U.S. Ends Reliance On Foreign Oil For First Time In 75 Years

What an amazing turnaround. From 14 million bpd net imports to -211,000 bpd in 13 years.

For the first time in 75 years, the United States exported more oil than it imported, carrying out a pledge from President Trump that America can achieve “energy independence.”

While the U.S. has been a net oil importer since 1949, over the final week of November, U.S. net imports of crude oil and petroleum products fell to minus 211,000 barrels per day (bpd) — which means America exported more than it imported, according to data from U.S. Energy Information and Administration.

Oil production has been booming in the U.S. as the shale revolution swept the nation. America is now the world’s largest producer of petroleum, passing Russia and Saudi Arabia. As the U.S. oil boom spread, the power of OPEC was reduced and gas prices in the U.S. have dropped from the $4+ highs under former president Barack Obama.

Net imports peaked in 2005, topping 14 million bpd …

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Huge Amounts of Oil In Texas and New Mexico

Wow. There is no shortage of oil in Texas and New Mexico!

USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico

Estimates Include 46.3 Billion Barrels of Oil, 281 Trillion Cubic feet of Natural Gas, and 20 Billion Barrels of Natural Gas Liquids in Texas and New Mexico’s Wolfcamp Shale and Bone Spring Formation.

 

Image shows a map of the assessment units of the 2018 Delaware Basin oil and gas assessment

Energy East Comeback?

I think it is insane for Canada to be importing foreign oil. Reviving Energy East Pipeline makes sense to me.

New Brunswick’s new premier working to bring Energy East pipeline back from the dead

FREDERICTON — New Brunswick’s new premier is trying to revive the Energy East pipeline — even though the original proponent says the project is dead.

TransCanada Corporation abandoned the $15.7-billion project more than a year ago, after the National Energy Board modified the environmental assessment process.

But Premier Blaine Higgs, along with some other premiers and federal politicians, are again pushing the proposed pipeline as a way to get more western crude to refineries in Eastern Canada and for export to foreign markets.

Ontario and Quebec have also new elected new premiers this year, and Higgs said he thinks Energy East could be viable.

“The fact that Ontario has said they’re not opposed to oil coming through the province, there’s a hurdle that’s now gone. We know that Manitoba and Saskatchewan are fine and we know Alberta is looking for a way out,” said Higgs.

“We see Alberta now taking a strong position with buying rail cars and saying we’ve got to get our oil to market because they’re losing $80 million a day.”

Higgs said he recognizes Quebec could still be a hurdle and he plans to discuss the project with Premier Francois Legault this week at a first ministers meeting in Montreal.”

Image result for canada oil imports

Phrase of the Day: Fractured Basement

A phrase I hadn’t heard before: Fractured Basement

From inside a ship, sloshing around the 65-foot waves off the coast of the Scottish isles, he plans to poke a diamond-tipped drill-bit into the sea bed. He’ll take it past layers of once-oil-soaked sandstone rocks straight into a strata of solid granite — what geologists call the basement. Then the drill will turn sideways and hopefully intersect a bunch of naturally formed cracks. If his science is correct, there will be enough oil pooled in those cracks to make him a very rich man.

Hurricane’s first wells suggested oil was present, but investors needed to see if it could flow. In 2014, right as the price of crude was plummeting off a cliff, Trice drilled a kilometer-long horizontal appraisal well into the Lancaster prospect.

Almost 10,000 barrels a day spouted out of the well. That’s not spectacular, but it was encouraging enough to move forward.

“I basically saw this as a missing opportunity,” said Trice in a phone call in September. “The very simple philosophy is that if fractured basement works around the world why couldn’t it work in the U.K.?”

 

 

And from a different article:

In most reservoirs, oil is held in pores in sedimentary rock such as sandstone. Basement rocks, which are usually found beneath, are different because they have been buried at great depth in the Earth earlier in their history, making them denser, so oil can’t move through them. The industry never believed that it would be commercially viable to extract oil from this kind of tightly-packed rock, so it was forgotten about in the search for more conventional reservoirs, often in untouched areas.

As the core was taken from rock which was more than half a kilometre from the nearest sedimentary layer, we realised that the sand must have been washed in from above during the Cretaceous period along a network of deep fractures that also channelled oil in from rocks west of the Rona Ridge.

So, wherever you find fractures in the Rona Ridge basement which are filled with minerals and sand, you always find oil. Fractures alone are not enough – it is the minerals and porous sand that hold open the fractures for tens of millions of years.

Retraction Of Paper Claiming Gas/Oil Was Worse Than Coal

Retraction.

“The article, Ren, X., et al. (2017), “Methane emissions from the Marcellus Shale in southwestern Pennsylvania and northern West Virginia based on airborne measurements,” has been retracted by the authors because of an error in wind measurements used to calculate methane emissions in the southwestern Marcellus Shale region. The error was discovered by the authors in October 2017 upon their installation of an improved, differential GPS, wind measurement system onto the aircraft used in this study. The original wind measurements led to an overestimate of methane emissions from oil and natural gas operations. A reanalysis with corrected winds reduced the total estimated emissions by about a factor of 1.7, with a correspondingly larger reduction in emissions of methane attributed to oil and natural gas in the southwestern Marcellus Shale area. This is expected to reverse a conclusion of the paper, which had asserted that leakage from oil and natural gas extraction in this region results in a climate penalty compared to the use of coal. The authors are in the process of submitting a new manuscript based on an updated analysis that will describe the process to correct the erroneous wind measurements used in the original manuscript, provide a more accurate estimate of the methane emissions, and assess the implications of the fossil fuel production from the Marcellus Shale.”

 

UK Gatwick Gusher

Just one shale formation could produce 25% of the UK’s oil. Isn’t this better than financing Russia or Saudi Arabia?

The so-called Gatwick Gusher, a shale basin in the United Kingdom, could add as much as $74 billion to the nation’s economy, a study finds.

U.K. Oil & Gas Investments commissioned Ernst & Young to examine the future potential of oil production from the Weald shale basin.

“Assuming it can be extracted from a development site at the volumes projected by U.K. Oil & Gas, has the potential to generate significant economic value to the U.K. economy,” the report read.

Oil & Gas U.K., the industry’s lobbying group, said the North Sea oil sector is in for a long period of decline, with less than $1.4 billion in new spending expected in 2016. Inland shale, meanwhile, has the potential to add between $10 billion and $74.6 billion to the British economy in gross value, the commissioned report said.

Operators are working to assess the potential in the shale area by testing the Horse Hill-1 oil discovery. Preliminary estimates made by the company last year put the entire Horse Hill reserve total as high as 100 billion barrels of oil. If its full potential is reached, the future production from the area could provide as much as a quarter of the nation’s total oil demand over its lifespan, based on 2014 demand levels.