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

Posts tagged ‘Shale oil’

Energy group hopes to reduce foreign oil imports


by James Fenton

The full article is at–> http://www.daily-times.com/story/money/industries/oil-gas/2016/06/14/energy-group-hopes-reduce-foreign-oil-imports/85855044/

“FARMINGTON – A group of oil and gas executives and energy policy experts from the Texas Panhandle and New Mexico’s piece of the Permian Basin are pushing a plan to restrict seafaring imports of foreign oil from coming into the U.S. in order to stabilize the oil and gas industry and bring back lost oilfield jobs.

The group’s plan, which would exempt crude oil imported from Mexico and Canada, is an effort to push back against the price wars the group said are being waged by OPEC, or the Organization of the Petroleum Exporting Countries, led by Saudi Arabia.

Members met at the School of Energy at San Juan College Tuesday to promote  the “Panhandle Import Reduction Initiative,” which they say could be implemented in multiple phases within 90 days of the next administration, with the ultimate goal of reducing heavy crude oil imports to about 10 percent of demand.

Launched in November, the initiative aims to cut foreign oil imports enough to activate more domestic drilling rigs and boost domestic production to meet current demand levels within four years.

Former state legislator and Four Corners Economic Development Chief Operating Officer Tom Taylor said the drop in natural gas prices eight years ago and the fall of crude oil in 2014, has delivered prolonged pain to the regional economy.

“We find ourselves … in a situation now where we’re down about 6,000 jobs, most of those in the oil and gas industry,” Taylor said of the San Juan Basin. “We have about 11,000 people who have left (San Juan County) … So while we’re down 6,000 jobs and down 11,000 people, we’ve built seven fast-food restaurants, three more under construction, and two big box stores. It’s a different world out there.

“But the fact of the matter is that the economic base of the community is in trouble. And not only is the community in trouble, but the state of New Mexico is in trouble, and not only is New Mexico in trouble but our nation and its security. It’s all tied together. It’s a very difficult situation we find ourselves in when we have one country that can control oil prices. It goes beyond free trade. It’s a problem we need a solution to. We are at the dependence of foreign oil.”

Taylor said about a third of New Mexico’s general fund comes from the oil and gas industry in the form of taxes and fees.”

JOIN THE FIGHT TO GET OIL FIELD JOBS BACK! REDUCE FOREIGN OIL IMPORTS:


 

 

For Immediate Release Farmington, New Mexico
Contact: Dr. Daniel Fine 505-771-1865
Christa Rommé 505-566-3618
THE SAN JUAN BASIN IS JOINING THE FIGHT TO REDUCE FOREIGN OIL IMPORTS TO INCREASE LOCAL PRODUCTION
The Panhandle of West Texas, a center of American oil since early in the 20th century, answers OPEC and Saudi Arabia with a call for a Presidential Proclamation to establish quotas on imports of foreign oil. And they have asked the San Juan Basin to join this call. Presenters from Texas and New Mexico will be leading a local discussion about what measures can be taken to reduce our national dependency on foreign oil. Similar to “buy local” campaigns across the nation encouraging retail consumers to spend their dollars at home, this proclamation would have Americans buy oil produced in America. Demand for US production would then go up, putting recently laid-off workers back in the field. The United States should no longer allow Saudi Arabia and the middle east to manipulate our economy by crippling our ability to produce and use our own natural resources. We have been forced to comply with the consequences of decisions made by a country whose intent was to take over a “market share” that was ours and make it theirs. The results were oil prices plummeting to $26 a barrel.


The “bust” in oil exploration and production has left families, companies, both large and small, with bankruptcy and hundreds of thousands out of work. Since Thanksgiving of 2014, Saudi Arabia has increased its production to lower prices to shut-in unconventional oil in all areas of the US. It is a price war which has suspended the prospect of American energy self-sufficiency.


The Panhandle Import Reduction Initiative for oil import quotas on foreign oil is nothing new. It aims to revive the 1959 quota system of President Eisenhower who acted to sustain a healthy oil industry and middle class communities which it employs for reasons of national security. And it worked for 14 years to keep domestic oil from going out business because of foreign imports.


Import quotas on light tight oil will be 100% — no more imports within the first 60 days of the new American President’s term next year. Light tight oil or oil from shale is an American technology triumph and the pathway to abundance and security against foreign oil supply cut-off threats. Southwest and Dakota oil will be unbound. North American oil will avoid the risk of dependence on the world ocean as the transportation for imports. Oil from shale has so far supported national income savings in the balance of payments of over 500 billion dollars in the last five years.


President Eisenhower’s import quotas limited heavy sour oil to 10-12% of yearly American oil demand — enough to take care of Canada’s current exports to the United States.
The lower the oil price goes and the longer it stays there because of the Saudis flooding the market, the higher it will go and the longer it will stay there when demand gets greater than supply but it could be too late for the US because the US operators and other international companies are not investing in exploration, the oil that we will need in 5 to 10 years is not being discovered and developed today. OPEC cannot supply all the world’s needs. When demand outpaces supply, the price will skyrocket and stay there until the oil operations that are now curtailed can ramp back up. That may take years due to all the layoffs taking place today. All consumers will be hurt by the high prices. That would not happen if we had reasonable prices today to let us keep exploring for and developing new oil reserves for our future needs.


We are at a cross road and its time we take a stand. Imported oil is rapidly increasing and could or will return our country into the same dependency which began in the late 1970s and lasted to 2010; therefore, risking our national security. American investment in major oil projects has been stopped by the price war. So far OPEC and Saudi Arabia are over-producing in world conditions of over-supply to lower prices enough to prevent required replacement of shale reserves. This is the Panhandle Import Reduction Initiative’s answer to Doha and later OPEC in June and beyond:
Import Quotas will start a new cycle.


The presentation, featuring Dr. Daniel Fine with New Mexico Tech and New Mexico State Energy Policy, T. Greg Merrion and other industry experts will take place on Tuesday, June 14th from 11:00am – 12:45pm in the Merrion Room at the School of Energy at San Juan College, 5301 College Boulevard, Farmington. This event is free and open to the public.

Our View: Limiting oil imports would help to protect American producers


by the Lubbock Avalanche-Journal editorial board

The full story is here-> http://lubbockonline.com/filed-online/2016-04-28/our-view-limiting-oil-imports-would-help-protect-american-producers#.VzaWRPkrLIU

“When the price of oil drops, so does the cost of gasoline. But while people are enjoying paying lower prices at gasoline pumps, plunges in oil prices can cause economic damage in Texas.

And it can put American oil producers out of business when the price of foreign oil imports gets cheaper than the costs of extracting oil from the ground in the U.S.

Oil producers in the Panhandle recently announced the Panhandle Import Reduction Initiative. Their hope is to limit the amount of oil that can be imported from other countries.

We wish them success in getting sympathetic ears to hear their initiative and gathering like-minded people to help further it.

They are right that a limitation should be set on the amount of oil imports from the Organization of Petroleum Exporting Countries.

Representatives of OPEC’s 18 nations recently met in Doha, Qatar. Among their topics of discussion was whether to freeze oil production levels.

The nations didn’t reach an agreement on the subject.

“OPEC and Russia and various countries met and decided they weren’t going to freeze oil and, in fact, OPEC said they will increase production again. This will drive the price down to $26 (a barrel) again,” said oil producer Tom Cambridge.”

Party at the pump By Kevin Robinson-Avila / Journal Staff Writer


Great article! Please Share! Party at the pump By  — the full article can be found here–> http://www.abqjournal.com/524705/biz/party-at-the-pump.html 

“Copyright © 2015 Albuquerque Journal

The good times are likely to continue well into 2015 for consumers at the gas pumps, with some experts now forecasting New Mexico’s average price per gallon of unleaded to slide to $1.55 by March, before it starts to rebound in the spring.

Consumers can generally thank Saudi Arabia for the latest predictions, said Daniel Fine, associate director of the New Mexico Institute for Mining and Technology’s Center for Energy Policy. That country has pushed the Organization of Petroleum Exporting Countries into a price war with U.S. producers to undercut U.S. oil production and protect Saudi market share, which has declined sharply as a result of America’s shale-gas boom.

Richard Yanez fills his SUV on Jan. 7.

OPEC refuses to cut back production in its member countries to ease the current glut on the world market, which, in turn, has sent crude prices plummeting since last summer. And, with Saudi Arabia still leading the charge, OPEC is unlikely to back off from its price war any time soon, meaning consumers can expect pump prices to continue their spiral downward, at least until early spring.

“The price at New Mexico’s pumps depends on Saudi Arabia, OPEC and the global market,” said Fine

Fine,Finewho was recently appointed project leader for state energy policy. “I forecast very low prices at the pumps until at least April before OPEC takes another look at its production policies.”

Industry Touts Major Mancos Play Estimates point to 6B barrels of recoverable oil


By Emery Cowan Herald staff writer ecowan@durangoherald.com

FARMINGTON – The San Juan Basin could be headed toward a renaissance in natural-gas and oil drilling if rosy expectations touted by industry officials at Monday’s San Juan Basin Energy Conference hold true.

“In the southern part of the basin, the Mancos play has the potential to revitalize declining San Juan Basin oil production and also has a tremendous amount of future gas production in the northern part of the basin,” said Ron Broadhead, a principal petroleum geologist with the New Mexico Bureau of Geology and Mineral Resources.

The conference, which drew about 500 attendees from across the nation to San Juan College, was the first to have a dedicated focus on the Mancos Shale, which stretches across the northwestern part of New Mexico and into southwestern Colorado.

After years of declining production in the San Juan Basin, companies are eyeing the shale play for both natural-gas and oil potential because of advances in hydraulic fracturing and horizontal drilling technologies that have helped operators unlock shale gas and oil across the nation.

“It’s reasonable that the Mancos Shale could be a really, really good shale play in the San Juan Basin,” said Darryl Williams, the vice president of subsurface for BP North America Gas Exploration and Production Co.

Other presenters were more direct.

“I’m bullish on the Mancos, we’ve already seen a number of wells drilled that are economic,” said T. Greg Merrion, president of Merrion Oil and Gas. “I’m looking forward to this next boom.”

With natural-gas prices hanging around $4 per thousand cubic feet, many conference speakers focused on the oil-producing window of the shale play located in the southern San Juan Basin.

The play has been estimated to contain up to 60 billion barrels of oil, about 10 percent of which is expected to be recoverable, according to estimates by Encana and Daniel Fine, a senior energy analyst with the New Mexico Center for Energy Policy.

The possibility of a resurgence had some speakers proclaiming the beginning of a new era of economic prosperity for northwest New Mexico.

“These are happy times again,” former U.S. Senator Pete Domenici said. For more of the article go to —> http://durangoherald.com/article/20130318/NEWS01/130319558/0/FRONTPAGE/Industry-touts-major-Mancos-Shale-play

Oil, gas wells in northwestern NM show potential


By Kevin RobinsonAvila

Information from: Albuquerque Journal, http://www.abqjournal.com

FARMINGTON, N.M. (AP) — The oil and gas industry is getting excited about a potential boom in northwestern New Mexico.

Preliminary results from some of the 22 exploratory wells drilled in the Mancos shale formation in the San Juan Basin show commercial potential for production, according to industry executives who visited Farmington this week.

Ken McQueen of Oklahoma-based WPX Energy Inc. told the Albuquerque Journal (http://bit.ly/Yv3MkJ ) that two wells the company drilled in 2010 in a dry natural gas section of the Mancos have produced 2 billion cubic feet of gas so far. He described the area as an “attractive target” to pursue.

“These two wells are in the top 10 best wells drilled by WPX to date,” he said. “They’re quite extraordinary for us.”

Energy development companies were hopeful about the prospects for liquid natural gas and oil in other sections of the Mancos formation.

Mancos shale is sandwiched between soft sandstone layers in the San Juan Basin that producers have been exploiting for decades. Modern drilling techniques allow resources trapped inside the rock-hard shale to be tapped. Three dimensional imaging helps pinpoint oil and gas deposits, while hydraulic fracturing and horizontal drilling can access the deposits.

“I’m bullish on the Mancos,” said T. Greg Merrion, president of Merrion Oil and Gas Corp. in Farmington. His company is partnering with Denver-based Bill Barrett Corp. to drill exploratory oil wells in the area.

“We’ve already seen a number of wells drilled that are economic,” Merrion said. For more of the article go to–> http://washingtonexaminer.com/oil-gas-wells-in-northwestern-nm-show-potential/article/feed/2082202

I Spy Radio Show – Hear Energy Expert Dr. Daniel Fine on Speculation: Oil & Gas


What do money markets, antiques, gold, corn, wheat, and stocks in companies like Google or Apple have in common? They’re bought by speculators.

And yet speculators, especially in oil, have become the bogeyman of economics. On tomorrow’s I Spy Radio Show (11-noon, kykn.com), we talk with Dr. Daniel Fine about America’s energy resources and energy policy. What role dospeculators have in the price of oil?

To hear Dr. Fine on I spy Radio click on this link—–>

http://www.gripnw.com/Audio/iSpyShow_04142012_DrFine-AmericasEnergy.mp3


Guest & Links mentions on the show

  • Listen live on the radio, Saturdays 11-noon (Pacific time) via 1430-AM in the greater Salem Area (Corvallis to Tigard, Lyons to Grand Ronde)
  • Listen live from anywhere in the world via kykn.com (11-noon on Saturdays) via the “listen live” tab up top of web page
  • Download the show after it airs. Just go to the Current Show page. The download link becomes active shortly after noon each Saturday.

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