Comments for Engrossed In Energy Blog

Comment on Drilling moratorium may be more costly than oil spill

2011-08-02T15:09:42.052Z

Where is the 2.1 billion dollar figure coming from? Is that combining the cost of the clean up and the job/wage loss? 500 million is far less than a couple billion.

Comment on Will bearish gas market come back this year?

2011-08-02T15:09:50.522Z

Natural gas production has been growing at close to 1% per month through July and the horizontal rig count sets new records each month. We predicted $4.75 for 2011 last month when Henry Hub was at $5.30 and we think $4 is very possible next year.

Ron Denhardt
VP EnergySeer.com

Comment on Will bearish gas market come back this year?

2011-08-02T15:09:54.282Z

From atop the Marcellus ... (Disclosure: I'm an individual investor in natural gas-related companies.) "Hydraulic fracturing is safe," is one of the repeated talking points of the natgas producers. Another is, "Imposing EPA restrictions will cause an unnecessary financial burden on exploration and production." Hey, here's a news flash: Repeating the talking points doesn't change reality. Unless the natural gas boosters want to drive the country toward using armed eminent domain to secure these resources, it would be wise to look at the facts. Instead of resisting and denying, why not create the Bell Labs of natural gas? Let's get real science to solve these solvable problems. If the natural gas industry doesn't embrace its responsibility, at best we can expect further delays and regulation.

Comment on Will bearish gas market come back this year?

2011-08-02T15:09:55.717Z

Qatar and Russia have agreed to limit supply so LNG will be limited. Coal prices will support HH close to $5 per MMBtu. The key is weather and hurricanes but production is growing very rapidly and will continue to do so with the growth in horizontal rigs. So depending on weather, there is a great deal of potential for a return to a soft market. The big question is timing.

Comment on Will bearish gas market come back this year?

2011-08-02T15:09:56.263Z

Coal prices are generally higher than they were this summer... I hope (but I don't know) that lower natural gas prices lead to more use of gas in electric generation. In a sluggish economy that is going to get worse before it gets better (thanks to the liberals in charge) that appears to me to be our only chance of keeping gas prices out of the toilet.

Comment on Will bearish gas market come back this year?

2011-08-02T15:09:57.667Z

I don't know. Niether does the EIA.
By the way, why are taxpayers paying the govt to set up a crystal ball department? oh, I forgot, under the new rules, the govt is running everything.

Comment on Will bearish gas market come back this year?

2011-08-02T15:09:58.229Z

We have already seen $2.80 MMBTU recently. At least one new LNG receiving terminal is coming online in N America in the next couple months. We could max out on the injection fill this year whioch could trigger shut-ins in some regions. Barring a hurricane that modeartely affects the GOM I believe it is possible that we could see a $2.25-$2.40/MMBTU by the end of September. Even if we see that it should be short lived as the cooler weather kicks in.

Let's hope for an early cold fall!

Comment on Will bearish gas market come back this year?

2011-08-02T15:09:58.572Z

U.S. politics are going to play a factor in natural gas prices in medium and long term. If current administration weakens and fails to push thru any kind of meaningful cap and trade legislation, the recovery in gas prices will not be robust. However, if legislation passes that makes coal less attractive, we?ll see additional natural gas power generation and associated capital investment. We could see upside beyond current futures trading levels, regardless of the LNG regasification terminals that have come on line.

Comment on Hydraulic fracturing legislation not needed

2011-08-02T15:09:59.180Z

"Unfortunately, we may not be able to recover much of this newly discovered clean-burning natural gas."

Is this because regulation of any sort will make drilling uneconomical, that studies will find fracturing so dangerous as to not be viable, or is this just a polarizing statement?

Comment on Will bearish gas market come back this year?

2011-08-02T15:09:59.695Z

Great site!!! Check it out-Google CEO Schmidt says punching down into the earth to capture natural and clean geothermal energy could help move the United States away from it's dependence on petroleum-Dec.16,2008-Betty http://www.geothermalquestions.net

Comment on Hydraulic fracturing legislation not needed

2011-08-02T15:10:00.007Z

I am in the business of monitoring and mapping hydraulic fracturing. Measurements on thousands of fracs show that the hydraulically induced fractures are invariably closely contained in or near the intended producing interval and remain thousands of feet (typically a mile or more)below drinking water aquifers so there is a physical barrier of thousands of feet of impermeable rock between the fractures and the water supplies that we want to protect.

Additionally, although the frac pumping companies prefer not to list their proprietary blends of chemicals, as one of your commentators says "Guars, polymers, straight water. There are generally no big secrets out there." The majority of the chemicals are used in things like ice cream and cosmetics and are so diluted in the thousands of gallons of water used that they could be safely injested in the concentrations being pumped. Additionally, they will be further diluted in the reservoir after pumping.

Comment on Hydraulic fracturing legislation not needed

2011-08-02T15:10:00.491Z

There is no doubt that fracing is an environmental hazard, it is an economic burden and it is an umpredictable technology that often causes unwanted fluids. Currently there are no other ways to achieve the productivity.

It is also the backbone of Schlumberger, Halliburton, BJ and many others. They will fight against it. I know, because I have implemted and driven a technology, more successful and profitable than the existing technologies, but they fight it like hell.

The legislation, is a question of telling the government what are in the slurries. That would not be such a big problem to tell them. Guars, polymers, straight water. There are generally no big secrets out there. Everybody uses the same chemicals. In Europe they had to tell anyway, so if Halliburton wanted to know what cemicals Sclumberger uses in Clearfrac, they only have to call their european offices; no big deal. Secondly I would say now is the time to innovate. I am sure most americans would say that there is no replacement for fracking particularily in tight gas. So as an industry we need to innovate and adapt to the society, not tell them it is too expensive. If it is too expensive for the industry to behave like a responsible citizen, then it is time for the industry to innovate or die.

Comment on Hydraulic fracturing legislation not needed

2011-08-02T15:10:00.943Z

In my experience, the states have tight enough regulations on HF already.

Comment on Hydraulic fracturing legislation not needed

2011-08-02T15:10:02.004Z

Mr. Don Stowers

I am from Venezuela and have been working in the oil and gas Ind. for 30 years. I am not sure if HF is so sure that does not need more regulations. We have had some fails producing contamination of sweet waters with slated and oily waters. Actually here, there is not any regulation about HF, if we would have some, probably it could be avoided.
So, because, in the future war (cold or hot) will be for water not for oil, I think that this has to be faced with strong limits from now on.
Thanks.
Alfredo Pérez

Comment on A bearish market for natural gas

2011-08-03T22:45:51.032Z

Welcome to Internet Financial Service Database
Your trusted and comprehensive resource for locating financial services nationwide that can help you with all your financial needs.

________
Ashish

Financial Services

Comment on Limits on commodities trading will challenge E&P companies looking to manage risk

2011-08-03T22:45:54.433Z

nice article - however, if europeans are also actively looking to tighter regulate exchange dealing, does it force the interest into the physical market then - possibly countering the overall reg effort?

Comment on PennWell, OGFJ plan second investor forum targeting buy-side analysts, institutional investors, hedge funds

2011-08-03T22:45:56.742Z

The inagural event was wildly successful. I am eagerly awaiting this year's conference to see how the event has grown.

Comment on Budget proposal is harmful

2011-08-03T22:45:58.162Z

Tony Says:

March 24th, 2009
Its about time the USA made plans to get there own ?back yard? in order. Be independent.

Comment on Budget proposal is harmful

2011-08-03T22:45:58.895Z

I am part of a second generation oil and gas production company. My father started it from scratch and raised a family and sent two kids to college on a salary of $40,000 a year. Not exactly bloodsucking as a previous post phrased it. He put his blood sweat and tears into this company. He's seen prices fluctuate dramatically several times. Our company now supports four families, and provides part time income for two more. Our wells are all marginal and will likely be shut in with the new tax laws. That's four families without a source of income. Small but important.

Comment on Why Boone Pickens' energy plan won't work

2011-08-03T22:45:59.316Z

Pickens has a point, but to think that everything can be resolved this way is short-sighted. I believe in the Picken Plan and moving forward with more wind and solar for electricity. I do, however, think more nuclear should be used to free up natural gas for auto use.
I firmly believe that CNG for large vehicles, replacing deisel in buses and big rigs, is a viable solution. I think it would take a major carrier such as Central or Yellow to shift the thought on transport carriers, but it should be done. Perhaps an intermodal carrier can make more headway?

Comment on Why Boone Pickens' energy plan won't work

2011-08-03T22:45:59.784Z

T-Boone is spending an awful lot of petrodollars promoting wind energy and natural gas. He's a little too windy for my taste, but Drill Baby Drill won't solve our energy problems. Unless you include coal, we just don't have enough hydrocarbons in the USA to be self sufficient. We Americans need to go on an energy diet. You don't see Europeans or Japanese driving around in gas-guzzling SUVs.

Comment on A bearish market for natural gas

2011-08-03T22:46:00.034Z

I would suggest those who are going to shut-in production think about our new technology to convert that natural gas to methanol here in the USA. www.gastechno.com

The time has come for American natural gas producers to consider offsetting our 98% imports of methanol with domestic production.

Comment on Budget proposal is harmful

2011-08-03T22:46:00.424Z

March 30th, 2009

Are there any grown-ups in Washington?

Comment on Budget proposal is harmful

2011-08-03T22:46:00.798Z

March 24th, 2009

Dear API, NPRA, IPAA, (and OGFJ) - what did you think? It is clear that your perspective is that this $30 Billion tax increase was an entitlement. You forget how the rest of America views it - as a $30 Billion Dollar Tax CUT that has enriched the oil, gas, exploration, and petroleum production sectors. Having spent 15 years in oil refining, and once been ?Pro-Oil?, I?m now sickened by the stance of the API and large oil conglomerates who have done nothing to advance American energy independence and sustained consumption. It doesn?t just anger me. It infuriates!!! We Americans have to buy over 60% of our petroleum from foreign sources, many sources of which are openly hostile towards American interests. The American consumer has been fooled into consuming oil and gas without thought or consequence to US National Security and American Sovereignty. We?ve got a rope around our necks unless we find a solution.

I am now openly hostile towards the API and similar organizations that don?t realize that these past policies and corporate practices DO NOT CONTRIBUTE TO THE NATIONAL SECURITY AND SOVEREIGN INTEGRITY OF AMERICA.

WHY? I was once Gung-Ho for petroleum and US Oil, Gas, and Refining. For 14 years, I worked hard in the industry for a reputable refiner, which by the way is owned by PDVSA (can you guess who?). But the day soon came when I decided I was never going to pour any more ?blood, sweat, and tears? for a company whose owner was a fiercely anti-American lunatic (Hugo Chavez). It was just damn ?un-American?!!! Why should I work hard for a company owned by a fiercely anti-American regime? Just plain and simple S-T-U-P-I-D. Sadly, the 5000 US employees of this company who have a voice are likely at odds with this issue. Trully, many feel they have no choice because they need the job, like I once did. But many employees of Citgo are either just plain ignorant of the issues, or choose to ignore it.

I?ve come to realize that US Oil and Gas interests care about one thing. Its not the people and employees, or the company, or the country. Its all about the oil, every single drop of it.

I welcome the $30 Billion ?tax increase?. It is in reality a long-standing $30 Billion industry kickback. When John McCain stated last year that the solar and renewable/sustainable energy industries shouldn?t be entitled to government tax incentives, rebates, and advantaged funding, little did he know that all along HIS government was giving away $30 Billion to a long-established matured oil and gas industry.

Comment on Why Boone Pickens' energy plan won't work

2011-08-03T22:46:01.110Z

I lived out in the area that Boone is building the farm and quite frankly I don't remember that darned wind EVER dying down....but I do wonder about the transmission lines etc....and now that the whole economy seems to have gone into the toilet who knows when this will all get going?
Let's get some strong leaders and ideas in Washington....PLEASE

Comment on A bearish market for natural gas

2011-08-03T22:46:01.656Z

The huge reserves of natural gas almost demand congressional action. By giving tax relief to those power plants who switch to natural gas we would eventually eliminate the need for importing.

Comment on New oil sands emissions studies not enough to dissuade opposition

2011-08-03T22:46:01.999Z

we hsve this problem too in yemen for contaminated soil,what is the proper wayto reomve it from the soil to protect the water and landscaping .

Comment on PennWell, OGFJ plan second investor forum targeting buy-side analysts, institutional investors, hedge funds

2011-08-03T22:46:02.576Z

Thank you for the update on the Houston Energy Financial Forum. I'm looking forward to the symposium this year!

Comment on A bearish market for natural gas

2011-08-03T22:46:02.888Z

Are you nuts? Bearish is an understatement.

Comment on Chesapeake due for 'Major' upgrade

2011-08-03T22:46:03.154Z

Perhaps rather than redefining what constitutes a "Major", we should redefine "Independent". I do not see how any publicly traded corporation, beholding to its shareholders, can be considered an Independent. That said, I expect that, should the nation fully embrace natural gas as a transportation fuel, Chesapeake will fast become a leading retail marketer of same, thus joining the ranks of Exxon et al.

Comment on Exploration spending on the rise?

2011-08-03T22:46:03.590Z

I am glad to see the uptick in spending and commitment by E&P companies for developing new plays. However, there is a 6 month lag for oil field automation providers like myself. There may be a slow start to 2010.

Comment on Investing in energy is patriotic

2011-08-03T22:46:03.871Z

Sami JR Says:

January 13th, 2009
I fully agree with your call and waiting for the true changes to take place, ASAP.
I am indeed, in need to help my Saudi side Oil & Gas Production via in housing more technology items services and products!
But, one hand can,t shake, though, in order to have a fruitfull change we need a sort of glabal business market changes as well!

Sami JR
Saudi TEE, CEO

Comment on Depending on your pole position, rules are made to be broken

2011-08-03T22:46:04.277Z

The only way to reign in rogue behavior is to have a functioning system of checks and balances. At the executive level within public companies there simply is very little accountability. The two main factors contributing to this lack of accoutability are tne lack of regulatory enforcement(not necessarily more regulation) and increased shareholder rights. For example, the level of enforcement of existing HSE regulations in this country is apalling and executives know this. By their very nature they are risk takers; regulatory non-compliance is simply another calculated risk they are willing to take. On the shareholder rights front, we need a major overhaul of the legal and regulatory framework by Congress and the SEC to give the owners of the company the power to hold the boards of directors and executives accountable for illegal activity, cronyism and the pay-for-failure entitlement culture that exists at the top. We don't need the government to restrict pay at the top. We just need to put the power back in the hands of the owners to throw the bums out if they don't perform. The latest Supreme court ruling on corporate campaign finance further disenfranchises the small shareholders. As it stands, this agency risk (i.e. the owners' agents acting contrary to the interests of the owners) is far too high because there are not adequate controls. One way change this situation is to get institutional investors aligned with small shareholders to form a lobbying group in Washington teamed up with political action groups such as the Tea Party activists. Until this happens, we will see continuing abuse and a further erosion of trust in our institutions.

Comment on Chesapeake due for 'Major' upgrade

2011-08-03T22:46:04.932Z

Super-indies! I believe the litmus test for a major is still a gas station with your name on it down at the corner, and a NASCAR racer with your lubricants' logo painted on it.

Comment on New oil sands emissions studies not enough to dissuade opposition

2011-08-03T22:46:05.759Z

Good Start for showing Oil Sands are not the Dirty Oil like people think. The new technologies behind them are much cleaner than they have been in the past. It will be interesting to know are they speaking of In-Situ or Open pit Oil Sands recovery.

Comment on Chesapeake due for 'Major' upgrade

2011-08-03T22:46:06.258Z

Why do we need to attach a title? What difference does it make?

Comment on Chesapeake due for 'Major' upgrade

2011-08-03T22:46:06.632Z

Agreed - what separates the majors from the independents is their refining and marketing operations.

What about Oxy? Almost $60b in market cap. Add Valero's refining and marketing operations to Oxy's E&P, and you have a major to rival Conoco (at least in size).

Comment on Drill baby, drill: new developments

2011-08-03T22:46:07.163Z

Mikaila, regarding your blog and Don?s comments on his blog?As a longtime student of politics, I know that what?s said on the campaign trail by candidates is always meant primarily to coalesce and energize large blocs of voters. Throughout the recent presidential election cycle, it was fashionable and vogue among Democrats and some Republicans to villify oil companies, drillers, coal, new transmission and pipeline initiatives, offshore exploration, nuclear power and even some renewables (wind and corn-based ethanol especially). A lot of people said a lot of things they really didn?t mean or knew nothing about in order to court their electorate. However, as the inauguration looms and as other newly elected officials are sworn in, there comes to each a moment of genuine reality they cannot ignore. Energy and energy production, tranmission and consumption, in all forms, have been and always will be the foundations of the economic strength of this great nation, and to contemplate limiting any sector of the industry (even to keep campaign promises) risks severe damage to an already-battered economy. Interesting how they come to their senses, isn?t it?

Comment on Crisis casts shadow over oil patch

2011-08-03T22:46:07.818Z

I remember, Mikaila! All too well unfortunately! You are referring to a comment that Ken Lay made as Enron went down. He said that the fundamentals of our business are strong...

Comment on Crisis casts shadow over oil patch

2011-08-03T22:46:08.208Z

Excellent observations Mikaila. I recently returned from sales calls in New York and ran into an executive who worked for a very steadfast E&P. He mentioned he was out to see several banks who ?didn?t want to hear my story.? This from a firm with a consistent track record for growth and success? Makes me wonder what not so prevalent firms are facing? Thanks for sharing!

Comment on Hydraulic fracturing legislation not needed

2011-10-25T20:21:45.397Z

Nice blog.