U.S. Shale Flooding World Markets

I’ve never understood this ‘Keep it in the Ground’ movement. I wonder if they even know what they’re talking about by [wanting to keep it] in the ground. Because the reality is that [where the Permian Shale Basin is concerned] you’re talking about keeping in the ground an economy that is somewhere between the size of India and China, and that makes no sense to me. –Allen Gilmer, Forbes, 17 August 2017

An unassuming confluence of pipelines here in the heart of Cajun Country is becoming the most important place in the world for natural gas prices. The Henry Hub has for years been a benchmark for U.S. contracts. Now it is helping to set prices from Mozambique to Japan, as a wave of U.S. natural gas being unlocked by shale drillers reaches Europe, South America, and Asia. Until recently, natural gas markets remained staunchly regional. But that’s changing rapidly. Analysts say the U.S. is set to become the world’s swing supplier of LNG as construction is completed on several new terminals that will chill natural gas until it turns to a liquid that can be carried away on tankers. –Alison Sider and Christopher M Matthews , The Wall Street Journal, 17 August 2017

We should view the Permian Basin as a permanent resource. The Permian is best viewed as a nearly infinite resource – we will never produce the last drop of economic oil from the Basin. We have at least half a trillion barrels in the Permian at reasonable economics, and it could be as high as 2 trillion barrels.  That is, as a practical matter, an infinite amount of resource, and it is something that has a huge geopolitical consequence for the United States, in a very good way.  It has a huge consequence in terms of GDP, and right now it is creating an American energy global ascendancy. –Allen Gilmer, Forbes, 17 August 2017

China is likely to build two shale gas bases in the south of the country and open up tenders for more oil and gas exploration blocks in the world’s biggest energy producer, the Ministry of Land Resources said on Tuesday. At a news conference in the capital, ministry officials said China is likely to start commercial production of shale gas in the southern city of Anye in Guizhou province and Yichang in Hubei province. The steps come as China ramps up its exploration efforts as crude oil production from aging wells drops. Beijing is also on a mission to lift natural gas consumption to help combat smog. —Reuters, 15 August 2017

Coal is showing signs of a revival and breathing economic life into West Virginia and other coal states. It is becoming more competitive as a fuel source as the price of natural gas has risen 63% since March 2016. —The Wall Street Journal, 16 August 2017

Coal will and should remain the primary source of energy for India in the short to medium term as the fossil fuel remains the cheapest source of energy for India’s development needs, chief economic advisor Arvind Subramanian said on Thursday. Renewable energy, on the other hand, comes with hidden costs, Subramanian said in a lecture organized by think tank The Energy and Resources Institute (TERI). Subramanian called for setting up a global coalition for clean coal technology, mirroring the international solar alliance, which could find ways of sustainable use of coal in power generation. —Gireesh Chandra Prasad, Live Mint, 17 August 2017

Now that Gore is out with a sequel (that is bombing at the box office, so there probably won’t be a sequel Oscar in Gore’s future), it is worth taking in the reflections of two young political scientists at the University of British Columbia who conclude that Gore’s efforts on behalf of climate change have only succeeded in polarizing the issue, and set back the cause of climate action. —Steven Hayward, Power Line, 17 August 2017

Comments (6)

  • Avatar

    Spurwing Plover

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    And so far none of those troublemakers from Greenpeace blocking the ships with their own garbage scows Arctic Sunrise and Rainbow Warrior II since Greenpeace are such Greenpests

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    Amber

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    Aside from the fact the “earth has a fever ” scam is about money
    the notion that humans by adjusting their “carbon footprint ” will
    regulate the earth’s temperature is absurd . If we really were
    doing anything beyond the climate direction of natural variables
    there would be wholesale support of nukes . The fact that is not happening shows what a con job the whole climate fraud industry is about .
    Lets see scientists produce evidence proving they understand the interaction of natural climate variables which have always shaped the earths climate . If they can’t even do that then a trace gas (CO2 )representing less than 1 % of the atmosphere which in greater quantity is a highly desirable plant food can have almost no effect on changing the direction of climate .
    The real questions are how were the scary global warming con men ever able to bullshit people so long and governments rip off tax payers to the tune of $Billions without criminal charges being laid ?

    • Avatar

      Sonnyhill

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      Teflon.

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      David Lewis

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      From Amber, “Lets see scientists produce evidence proving they understand the interaction of natural climate variables which have always shaped the earths climate.”

      Scientists have come up with a solid theory that explains the weather including the Roman Warming Period, Medieval Warming, and the mini ice age. It appeared in the Climate Change Dispatch and you commented on it.

      http://climatechangedispatch.com/new-study-by-german-physicists-concludes-we-can-expect-climate-cooling-for-next-50-years/

      There are three cycles that when added to each closely correlate to actual history. By the way, under this theory carbon dioxide is at most a minor player.

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    Sonnyhill

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    Maybe green energy was attractive when “peak oil” was all the rage. Technological advances in the oil and gas industry have changed that equation.
    Luckily North America is rich enough to survive the profligate experiment with renewables.

  • Avatar

    Spurwing Plover

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    Al Bore want trump to resign why dont Al Bore do us all a realy big favor and Go Soak his Head

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