Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on December 14, 2008 at 18:01

Once it goes past gillions, then I get lost.

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Permalink Reply by Les Bamburg on December 13, 2008 at 8:23

Bill, the energy usage by drilling operations would not have a significant impact on the market. Most of the usage is diesel in stationary engines so the only reasonable replacement would be LNG. This would be very difficult because no refuelling infrastructure currently exists. It is not a matter of not believing in natural gas but rather technical feasibility for drilling operations.

Most energy usage occurs during well production operations and this is fuelled by natural gas.

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Permalink Reply by Les Bamburg on December 13, 2008 at 8:14

VSC, I have just a few thoughts regarding the article and the US gas market.

First, the article had an error in that US gas supply is 19.2 Tcf/yr not 19.2 Bcfd so this would translate to an average well rate of ~ 117 Mcfd which seems reasonable. The comparison of US gas potential of 2,000+ Tcf to Middle East oil reserves is apples & oranges. The gas potential value consists primarily of undiscovered gas resources so not the same as actual discovered reserves. I do concur with the point of using more domestic natural gas to reduce crude oil imports.

The main target for expanding US natural gas consumption should be power generation. Currently almost 50% of US power is generated from coal in low efficiency plants. Replacing a power of this generation with high efficiency combined cycle power plants would not only increase gas demand but also improve the environment. This can be done quickly and does not require convincing the public to swap vehicles.

Regarding transportation fuel, a two pronged policy should be promoted. One prong would be to retrofit or replace larger heavy duty diesel vehicles (buses, trash trucks, goods carriers, etc) with CNG or LNG engines. This is proven technology that is used extensively in areas such as Southern California and can be applied easily for large fleets that fuel at central locations. In phase II refuelling stations would be added along major interstate corridors and trains would be converted to LNG.

The second prong of the transportation policy would involve promotion of plug-in hybrids (PHEV)and CNG for passenger vehicles. PHEV's already have some market penetration and are more likely to be accepted by the public in mass. This will indirectly increase natural gas consumption as the growth in power demand will be supplied by CC natural gas power plants.

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Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 8:51

Les. I wish you had been running for Congress. Then I would have had a candidate that I could support. One that campaigned on values of real substance. And import. Salute.

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Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 9:16

JIM KROW FOR SENATE! We'll figure out the district later. Maybe create a new one.

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Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 9:51

Yeah, I thought so. I imagine Mr. Axelrod's ear is getting sore about now.

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Permalink Reply by BirdDawg, plain ole' idiot on December 13, 2008 at 9:41

Jim,
And I think we all agree that bridges and highways need to be repaired, and that will give people jobs. But where will the money come from?

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Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 8:44

EARL. Gasoline in India a few months ago was $1.40/gallon. Because the Indian government subsidized it. The Indian government can no longer afford to do so. Many other governments in fast growing, formerly third (or second) world countries, are realizing the same and drastically reducing or eliminating subsidies. Imagine (and you have previously demonstrated your prodigious capacity to do so) what happens when subsidies disappear and the public has to pay the true cost. Even at greatly depressed crude prices. $2.50/gallon gasoline probably eliminates 25 - 35% of Indian consumption. At least they still have their carts and bicycles to go back to.

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Permalink Reply by The_Baron on December 15, 2008 at 8:20

Maybe we will finally get our second span at jimmie davis. The span has much of its engineering completed, contruction has been approved by the legislature, but no funding has ever been allocated.

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