Energy / Natural Gas

• For Fracking, Much Regulatory Ado about Nothing

  The U.S. Energy Department last week said it gave conditional authority for a facility in Texas to eventually export liquefied natural gas. New drilling technologies mean the United States could become a natural gas export leader, though opponents of LNG say that's likely to lead to more hydraulic fracturing.  Last week, the government published more than 100 pages of documents that spell out what it sees as the way forward for hydraulic fracturing. The Interior Department said it took a "common sense" approach to the debate, though both sides of the argument have expressed concern.So far only one company in…

• Natural Gas – The “Slow Process that's Gathering Speed”

  The U.S. dollar hasn't had the same impact on the natural gas price like it has for oil, copper, and other commodity prices.What's different, says technical analyst and newsletter writer Donald Dony, is the North American natural gas price. Instead, it’s more fundamentals that are driving price actions, compared to other mainstream commodities. And here’s what his charts are telling him on where natural gas prices are headed:“Natural gas is still trading within a range. It has gone right up to top of range, at US$4-$4.50 (per thousand cubic feet, or mcf). There is a lot of price resistance there.…

• US LNG Exports … Who We Like

  This is it … the US Department of Energy is expected to decide on US natural gas exports this summer, and President Barack Obama has already suggested that the US could become a net exporter by 2020. At stake immediately are over 24 applications for natural gas exports to companies in countries that do not enjoy free-trade agreements with the US. America now enjoys record gas supplies with prices only 25% of those in Europe and Asia, and as it stands we’re probably looking at 25% growth in US gas supplies by 2035. The European spot price is around $10…

• URUGUAY: Regasification Plant Heralds Major LNG Ambitions

  Bottom line: With final plans for a regasification plant in the Montevideo Bay approved, Uruguay is aggressively working to position itself as an energy hub despite a lack of conventional resources.Analysis: On 14 May, France’s GDF Suez won a contract to build a liquid natural gas (LNG) regasification plant off the Montevideo shore. The plant should be operational by March 2015, with an expected processing capacity of 10 million cubic meters of LNG per day and storage for 267 million cubic meters. Uruguay itself uses just 300,000 cubic meters a day. GDF Suez may seek subcontracts for the $1.125 billion…

• Study Finds no Trace of Fracking Fluid in Arkansas Drinking Water

  Samples from drinking water wells show no evidence of groundwater contamination from shale gas production in Arkansas.“Our results show no discernible impairment of groundwater quality in areas associated with natural gas drilling and hydraulic fracturing in this region,” says Avner Vengosh, professor of geochemistry and water quality at Duke University’s Nicholas School of the Environment.Scientists sampled 127 shallow drinking water wells in areas overlying Fayetteville Shale gas production in north-central Arkansas. They analyzed the samples for major and trace elements and hydrocarbons, and used isotopic tracers to identify the sources of possible contaminants.The researchers compared the chemical composition of the…

• As Natural Gas Prices Rise, Who Benefits the Most?

  Over the past two years the spot price of natural gas fell from nearly $5 per million British thermal units (MMBtu) in June 2011 to less than $2 per MMBtu in April 2012, before beginning a steady climb back to the current level of about $4 per MMBtu. Prices have been supported by resilient demand as well as diminishing supply from some of the more mature shale formations and the depleted wells offshore.Stronger natural gas prices are good news for some and bad news for others. Natural gas producers like Chesapeake Energy Corporation (NYSE:CHK) were hit especially hard as gas…

• Survey Shows Public Support Fracking, but Only with Tighter Regulation

  Most Michigan and Pennsylvania residents say hydrofracking is good for the economy, but also have concerns about chemicals used and other environmental risks, a new survey shows.Fracking is the common term for hydraulic fracturing, which involves injecting a mixture of water, sand, and chemicals deep into the ground through encased wells at high pressure to create and expand fractures in the shale rock to release trapped oil and natural gas.The findings represent one of the first attempts to survey public opinion on fracking in more than one state, says Barry Rabe, professor of public policy and of environmental policy at…

• Exporting U.S. Natural Gas: Yes or No?

  The energy policy topic of the week is whether to export more of America’s newly abundant natural gas. Like any good card-carrying economist, my instincts favor free trade. Other things being equal, that makes me pro-export. Still, shouldn’t we listen to what the other side has to say? Maybe gas is different. Maybe exporting it is not such a good idea after all. So just how strong is the case against permitting more natural gas exports?Would low gas prices strengthen the U.S. economy?Large users of natural gas are among the most vocal opponents of increased exports. Not surprisingly, they argue…

• Shell Takes the Lead on Natural Gas, Welcomes the Future of Clean Energy

  One of the world's largest oil companies takes more stock in cleaner sources of fuel, leading America to energy independence.As the global population reaches nearly nine billion people and counting, the demand for energy is moving at a pace in which the world can hardly keep up (while emissions rise to levels it can hardly afford). In the first half the 21st century alone, energy demand is expected to double, leaving governments scrambling for solutions. Like President Obama, leading energy companies agree that it will take an “all of the above” approach—even Big Oil.Royal Dutch Shell's CEO Peter Voser recently…

• US: Towards Net Gas Exporting

  Bottom Line: The debate over whether the US should become a net gas exporter moved towards the proponents last weekend, following remarks made by US President Barack Obama during a visit to Costa Rica suggesting that there will be wide support for gas export ventures.  Analysis: This debate has pitted the oil and gas industry against giant chemical manufacturers, with the former eyeing lucrative gas export profits and the latter eyeing lower manufacturing costs if that gas stays at home. But increasingly, we are getting hints from the Obama administration that the oil and gas industry is winning this battle.…