High expectations on shale gas Thanks to the development of shale gas, natural gas production in the United States has rebounded and is at its highest level in almost 40 years. Exxon Mobil is the worldwide leader concerning the exploitation of this new resource. If we consider than more and more countries are willing to be less dependent upon the energy supply, due to its expertise, Exxon will be a worldwide key player in the exploitation of this energy. Sooner or later, new techniques will be available to suppress the environmental risks connected to extract the gas. Turning risks into opportunities - Short term risks Some risks of operating rupture exist with the Middle East countries. Nevertheless, thanks to the numerous sources of production Exxon has in the world, if it occurred, this risk will have a limited effect. Concerning the current demand of energy, I am confident that even in period affected by economic crisis the demand for energy will grow up in the coming years. High financing cost for big projects (all of the startups which are going to begin between 2013 and 2017) could delay growth revenues: that is why I have stayed quite conservative in my forecast for the coming years. We have also to consider the fact that big oil companies will now have to take into account the environment more than in the past and contribute to Carbon Emission Reductions. I really think that this point will not be a limit because Exxon has the competence to be better than its competitors to manage this difficulty and shift in the right way if these challenges are anticipated. Indeed, the big oil companies are currently making long term financial plans under the assumption that governments will oblige them to pay a tax for carbon po... ... middle of paper ... ...t I am sure is that “carbon energy” will still be necessary for several decades, though renewable energy sources could at the end satisfy the worldwide energy demand. But even of that, the world will always need oil to create plastics, chemicals (products in everyday life) and would still be relevant in 100 years even if it no longer used for energy. So I clearly forecast that prices for oil and gas will increase again, though not inevitably in a linear and straightforward way but in a global trend. This fact will contribute to make existing reserves of Exxon Mobil more valuable, and to boost Exxon in improving techniques of exploration and production developments in difficult areas. With high energy prices for extended periods of time, Exxon, with its strong acquired experience, will overcome the new challenge of drilling in difficult locations such as deep seas.
Unconventional Gas Production According to IEA, unconventional gas is difficult to technologically or more expensive to produce and it is divided into coal bed methane (CBM), tight gas and shale gas. Gas shales are fine grained, organic rich sedimentary rock. Exploitation of shale deposits proceeds through the discovery stage, drilling and reservoir evaluation to production. Shale gas is a dry gas composed of 90% methane, produced from shale formations that functions as both source for the gas and reservoir
Chapter 1 Research purpose and meaning 1.1 Concept Shale gas is a kind of unconventional nature gas, which is trapped or gathered in the dark shale or carbon rock. The rock layer has low permeability and low porosity, which means that the best way to get this recourse is fracturing to enhance connectivity and porosity. The shale gas reservoirs are mainly located in North America, Central Asia, China, Latin America, Middle East, North Africa and Russia and other countries and regions. The United State
or hydrofracturing, is the process of using pressurized liquids to fracture rocks and release hydrocarbons such as shale gas, which burns more efficiently than coal. This booming process of energy production provides a much needed economic boost, creating jobs and providing gas energy for Americans. The efficiently burning shale gas reduces carbon emission from electricity production plants, reducing carbon footprints on the environment. However, the process of hydraulic fracturing uses millions of
injecting fluid into the ground at high pressure in order to crack shale rocks and release trapped natural gas from the ground. Fracking was first used in 1947, at the Hugoton field in southwestern Kansas. Stanolind Oil (AMOCO) was the company that conducted the experimental fracking method. Floyd Farris, who works for AMOCO, is the person who preformed studies of the pressure of injecting water and certain chemicals into oil and gas wells; the process of fracking was introduced. Fracking can produce
Kerogen is an important factor in the generation of oil and gas and which types of unconventional resources it can form. It makes up four different types that are each prone to mature into a certain form of petroleum product. Type I is dominantly oil prone, Type II can generate both oil and gas, and Type II is mainly a gas generating kerogen. Type IV is considered “dead oil” and does not generate any producible hydrocarbon. The three main producible types can be seen in many different unconventional
Pennsylvania Andrew Turner University of Maryland University College ? Different Attitudes Towards Fracking in New York State and Pennsylvania The United States has become one of the leading producers of natural gas in the world, and now is an exporter of natural gas as well. As natural gas imports increase, the U.S. Energy Information Administration, ?Expects the United States to
fracturing, fracking, is the “lead” technology in this technological revolution. Fracking is an economically more feasible way of drilling for oil or gas in harder to reach geological formation. Within the past decade or so, combining hydraulic fracturing with horizontal drilling has opened up shale deposits across the country. It has brought large-scale natural gas drilling to new regions that may not have had accessible deposits in the past. These areas have greatly benefited from the addition of this industry
Only commercialized in the United States about five or six years ago, a new process of extracting natural gas has emerged called fracking. The natural gas that is extracted from the shale can be into the thousands of feet below the earth’s surface. This new process gives us the opportunity to extract gas that we thought was unreachable through relatively new technological advancements in the field. The concept of horizontal drilling was part of how the United States got to the concept of fracking
sand and other material under high pressure into shale formations to break the rock and release the gas trapped inside (McGlynn, D., 2011). The first version of fracking was patented in the USA in 1949 (American Oil & Gas Historical Society, 2015). Since the it has come into greater use over the last decade in combination with other advances in drilling technology such as horizontal drilling, which has made many reserves of oil and natural gas economically viable that were previously considered
A front-runner is natural gas, a cleanly burning and abundant alternative for conventional energy sources. This nonrenewable resource is found miles underground in prehistoric shale deposits, to show the magnitude “North America has approximately 4.2 quadrillion (4,244 trillion) cubic feet of recoverable natural gas that would supply 175 years worth of natural gas at current consumption rates” locked in these shale deposits (Loris). However, the dilemma comes from how natural gas is extracted from
of water, chemicals and abrasives to extract relatively inaccessible pockets of natural resources. Although fracking has the potential to benefit the economy, it may also pose a significant impact on the environment, the ecosystem and safety. Fracking has become a highly controversial and publicized topic due to rising concerns and growing analysis into the mutual benefits of hydraulic fracturing to retrieve natural gas and oil reserves. With concerns of water pollution, mismanagement of toxic waste
Politics of Natural Gas Production In 2010, roughly 25 percent of the nation’s energy came from natural gas, a “fossil fuel” which American consumers and businesses heavily depend on for transport, light, and heat (Squire 6). As the U.S. population increases, so do the country’s energy needs. Political debate over how the U.S. can meet those needs has slowly simmered for several decades, escalating exponentially when the energy supply grows short. Disputes over just how clean natural gas is, as opposed
the oil and gas energy. Ever since petroleum was established as a source of energy, the oil and industry has always persevered to improve and optimize conventional recovery techniques in an effort to boost production and profits. Nevertheless, the increased over- dependency on hydrocarbons has exhausted reserved from the most commercially viable wells/plays, which is to say that wells requiring standard exploration and production techniques are now on a decline. However, oil and gas deposits are
Oil and natural gas companies have developed a way to drill for natural gas, a process called hydraulic fracturing, also known as fracking. Natural gas is a flammable gas mixture consisting of methane and several other hydrocarbons that occur naturally underground. Natural gas is used as fuel for heating, cooking, and even in some automobiles like the “RideOn” buses. This technique has only recently become economically feasible with the rising prices of fossil fuels, and there is much potential
How natural is Natural Gas? Natural gas extraction and consumption has risen over the past thirty years. Also known as hydraulic fracturing or fracking, a tremendous amount of uproar is being made in the environmental and political communities. Natural gas use is a great source of energy worldwide, only in America have we had a gold rush affect when it comes to extraction. Natural gas provides less dependence on foreign oil, less need for coal plants, and a more affordable energy source worldwide