• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 22 mins Why is Strait of Hormuz the World's Most Important Oil Artery
  • 32 mins Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 5 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 8 hours Struggle For Supremacy: Kremlin Condemns Alleged U.S. Ultimatum To Turkey Over Missile Deal
  • 6 hours Another surprise 'build'
  • 2 hours Apple Bid To Buy Tesla in 2013 For $240 a Share
  • 13 hours Solar Cheaper than Coal
  • 6 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 4 hours California's Oil Industry Collapses Despite Shale Boom
  • 5 hours IMO 2020 could create fierce competition for scarce water resources
  • 5 hours IMO2020 To scrub or not to scrub
  • 6 hours Global Warming Making The Rich Richer
  • 14 hours Crude oil?
  • 16 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 10 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
Alt Text

This World-Class Shale Frontier Just Opened Up

Australia could become the next…

Alt Text

The European Gas Game Is About To Change

A consolidation phase in former…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

This Government Is Drilling A NatGas Project Unlike We’ve Ever Seen

Quick update to my recent story on Libya’s largest oil field shutting down— with reports yesterday suggesting that the Sharara field has once again gone offline following possible rebel activity along connecting pipelines.

That’s a critical development for global crude markets. And upcoming events in another part of the world may be equally important for the natural gas space.

Commercial testing of a completely new natgas source, in the key market of Japan.

The target here is methane hydrates — massive accumulations of natural gas that occur around the world on the seafloor. Which the Japanese government has been investigating for nearly 15 years as a potential new source of energy supply.

Up until now, production of natgas from methane hydrate has been completely theoretical. But it’s about to get real — with Japanese officials saying that a drill ship is poised to begin commercial testing of a big deposit in the Pacific Ocean off south-central Japan.

Representatives of Japan’s Ministry of Economy, Trade and Industry told a press conference yesterday that the drill ship will immediately proceed with deepening two wells previously sunk at the methane hydrate deposit by about 50 or 60 meters.

After that, the ship will begin extracting natgas for a commercial flow test. With officials saying this “crucial” step will be completed in April or May.

All told, the Japanese government hopes to flow natgas from hydrates here for three to four weeks. Which should give the strongest indications yet on whether this unconventional energy source is a go. Related: “Grassoline” The Jet Fuel Of The Future?

The test is far from a lock — with a previous flow test of the same Japan project in 2013 having yielded flows of just 700,000 cubic feet per day. Far from commercial for this kind of project.

But Japanese authorities say they have now addressed several problems from that test — most notably controlling inflows of sand into production wells. If so, a solid flow rate from the upcoming test could signal a massive new natgas source rising — with Japan alone holding an estimated 40 trillion cubic feet of methane hydrate reserves.

Watch for results of the test over the next few months — this is a trend that could reshape energy over the coming decade.

Here’s to going deep.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News