 for the majority of oil and gas companies. The same definitive timeframe doesn’t apply for hydraulic fracturing on Federal lands, which created a new chapter as corporations closed the books on their latest quarterly financial results. On September 30, 2105, U.S. District Court Judge Scott Skavdahl of Wyoming issued an injunction on fracing regulations imposed by the United States Bureau of Land Management (BLM). The development is a follow up to a June filing that requested a temporary delay in the new regulations. The Rocky Mountain region is at the forefront of denying the BLM regulations, as North Dakota, Utah, Colorado, Utah and Wyoming have teamed up in the debate. The Ute Indian Tribe also joined in the suit, believing the government is overstepping its bounds. According to the injunction: “Petitioners contend the[Read More…]

Increased Frac Sand Triples Output in the Eagle Ford

Increased Frac Sand Triples Output in the Eagle Ford

Producers looking to get the most out of wells are increasing volumes of frac sand In the current price environment, companies are doing everything they can to get the most out of their wells. Falling commodity prices have made wells increasingly uneconomical, a problem that is being acutely felt during quarterly reserves ceiling tests. Operators are doing everything they can to increase the production from their wells, thus making them more economically attractive. One recurring theme is to use larger amounts of frac sand during the hydraulic fracturing process. Brett Pennington, senior vice president of U.S. land operations for Murphy Oil Corp (ticker: MUR), has been experimenting with using up to 3,000 pounds per foot in some wells in the Eagle Ford, almost double the average of most wells in the play, according to Bloomberg. “I can’t control the price of the commodity,” Pennington said in a recent interview. “The[Read More…]

China has Reduced its Shale Drilling & Completion Costs by 23%

China has Reduced its Shale Drilling & Completion Costs by 23%

As China looks for way to meet more of its natural gas demand domestically, it has looked to improving the economics of its own shale gas development. While China is one of four countries currently producing commercial volumes of shale gas, it has not been as economical as shale development in the U.S. Despite this, there have been more than 700 shale gas wells drilled in China, reaching production levels of 0.38 Bcf/d, according to data from the Energy Information Administration. As Chinese companies gain experience producing from shale, the cost of shale gas drilling has declined. By mid-2015, the cost of drilling a horizontal well in shale formations in the Sichuan Basin was between $11.3 million and $12.9 million per well, according to China National Petroleum Corporation’s Economics and Technology Research Institute. This range was a 23% reduction in the cost of a shale gas well compared with the[Read More…]

Presidential Candidates on Energy: Fiorina

Presidential Candidates on Energy: Fiorina

Gives thumbs up to Keystone and crude oil exports Former Hewlett Packard CEO Carly Fiorina is running for the 2016 Republican nomination. Fiorina talked about energy in an interview with The Fuse in June. Here is a summary of her energy policy thoughts: Crude oil export ban: I would lift the restriction on exporting oil. Keystone XL pipeline: I support the Keystone Pipeline. Regulations: We’re limiting our ability to find resources by imposing regulations on hydraulic fracturing and our ability to be energy independent by regulating drilling on federal lands. As President I would roll back many of these regulations. Coal: The federal government has decided, through the EPA, basically to destroy the coal industry. They’re well on their way to doing that. In order to invest in clean coal, you need a healthy industry to make those investments, and you also need the federal government to do some of that basic[Read More…]

September 30, 2015 - 12:52 pm Oil and Gas 360 Articles, Politics & Opinions
Frac Water Biocide Wins Competition for Innovation

Frac Water Biocide Wins Competition for Innovation

Frac fluid biocide wins industry award The Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC) announced FyreRok Biofluids won the 3rd Annual Shale Gas Environmental, Health & Safety (EH&S) Award today. FyreRok, a Bellefonte, Pennsylvania, based company, was given the EH&S Award for its technology which develops a hypochlorous acid at well pad sites to use as a non-toxic biocide to treat water used in the hydraulic fracturing process. Bill Hall, Executive Director of SGICC commented, “The shale energy industry must continue to operate in an exemplary manner, exceeding stakeholder’s expectations in the environmental, health, and safety areas. This is integral to the industry being provided their social license to operate, gaining the trust and respect of the Commonwealth’s citizens, as well as the workers they employ and the communities where they operate. Ben Franklin’s Shale Gas Innovation and Commercialization Center is excited to once again shine a light[Read More…]

Crescent Point Sees 31% Recovery Factors: Has it Perfected the Next Big Idea in Horizontal Wells?

Crescent Point Sees 31% Recovery Factors: Has it Perfected the Next Big Idea in Horizontal Wells?

Beating the Decline Curve with Water Injections via Stage-Fractured Horizontal Wells = a Lower F&D Cost than Saudi Arabia The shale revolution has propelled North America into a global energy powerhouse. The technology driving this transformation – hydraulic fracturing – has allowed U.S. and Canadian producers to unlock tremendous energy resources, but it presents its own unique challenges compared to traditional methods of production. Production from hydraulically fractured wells declines rapidly, typically by 60-70% in the first year, before leveling out at lower levels. Because of the rapid initial decline of new wells, companies drilled several new wells to replace the lost production from their aging wells, creating a “Red Queen Syndrome,” which is a reference to the character by the same name in Through the Looking-Glass, who tells Alice, “It takes all the running you can do, to keep in the same place.” Since the tremendous drop in oil prices[Read More…]

September 14, 2015 - 7:08 pm Canada, Fracing, Oil and Gas 360 Articles
Proppant Update: Suppliers Roll with the Punches

Proppant Update: Suppliers Roll with the Punches

Raymond James sees a recovery in sand prices Although Hi Crush Partners (ticker: HCLP) missed on its Q2 earnings, reporting $84 million in revenues or $0.31 per unit in earnings, Raymond James believes the company still has long-term potential following a recovery in sand prices. “We believe a rig count recovery and intensity trends should support a recovery in sand pricing through the coming cycle,” a note from the analysts said. Raymond James maintained its positive outlook on HCLP, saying the company gave price concessions to maintain market-share, a wise-move, according to the analysts. “At our current rig count, we expect proppant intensity trends will support a ~40% increase year-over-year in 2016, helping fuel a price recovery in 2017 to support resumed distribution growth.” Study: Preferred Sands’ Genoa Sand outperformed Premium White Sand by up to 12% in the DJ Basin Preferred Sands, a proppant technology company, announced that a[Read More…]

Will an Oil Market Balance in 2016 be Too Late for Saudi Arabia?

Will an Oil Market Balance in 2016 be Too Late for Saudi Arabia?

Wells Fargo sees market balance in 2016 A recent note from Wells Fargo Equity Research highlights the continued unresponsiveness of production in the face of low oil prices, but the analysts say they expect the market to rebalance in 2016. “Given OPEC’s continued focus on market share and the lack of production response thus far to lower drilling/spending from non-OPEC, the global oil market is likely to remain sloppy for a bit longer,” read the note. The question is how long is “a bit longer”? In its most recent Oil Monthly Report, OPEC reported that it produced 31.51 MMBOPD in July, an increase of 101 MBOPD, despite a continued glut in crude oil. The good news, says Wells Fargo, is that global demand is responding to lower prices, with the bank predicting demand to grow by 1.6 MMBOPD and 1.5 MMBOPD in 2015 and 2016, respectively. While oversupply continues to[Read More…]

Source: TAQA

Dutch Government Bans Hydraulic Fracturing for Five Years

Exploration wells to be allowed with permission from the government Dutch Minister of Economic Affairs Henk Kamp announced that the government will impose a ban on hydraulic fracturing until 2020. “No commercial exploration or extraction of shale gas will take place in the Netherlands over the next five years,” according to a release from the Dutch government. “Existing licenses for exploration activities relating to shale gas will not be renewed.” The press release stated that the Dutch cabinet has commissioned studies since 2013 on the effects of hydraulic fracturing, but “the studies have demonstrated that there is great uncertainty regarding the effects of drilling for shale gas.” There have also been no test wells drilled in the Netherlands, so it is not clear how much gas is even in place in the country. Exploratory wells may be drilled in the next five years, but only at the request of the[Read More…]

Wyoming Judge Temporarily Halts New BLM Regulations in Four States

Wyoming Judge Temporarily Halts New BLM Regulations in Four States

BLM head Sally Jewell says old regulations were behind the times U.S. District Judge Scott Skavdahl of Wyoming granted a request by Colorado, North Dakota, Utah and Wyoming to temporarily delay new Bureau of Land Management (BLM) regulations today while the court decides if they are legal, reports the Denver Post. The new BLM regulations would have created a number of new requirements for companies using hydraulic fracturing on federal or tribal lands, including: Submitting detailed information about the proposed operation, including wellbore geology, the location of faults and fractures, the depths of all usable water, estimated volume of fluid to be used, and estimated direction and length of fractures, to the BLM (Bureau of Land Management) with the APD or a Sundry Notice and Report on Wells (Form 3160-5) as a Notice of Intent (NOI) to hydraulically fracture an existing well; Designing and implementing a casing and cementing program that[Read More…]

After Seven Years of Study, New York Formally Bans Hydraulic Fracturing

After Seven Years of Study, New York Formally Bans Hydraulic Fracturing

The decision follows the release of the DEC’s 1,448-page report on hydraulic fracturing New York Department of Environmental Conservation (DEC) Commissioner Joe Martens announced today that hydraulic fracturing would be formally banned in the state of New York. The announcement comes after seven years of study by the DEC and the release of their 1,448-page report, which was released prior to Martens’ remarks, reports Syracuse News. New York’s decision to formally ban hydraulic fracturing makes it the first state with access to significant natural gas resources to do so. Neighboring Pennsylvania has benefitted tremendously from the production of natural gas in the Marcellus Shale, so much so in fact, that New York’s Southern Tier threatened secession to Pennsylvania in an attempt to draw attention to how much the region would benefit from hydraulic fracturing. “High-volume hydraulic fracturing poses significant adverse impacts to land, air, water, natural resources and potential significant[Read More…]

EPA: Hydraulic Fracturing Rarely Impacts Drinking Water Resources

EPA: Hydraulic Fracturing Rarely Impacts Drinking Water Resources

Between 100,000 and 120,000 wells were drilled and fraced from 2011 to 2014, but few led to issues with drinking water A draft assessment released by the Environmental Protection Agency (EPA) today claims that “hydraulic fracturing activities have not led to widespread, systemic impacts to drinking water resources,” according to an EPA press release. The assessment compiles date from 950 sources of published information, published papers, technical reports, information from stakeholders and peer-reviewed EPA scientific reports. It found that while there are some instances in which hydraulic fracturing impacted drinking water, they happened very infrequently when considering the number of wells present across the U.S. The EIA estimates that 25,000-30,000 new wells drilled and hydraulically fractured annually in the United States between 2011 and 2014, or between 100,000 and 120,000 wells, excluding those that were drilled prior to 2011. Between 2000 and 2013, approximately 6,800 sources of drinking water for[Read More…]

June 4, 2015 - 3:43 pm Fracing, Oil and Gas 360 Articles
Denton Considers Lifting Frac Ban

Denton Considers Lifting Frac Ban

House Bill 40 makes Denton frac ban unenforceable Denton City Council held a meeting last night to consider its options for moving forward with the ban on hydraulic fracturing that it enacted in December of last year. The Texas legislature passed Texas House Bill 40 last month, making the Denton frac ban unenforceable. According to the text of HB 40, “it is in the state’s interest to explicitly confirm the authority for regulation of oil and gas activities within the state. The legislature intends that this Act expressly preempts regulation of oil and gas operations by municipalities and other political subdivisions that is already impliedly preempted by state law.” After five hours of listening to comments from citizens, the council decided to determine its next step at a later date, reports the Star Telegram. The council decided it needed more time to consider its options before making a final decision.[Read More…]

Utah Joins Wyoming, Colorado and North Dakota in Lawsuit Against Federal Fracing Rules

Utah Joins Wyoming, Colorado and North Dakota in Lawsuit Against Federal Fracing Rules

Utah energy advisor says new regulations are legally and pragmatically faulty Utah’s Governor Gary Herbert announced that his state will be joining North Dakota, Colorado and Wyoming in their lawsuit against new federal rules regarding new hydraulic fracturing regulations on federal lands. OAG360® spoke with both Gov. Herbert and his energy advisor, Cody Stewart, about the matter recently. Stewart told Oil & Gas 360® that Utah took time to determine the validity of the rule to see if it might work before deciding to join the states challenging the new regulations from the Bureau of Land Management (BLM). “After taking some time to really look over the law, we decided that it was flawed,” Stewart said. “From a pragmatic point of view, this legislation duplicates laws that are already in place, adds unnecessary timelines and will hurt development. From a legal point of view, we think that the BLM does[Read More…]

Texas oil production - Oil & Gas 360

New Texas Law Pre-empts Local Frac Bans

HB 40 hopes to clarify limits of local control on oil and gas operations, preventing frac bans Texas Governor Greg Abbott signed legislation today designed to pre-empt local regulations on drilling activities in the state. The bill, House Bill 40, will avoid a “patchwork of local regulations” that might hamper oil and gas production, according to Gov. Abbot. According to the bill’s text, “It is in the state’s interest to explicitly confirm the authority for regulation of oil and gas activities within the state. The legislature intends that this Act expressly preempts regulation of oil and gas operations by municipalities and other political subdivisions that is already impliedly preempted by state law.” HB 40 is just one of several bills that were brought before the Texas legislature following a ban in the city of Denton, Texas, in December of last year. The Denton frac ban sparked controversy across the state,[Read More…]