Unconventional Gas Market Appraisal

Size: px
Start display at page:

Download "Unconventional Gas Market Appraisal"

Transcription

1 Unconventional Gas Market Appraisal Chris Bryceland June 2013

2 Agenda Headline facts Fundamentals of unconventional gas Global resources Selected markets Economic impacts Supply chain opportunities Conclusions

3 Headline Facts Shale gas has increased from 8% of US gas production in 2007 to 30% in 2011, and is forecast to rise to 250% of 2011 levels by 2035 In the US, upstream capital investment in unconventional gas in 2012 was estimated to be $87 billion, resulting in value added of $121 billion US investment has supported nearly a million jobs and capital investment of almost $3 trillion is forecast from 2012 to 2035 Other countries have started to exploit their resources (e.g. Canada and Australia) or are on the pathway to develop these resources (e.g. UK and Poland)

4 Implications of Headline Facts The role of Scottish Enterprise (SE) and Scottish Development International (SDI) is to identify and exploit opportunities for economic growth by supporting Scottish companies to compete, help to build globally competitive sectors, attract new investment and create a world-class business environment Provision of direct and indirect support services to the unconventional gas sector in the UK and overseas represents a potentially significant opportunity for Scottish supply chain businesses

5 Fundamentals of Unconventional Gas Two forms considered : Shale Gas Coal Bed Methane (CBM) Unconventional refers to gas that has not previously been deemed economically or technically suitable for recovery although in the case of Shale Gas and CBM this term is becoming increasingly redundant as unconventional gas is now a key part of the US gas market The product is methane (CH 4 ), exactly the same as natural gas

6 Fundamentals: Shale Gas Gas is contained within the shale formation at low density Gas migrates to the natural fractures in the shale Main elements: Vertical well Horizontal well along the shale Fracking to open fractures Fracking fluid to hold open fractures Production wells need to cover a large volume of shale to recover significant quantities of gas

7 Fundamentals: Shale Gas Gas production falls rapidly as the gas at fractures is finite Requires re-fracturing to increase production OR Requires large numbers of wells to be drilled to increase production

8 Fundamentals: Coalbed Methane Methane is present within coal seams Water pressure in coal beds causes methane to be adsorbed onto the grain surfaces of the coal To produce CBM the water must be drawn off first, lowering the pressure so that the methane will desorb from the coal and then flow to the well bore Coal stores six or seven times as much gas as a conventional natural gas reservoir of equal rock volume due to the large internal surface area of coal Much coal is accessible at shallow depths, making well drilling and completion less expensive than shale gas Exploration costs are also low since methane occurs in coal deposits, and the location of coal resources are generally well known

9 Global Resource Shale gas reserves more widespread than conventional gas reserves Offers countries with no history of hydrocarbons production the opportunity to develop indigenous resources with security of supply and energy cost benefits

10 Estimates of technically recoverable shale gas Some key markets have limited experience of licensing and regulating hydrocarbon extraction Adds to above ground risks in some markets

11 Factors that drive markets Scale of resource Accessibility of resource Security of supply benefits Long distance gas pipelines Skilled oil and gas workforce Supporting infrastructure Stable regulatory system Privately owned mineral rights Socio-Political acceptance The amount of recoverable gas The cost of physically accessing the gas A key driver for Government and regulators Improving access to markets for gas production Required across all stages of project development Roads, Water, Pipelines, etc. For permits to develop and operate as well as fiscal incentives Was a key factor in the US but rights generally owned by government in other markets An important influence on planning and regulator

12 Markets Studied: USA The US is the largest and most established unconventional gas market. In the short term lower gas prices are reducing development, however lower gas prices will only be sustained if on-going investment maintains volumes of gas production. It should be noted that significant development of liquid hydrocarbons within large shale plays is currently taking place across the US. An equilibrium is likely to be reached, where the pace of new development is appropriate for the price of gas. If this occurs at low levels of market development, the scope for Scottish suppliers will be reduced, as local experienced supply chain will be less stretched. If the pace of development remains high, or the supply chain is stretched by addressing the shale oil market, there will be greater opportunities for Scottish suppliers.

13 Impacts in the USA CBM already well developed Shale gas has seen rapid growth and significant continued growth predicted for several decades

14 Impacts on gas prices in the US Reduction in US gas price compared to other markets Unique set of circumstances in US US imports of gas High US gas prices Improved production techniques Private mineral rights Relaxation of regulation Tax breaks Comparison of traded prices for natural gas in $/Mmbtu: 1994 to 2011

15 Markets Studied: Canada Canadian service and production market is currently very closely linked to the US market Companies entering the Canadian market have to compete with companies from the US; it is possible to enter the Canadian market via the US Rapid developments of shale gas and shale oil in the US may lead to reduced demand for imported hydrocarbons, weakening developments in Canada Canada may develop export infrastructure on the West coast aimed at supplying Asian markets; this would require new infrastructure, pipelines, storage, gas terminals etc. Harsh natural conditions offer a space for specialist services (e.g. related to environmental protection and new development methods)

16 Markets Studied: China China already has established and growing CBM developments Given the importance and prevalence of coal in China, it is no surprise that CBM has been exploited and offers on-going opportunities Development of shale gas is at a much earlier stage, though it appears to be in partnership with incoming international firms, providing opportunities for experienced shale developers (and their supply chain) to develop business there

17 Markets Studied: Australia A number of factors suggest that the potential for unconventional gas is strong in Australia scale of resource low density of population and development encouragement from state agencies Development of gas transport infrastructure is limited Initial growth may be limited to plays that have access to pipelines State government and agencies encouraging inward investment and supply chain offers

18 Markets Studied: United Kingdom UK does not have the highest reserves, however the existing regulatory framework for oil and gas development is in place and supports extensive conventional oil and gas investment Recent developments announced to encourage shale gas development Tax incentives such as shale gas field allowance would extend the ringfence expenditure supplement from six to ten years for shale gas projects Technical planning guidance on shale gas by July 2013 to provide clarity around planning for shale gas Proposals to ensure that local communities will benefit from shale gas projects in their area These developments make the UK a promising opportunity for growth

19 Markets Studied: Poland After initial investment, shale gas developments appear to be stalling Government approach to regulation and the dominance of PGNiG makes it less likely that the market will pick up in the near future Market for gas services dominated by Exalo Drilling, a very large subsidiary of the state-controlled monopoly PGNiG Exalo has over 50 land rigs leaving very little space for other players, apart from: Specialist services, which are not available on the local market Specialist equipment and products Market opportunity in Poland is small and limited to specialist providers; likely to remain small for some time to come

20 Markets Studied: Germany As Germany works towards its renewable energy future, it does not want to lose out on the current international trend in development of unconventional hydrocarbons in terms of opportunities for technology development, export of specialist services and equipment Likely to be a number of developments in Germany focused on becoming a test bed for technology development and some production Unlikely that the market for products and services in Germany will grow at a high rate German companies likely to expand their offer for products and services to international unconventional hydrocarbons markets (specialist technologies, products, etc.)

21 Economic Impact Assessment Understanding the economic impacts, signposts to the areas of greatest job and value creation and hence company level opportunities Economic data is US based as this the only main market which has seen significant development thus far Several US studies conducted US level State level Shale play level

22 US Wide Impact A study by IHS in October 2012 assessed the economic impacts of unconventional oil and gas on the US economy Covered unconventional oil, tight gas and shale gas Headline findings for shale gas only were Upstream capital investment of $87 billion in 2012 Employment of over 900 thousand in 2012 $121 billion of value added in 2012 Projected capital expenditure of almost $3.0 trillion in unconventional gas activity between 2012 and 2035

23 US Wide Impact: Conclusions Two sectors dominate the capital expenditure and value added Mining Manufacturing Further analysis of IHS reports shows the specific sub-sectors which have the greatest growth potential

24 US Manufacturing Sector: Value added Three sub-sectors account for a total of 77% of the added value: Machinery Manufacturing (30%) Metal related (25%) Chemical, plastic, rubber and non-metallic mineral Manufacturing (22%) Drill rig systems Gas compressors Diesel and gas generators Frack pumps primary and secondary processes that produce the components for the machinery needed Chemicals for hydraulic fracturing Chemicals for treating produced water Drilling mud Hydraulic hoses and couplings Cement

25 US Economic Impact: Conclusions For the US market this strongly suggests that the direct opportunities are in the mining and manufacturing elements, for example: Drilling rigs, fracking and associated equipment - Scottish companies will require inventory of equipment in the US to provide the drilling services, consumables and equipment Manufacture of equipment - includes the capital equipment (drilling rigs, frack trucks, frack pumps, mud pumps, well heads etc.) and the consumables (drill mud, tubulars, etc. ) The indirect impacts are greatest in the service sector - Moving experienced professional staff around the world is already a common element of the oil & gas service industry The labour opportunities are also greatest in the service sector - As many Scottish oil and gas workers operate as one person businesses, this is a potential opportunity for these individuals

26 UK Economic Impact Using US analysis and transposing this to UK Using capex and well numbers for the UK s Bowland Shale A mid scenario development of 400 wells drilled over a period of 9 years A capex requirement of 10.5 million per well Estimated value added of 7.7 billion

27 Supply Chain - Key Points Many elements of the unconventional gas supply chain are also part of the conventional oil & gas supply chain Unconventional sector has important differences Cost base, lower margins, high capex for the total recoverable resource Service levels that are required for economic success in the unconventional gas market The global market for specialist equipment and services is the main prize for Scottish suppliers: however, the development of unconventional gas in Scotland would also provide additional opportunities for local providers of non-specialist goods and services

28 Supply Chain Map Four stages in the lifetime of unconventional gas systems: Exploration Development Production Decommissioning Map sets out the main elements of each stage

29

30 Market includes existing and new opportunities

31 Supply chain conclusions The early stage development markets have the greatest need for innovation or adaptation of existing supply chain offers Scottish companies wishing early market share will need to invest now to match the short and medium term exploration and development opportunities These earlier stage opportunities may have higher barriers to entry as they may require companies to demonstrate prior experience in the unconventional gas sector There will be established competition in the exploration and development phases, albeit predominantly US based

32 Supply Chain Gap Analysis - opportunities for Scottish suppliers Seismic survey Challenging due to absence of prior expertise Reservoir analysis Promising opportunity Environmental impact assessment Promising opportunity Drilling rig manufacture Possible niche opportunity Drilling rig sub-systems/components Promising opportunity Drilling components Promising opportunity Drilling rig hire Possible opportunity Well systems Promising opportunity Hydraulic fracturing systems Possible opportunity Proppant Challenging due to established global market Gas clean up and distribution Promising opportunity

33 Conclusions Key is to understand the potential for future growth in the US, Europe and globally and to monitor developments closely Different drivers, regulations and economics in each market; position of each country subject to change as policy and practice evolves Signs of slowing in development of unconventional gas in the US as price of natural gas has fallen to levels that make the business case for some unconventional gas developments uneconomic Indications that shale gas drilling in Poland has not shown the promised levels of resource expected The UK putting in place some of the steps to remove regulatory uncertainty over the pathway for unconventional gas in the UK Early signs of changes in German policy towards unconventional gas

34 Conclusions Global market will be dominated by the US in short term US market factors are unique, but there is potential for growth in UK, Australia and other markets Scottish companies have acquired businesses in the US to break into the dominant market Specialist Scottish suppliers have received orders for Australia and other markets Scottish Enterprise/SDI considering options to support export potential Sourcing market intelligence for companies Use of GlobalScot network Lead/support targeted trade missions Innovation support for relevant new technologies

The Unconventional Oil and Gas Market Outlook

The Unconventional Oil and Gas Market Outlook The Unconventional Oil and Gas Market Outlook The future of oil sands, shale gas, oil shale and coalbed methane Report Price: $2875 Publication Date: July 2010 E N E R G Y The Unconventional Oil and Gas

More information

GAIL s experience Shale Gas activities in US" 17th May 2013 Manas Das

GAIL s experience Shale Gas activities in US 17th May 2013 Manas Das GAIL s experience on Shale Gas activities in US" Manas Das 17 th May 2013 Outline About GAIL GAIL s Presence in USA Story of Shale Gas Revolution Cause & Effect Impact on Economy, Environment & Employment

More information

Life-Cycle Assessment of Greenhouse Gas Emissions from Shale Gas Extraction in Scotland. Clare Bond, University of Aberdeen.

Life-Cycle Assessment of Greenhouse Gas Emissions from Shale Gas Extraction in Scotland. Clare Bond, University of Aberdeen. Life-Cycle Assessment of Greenhouse Gas Emissions from Shale Gas Extraction in Scotland Clare Bond, University of Aberdeen Life Cycle Assessment of Shale Gas in Scotland Life-Cycle Assessment of Greenhouse

More information

AmCham EU Position on Shale Gas Development in the EU

AmCham EU Position on Shale Gas Development in the EU AmCham EU Position on Shale Gas Development in the EU Page 1 of 5 4 January 2013 AmCham EU Position on Shale Gas Development in the EU Shale gas could play an important role in the EU energy mix and policymakers

More information

White Paper: Shale Gas Technology. September Shale Gas Technology 2011 NRGExpert Page 1 of 8

White Paper: Shale Gas Technology. September Shale Gas Technology 2011 NRGExpert  Page 1 of 8 White Paper: Shale Gas Technology September 2011 Shale Gas Technology 2011 NRGExpert www.nrgexpert.com Page 1 of 8 Table of Contents An Introduction to Shale Gas Technology... 3 Horizontal drilling...

More information

Power & Politics Navigating the Changing Vision of Our Energy Future. Rayola Dougher, API Senior Economic Advisor,

Power & Politics Navigating the Changing Vision of Our Energy Future. Rayola Dougher, API Senior Economic Advisor, Power & Politics Navigating the Changing Vision of Our Energy Future Rayola Dougher, API Senior Economic Advisor, dougherr@api.org U.S. oil and natural gas production is increasing as a result of technological

More information

AmCham EU position on Shale Gas Development in the EU

AmCham EU position on Shale Gas Development in the EU AmCham EU position on Shale Gas Development in the EU Page 1 of 6 7 February 2014 AmCham EU position on Shale Gas Development in the EU Background A number of EU Member States are exploring the potential

More information

Conventional and Unconventional Oil and Gas

Conventional and Unconventional Oil and Gas Conventional and Unconventional Oil and Gas What is changing in the world? Iain Bartholomew, Subsurface Director Siccar Point Energy Discussion outline 1. Conventional oil and gas - E&P life-cycle - How

More information

China Oil and Gas Market Briefing. April 2014

China Oil and Gas Market Briefing. April 2014 China Oil and Gas Market Briefing April 2014 Summary Summary China s fuel mix China s fuel mix is dominated by coal - accounting for 70% of total fuel consumption, as the serious environmental problems

More information

Shale Gas Global. New Zealand LPG

Shale Gas Global. New Zealand LPG Shale Gas Global New Zealand LPG New Zealand LPG Where to from here? 2 LPG ('000 Tonnes) 300 LPG Production and Demand to 2018 (calendar year) 250 200 150 100 50 0 2000 2005 2010 2015 Kapuni Kupe McKee/Mangahewa

More information

Fracking for Shale Gas & Shale Oil Worldwide

Fracking for Shale Gas & Shale Oil Worldwide Fracking for Shale Gas & Shale Oil Worldwide Vasili Nicoletopoulos Natural Resources GP Hammamet,, Sept 22, '12 Occurrences Hammamet, Sept 22, '12 2 Unconventional Gas Coal--bed methane [CBM]: Trapped

More information

European Shale Gas Potential

European Shale Gas Potential European Shale Gas Potential (from WEO2010 and Golden Age of Gas report) Chris Besson International Energy Agency October 2011 OECD/IEA 2010 Shale gas: a working definition Gas found in rock formations

More information

The Impact and Potential Repercussions of Unconventional Hydrocarbons in the UK Market.

The Impact and Potential Repercussions of Unconventional Hydrocarbons in the UK Market. The Impact and Potential Repercussions of Unconventional Hydrocarbons in the UK Market. Lawrence Till Technical Sales Director / Co-Founder Nemein Ltd What are unconventional hydrocarbons? Shale Gas Tight

More information

Water for Onshore Oil & Gas

Water for Onshore Oil & Gas TABLE OF CONTENTS Water for Onshore Oil & Gas Publication information ii Executive summary Global oil and gas water management market, 2014 Services US water management services, 2011 2020 Global drivers

More information

ENVIRONMENT AND ENERGY BULLETIN

ENVIRONMENT AND ENERGY BULLETIN ENVIRONMENT AND ENERGY BULLETIN Vol. 3 No. 2 June 2011 Editor: Jock A. Finlayson THE NATURAL GAS STORY Both globally and in North America, natural gas is poised to play a bigger role in meeting the energy

More information

Copyright 2013 OSIsoft, LLC. 1

Copyright 2013 OSIsoft, LLC. 1 Copyright 2013 OSIsoft, LLC. 1 Operational Excellence in Today s Dynamic Global Energy Market IHS Keynote Address OSIsoft User Conference Scott Key, President and CEO, IHS Inc. April 17, 2013 Information

More information

Shale Gas as an Alternative Petrochemical Feedstock

Shale Gas as an Alternative Petrochemical Feedstock Shale Gas as an Alternative Petrochemical Feedstock Tecnon OrbiChem Seminar at KICHEM 2012 Seoul - 2 November, 2012 Roger Lee SHALE GAS WHERE DOES IT COME FROM? Source: EIA SHALE GAS EXPLOITATION Commercial

More information

Assessing Today's Supplies to Fuel Tomorrow's Growth

Assessing Today's Supplies to Fuel Tomorrow's Growth WORLD ENERGY OUTLOOK - INSIGHTS Assessing Today's Supplies to Fuel Tomorrow's Growth Dr. Fatih Birol Head, Economic Analysis Division International Agency / OECD World Series World 1998 World 1999 Looking

More information

UNDERSTANDING NATURAL GAS MARKETS. Mohammad Naserifard MSc student of Oil & Gas Economics at PUT Fall 2015

UNDERSTANDING NATURAL GAS MARKETS. Mohammad Naserifard MSc student of Oil & Gas Economics at PUT Fall 2015 UNDERSTANDING NATURAL GAS MARKETS Mohammad Naserifard MSc student of Oil & Gas Economics at PUT Fall 2015 Table of Contents 3 Overview Natural Gas is an Important Source of Energy for the United States.

More information

Safely Harvesting Energy

Safely Harvesting Energy ONTARIO OIL AND NATURAL GAS PRODUCTION Safely Harvesting Energy An Overview of Hydraulic Fracturing in Ontario A Briefing Note prepared by the: Ontario Petroleum Institute Executive Summary The Ontario

More information

Edward P. Cross, P.G., M.B.A. President Kansas Independent Oil & Gas Association. Cowley County Economic Forum Arkansas City, Kansas October 20, 2011

Edward P. Cross, P.G., M.B.A. President Kansas Independent Oil & Gas Association. Cowley County Economic Forum Arkansas City, Kansas October 20, 2011 Energy Security for America Edward P. Cross, P.G., M.B.A. President Kansas Independent Oil & Gas Association Cowley County Economic Forum Arkansas City, Kansas October 20, 2011 Energy Independence Nixon

More information

International gas markets: recent developments and prospects

International gas markets: recent developments and prospects International gas markets: recent developments and prospects Christopher Allsopp New College Oxford Director, Oxford Institute for Energy Studies December 2012 International gas markets are changing rapidly

More information

Enabling Unconventional Resources

Enabling Unconventional Resources Enabling Unconventional Resources 8 th U.S. - China Oil and Gas Industry Forum San Francisco, California U.S.A. September 9-11, 2007 ROLE OF UNCONVENTIONAL Increasing contribution by unconventional resources

More information

Unconventional Gas: Impact on Gas Markets

Unconventional Gas: Impact on Gas Markets Unconventional Gas: Impact on Gas Markets Gilbert Hamaïde Vice-President UNECE 24 th November 2010 1 19th Annual Session on Sustainable Energy Unconventional resources volume is still uncertain but high

More information

Sustainable Shale Gas Development Lessons From North American Appalachian Shales

Sustainable Shale Gas Development Lessons From North American Appalachian Shales Sustainable Shale Gas Development Lessons From North American Appalachian Shales Research Marcellus Center for Outreach and Research Down Hole Technical Issues Water quality induced seismicity NORM Methane

More information

Searching for Tight Gas Reservoirs By Alex Chakhmakhchev and Kris McKnight

Searching for Tight Gas Reservoirs By Alex Chakhmakhchev and Kris McKnight Searching for Tight Gas Reservoirs By Alex Chakhmakhchev and Kris McKnight Along with coal bed methane (CBM) and shale gas, tight gas is becoming a hot exploration target around the globe. This paper examines

More information

Coal and Natural Gas The Evolving Nature of Supply and Demand

Coal and Natural Gas The Evolving Nature of Supply and Demand Lab4energy International 2014 Coal and Natural Gas Coal and Natural Gas The Evolving Nature of Supply and Demand Dr. Francis O Sullivan February 13 th, 2014 1 Global energy supply Where does it come from?

More information

Dart Energy Limited. Developing Unconventional Value. Presentation to Proactive Investor Conference London, February 2013

Dart Energy Limited. Developing Unconventional Value. Presentation to Proactive Investor Conference London, February 2013 Dart Energy Limited Dart s UK Shale Plays Developing Unconventional Value Presentation to Proactive Investor Conference London, February 2013 Eytan Uliel Chief Commercial Officer, DEI www.dartenergy.com.au

More information

Shale Gas - Transforming Natural Gas Flows and Opportunities. Doug Bloom President, Spectra Energy Transmission West October 18, 2011

Shale Gas - Transforming Natural Gas Flows and Opportunities. Doug Bloom President, Spectra Energy Transmission West October 18, 2011 Fort Nelson Gas Plant, British Columbia Shale Gas - Transforming Natural Gas Flows and Opportunities Doug Bloom President, Spectra Energy Transmission West October 18, 2011 Natural Gas Golden Age Natural

More information

The IEA outlook for gas. Laszlo Varro Head, Gas Coal and Power Markets

The IEA outlook for gas. Laszlo Varro Head, Gas Coal and Power Markets The IEA outlook for gas Laszlo Varro Head, Gas Coal and Power Markets For gas the Asian century is just starting 3 000 Mtoe Primary energy consumption 2 500 coal gas 2 000 1 500 1 000 500 - Asia Europe

More information

Shale gas operation & water resource preservation. PECC, November 2013

Shale gas operation & water resource preservation. PECC, November 2013 Shale gas operation & water resource preservation PECC, November 2013 Part I Veolia and the oil and gas industry Water, a very sensitive raw material for oil and gas firms Oil and gas firms use more of

More information

Unconventional Resources

Unconventional Resources Houston, Texas (World Headquarters) 4620 Southerland Road Houston, TX, 77092 Phone: 1-800-462-7617 or 713-462-7617 E-mail: info@tamintl.com Aberdeen, Scotland Phone: 44-1224-875105 E-mail: info@tam-northsea.com

More information

US Oil and Gas Import Dependence: Department of Energy Projections in 2011

US Oil and Gas Import Dependence: Department of Energy Projections in 2011 1800 K Street, NW Suite 400 Washington, DC 20006 Phone: 1.202.775.3270 Fax: 1.202.775.3199 Email: acordesman@gmail.com Web: www.csis.org/burke/reports US Oil and Gas Import Dependence: Department of Energy

More information

Unconventional Shale Gas Development: Convergence of Economics, Technology, and Policy

Unconventional Shale Gas Development: Convergence of Economics, Technology, and Policy Unconventional Shale Gas Development: Convergence of Economics, Technology, and Policy Marcellus Center for Outreach and Research Research Down hole technical issues Above ground risk(s) Air emissions

More information

Hydraulic Fracturing Is Industry Standard Practice the Best Practice? The Case for Waterless Fracking

Hydraulic Fracturing Is Industry Standard Practice the Best Practice? The Case for Waterless Fracking 5 June 2018 Hydraulic Fracturing Is Industry Standard Practice the Best Practice? The Case for Waterless Fracking Christopher Johns Research Manager, Northern Australia and Land Care Research Programme

More information

The US shale revolution Implications for the North American energy markets

The US shale revolution Implications for the North American energy markets The US shale revolution Implications for the North American energy markets NOG/Folk och Forsvar seminar Stockholm, 19 February, 13 Tor Kartevold Senior adviser Statoil The US shale revolution Outline focus

More information

The Gap Between Aspiration and reality March 19 th 2014, Howard Rogers CEng, FIChemE Director of Natural Gas Research, OIES

The Gap Between Aspiration and reality March 19 th 2014, Howard Rogers CEng, FIChemE Director of Natural Gas Research, OIES The Gap Between Aspiration and reality March 19 th 2014, Howard Rogers CEng, FIChemE Director of Natural Gas Research, OIES OIES NATURAL GAS RESEARCH PROGRAMME WE ARE: A gas research programme at a Recognised

More information

Natural Gas- Green, Homegrown Energy for Virginia. Greg Kozera. President, Virginia Oil and Gas Association

Natural Gas- Green, Homegrown Energy for Virginia. Greg Kozera. President, Virginia Oil and Gas Association Natural Gas- Green, Homegrown Energy for Virginia Greg Kozera President, Virginia Oil and Gas Association In 2008, we paid $475 billion to foreign countries for oil (pickensplan.com) What if we kept that

More information

World Energy Outlook Bo Diczfalusy, Näringsdepartementet

World Energy Outlook Bo Diczfalusy, Näringsdepartementet World Energy Outlook 2013 Bo Diczfalusy, Näringsdepartementet Energy demand & GDP Trillion dollars (2012) 50 40 30 20 10 000 Mtoe 8 000 6 000 4 000 GDP: OECD Non-OECD TPED (right axis): OECD Non-OECD 10

More information

UNCONVENTIONAL GAS RESOURCES

UNCONVENTIONAL GAS RESOURCES UNCONVENTIONAL GAS RESOURCES Exploration, Development and Planning Support Services RPS is an international consultancy providing world-class local solutions in energy and resources, infrastructure, environment

More information

Outlook for the Oil and Gas Industry

Outlook for the Oil and Gas Industry Outlook for the Oil and Gas Industry VMA Market Outlook Workshop Boston, MA Spears& Associates Tulsa, OK August 2017 1 Outlook for the Oil and Gas Industry: Market Drivers Global oil consumption is forecast

More information

SPE Abstract. Copyright 2011, Society of Petroleum Engineers

SPE Abstract. Copyright 2011, Society of Petroleum Engineers SPE 149441 A Parametric Study and Economic Evaluation of Drilling Patterns in Deep, Thick CBM Reservoirs Ali Omran Nasar, Shahab D. Mohaghegh, Vida Gholami, Department of Petroleum and Natural gas Engineering,

More information

Unconventional Gas and Water Resources in Australia. Dr Stuart Minchin Chief, Environmental Geoscience Division Geoscience Australia

Unconventional Gas and Water Resources in Australia. Dr Stuart Minchin Chief, Environmental Geoscience Division Geoscience Australia Unconventional Gas and Water Resources in Australia Dr Stuart Minchin Chief, Environmental Geoscience Division Geoscience Australia What is unconventional gas? Dominantly methane (CH 4 ); same as conventional

More information

Natural Gas Abundance: The Development of Shale Resource in North America

Natural Gas Abundance: The Development of Shale Resource in North America Natural Gas Abundance: The Development of Shale Resource in North America EBA Brown Bag Luncheon Bracewell & Giuliani Washington, D.C. February 6, 2013 Bruce B. Henning Vice President, Energy Regulatory

More information

Options for Scotland s Energy Future

Options for Scotland s Energy Future Options for Scotland s Energy Future Prof Becky Lunn University of Strathclyde Options for Scotland s Gas Future Prof Becky Lunn University of Strathclyde 1 Scotland s Energy Mix Coal-powered LongannetStation

More information

ST98: 2018 ALBERTA S ENERGY RESERVES & SUPPLY/DEMAND OUTLOOK. Executive Summary.

ST98: 2018 ALBERTA S ENERGY RESERVES & SUPPLY/DEMAND OUTLOOK. Executive Summary. ST98: 2018 ALBERTA S ENERGY RESERVES & SUPPLY/DEMAND OUTLOOK Executive Summary ST98 www.aer.ca EXECUTIVE SUMMARY The Alberta Energy Regulator (AER) ensures the safe, efficient, orderly, and environmentally

More information

ST98: 2018 ALBERTA S ENERGY RESERVES & SUPPLY/DEMAND OUTLOOK. Executive Summary.

ST98: 2018 ALBERTA S ENERGY RESERVES & SUPPLY/DEMAND OUTLOOK. Executive Summary. ST98: 2018 ALBERTA S ENERGY RESERVES & SUPPLY/DEMAND OUTLOOK Executive Summary ST98 www.aer.ca EXECUTIVE SUMMARY The Alberta Energy Regulator (AER) ensures the safe, efficient, orderly, and environmentally

More information

The Impact of U.S. Shale Resources: A Global Perspective

The Impact of U.S. Shale Resources: A Global Perspective The Impact of U.S. Shale Resources: A Global Perspective by Svetlana Ikonnikova Scott Tinker March 3, 2017 Outline Global Perspective U.S. Shale Resource Studies Implications Affordable Available Reliable

More information

Hydraulic Fracturing Emerging Issues in North America

Hydraulic Fracturing Emerging Issues in North America Hydraulic Fracturing Emerging Issues in North America University of Sao Paulo, SP, Brazil Allan Ingelson Executive Director, Canadian Institute of Resources Law & Associate Professor, Faculty of Law, University

More information

Shale Gas Report Ed 1, 2011

Shale Gas Report Ed 1, 2011 Market Intelligence Shale Gas Report Ed 1, 2011 Shale gas has been a game changer in the US changing the country from being reliant on imports for the foreseeable future to being able to meet demand from

More information

BLUEPRINT FOR A SECURE ENERGY FUTURE. March 30, 2011

BLUEPRINT FOR A SECURE ENERGY FUTURE. March 30, 2011 BLUEPRINT FOR A SECURE ENERGY FUTURE March 30, 2011 DEVELOP AND SECURE AMERICA S ENERGY SUPPLIES Lead the World Towards Safer, Cleaner, and More Secure Energy Supplies The Challenge The United States is

More information

1951 Clarence Iverson #1

1951 Clarence Iverson #1 THE BAKKEN Where It All Began... On April 4, 95, the first successful well in North Dakota was drilled outside the community of Tioga. Since the success of the first well, named Clarence Iverson #, the

More information

Status of Shale Gas Development in New Brunswick. Habitation 2012

Status of Shale Gas Development in New Brunswick. Habitation 2012 Status of Shale Gas Development in New Brunswick Angie Leonard, Senior Advisor, CAPP Habitation 2012 St. Andrews, New Brunswick February 9, 2012 What Is CAPP? CAPP s mission is to enhance the economic

More information

Shale Gas and the Outlook for U.S. Natural Gas Markets and Global Gas Resources

Shale Gas and the Outlook for U.S. Natural Gas Markets and Global Gas Resources Shale Gas and the Outlook for U.S. Natural Gas Markets and Global Gas Resources Organization for Economic Cooperation and Development (OECD) Richard Newell, Administrator June 21, 2011 Paris, France U.S.

More information

Good morning ladies and gentlemen and thank your for the introduction. Trends and Opportunities in the Indonesian Oil and Gas sector

Good morning ladies and gentlemen and thank your for the introduction. Trends and Opportunities in the Indonesian Oil and Gas sector Good morning ladies and gentlemen and thank your for the introduction The title of my presentation today is: Trends and Opportunities in the Indonesian Oil and Gas sector 1 To convey my message and provide

More information

South America s Proppants Market

South America s Proppants Market South America s Proppants Market Raw material, supply & consumption By Kirstine Veitch, Independent Metals and Minerals Consultant The new multi-client report published by Industrial Minerals Research

More information

ENERGY POLICY AT A GLANCE CRUDE OIL EXPORTS

ENERGY POLICY AT A GLANCE CRUDE OIL EXPORTS CRUDE OIL EXPORTS Consumers are among the first to benefit from free trade, and crude oil is no exception. Gasoline costs are tied to a global market; additional exports could help increase supplies, put

More information

Dr. Fatih BIROL IEA Chief Economist Tokyo, 17 February 2015

Dr. Fatih BIROL IEA Chief Economist Tokyo, 17 February 2015 Dr. Fatih BIROL IEA Chief Economist Tokyo, 17 February 2015 Signs of stress in the global energy system Current calm in markets should not disguise difficult road ahead Turmoil in the Middle East raises

More information

BIEE Gas Seminar: Global Shifts in Gas Demand

BIEE Gas Seminar: Global Shifts in Gas Demand October 213 BIEE Gas Seminar: Global Shifts in Gas Demand Kai Dunker, Lead Economist Global Gas Markets Disclaimer This presentation contains forward-looking statements, particularly those regarding global

More information

Coalbed Methane- Fundamental Concepts

Coalbed Methane- Fundamental Concepts Coalbed Methane- Fundamental Concepts By: K. Aminian Petroleum & Natural Gas Engineering Department West Virginia University Introduction This article is the first in a series of articles that will discuss

More information

SHALE FACTS. Production cycle. Ensuring safe and responsible operations

SHALE FACTS. Production cycle. Ensuring safe and responsible operations SHALE FACTS Production cycle Ensuring safe and responsible operations Statoil is committed to developing our shale projects in a safe, responsible and open manner. Statoil takes a long term perspective

More information

New Technologies, Innovations

New Technologies, Innovations New Technologies, Innovations Drilling New Technologies, Innovations Advances in technologies used for well drilling and completion have enabled the energy industry to reach new sources of oil and natural

More information

17 th February 2015 BP Energy Outlook bp.com/energyoutlook #BPstats BP p.l.c. 2015

17 th February 2015 BP Energy Outlook bp.com/energyoutlook #BPstats BP p.l.c. 2015 17 th February 215 BP bp.com/energyoutlook #BPstats Economic backdrop GDP Trillion, $211 PPP 24 Other Non-OECD Asia 18 OECD Contribution to GDP growth Trillion $211 PPP, 213-35 9 Population Income per

More information

ShaleGas:- Opportunities and Barriers: A UK Perspective. Professor Peter Styles, Applied and Environmental Geophysics Research Group

ShaleGas:- Opportunities and Barriers: A UK Perspective. Professor Peter Styles, Applied and Environmental Geophysics Research Group ShaleGas:- Opportunities and Barriers: A UK Perspective Professor Peter Styles, Applied and Environmental Geophysics Research Group 1 Stop Press! SHEER 2.7 Million Euros HORIZON2020 Research Grant for

More information

Goldman Sachs Basic Materials Conference

Goldman Sachs Basic Materials Conference Goldman Sachs Basic Materials Conference Stephen F. Angel Chairman, President & Chief Executive Officer May 16, 2007 Forward Looking Statement This document contains forward-looking statements within the

More information

Synergetic CO2 Storage and gas/oil production from tight reservoirs

Synergetic CO2 Storage and gas/oil production from tight reservoirs Synergetic CO2 Storage and gas/oil production from tight reservoirs Institute of Drilling and Fluid Mining, Reservoir Engineering, Production and Underground Storage of Oil and Gas, Technical University

More information

Barriers to the use of geothermal energy. Robert Kutschick Gaßner, Groth, Siederer & Coll. Pisa, 10th October 2013

Barriers to the use of geothermal energy. Robert Kutschick Gaßner, Groth, Siederer & Coll. Pisa, 10th October 2013 Barriers to the use of geothermal energy Robert Kutschick Gaßner, Groth, Siederer & Coll. Pisa, 10th October 2013 The Topics Part 1 Approval process for exploration, drilling and mining I. Federal Mining

More information

Remote Sensing and Non-renewable Energy Resources

Remote Sensing and Non-renewable Energy Resources Remote Sensing and Non-renewable Energy Resources A presentation by Gregory Herman, TCNJ 2015 adapted from prior presentations by Karl Muessig, the University of West Florida, and Exxon-Mobil Corp Common

More information

The Impact of the Recession on Gas Markets

The Impact of the Recession on Gas Markets The Impact of the Recession on Gas Markets What has changed in our Brave New World Gas demand dropped by 2% Bigger drops in OECD region, FSU, Latin America But some notable exceptions: China, India Some

More information

British Columbia s LNG Advantage

British Columbia s LNG Advantage British Columbia s LNG Advantage Steve Carr. Deputy Minister Ministry of Natural Gas Development 2014 CAPP SCOTIABANK Investment Symposium West Coast LNG Panel Plenary Panel Our Competitive Position Short

More information

Chris Newton. National Energy Policy and the Role of Conventional and Unconventional Exploration

Chris Newton. National Energy Policy and the Role of Conventional and Unconventional Exploration Chris Newton National Energy Policy and the Role of Conventional and Unconventional Exploration Presentation Outline National Energy Policy and the Role of Oil and Gas Recent Trends in Conventional Exploration

More information

SIEPR policy brief. The End of Expensive Oil? By Frank A. Wolak. Stanford University March 2015

SIEPR policy brief. The End of Expensive Oil? By Frank A. Wolak. Stanford University March 2015 SIEPR policy brief Stanford University March 2015 Stanford Institute for Economic Policy Research on the web: http://siepr.stanford.edu The End of Expensive Oil? By Frank A. Wolak 1. The North American

More information

NEW METHOD OF CARBON DIOXIDE UNDERGROUND STORAGE COUPLED WITH SHALE GAS RECOVERY

NEW METHOD OF CARBON DIOXIDE UNDERGROUND STORAGE COUPLED WITH SHALE GAS RECOVERY Journal of KONES Powertrain and Transport, Vol. 19, No. 3 2012 NEW METHOD OF CARBON DIOXIDE UNDERGROUND STORAGE COUPLED WITH SHALE GAS RECOVERY Tadeusz Niezgoda, Danuta Miedzi ska, Piotr K dzierski Military

More information

Canada s Energy Future: Energy Supply and Demand Projections to Emerging Fuels and Energy Efficiency Highlights

Canada s Energy Future: Energy Supply and Demand Projections to Emerging Fuels and Energy Efficiency Highlights Canada s Energy Future: Energy Supply and Demand Projections to 2035 - Emerging Fuels and Energy Efficiency Highlights Canada s Energy Future: Energy Supply and Demand Projections to 2035 Emerging Fuels

More information

Natural Gas from Shale: Potential Economic, Community, Environmental, and Health Implications

Natural Gas from Shale: Potential Economic, Community, Environmental, and Health Implications Natural Gas from Shale: Potential Economic, Community, Environmental, and Health Implications Aimee Curtright Ph.D. Physical Scientist RAND Corporation, Pittsburgh, PA 15213 Ohio Grantmakers Forum March

More information

Introduction Petroleum Exploration, Development and Production

Introduction Petroleum Exploration, Development and Production Introduction Petroleum Exploration, Development and Production Consultative Meeting with Turkana County Leaders 24 th July 2014 Mohammed Amin Adam (PhD) Africa Centre for Energy Policy 1 Oil and Gas Project

More information

OECD/IEA The IEA gas outlook Ambassador Richard H. Jones Deputy Executive Director

OECD/IEA The IEA gas outlook Ambassador Richard H. Jones Deputy Executive Director The IEA gas outlook Ambassador Richard H. Jones Deputy Executive Director Key highlights Gas demand has recovered strongly in 2010 It continues to increase in 2011, except in Europe Medium-term outlook

More information

Understanding the Long Term Impact of Shale is Embedded in this Picture 2

Understanding the Long Term Impact of Shale is Embedded in this Picture 2 The Impact of the Shale Revolution Kenneth B Medlock III, PhD James A Baker III and Susan G Baker Fellow in Energy and Resource Economics, and Senior Director, Center for Energy Studies Rice University

More information

The Fracking Facts. What is fracking? The issues. Questions and discussion

The Fracking Facts. What is fracking? The issues. Questions and discussion The Fracking Facts What is fracking? The issues Questions and discussion { Some Gas Measurements (standard) cubic feet or cf } or toe tons of oil equivalent or BTU British Thermal Units 1 cf = 1000

More information

Strike Energy Limited

Strike Energy Limited Strike Energy Limited April 17 th 2018 QUPEX Lunch Presentation Stuart Nicholls Managing Director & Chief Executive Officer Jaws-1 March 2018 Important Notice Page 2 Strike s projects have material upside

More information

Potential world-wide effects of shale gas

Potential world-wide effects of shale gas Potential world-wide effects of shale gas Peter Hartley George & Cynthia Mitchell Professor, Economics Department Academic Director, Shell Center for Sustainability Rice Scholar in Energy Studies, James

More information

The Implications of Fracking in UK Gas Import Substitution

The Implications of Fracking in UK Gas Import Substitution in UK Gas Import Substitution April 2018 FINAL REPORT by Professor Calvin Jones Cardiff Business School t - 02920-875470 e - jonesc24@cf.ac.uk TABLE OF CONTENTS 1 INTRODUCTION... 3 1.1 OBJECTIVES AND

More information

The Impact of US LNG Exports on India s Gas Market Jason Bordoff

The Impact of US LNG Exports on India s Gas Market Jason Bordoff The Impact of US LNG Exports on India s Gas Market Jason Bordoff November 30, 2016 Delhi, India US Natural Gas Outlook 2 US Shale: There Will Be Gas US Dry Gas Production Under the EIA s Reference Case

More information

Wood Mackenzie Gas Market Outlook

Wood Mackenzie Gas Market Outlook Wood Mackenzie Gas Market Outlook Southern Gas Association April 20, 2009 Amber McCullagh Short-Term Outlook 2008 markets were volatile as underlying fundamentals shifted rapidly Three primary phases:

More information

How big worldwide is yearly unconventional gas production today? 50 bcm. 250 bcm. 450 bcm. 900 bcm. Source: Stanisław Rychlicki PGNiG S.A..

How big worldwide is yearly unconventional gas production today? 50 bcm. 250 bcm. 450 bcm. 900 bcm. Source: Stanisław Rychlicki PGNiG S.A.. How big worldwide is yearly unconventional gas production today? 50 bcm 250 bcm 450 bcm 900 bcm Source: Stanisław Rychlicki PGNiG S.A.. Map of 48 Major Shale Basins in 32 Countries Source: World Shale

More information

Coal Bed Methane (black coal, green future.)

Coal Bed Methane (black coal, green future.) Global coal distribution Coal Bed Methane (black coal, green future.) What is CMB? Formation of Also know as: - Coalbed gas - Coal seam gas (CSM) Biogenic methane is produced by anaerobic bacteria in the

More information

Global and Russian Energy Sector at the Crossroad: New Challenges

Global and Russian Energy Sector at the Crossroad: New Challenges Global and Russian Energy Sector at the Crossroad: New Challenges Dr. Tatiana Mitrova Head of Oil and Gas Department Energy Research Institute of the Russian Academy of Sciences Washington 6 December,

More information

Global Unconventional Gas Opportunities

Global Unconventional Gas Opportunities Session 1 : Exploring the Opportunity Global Unconventional Gas Opportunities By: Datuk (Dr) Abdul Rahim Hashim President International Gas Union (IGU), Malaysian Gas Association (MGA) 13 th September

More information

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT EUROPEAN COMMISSION Brussels, XXX [ ](2014) XXX draft COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the exploration and production of hydrocarbons (such as shale gas)

More information

SPE/WPC/AAPG/SPEE Petroleum Resources Management System (PRMS)

SPE/WPC/AAPG/SPEE Petroleum Resources Management System (PRMS) SPE/WPC/AAPG/SPEE Petroleum Resources Management System (PRMS) PRMS Prepared by the SPE Oil & Gas Reserves Committee (OGRC) 1 Who is the OGRC? International representation (USA, Canada, Australia, UK,

More information

The Fracking Debate. Title Page Headline

The Fracking Debate. Title Page Headline The Fracking Debate Six new issue briefs on the impacts and implications of the shale revolution Title Page Headline Daniel Raimi, Alan Krupnick, and Isabel Echarte Resources for the Future April 25, 2018

More information

Protecting Water, Producing Gas

Protecting Water, Producing Gas FACT Protecting SHEET Water Producing Gas THE IMPACT OF NATURAL GAS & COALBED METHANE ON GROUNDWATER IN ALBERTA Protecting Water, Producing Gas How the production of natural gas, including coalbed methane,

More information

IoD response to call for evidence on the impact of shale gas on energy markets

IoD response to call for evidence on the impact of shale gas on energy markets IoD response to call for evidence on the impact of shale gas on energy markets 26 September 2012 Dear Sir/Madam, The Institute of Directors is grateful for the opportunity to respond to the Energy and

More information

LNG TRADE FLOWS. Hans Stinis Shell Upstream International

LNG TRADE FLOWS. Hans Stinis Shell Upstream International LNG TRADE FLOWS Hans Stinis Shell Upstream International ABSTRACT The LNG industry has witnessed a great deal of change recently, and indications are that this will only continue. Global gas demand is

More information

SHELL ONSHORE OPERATING PRINCIPLES

SHELL ONSHORE OPERATING PRINCIPLES SHELL ONSHORE OPERATING PRINCIPLES FOR TIGHT SAND OR SHALE OIL AND GAS In 2011, Shell publicly shared five aspirational operating principles that govern the activities where we operate and where hydraulic

More information

Good Morning Ladies and Gentlemen

Good Morning Ladies and Gentlemen Good Morning Ladies and Gentlemen This session focus on Asia and identifying investment opportunities in a rapidly changing environment. The scale of the energy investment needs are immense in Asia, Non

More information

John Crane New York June 28,

John Crane New York June 28, John Crane New York June 28, 2011 www.smiths-medical.com John Crane Investor Day, 2011 by New Smiths York Medical: June Proprietary 2011 Data 1 This document contains certain statements that are forward-looking

More information

Shale Gas. Luka Močivnik

Shale Gas. Luka Močivnik Shale Gas Luka Močivnik 25.10.2012 Shale Fine grained clas

More information

UCG THE ACCEPTABLE FACE OF COAL MINING? Peter Dryburgh Regional Director, Scotland

UCG THE ACCEPTABLE FACE OF COAL MINING? Peter Dryburgh Regional Director, Scotland UCG THE ACCEPTABLE FACE OF COAL MINING? Peter Dryburgh Regional Director, Scotland 1 Wardell Armstrong Introduction We are a multi-disciplinary consultancy providing expertise in mining, minerals, engineering

More information

PRMS CBM Applications

PRMS CBM Applications Resource Investment Strategy Consultants SPE PRMS Workshop Petroleum Reserves & Resources Estimation PRMS CBM Applications By Geoff Barker (Presented by Bruce Gunn) Brisbane November 2013 Presentation

More information