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

Posts tagged ‘Ohio’

The Panhandle Import Reduction Initiative (PIRI) Calls for New White House Policy: Unfair Trade Endangers U.S. Oil Industry Too


The full press release is here-> http://www.businesswire.com/news/home/20170518005304/en/Panhandle-Import-Reduction-Initiative-PIRI-Calls-White

May 18, 2017 06:00 AM Mountain Daylight Time 

AMARILLO, Texas–(BUSINESS WIRE)–In a letter directed to the President of the United States and received by the White House, the founders of (PIRI), the Panhandle Import Reduction Initiative representing thousands of independent small producers of oil in the Southwest United States wrote, “We call upon President Donald J. Trump for a second Presidential Memorandum to order the Secretary of Commerce, to establish the crude oil industry as a “Core” industry to be added to steel, aluminum, vehicles, aircraft, shipbuilding and semiconductors. Crude oil should be recognized as one of the critical elements of US manufacturing and defense industrial bases, which we must defend against unfair trade practices and other abuses.”

“We call upon President Donald J. Trump for a second Presidential Memorandum to order the Secretary of Commerce, to establish the crude oil industry as a “Core”

The PIRI founders further stated in the letter “Following the Presidential Memorandum on the case for steel against Chinese export practices that you signed, PIRI further calls for an immediate Investigation by the Department of Commerce of Saudi Arabia and OPEC abuse between August 2014 and March 2016 of the American oil industry by expanding production to lower world oil prices to destabilize and cause hardships to American producers mainly of light tight oil (shale oil). This was an announced effort to undermine and shut-down producers with higher costs of production. According to one estimate some 150 US companies filed bankruptcy and $150 billion in capital outlay postponed or cancelled. More than 300,000 US industry-related jobs were lost.”

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Dr. Daniel Fine: OPEC oil and ours, who wins? Daily Times 10/29/16


The full article is here->  http://www.daily-times.com/story/opinion/columnists/2016/10/29/fine-opec-oil-and-ours-who-wins/92440428/

This is an excerpt of the article ”

Has the oil price and market share war ended with a Saudi Arabian win?  Or, as some fund managers and speculators argue, has Midland won? We are now in a trading range high of $50 per barrel for West Texas Intermediate.

Looking back two years, Wall Street, the oil and gas industry and its trade associations got it all wrong. I was a minority of one in New Mexico with my OPEC analysis of a low of $23 to $28 per barrel which was realized earlier this year.  Once again there is triumphalism and  hubris about winning the war against OPEC.

What is it all about?  If OPEC agrees to freeze production at August output that would put OPEC between 32.5 and 33 million barrels per day. In 2013,  OPEC was below 30 million.   If they “freeze” it will be at 2.5 million more than early 2014 while our production had dropped almost 1.5 million.

In other words,  OPEC oil expanded its market share and more significantly has displaced our oil here at home in the American market by nearly one million barrels per barrel.  This is a double win for OPEC and Saudi Arabia:  more of their oil imported into our market and fewer barrels of our oil produced, which is the loss of rigs and jobs and a painful downturn.

The Permian Basin and its Delaware Basin extension into New Mexico has become the new North Slope  Alaska of the 1970s.  It is there that drilling rigs and well completions will be re-activated next year.  The “breakeven” price is lower because of  geology and cost-cutting service contracts.   The downturn contracts, however, will expire and non-Haliburton contractors will ask for more.   Margins will tighten as costs increase.   But North Dakota has leveled off and Eagle Ford is not the Permian.”

New Mexico Tech Hosts first of its kind forum on Induced Seismicity


New Mexico Tech is hosting a first-of-its-kind workshop that will address the relationship between petroleum drilling and earthquakes, or “induced seismicity.”

The event will feature a series of guest speakers and will be August 21, 2014 in Fidel Center Ballroom on campus in Socorro. The event starts at 9 a.m., with three speakers in the morning and four speakers after lunch.

Over the past few decades, scientists have been examining the relationship between oil exploration – specifically hydraulic fracturing (or fracking) and horizontal drilling – and the increasing number of small earthquakes in the same areas. Several studies have examined the timing and location of seismic activity in Arkansas, Ohio, New Mexico and other states.

“A growing number of Earth scientists are looking at the relationship between oil exploration and seismic activity,” said Dr. Van Romero, Vice President of Research at New Mexico Tech. “With this workshop, we hope to place New Mexico Tech researchers at the forefront of the discussions about the topic.”

Romero will open the day-long event with a welcome to all participants. Hydrology professor Dr. Mark Person of New Mexico Tech is coordinating the event.

He said, “This is becoming a more important topic in recent years due to the large volumes of produced saline water that must be re-injected into deep subsurface reservoirs. If we can get a firm handle on the mechanisms controlling seismicity associated with saline water disposal practices, hopefully we can come up with some practical suggestions for best management practices.”

Guest speakers include the following:

Dr. Mark Person, New Mexico Tech – “Induced Seismicity events in the Midcontinent U.S.A.”
Dr. David Dempsey and Dr. Sharad Kelkar, Los Alamos National Lab, “Couple Geomechanical Hydrologic Models”
Dr. Andrew Delorey, Los Alamos National Lab, “Probing the Critical Stress State In Reservoirs”
Dr. Sue Bilek, New Mexico Tech, “Seismic Monitoring of Induced Seismic Events”
Dr. Sutin Holland and Dr. Randy Keller, Oklahoma Geological Survey, “Oklahoma Seismicity and Potential Cases of Induced Seismicity”
Dr. Reid Grigg and Dr. Bob Balch, New Mexico Tech, “Induced Seismicity in Paradise Valley, Utah”
Dr. Peter Mozley, New Mexico Tech, “Field Observations of Sedimentary and Crystalline Basement Fault Permeability”
The workshop is free and open to the public. To register, please email Gina Chavez at gchavez@admin.nmt.edu.

– NMT –

By Thomas Guengerich/New Mexico Tech

Video

Dr. Daniel Fine discusses North Carolina’s approach to shale gas and hydraulic fracturing


Renowned energy expert Dr Daniel lecturing at the John Locke Foundation

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