- ■ has failed to consider the cumulative health impacts from shale gas development;
- ■ keeps incomplete permitting and enforcement records that make it impossible for residents to assess their exposure to air and water emissions;
- ■ has increased inspections, but they still don’t meet even the voluntary goals the department set;
- ■ poorly tracks, records and responds to citizen complaints;
- ■ puts a higher premium on speedy permitting than enforcement.
- High productivity shale gas plays are not ubiquitous: Just six plays account for 88% of total production.
- Individual well decline rates range from 80-95% after 36 months in the top five U.S. plays.
- Overall field declines require from 30-50% of production to be replaced annually with more drilling – roughly 7,200 new wells a year simply to maintain production.
- Dry shale gas plays require $42 billion/year in capital investment to offset declines. This investment is not covered by sales: in 2012, U.S. shale gas generated just $33 billion, although some of the wells also produced liquids, which improved economics.
- More than 80 percent of tight oil production is from two unique plays: the Bakken and the Eagle Ford.
- Well decline rates are steep – between 81 and 90 percent in the first 24 months.
- Overall field decline rates are such that 40 percent of production must be replaced annually to maintain production.
- Together the Bakken and Eagle Ford plays may yield a little over 5 billion barrels – less than 10 months of U.S. consumption.
Exxon Starts ‘Most Controversial Oil Rig in the World” - After years of preparation, ExxonMobil began drilling a $700 million well in the Kara Sea in Russia’s Arctic. It is Russia’s most northerly well. In doing so, the oil giant has ignored growing concerns over Russia’s role in the Ukrainian conflict, and the sanctions imposed on its business partner, Rosneft, which is run by a close associate of Putin, Igor Sechin, who is also personally blacklisted. Indeed, the go ahead shows just how ineffectual the sanctions against Russia really are. Exxon’s excuse is that the contract to hire the rig was signed before sanctions were announced, but the oil giant is still working with Putin’s blacklisted inner circle. Exxon has also ignored huge questions over whether an oil spill in the region could be contained. And of course it has totally disregarded the issue of climate change and the need to disinvest from fossil fuels in the most ecologically sensitive areas, such as the Arctic.
Exxon, Rosneft in joint Arctic oil project despite sanctions on Russia | South China Morning Post -- US oil giant Exxon Mobil began drilling for oil in the Russian Arctic yesterday with local partner Rosneft, despite sanctions imposed on the Russian company by Washington over the crisis in Ukraine. Russian President Vladimir Putin praised the US$700 million joint project as an example of cooperation. Although US sanctions are not designed to halt such joint projects, they nevertheless aim to starve Rosneft of dollar financing and stop it accessing modern technology. "Today, commercial success is driven by efficient international cooperation," Putin, speaking from his Black Sea residence, told Rosneft CEO Igor Sechin, who is subject to US sanctions, and Glenn Waller, Exxon Mobil's lead manager in Russia. The European Union imposed a third round of sanctions last month, restricting the export of equipment used for offshore oil production to Russia after its relations with Europe and the US deteriorated to the lowest point since the cold war over the Ukraine conflict. That has not stopped Exxon because the contract to hire the rig was signed before sanctions were announced. "In the area of oil, the sanctions are more symbolic perhaps at this stage, but if they remain in place for a long period then they will have some significant consequences,"
ExxonMobil And Russia Began Drilling For Oil In The Arctic - ExxonMobil began drilling in the Russian Arctic , defying both the spirit of recent U.S. sanctions and environmental opposition to oil exploration in the region.According to Fuel Fix, the well is a joint $700 million project between ExxonMobil and Rosneft, Russia’s state-owned oil producer. Drilling is anticipated to take about 70 days, and will target the Universitetskaya — a geologic formation under the ocean floor that’s roughly the size of the city of Moscow. Rosneft estimates the formation could contain up to 9 billion barrels of oil, making it a major target for Russian oil exploration. Energy provides half the Russian state’s revenue, and the country has so far maintained its oil production at a post-Soviet high of over 10 million barrels per day.ExxonMobil’s output fell to a five-year low in the second quarter, so discovering new reserves in the Universitetskaya would also be a major boost. . It’s apparently the first of as many as 40 wells Rosneft plans to drill by 2018 to explore the potential of the Arctic Ocean for oil production. Gazprom, another Russian state-owned fossil fuel company,already has active wells in the Arctic Circle off Russia’s northern coast.
Oil and the prospect of a Chinese shale boom - Russia geopolitical risk? Check. Middle East geopolitical risk? Check. But commodity prices, and in particular oil prices, are doing nothing: From the charts it increasingly looks like somebody somewhere is enforcing an unofficial trading band, capped on the top-end by SPR releases or Opec production hikes, and propped up on the bottom-end by monetary policy and strategic supply cuts. But the weirdest thing of all is that the prospect of supply disruption isn’t doing much to prices at all. More than that, our old friend contango is threatening to make a significant come back in the Brent market.The culprit? Plentiful supply amid a surplus of barrels from West Africa and the Atlantic Basin despite all the escalating conflicts in Iraq, Libya and Ukraine.Though, as the analysts at JBC Energy observe, it’s probably significant that China — the key driver for oil markets over the last decade — has begun to implement an energy strategy which foresees greater use of natural gas. While Beijing expects the new regime to bring positive results in terms of supply, the country’s shale gas ambitions have suffered a major blow. China has just slashed its national target for shale gas output to 30 bcm by 2020 from the previously estimated 60-100 bcm after early exploration efforts for unconventional fuel proved to be challenging. China is believed to hold the world’s largest technically recoverable shale resources, but complex geology, lack of expertise and infrastructure as well as high costs of production are making it difficult to replicate the success story of the US.