Analysis by the father of American Geopolitics Dr. Daniel Fine, MIT.

Archive for December, 2013

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New Mexico energy secretary visits Farmington to begin revising energy plan


New Mexico energy secretary visits Farmington to begin revising energy plan

Plan is expected to boost economic development in the state
By Chris Roberts The Daily Times

FARMINGTON — The New Mexico Energy Secretary visited Farmington on Wednesday to hear from oil and gas executives on a proposed revision of the state’s energy policy, which has not been substantially changed since 1991.

Dave Martin, secretary of the Energy, Minerals and Natural Resources Department, sat with T. Greg Merrion, president of Merrion Oil and Gas, and others and listened to the concerns and suggestions of local people involved in coal, natural gas, crude oil and energy production. It was the first stop in a tour that will include Hobbs, Santa Fe, Las Cruces and Albuquerque. During those other stops, topics of discussion will include energy efficiency, renewable energy and biofuels.

“All-of-the-above will produce more jobs,” Martin said of including renewable energy. “A lot of these things are going to be region specific.”

Martin said people invited to the Wednesday meeting at San Juan College were “targeted” for their local knowledge of the issues. Media was asked not to attend the actual discussions, so business leaders could speak freely, but when a reporter from The Daily Times showed up at the meeting, he was allowed to sit in. Martin spoke to the press after the meeting. For more of the article use this link–> http://www.daily-times.com/farmington-business/ci_24615895/encana-announces-multi-million-dollar-drilling-plans-2014

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Encana announces multi-million dollar drilling plans for 2014 in the San Juan Basin


http://www.daily-times.com/farmington-business/ci_24615895/encana-announces-multi-million-dollar-drilling-plans-2014

Encana announces multi-million dollar drilling plans for 2014 in the San Juan Basin

By Leigh Black Irvin The Daily Times

FARMINGTON — Encana Corporation announced earlier this month a new company strategy and vision, with much of that strategy being focused on the San Juan Basin where it plans to invest hundreds of millions of dollars in new oil and gas production beginning in 2014.

The announcement has prompted a flurry of speculation among those in the local oil and gas industry that the increased drilling will begin immediately after the first of the year.

In a Nov. 5 news release, the Calgary-based Encana outlined key points of its strategy, the first of which states that it will “focus its capital investment on five oil and liquids-rich resource plays in North America.”

The release goes on to state that Encana will “invest approximately 75 percent of its 2014 capital into five high return oil and liquids-rich plays: the Montney, Duvernay, DJ Basin, San Juan Basin and Tuscaloosa Marine Shale.”

In dollar amounts, this translates to 350 million to 400 million dollars in capital that Encana plans to invest in the San Juan Basin in 2014, said Encana spokesman Doug Hock.

“We will run two to four rigs in the area where oil and liquids are,” said Hock. “Our strategy is to develop oil and natural gas liquids plays in the Mancos Shale over the course of 2014.”

Hock said that to date, Encana has drilled some 20 wells in the Basin at a rate of approximately one well a month, and the increased production plans are a result of the positive drilling performance already seen in the basin, as well as economic conditions that make drilling in this area beneficial to the company. For more of the article use this link–> http://www.daily-times.com/farmington-business/ci_24615895/encana-announces-multi-million-dollar-drilling-plans-2014

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US Gas and oil boom benefits consumers


US Gas and oil boom benefits consumers

After years of steadily rising prices, “low-cost fuel” may seem like an oxymoron.

But thanks to a steady surge in domestic oil and gas production, energy experts say consumers could enjoy inexpensive gasoline and natural gas for years to come.

MAP MASTER“The outlook is for a low-cost energy economy in the U.S.,” said Daniel Fine, associate director of the New Mexico Center for Energy Policy, which is run by the New Mexico Institute of Mining and Technology in Socorro. “This is a long-term trend, not an isolated event, and it’s something almost revolutionary.”

The country’s newfound oil and gas boom, made possible by modern drilling technologies, has helped keep gasoline prices well below the $4-per-gallon peaks that consumers faced just a few years ago. It’s also driven home-heating bills to record lows since 2009.

Now, with production still climbing fast, Fine and others say natural-gas prices will remain moderately low for another five to 10 years at least. And gasoline prices likely will continue to fall into 2014, before stabilizing at somewhere above $2 per gallon for the foreseeable future.

“I believe gasoline will reach $2.35 a gallon or less quite soon, within a year at most,” Fine said.

Gregg Laskoski, a senior policy analyst with the online price-tracking service Gas Buddy, agreed.

“That may seem shocking, but it’s not as outlandish as it sounds,” he said. “The potential is certainly there.” For more of the article use this link—> http://www.abqjournal.com/302397/biz/oil-gas-production-booms.html

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