Posts

Kremlin Leveraging Energy Exports to Europe

/1 Comment/in , /by

WASHINGTON – Russian agreement to a reduced natural gas price in a deal with Poland helps ensure Moscow’s near-monopoly over Europe’s natural gas supply and the enormous political leverage that the Kremlin can exert as a consequence, according to a report from Joseph Farah’s G2 Bulletin.

Gazprom, which has a near-monopoly on oil production and a full monopoly on natural gas exports, is viewed by experts as an effective tool of the Kremlin to not only be a weapon for political leverage but actually to greatly influence events in Europe.

Moscow’s strategy has been to undertake long-term contracts with lower natural gas prices. This has been aimed at countries which the Russians regard as strategic, particularly Germany.

However, a reaction is setting in among these countries. They don’t like the control that it gives to Gazprom and have decided to take the Russian monopoly to court.

Read more from this story HERE.

Obama new five year plan continues “crippling moratorium” on US offshore energy

/0 Comments/in , , /by

The Obama administration’s recently released five-year plan for offshore drilling leases has been met with sharp criticism from the oil and gas industry and Republicans, who say it continues a crippling moratorium on potential energy reserves on the West and East Coasts.

The administration’s 2012-2017 offshore lease plan, released June 28, expands available leasing areas for drilling slightly in the Gulf of Mexico and opens new areas in the Arctic Ocean, but also keeps both the West and East Coasts completely off-limits for offshore oil exploration.

Three of the fifteen lease auctions will be held in the Arctic seas—in Alaska’s Cook Inlet in 2016, in Chukchi Sea in 2016, and in the Beaufort Sea in 2017. The administration lauded its plan, saying the Arctic regions hold more than 75 percent of total undiscovered and recoverable oil.

However, Republicans and industry officials disagreed.

“It’s a very disappointing backtracking of the administration’s supposed ‘all of the above approach,’” said Jim Noe, the senior vice president, general counsel, and chief compliance officer of Hercules Offshore Inc., the largest shallow-water drilling company in the Gulf of Mexico. “It takes both coasts and leaves us the same areas we’ve been drilling in since the ’40s.”

Read more from this story HERE.

Photo credit: L.C.Nøttaasen

Alaska Oil Output Drops Significantly as North Slope Production Declines

/0 Comments/in , /by

Alaska crude-oil production dropped 11 percent in June from a year earlier, the largest drop in almost a year, after Alyeska Pipeline Service Co., operator of the cross-state pipeline system, conducted maintenance and as output from wells declined.

Production averaged 516,871 barrels a day last month, down from 581,297 a year earlier, the biggest decline since output fell 15 percent from July 2010 to July 2011, the state Department of Revenue said on its website. The pipeline delivered 570,770 barrels a day in May.

Production peaked for the month at 592,381 barrels on June 12 and fell to a low of 380,893 on June 2, when crews scheduled valve testing.

“Any fluctuations in throughput are due to planned maintenance,” Michelle Egan, a spokeswoman at Alyeska, said in an e-mailed response to questions.

Output on the 800-mile (1,287-kilometer) Trans-Alaska crude system has declined annually since 2002 as falling yield from existing wells hasn’t been replaced, according to the state tax division. Crude-oil output from Prudhoe Bay averaged 305,132 barrels per day in June, down from 324,919 in May, the state said.

Read more from this story HERE.

Photo Credit: Arthur Chapman

Without Obama, We Would be a Global Energy Superpower

/1 Comment/in /by

Saudi Arabia has long been the dominant producer of petroleum on the planet. Nature endowed the Arabian Peninsula with gigantic deposits of this vital source of energy. Many of us have lamented the quirk of nature that placed much-needed oil in the most geopolitically unstable region in the world.

Although Saudi Arabia is the king of oil producers at present, there is another country that has far more extensive deposits of fossil fuels. Because fossil fuels are the most economical and reliable energy sources known to man, the country that has the largest share of them is fortunate indeed. What is this richly endowed country? It is none other than the United States of America.

Perhaps you have heard the United States described as “the Saudi Arabia of coal.” Actually, that may be an understatement, for while the U.S. Department of Energy estimates that the Saudis have 20 percent of the world’s known petroleum reserves, the United States has an even larger share—27 percent—of the world’s known deposits of coal. As engineers continue to develop more and more “clean coal” technologies, this abundant resource will continue to serve our energy needs for as long as we need it.

In addition to our immense coal deposits, the United States contains gigantic natural gas deposits. Currently, the United States ranks fourth in natural gas production, but domestic reserves are soaring as horizontal drilling and “fracking” tap the mind-boggling dimensions of the natural gas fields located here in Pennsylvania (the Marcellus formation), Louisiana (the Haynesville formations), and elsewhere across the lower 48. If fracking can be done without contaminating precious water supplies, it is possible that the United States may also become “the Saudi Arabia of natural gas.”

There is even more good news: Besides being the Saudi Arabia of coal and potentially natural gas, we may become the next “Saudi Arabia” of oil. This won’t be the light, sweet crude that the Saudis pump at little cost and with relative ease, but it’s oil nonetheless. The Green River shale rock formation under just three of our states—Colorado, Wyoming, and Utah—is estimated to hold 1.8 trillion barrels of oil, about seven times as large as the Saudis’ crude oil reserves.

Read More at Floyd Reports by Dr. Mark W. Hendrickson, Floyd Reports