...end-of-year reserve quantities divided by the current year’s production. Companies in the project and web addresses Anadarko Petroleum www.anadarko.com Apache Corp. www.apachecorp.com Chesapeake Energy www.chk.com Continental Resources www.contres.com Devon Energy www.devonenergy.com EOG Resources www.eogresources.com Southwestern Energy www.swn.com Successful Efforts Successful Efforts 1. Which accounting method for oil and gas properties is followed by each of the following companies? Full-Cost Full-Cost Anadarko Successful Efforts Successful Efforts Southwestern Continental Apache Corp Apache Corp 2. Which of the seven companies spent the most in the year 2012 for organic F&D costs? 12.58 12.58 What was the amount spent by this company (stated in billions of dollars)? Billions of dollars Devon, 2,963,000 MBoe Devon, 2,963,000 MBoe 3. Including all products (i.e., oil, bitumen, gas, NGLs), which of the seven companies had the most combined proved reserves as the end of 2012? 17,778,000 17,778,000 Stated in MMcfe’s, what were this company’s total proved reserves at the end of 2012?...
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...half over the next two decades. The charts below shows the trends of worldwide energy consumption and the energy consumption of three big giants, USA, China and India till 2040. At present, we rely on coal, oil and gas (the fossil fuels) for over 80% of our current energy needs – a situation which shows little sign of changing over the medium-term without drastic policy changes. The problems associated with an over reliance of non-renewable energy sources is the fear that our energy resources are starting to run out, with devastating consequences for the global economy and global quality of life. At the same time, the tremendous risk of climate change associated with the use of fossil fuels makes supplying this energy increasingly difficult. While the potential for a crisis if we run out of energy is very real, but there is still time before that occurs. In the past two decades proven gas reserves have increased by 70% and proven oil reserves by 40%. At expected rates of demand growth we have enough for thirty years supply. Moreover, better technology means that new oil and gas fields are being discovered all the time while enhanced recovery techniques are opening up a potentially huge array of unconventional sources, including tar sands, shale gas and ultra-deep water. While in the long term, the use of renewable sources of energy like harnessing wind and solar energy is inevitable, at present the costs associated are high and the efficiency of the power generated is...
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...methane gas and toxic chemicals and contaminate groundwater. “Hydraulic fracturing is used after the drilled hole is completed. Put simply, hydraulic fracturing is the use of fluid and material to create or restore small fractures in a formation in order to stimulate production from new and existing oil and gas wells. This creates paths that increase the rate at which fluids can be produced from the reservoir formations, in some cases by many hundreds of percent.” (Pennsylvania Department of Environmental Protection, 2010) This process allows production in older oil and natural gas fields. Hydraulic fracturing has been used in the United States since the 1940’s. “The U.S. has vast reserves of natural gas that are commercially viable as a result of advances in horizontal drilling and hydraulic fracturing technologies enabling greater access to gas in shale formations. Responsible development of America's shale gas resources offers important economic, energy security, and environmental benefits.” (United States Environmental Protection Agency, 2013) Fractures in Onshore shale and Tight Rock formations are oil fracking. It can be natural or man-made through rock. The fluid includes water, sand, ceramic and often chemicals. “High-pressure Fracking is done from a wellbore drilled into reservoir rock formations to increase the rate and ultimate recovery of Shale Oil and Light Tight Oil. Most times a Shale Oil formation only needs to be Fracked once, where as a Natural Gas formation...
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...Hydraulic fracturing, otherwise known as fracking, is a 60 year old practice of pumping high pressure water into shale rock thousands of feet below the earth’s surface. The pressurized water is pumped through cement encased pipes at pressures reaching 9000 pounds per square inch. The treated water is forced into small cracks in the gas-rich shale rock, resulting in the breaking of the rock and the release of natural gas that would otherwise be unobtainable. Hydraulic fracturing is a safe, economically efficient way to drill for natural gas, create jobs, and lessen America’s dependency on foreign oil. Safety is always an important factor when considering new methods for obtaining raw energy sources such as coal, oil, and natural and shale gas. The process of fracking can be considered relatively safe when compared to oil drilling and mining. For example, in 2010 an offshore drilling station suffered a malfunction in a blow back valve that caused a massive explosion killing 11 people and spilling an estimated 200 million gallons of oil into the Gulf of Mexico (Center for Biological Diversity, 2011). While the cost of lost lives is immeasurable, the costs of lost profits from the spilling oil, and the clean-up, are astronomical. The consequences of oil spills are not only immediate, but can also be felt for years after. Similar to the BP oil spill, in 1989 the Exxon Valdez ship ran aground spilling an estimated 750 thousand barrels of crude oil, an amount that equals almost...
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...CASE STUDY: FRACTURING THE ENERGY MARKET 1. Which industries gain and which industries lose from the availability of cheap natural gas produced from shale deposits? The industries that gain cheap natural gas produced from shale deposits are United States it is known for the largest deposit of shale gas. It is estimated to be nearly 500 trillion cubic feet of gas which is more than enough for America’s citizen to receive energy for 50 year or further. U.S. is the world’s largest economy that have a good prime market, political stability, military strength, foreign investment, international trade and many more. Plus it all started in 1932 when Joseph Schumpeter an American develop the innovation concept of fracking. France, Bulgaria and Poland have the largest shale reserves in European. France was banned fracking in 2001 due to environmental awareness and Bulgarian too banned in 2012 for the same reasons. Poland also has been banned from using fracking because they are protecting their quality water supplies and currently being managed by coal for power energy. Other than that, China also have a large shale gas reserve at about 1,275 trillion cubic feet. It have not yet been develop so China lose the availability of cheap natural gas. 2. Which countries gain and which countries lose from the availability of cheap natural gas? Based on the case study Germany has gradually shutter all its nuclear power plants and increase reliance on solar and wind energy because...
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...Harvesting Natural Gases Jamie Christensen English 102 September 16, 2012 Shannon Lewis Harvesting Natural Gases I. Introduction A. Although natural gas is the next step to our clean energy initiative, the lack of regulations on fracking is leading to air and water pollution, droughts and undisclosed chemicals which are used in the process. II. What is the Fracking? A. Fracking is a process to harvest Natural Gases from the earth core. 1. There are two different processes of fracking, Hydraulic and horizontal fracking. 2. Chemicals are released into wells to harvest the gas. B. The current regulations for fracking are left to each state to determine how the process works. 1. A FRAC Act requires the companies to tell what chemicals are used, but there is loophole. 2. EPA is barred from regulating the ground water. III. II. There are two main benefits of fracking; better source of energy and long term quality. A. Natural gas is a better quality of energy for the United States. 1. Natural gas is clean, safe, colorless, shapeless and odorless. 2. Natural gases burn at lower temperatures so they last longer. B. With Natural gases the dependency on foreign oils will decrease. 1. The price of oil is on the rise. 2. Natural gases are harvested in the United States. ...
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...Abstract Most vehicles that use gas function using compressed natural gas (CNG). The safe nature of natural gas has given it preference over other engine driven fuel. One very important factor of following alternative fuel vehicle technology is to control the effect of emission on the environment. Natural gas vehicles do not emit toxic gases like other fueled engines. Natural gas vehicles emit clean gas, have a very clean internal combustion, and emit very few pollutants. The gas emitted by vehicles using natural gas constitute clean air to the environment and clean air standards in most big initialized cities like the United States. Natural gas vehicles burn cleaner than traditionally fuelled vehicles because of the compound composition of natural gas. Natural gas does not emit much of toxic gas; it releases little amounts of propane, ethane, and butane when used in vehicles. The environmental hazards caused by natural gas vehicles are a lot less than those running on traditional fuel vehicles. Table of Contents List of Tables 3 Executive Summary 5 Introduction 5 Problem and Opportunity 5 Purpose 5 Background 6 Sources 6 Scope 7 Structure 8 Key Terms 9 Methods 9 Results 10 Conclusion...
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...Com/156-University composition and communication II May 7, 2012 Authored by: Eric Rullmann University of Phoenix Com/156-University composition and communication II May 7, 2012 Authored by: Eric Rullmann Hydraulic fracturing, otherwise known as fracking, is a 60 year old practice of pumping high pressure water into shale rock thousands of feet below the earth’s surface. The pressurized water is pumped through cement encased pipes at pressures reaching 9000 pounds per square inch. The treated water is forced into small cracks in the gas-rich shale rock, resulting in the breaking of the rock and the release of natural gas that would otherwise be unobtainable. Hydraulic fracturing is a safe, economically efficient way to drill for natural gas, create jobs, and lessen America’s dependency on foreign oil. Safety is always an important factor when considering new methods for obtaining raw energy sources such as coal, oil, and natural and shale gas. The process of fracking can be considered relatively safe when compared to oil drilling and mining. For example, in 2010 an offshore drilling station suffered a malfunction in a blow back valve that caused a massive explosion killing 11 people and spilling an estimated 200 million gallons of oil into the Gulf of Mexico (Center for Biological Diversity, 2011). While the cost of...
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...What is shale gas and why is it important? Shale gas refers to natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich sources of petroleum and natural gas. Over the past decade, the combination of horizontal drilling and hydraulic fracturing has allowed access to large volumes of shale gas that were previously uneconomical to produce. The production of natural gas from shale formations has rejuvenated the natural gas industry in the United States. Does the U.S. Have Abundant Shale Gas Resources? Of the natural gas consumed in the United States in 2011, about 95% was produced domestically; thus, the supply of natural gas is not as dependent on foreign producers as is the supply of crude oil, and the delivery system is less subject to interruption. The availability of large quantities of shale gas should enable the United States to consume a predominantly domestic supply of gas for many years and produce more natural gas than it consumes. An analysis in the Annual Energy Outlook 2012 (released June 2012) indicates that the uncertainty in the size and economics of the domestic shale gas resources could have a considerable impact on future domestic natural gas production and that 2035 shale gas production could be between 9.7 trillion cubic feet and 20.5 trillion cubic feet. U.S. total natural gas production is projected to range between 26.1 trillion cubic feet and 34.1 trillion cubic feet. Where is Shale Gas Found? Shale...
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...and an increase of domestic shale oil discoveries throughout America. As technology continuously modernizes, the efficiency of American shale oil extractions increase. America is hypothesized to have the ability to supply all its own energy by 2030. If America continues to reduce their petrochemical consumption and reliance on foreign oil, this energy independent milestone will be an approaching, feasible possibility. In this presentation, I will illustrate the constant momentum toward energy independence and how achieving autonomy introduces a surplus of economical possibility that has neglected to exist in previous American history. Rationale The Unites States, along with every other country, would benefit from being as energy independent as possible from foreign oil exporters. Currently, the United States reliance on OPEC (Organization of the Petroleum Exporting Counties) causes them to be highly susceptible to disturbances in these counties oil industry. Energy independence would result in economical stability and security, while diminishing the uncertainty that lies in the dependence of major oil exporters. There exist an on average increase of petroleum oil prices...
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...Economic Analysis of Shale Gas an Industry Alternative By Lillian Ashford & Bridget M. Chow Professor Nelson Altamirano, Ph.D. National University ECO 607 Economics for Managerial Decision-Making December 11, 2011 Introduction Shale gas is natural gas that is trapped in shale formations. Shale particles are fine grained sedimentary rocks that are rich sources of petroleum and natural gas. In the past, it was not economically viable to produce shale gas; however, with technological advances and the forward thinking perceptions of reducing our ecological footprint, the process has become more economical due to horizontal drilling and fracturing. The natural gas industry in the United States has been revitalized as a result of the production of natural gas from shale formations. In 2009, shale gas represented approximately 14% of the United States total natural gas supply. The production of shale gas is expected to increase and make up approximately 60% of the (U.S.) total natural gas supply by 2035. The question to ponder is whether or not shale gas is a viable energy option for the United States to consider in reducing the energy dependence of the Organization of Petroleum Exporting Countries (OPEC) while increasing fiscal responsibility and economic viability in both the short and long run analysis? Economic Analysis The shale gas industry has contributed to the economy in terms of jobs, economic value...
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...Conclusion……………………………………………………………………………………………………..7 5. Reference list…………………………………………………………………………………………………..8 Natural gas in US Natural gas is a form of energy, which is very clean, safe and the most useful energy in our regular lives. It is a hydrocarbon and made up of hydrogen and carbon. It can be found by itself or in association with oil in a big number of states including major production areas such as the Rocky Mountains, Louisiana, Texas and they both can be colourless and odourless. Natural gas is one of the main sources for the United States of America. As it is mentioned above, natural gas is a fuel that burns cleanly and is very adaptable and efficient, consequently, it is widely used in the spheres such as cooking, residential and commercial heating and electricity generation. Natural gas consumption accounts for 27% in the whole market of the United States (Levine et al., 2014a). The production of natural gas has recently been increased because of technological improvements in its extraction methods. These advancements resulted in increase in the number of production and reduced prices for natural gas buyers. Natural gas utilized in the United States is mainly produced in the home or imported from Canada (Augustine et al., 2006a). Nowadays, the United States of America imports approximately 3% of its natural gas from foreign country manufacturers in the form of liquefied natural gas (LNG). However, as a result of high natural gas prices in the country, there was a rapid increase in the amount of imports...
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...Gossard July 30, 2012 Executive Summary Over the past few decades, in the United States, oil is the primary fuel consumed by most vehicles on our roads and in our air space today. It is estimated that two-thirds of the oil used is due to the transportation sector. This report will examine the pros and cons of the need for alternate solutions to the ever increasing reliance the United States has on foreign oil. There are practical alternatives and solutions that the United States could implement in the short run, and especially in the long run as well. The idea of domestic drilling, along with natural gas, and plug-in hybrids are definitely worthwhile options to look at for an alternate solution to the dilemma of oil consumption. While some may argue that these other sources are not consistent enough or wouldn’t be efficient resources for alternative energy, there is enough evidence supporting claims to the contrary In financing research projects exploring alternative energy, the U.S. would easily be able to use all of those resources of energy to remove our dependence on foreign oil consumption. On average, the U.S. spends about one billion dollars per day on foreign oil. That adds up to be thirty billion on average per month, and over three hundred and sixty billion annually. This is a gross and unnecessary expense for the United States. This problem could begin to be solved by use of a nation’s own natural resources which would decrease our dependence on foreign oil, and use the...
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...Duke energy has recently released news that it plans to acquire Piedmont Natural Gas Company in a $4.9 billion cash deal. Duke Energy is one of the largest electric power companies in the United States and is headquartered in Charlotte N.C. Duke Energy is a fortune 250 company, has been in business for 150 years, and has approximately 7.3 million electric customers and 500,000 natural gas customers. After preforming a brief SWOT analysis on Duke Energy two factors became very evident which relate directly to the plans to acquire Piedmont. A big strength of Duke Energy is the strong market position accompanied by an extensive infrastructure within the United States. Energy is very capital intensive industry which give Duke Energy a large advantage...
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...of remaining high, and supplies of natural gas and oil worldwide are dwindling. Renewable and alternative energy sources – for example, wind-generated electricity, or nuclear power – are being developed and considered at the national level; however, at the time of writing more than half of the total energy consumed in the United States comes from oil and natural gas sources. Specifically, natural gas was – in 2011 – providing fully a quarter of the total energy consumed in the United States (Obama, 2013). Hydraulic fracturing, also known as “fracking”, provides a means of exploiting the reserves of natural gas within United States territory. These natural gas reserves are positioned in such a way that they cannot typically be exploited by traditional methods, and instead are produced by a process of hydraulic fracturing. This means of oil and gas production is relatively new, and it remains controversial in terms of economics, safety and environmental cost. In addition to ecological, sociological and political considerations, there are many legal issues involved in the production of energy via hydraulic fracturing (Hagstrom and Adams, 2012). Regulation The actual activity of hydraulic fracturing is carried out by private corporations; however, the process is governed by multiple State and Federal regulations and laws. As the field of hydraulic fracturing is developing quickly and recently, legislation and regulation are likewise in a state of development. Significant public...
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