Energy / Natural Gas

• Turf War with Ukraine Means Gazprom May Send More Gas Though Belarus

  Russian gas monopoly Gazprom announced it could increase the amount of natural gas it would send to its European consumers through the transit system in Belarus this year. Ukraine currently hosts the bulk of Russia's natural gas bound for Europe, though Kiev is locked in a tug-of-war between Brussels and the Kremlin. Gazprom's move, therefore, says less about the monopolistic tendencies of the Russian natural gas company than it does about the status of Moscow's relationship with neighboring Ukraine and the broader European Union.   Gazprom said it could increase the amount of gas it sends to Europe through Belarus by…

• Bolivia Expropriates Consortium’s Holdings of Natural Gas Bloc

  Energy rich, capital poor countries have few options when seeking to develop their resources than to partner with international energy company giants on whatever terms they offer, however iniquitous they might seem. But the last few years have seen a number of energy-rich nations push back by citing delays, rising costs, environmental concerns, etc., letting the chips fall where they may. The latest nation to deploy this tactic is Bolivia. The Bolivian government has decided to "revise" the participation of the Pan American Energy (PAE) LLC consortium on developing its $1.6 billion Caipipendi natural gas field in Tarija. The Caipipendi Bloc consists of Margarita…

• Poland Gives Green Light to Massive Fracking Efforts

  There is perhaps no more controversial energy source after nuclear than “hydraulic fracturing,” or “fracking,” of subterranean shale deposits containing pockets of natural gas.While the process can liberate previously unusable sources of natural gas, political, environmental and scientific concerns have risen along with production, as evidence mounts that fracking is responsible for everything from polluting subterranean aquifers to causing regional earthquakes.But no matter – during his 24 January State of the Union address, U.S. President Barack Obama wholeheartedly embraced hydraulic fracturing without even mentioning it, telling his audience, “We have a supply of natural gas that can last America nearly…

• Peace Pipeline May Finally Have its Day

  Indian and Pakistani officials this week are debating issues related to a natural gas pipeline planned from Turkmenistan. Pakistan's energy minister left Monday for India to hold talks on the pipeline, which is the favorite of Washington. But Pakistan is running out of options to address energy shortages and explorers working on natural gas in Turkmenistan said the market wasn't ripe yet for major energy developments. Iran, meanwhile, says its section of a gas pipeline from the South Pars gas field is ready to go, and with Islamabad growing increasingly frustrated with Washington, it would be no surprise if an…

• A New Direction for China's Massive Shale Gas Reserves

  It's estimated that China holds more natural gas – locked in its huge shale reserve – than the U.S. And while the country hasn't yet begun commercial production, a new Chinese law has just given the green light to start allowing North American companies to develop shale gas inside its borders — where natural gas prices are significantly higher than North America's. In short, China recently designated shale gas as an independent resource, which means that smaller energy companies – and this could include some from outside of China – will be able to develop the resource in the country. …

• Why Does Gas Production Remain so High Whilst the Price is so Low?

  Natural gas prices have declined to below $3.00/mcf, levels not seen for years, yet the EIA posted the highest gas production ever in October, 2011. U.S. gas production is growing despite annual well completion rates that are half that at the peak of the drilling boom in 2008, when gas price topped $12.00/mcf. Proponents of shale gas as a “game changer” suggest that, despite the well known high decline rates of shale gas wells, their productivity is sufficient to grow production with far fewer wells at historically low prices. Others, such as Arthur Berman, claim that shale gas plays require…

• The Cold (War) Reality of European Gas

  After sparring with Secretary Clinton over a missile defense shield, Russian officials last year claimed their 2008 war with Georgia blocked NATO ambitions to move east. The saber rattling by Moscow along the western front of the Soviet Union highlights the notion that natural gas diplomacy in Europe has more to do with geopolitics than energy resources, particularly for the transit networks outlined in the Southern Corridor. And with a crumbling European economy tearing at the stitches holding the European Union together, members of the eurozone may find themselves reaching for Russian vodka to stay warm next year. The last time…

• Waste Management to Convert Entire Fleet to Run on Compressed Natural Gas

  Natural gas is inexpensive, seemingly plentiful and much cleaner-burning when used as an alternative to diesel fuel in transportation fleets, so it makes sense that Waste Management is converting its entire North American fleet to run on compressed natural gas. The company announced this week it has added 25 new CNG waste collection trucks to its fleet in Ottawa. About 80 per cent of all new trucks purchased by the company now run on compressed natural gas. To accommodate this fleet conversion, Waste Management has been increasing the number of fuelling stations it has to support the fleet. Currently it…

• Bulgarian Assembly Votes to Ban Hydraulic Fracturing - For Now

  Next to nuclear power, the hydraulic fracturing natural gas extraction technique, more familiarly known as “fracking,” is perhaps the world’s most contentious energy production method. Bulgaria, a former Soviet satellite state, joined the North Atlantic Treaty Alliance in 2004 and the European Union in 2007. Despite a 2010 World Bank report noting that Bulgaria imports 43.79 percent of its energy needs, the country has decided to give the controversial “fracking” procedure a pass. The Bulgarska Telegrafna Agentsiia news agency reported that after a fractious debate lasting more than four hours, 166 members of the National Assembly 240 parliamentarians voted to impose an indefinite…

• Natural Gas Goes Down in Flames

  I received a scratchy and barely audible call from my buddy out in the Barnet natural gas fields just outside of Fort Worth, Texas the other day. With the price for CH4 decisively breaking through $3/MBTU yesterday, traders were now resigned to seeing a new ten year low in the near future, possibly as low as $2. The men on the rigs were getting restless, fearing layoffs in their future. Did I have any insights? Natural gas has been your worst nightmare of a commodity since its peak at $14 in 2008, then riding on crude’s coattails in its infamous…