-
No Room to Pivot
June 14, 2013 | 13 comments
-
The Old Days
June 7, 2013 | 8 comments
-
Terrorists by Any Other Name
May 31, 2013 | 148 comments
-
The Chinese Waltz
May 24, 2013 | 2 comments
-
The View From the Other Side
May 17, 2013 | 23 comments
At Large
Shale Gas to the Rescue
The next forty years are projected to bring a massive increase in natural gas availability.
The political world has not quite caught up with the industrial and financial worlds when it comes to the vast increase of energy supplies of gas. For years that commodity from which a growing portion of stationary power (heating and electrical) is generated has been influential in European development. Since the nineties the Russians have manipulated that lifeline, which provides Western Europe with 25% of its energy. Those days would appear to be over. The next forty years are projected to bring a massive increase in natural gas availability thanks to the commercially competitive development of shale gas.
Gazprom, the Russian energy giant, has had to rethink its entire future operational development and export revenue plan. It is not alone among the major gas suppliers such as Qatar and Algeria. (Iran is second only to Qatar in proven gas reserves, but it is not one of the top suppliers.) The United States has returned as one of the world’s major gas producers through the unlocking of the technological mysteries of shale rock gas exploitation.
The key to the growth of natural gas availability has been the development of horizontal drilling. This system allows deep vertical drilling literally to turn horizontally to penetrate the layers of shale. A mixture is injected of water, chemicals, and small amounts of fine sand, fracturing (“fracking”) the gas-laden shale rock deposits. This action releases the gas that then pools and is recovered.
In recent years the United States has ceased being a net gas importer and is now on the brink of self-sufficiency, with the expectation of being export capable in ten years. Internationally the impact of domestic gas development through shale exploitation has created the potential of serious alteration of strategic circumstance. Poland, for example, has the possibility of major development of its extensive shale deposits and the creation of eventual satisfaction of all its gas needs. This reduction of Warsaw’s dependence on Moscow’s energy sources fits well with Poland’s strategic objectives.
The Russians in general and Gazprom in particular had great plans to develop a large scale liquefied natural gas (LNG) program to compete with the vast LNG operation of Qatar by shipping Russian Arctic gas worldwide. The drop of price as a result of what most industry observers refer to as a “gas glut” has prompted feverish behind-the-scenes effort to create a gas cartel.
Algeria led the way; Iran, eager to gain any device to expand exploitation of its own vast untapped gas reserves, quickly joined with the Algerians. However, neither Qatar nor Russia took well to the idea of extra-national interference in what has been for them a freewheeling moneymaker.
Strong arguments have been put forth that shale gas exploration is too expensive and that, in any case, there are serious environmental risks. The cost factor is easily countered by pointing to the extensive drilling underway from Texas to the Northeast United States. The prospects are for a cost of $2 per million BTU by 2015. That makes it far more than competitive. The real problem is that the newly developed shale gas sources seriously complicate the future of the U.S. coal industry. Gas is about 30% less carbon intensive than oil and about 50% less than coal.
The major argument against shale gas operations from an environmental standpoint would appear to be in the possible contamination of aquifers. The dangers referred to center primarily on the use of toxic drilling fluids. The industry insists, however, that it can absorb the increased costs of tightened safety regulations and the development of non-toxic drilling fluids.
None of these negative factors have inhibited European shale gas development now going on in Poland, Austria, Germany, Sweden, France and Romania. Ukraine’s shale gas development has been hindered by Russia’s efforts to continue to control the political and economic life of its neighbor and former member of the Soviet Union. Nonetheless even if Ukraine continues to restrict foreign investment in its energy industry, it is only a matter of time before Kiev succumbs to the financial blandishments of such major energy industries as ExxonMobil and ConocoPhillips that are already test drilling in Eastern Europe.
Advocates of shale gas development point optimistically toward its possibility as a domestic energy source for China that would allow that country to find itself more energy independent and less committed to imports from the Middle East. The availability of relatively low cost and plentiful natural gas shifts the weight of political influence in general terms away from energy exporting countries such as Iran and Venezuela, to say nothing of Russia.
Until such time when renewable energy sources come into competitive fruition, shale gas may act as an economic and environmentally advantageous bridge. Dr. Daniel Yergin, the dean of American independent energy experts, put the development of shale gas simply and accurately as “the most significant energy innovation so far this century.” Shale gas may not be the panacea its supporters suggest, but it certainly can be a large step in helping to cut back on energy imports.
About the Author
George H. Wittman writes a weekly column on international affairs for The American Spectator online. He was the founding chairman of the National Institute for Public Policy.
Letter to the Editor View all comments (26) | Leave a comment
More Articles by George H. Wittman
More Articles From At Large
http://spectator.org/archives/2010/06/11/shale-gas-to-the-rescue
Follow us:
ADVERTISEMENT
Current Issue
- Revenge of the Fruitcakes
- A Panoply of Beauties
- Celebrating Our Lady of Paris
SPONSORED LINKS
FLASHBACK TO: 1995
-
Pope Culture
A man of faith in a godless age is hitting Americans where it hurts.
-
Why the GOP Does Not, Like, Totally Suck
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
-
Dames at Sea
-
In the Absence of Guns
In Britain, defending your property can get you life.
-
The Metaphysical Martini
-
Counting the Costs of Clintonism
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
-
Chuck McHagel
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
-
The Legacy of Old John and Mother Fresh-Roasted
-
It’s the Best Time of the Year
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
-
The Bush Crack-Up
Was the President done in by the economy, or by the politics of the economy?
Clip of the Day
ADVERTISEMENT
Mike| 6.11.10 @ 8:43AM
I don't understand how horizontal drilling is possible. Way back, when I was a petroleum engineer, directional drilling was possible only so long as weight on the drill bit could be maintained. Now it seems as though they can drill up, down, and all around. Like magic.
Alan Brooks| 6.12.10 @ 8:53AM
"Until such time when renewable energy sources come into competitive fruition"
You mean renewable energy sources can compete? The Right never told us that.
Dan| 6.13.10 @ 5:03PM
He didn't say they can compete. He said "UNTIL" they can compete. Given that we have about 400 years of known oil reserves in this country and even more in gas, I seriously doubt that renewables will EVER be able to compete. But his statement is still accurate.
Plus, what does "renewable" mean anyway? Solar and wind requires huge amounts of non-renweable infrastructure, in order to build the powerplants needed to make them work. Biofuels use valuable crop land that should be otherwise used for food, geothermal is VERY limited in the amount of energy it can produce and also requires a great deal of non-renewable infrastructure to work.
Bottom line, no energy source is completely renewable. So might as well go with the most economical. The cheapest energy is the greenest because it best fuels growth. Growth produces wealth and wealth produces a cleaner environment.
Bob K.| 6.11.10 @ 8:45AM
The "fracking" process is an old procedure that has been used for some time now in mid western USA. It does have environmental concerns as stated above.
There is a sort of "shale gold rush" taking place now in Pennsylvania in the Marcellus Shale Gas Field and some environmental problems are appearing. Wells have been contaminated in Dimock, PA., near Scranton, Pa. Dimock is the hometown of Congressman Chris Carney, Democrat, 11th Congressional District of PA. He hasn't had anything to say on the subject so it might be safe to assume that he has received some campaign donations from the Gas Drilling Industry, but it has caused a lot of worry in the Citizenry.
There are other problems; with rural roads being destroyed by heavy truck traffic, and there is the potential of streams and drinking water reservoirs being polluted. The water companies are starting to get worried. A gas well exploded near Penn State University a few days ago on Hunting Club land next to Moshannon State Forest polluting some stream headwaters. It is being investigated albeit in a desultory manner by the state.
There has been talk of putting an extraction tax on the Gas Companies but it is being fought tooth and nail by the industry and they seem to be prevailing. This is too bad, because virtually all of this gas will be sold out of the State and PA is in dire straights financially. As a result, the state's residents and businesses will likely have to dig into their pockets and pay more taxes in the future and this will make the state even more unfriendly to businesses who would like to relocate here. We have a democrat governor who has vowed not to cut one dime from Education. And we also have State, Local Government and Teachers Pension funds that are in financially perilous straights!
I think it is time to rethink our relationships with the Gas and Oil Industries. Especially now when we find that they have, like BP, been supporting a Carbon Tax!
Howard ino| 6.12.10 @ 4:05PM
If the gas is exported to other states... does not the revenue from the sale of gas and the substantial employment gains (INCLUDING State and Local income and sales taxes) benefit the State with a significant influx of revenue?
Oh... I forgot...
ONLY TAX DOLLARS ARE GOOD FOR LIBERALS!
Michael L. Hauschild| 6.11.10 @ 9:49AM
All well and good, as long as the natural gas is used to power an industry focused on building the materials and constructing equipment used to build nuclear reactors (the cheese eating surrender monkey breeder reactors).
owyheewine| 6.11.10 @ 9:50AM
Anyone that refers to fracking is an energy know nothing and should be ignored. The word is frac, short for fracture.
Fracing is a well known and used technique in the drilling industry, but like lots of technology has been improved steadily over the years.
Fracturing takes place in geologic formations several thousands of feet below the surface, drinking water comes from structures at most a few hundred feet below the surface. Gas and oil wells are "cemented in" far below the drinking water aquifers and should never contaminate them. That said, mistakes can happen, but given the number of wells drilled failures are very few and far between.
It would be nice if the energy chicken littles would take time to educate themselves about our energy needs and supply. They need to be the first to reduce their energy usage by 95%, which would ve required if we were to eliminate those dirty, nasty hydrocarbons.
Bob K.| 6.11.10 @ 7:51PM
Then EVERYBODY is a no-nothing here in Pennsylvania including the people representing the Gas Industry because they were the first people to use the word "Fracking" and they still use it!
And the problems occurring here are the result of errors by the industry in REMOVING the contaminated water from the Well after the fracturing has been accomplished. Many of these wells are being drilled less than a mile from reservoirs supplying drinking water to populations of thousands of people.
Re your comment about "educating themselves;" You should know that we have been educated for more than 100 years here in PA by the Coal Industry about our energy needs. We have plenty of experience dealing with extraction industries so we don't need lectures from people who haven't dealt with them. As the TV Cowboy Gambler, "Maverick" often said: "Like my Grandpappy always told me: "Trust everybody but Cut The Cards!"
And finally, why is the Oil and Gas Industry backing Obama's Carbon Tax? Do you have an answer to that? Is it because they know it will cause great damage to the Coal Industry which supplies much of the USA's energy through Coal Generation Plants? That would make for less competition and end up creating a Gas and Oil monopoly now, wouldn't it! And we would be even more reliant on non-american sources of energy!
Craig Goodrich | 6.12.10 @ 3:21PM
"Fracking" is the normal participle of the verb "to frac", since "fracing" by normal English reading rules would be pronounced "frassing" or "fraesing", as in "facing."
Thanks, though, for an othewise illuminating post.
Doug Lee| 6.11.10 @ 10:42AM
In 2005, it was estimated that 40% of the nation's energy came from petroleum, 23% from coal, and 23% from natural gas. Nuclear power supplied 8.4% and renewable energy supplied 7.3%, which was mainly from hydroelectric dams. Some petroleum is used to produce electricity, a lot is used to produce heat. Replacing petroleum in the heating and electrical production sectors with natural gas and nuclear power would alleviate a lot of problems.
A lot more problems would be alleviated if we increased nuclear and gas power production at the expense of coal; we could then convert coal to diesel (economically) and even gasoline (although the economy of doing so is questionable).
We have plenty of options; we just need the political willpower to let the free market work out the optimal solutions.
Craig Goodrich | 6.12.10 @ 3:28PM
I read somewhere that using waste reactor heat could convert coal to diesel at a cost competitive with oil at around $70 a barrel. Diesel cars are popular in green-obsessed Europe; they seem to have overcome any pollution concerns. Anybody know why they're not more popular here? A friend of mine got a diesel pickup and says he's saving about 30% of the fuel cost of his last (gas) truck.
Jim O'Brien| 6.11.10 @ 10:51AM
The U.S. should be building nuclear power plants as fast as possible .... not 10 or 20 of them, but a 150 of them. This combined with much greater use of natural gas would end our very dangerous dependency on foreign sources of energy.
PolishKnight| 6.11.10 @ 11:44AM
A friend of mine in Poland has his BMW converted to run on CNG (compressed natural gas). The tank takes up a portion of his trunk and he goes about 100 miles or so before the tank is used up. If he can't get to a filling station, an automatic switch converts back to gasoline. He saves a significant amount of money with the setup.
What this means is that if NG reserves were developed here in the states, it could easily mean elimination of dependency upon foreign oil overnight.
Tim| 6.11.10 @ 12:35PM
Don't worry, between environmental extremists and Democrat politics I'm sure we'll find a way to strangle this energy source in the cradle.
Rightmindedmom| 6.11.10 @ 9:22PM
It's ABOUT TIME someone spoke about the abundance of natural gas, which can be compressed and liquified, to power our cars!! The technology is already here! It burns cleaner than oil/gasoline, and is cheaper to use. The pipeline that Sarah Palin brokered between Exon/Mobile and TransCanada Pipeline was a deal to bring natural gas from the North Slope of Alaska, through the state, then through Canada, to bring natural gas to us, here in the Lower 48. Natural gas is a REAL alternative to oil based gasoline, and also coal electricity. It's a technology who's time has come. Let's spread the word that natural gas is a true piece of the puzzle, to get our country towards energy independence.
Mom in Wisconsin
cladd | 6.11.10 @ 9:58PM
As the article note, shale gas is causing excitement in Europe. Shell is drilling in Sweden but most of the focus is on the impending start of drilling on the Baltic Basin in Poland. Undoubtedly there are environmental concerns, particularly with the greater population density on the continent, but the opportunity for energy security is a matter of paramount importance to Europe. www.shalegasforeurope.com
Bob K.| 6.11.10 @ 10:30PM
You can make clean burning gas out of coal! And it's technology will compete with the Gas Industry as it now is. This is why the Oil and Gas Extraction Industry supports Obama's Carbon Tax!
http://www.fossil.energy.gov/p.....index.html
Aidan Harris| 6.12.10 @ 12:06AM
The day is not far off when the wars will not be fought for political gains but for fossil fuels like natural gas or petrol etc.
http://www.articlesbase.com/he.....99833.html
carl the orange| 6.13.10 @ 1:05PM
Living over the Marcellus shale and watching northern PA way of life disappear is sad. Sure, there are a lot of millionaires now but populations are doubling, roads and schools are inadequate and I don't foresee a long-term benefit for the majority of the populace. The gas is being piped out and unlike those who benefited from cheap electricity (TVA etc) cheap gas isn't local.
Bob K.| 6.13.10 @ 5:41PM
There is a rumor going around that Shell is buying up all these leases and intends to cap all these wells after drilling is completed. They won't be pumping the gas or paying any royalties until sometime in the future.
Meanwhile Democratic Representative, and Democratic Candidate for Senator, Joe Sestak was in town calling for more environmental safeguards and a severance tax on the gas industry. All this while sitting next to Randy Shayler, who was representing Otis Eastern Services of the Gas Industry. The meeting was held at a local college. Read about it here:
http://citizensvoice.com/news/.....g-1.843507
You can also read how the rich will get even richer "with lucrative leases." This, of course, assumes that Queen Beatrix of the Netherlands will allow Shell Oil Co to sell the gas in the near future. She is probably waiting to see if Sestak and other Democrats will vote for the Carbon Tax which will destroy the Coal Industry and it's Coal Gasification Technology, which is the only competition the gas industry has!
dk| 7.1.10 @ 4:53AM
shanghai massage