UOGM Launch Issue 12th April 2010 - Shale Gas Revolution
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UOGM Launch Issue 12th April 2010 - Shale Gas Revolution

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The first edition of the new NewsBase monitor, Unconventional OGM - covering shale gas, oil sands, and other unconventional oil & gas sources

The first edition of the new NewsBase monitor, Unconventional OGM - covering shale gas, oil sands, and other unconventional oil & gas sources

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  • 1. 12 April 2010 Unconventional Week 01 Issue 01 News OIL & GAS Analysis Intelligence MONITOR NewsBase Published by COMMENTARY 2 NEWS THIS WEEK… Hail hail, gas shale 2 BP faces shareholder revolt over oil sands strategy 5 Talking about POLICY 7 Philadelphia calls for fracking ban SHALE GAS 7 7 a revolution Shift in Canadian gas production Recent advances in unconventional gas production forecast 7 have revolutionised the energy industry and have New gas plant approved for Horn River Basin 8 been identified as a “game changer.” Talisman sells conventional assets to tighten focus on shale plays 8 Shale gas developments in North America are at Total wins French shale gas permit 9 the vanguard of the revolution under way in the SHALE OIL 9 global natural gas sector. (Page 2) Platts to provide Bakken price assessments 9 Industry observers believe some North American OIL SANDS 10 shale gas acreages could rival the world’s largest CAPP anticipates jump in oil sands gas fields. (Page 2) output 10 Imperial Petroleum establishes new oil The unconventional revolution is spreading to sands unit 10 AOSC’s roller coaster ride 11 Europe and elsewhere in the world, which would HEAVY OIL 11 have a significant impact on global liquefied Nexen seeks sharper focus with sale of natural gas (LNG) trade. (Page 3) heavy oil assets 11 New foreign investors line up for Iranian The potential for gas shale development in the heavy oil fields 12 former Soviet Union could reaffirm Russian COAL-BED METHANE 12 dominance of Europe’s gas supplies. (Page 4) UCG potential highlighted by fund manager 12 BP is facing a small-scale revolt of its own over its West Bengal pipeline planned for CBM unconventional oil and gas strategy, specifically transportation 13 GTL/CTL 13 with reference to its oil sands developments. (Page 5) Alter NRG seeks strategic partner for A group of BP shareholders opposes the Alberta CTL project 13 Sasol to explore for shale gas in Karoo company’s oil sands plans on environmental Basin 14 grounds and has filed a special resolution on the NEWS IN BRIEF 14 issue to be voted upon at its AGM on April 15. (Page 5) For analysis and commentary on these and other stories, plus the latest unconventional developments, see inside… Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 2. Unconventional OGM 12 April 2010, Week 01 page 2 COMMENTARY Hail hail, gas shale North America is an established stomping ground for shale gas, which has revolutionised the global gas industry. Excitement is now mounting about shale developments in Europe By Ed Reed Shale has only really been explored in North America and even this is a recent development First movers are snapping up acreage around Europe, hoping to replicate the successes Development in Europe poses its own set of problems and these will dominate the industry Shale opportunities may be best pursued beyond Europe, although this will take time to emerge Recent advances in unconventional gas unconventional gas resources, Scott “significantly around the world in the production have revolutionised the Reeves, told UOGM. coming decades.” energy industry and represent an Shale gas, tight gas and CBM share a opportunity for companies to expand number of common traits – notably the North America reserves and output – no mean feat when amount of work that has to be done to This new resource only came to oil is increasingly concentrated in the create and maintain producing reservoirs prominence in 2007, but it has already hands of a few state-owned national oil – Reeves said. had a dramatic impact on the world’s companies (NOCs). The UK-based gas company is supply profile. Before the “shale gale” However, the North American gas glut interested in these resources in order to broke, the expectation had been that – in tandem with the global recession – “deepen [BG’s] supply presence” in its traditional producers – primarily in the has depressed gas prices and threatens existing markets and break into new Middle East and Russia – would exert further growth in this market, which has areas. The three types are spread out increasing dominance on supply chains driven the technological advances needed across the world and, in some cases, can via LNG shipments. to exploit unconventional resources. be exploited at an attractively low cost. North America’s shale gas undercut The unconventional tag covers a Reeves defended the company’s this, removing a substantial amount of multitude of areas – coal-bed methane combination of LNG and unconventional predicted LNG demand and concern can (CBM), tight gas, gas hydrates – but the gas assets, describing them as now be detected when talking to most important is shale gas. This complementary. Although its conventional gas producers. Qatar, for resource has diverted the US from its regasification terminals in the US have instance, built up its LNG industry in the expected path of increasing reliance on suffered from the rising tide of domestic belief that the US would become a liquefied natural gas (LNG) imports and shale production, its CBM interests in substantial importer. This has been rewritten expectations for gas producers Australia provide it with liquefaction thwarted and, while Qatar has redirected around the world. The amount of shale in feedstock. cargoes towards Asia, the sense of shock the world is immense but development The US’ National Petroleum Council is almost palpable. outside North America is only in its (NPC) in a report in 2007 put the world’s Shale gas is now seen as a silver bullet infancy. total unconventional gas resources at that could transform any and every Industry observers have said some of 32.6 quadrillion cubic feet (923.2 tcm) country’s gas balance. But scepticism is the North American areas could rival the with around one third of this – 233 tcm – prudent. world’s largest gas fields. Ross Smith in North America. Of this figure, shale A number of international oil Energy Group, in an overview of the gas accounts for 16.1 qcf (455 tcm). companies (IOCs) have struck deals to plays, picked out the Marcellus shale as The NPC reported, though, that carry out North American shale work containing the most gas in the region, assuming lessons learned in the US can with local independents. BG has signed with a recoverable resource of 199 be replicated, this figure should increase up with EXCO Resources; Statoil, BP, trillion cubic feet (5.64 trillion cubic Total have formed joint ventures with metres), which, if accurate, would make Chesapeake Energy, while Japan’s The amount of it the second largest field in the world. Mitsui & Co. recently struck a deal with unconventional gas outside Anadarko Petroleum. The most Overview significant move in the shale gas arena, The amount of unconventional gas North America is though, was ExxonMobil’s agreement to outside North America is “probably “probably vastly acquire XTO Energy for US$41 vastly understated,” BG’s head of billion. understated” Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 3. Unconventional OGM 12 April 2010, Week 01 page 3 COMMENTARY Work on the resource in the US and “seemed to make business sense,” with North African gas and LNG. It is, Canada has gained worldwide interest. In BG forming its joint venture to work on though, complementary,” Realm the US, the key areas are known as the the Haynesville. Much of the enthusiasm Energy’s CEO, James Elston, told “Big Four” and are the Haynesville, from IOCs for North America’s shale UOGM. Fayetteville, Marcellus and Barnett opportunities is based on hopes to take Pricing is a key concern when shales. The most information is available the lessons learned here and deploy them considering investments and the apparent on the Barnett, where there are more than elsewhere. breakdown of the gas-to-oil link has led 10,000 wells, although development has However, shale development faces some to worry. only been going on since 2003. In obstacles in other parts of the world as While gas demand has fallen by 7% Canada, the two most important shales different rules apply. over the last 18 months in Europe, Elston are the Montney and Horn River. “It’s an open question as to whether said, and LNG cargoes have been As can be seen from activity on the shale developments can be pursued to the dumped on the market, in the medium Barnett, an important factor in exploiting same extent outside North America,” term these wrinkles should resolve shale gas is the drilling of numerous said Reeves. themselves. “I think that excess will wells. Reeves described this method as unwind itself over the next four years; “more like farming” than drilling Supplies and challenges from 2014 and onwards we should see a conventional wells; others have Europe, in particular, would seem to be return of the full linkage between gas and described it as a “statistical” or at the forefront of locations that would oil prices in Europe.” “manufacturing” approach. benefit from a new, additional source of The appeal of investing in Europe’s The reason shale gas has taken so long gas. The continent is increasingly reliant shale gas is apparent, but time is running to exploit is because the resource has low on gas imports from Russia and North out. Some industry observers have said permeability and low porosity. In order Africa. Although the recession of 2009 that many of the best opportunities have to exploit it, companies are forced to cut into industrial demand, recovery is already gone. For instance, Elston said create artificial reservoirs in a “brute likely to see a return to these suppliers. licensing in Poland “is now over, in my force” process, blasting the rock in order The European Union is not altogether opinion.” to make it flow. happy with its import reliance, As in any frontier area, most of the Initial production from wells is high, particularly on Russian supplies, prime movers are minnows, which are but the decline rates are severe. Barclays following a number of mid-winter able to move quickly to secure acreage. Capital has estimated the decline rate in stoppages caused by pricing disputes These may carry out some exploration, the Haynesville during the first year to be with transit states. Shale gas, therefore, but the model, for Realm at least, is to around 80% and although this is the most has been hyped as solving this reliance, offload semi-developed licences onto dramatic, the other shales also suffer providing Europe with a route to energy newcomers. from the same problem to varying independence. Elston was guarded about where his degrees. “Shale gas is not a total, viable company was looking, explaining the Reeves said shale production in the US alternative to imports of Russian gas, deals were still being worked out. BNK Petroleum’s vice president for exploration, Jim Hill, was more willing to share, with the company having signed deals recently in Poland. BNK has an array of assets in North America, but the company is bullish on European prospects. “The European market ... [has a] good stable pipeline system, a tremendous market and a tremendous need for gas. The cost of entry into European markets is a lot lower than many of the plays in the US. Our Polish acreage we picked up for US$0.55 per acre [US$137.5 per square km], whereas average costs in the US are US$250 per acre [US$62,500 per square km] and can go as high as US$25,000 per acre [US$6.25 million per square km],” Hill said. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 4. Unconventional OGM 12 April 2010, Week 01 page 4 COMMENTARY The BNK representative told UOGM Opposition do not stand to benefit from drilling and the company’s strategy was to farm There are likely to be specific problems so are more likely to oppose it. down its acreage. “It only makes sense to in Europe that slow shale development. Elston claimed this would not be a share the risk,” he said. Most notably, the much higher problem for Realm, owing to the population density than that in North company’s policy of proving up licences Execution America will make all stages of the and selling them on, but in the grander However, not all such operations are operation more complicated. scheme of things this would slow successful. ExxonMobil and MOL As an example, Szabo compared development and commercialisation. announced their intentions in February to Falcon’s seismic work around the world. Another reason opposition to drilling pull out of a project with Falcon Oil and “When we were doing our seismic may arise are the environmental concerns Gas in Hungary, following disappointing campaign in Australia we had to related to fracking. The US results. negotiate with three individuals, in the Environmental Protection Agency (EPA) Falcon’s chairman, Gyorgy Szabo, US, maybe 300 people. In Hungary – and recently began a study on the impact of seemed undaunted by this lack of similarly in other European countries – this technique and scrutiny in New York confidence, telling UOGM that the we had to deal with 30,000 people for a is substantial, with concerns that fluids company would “definitely” bring in dozen square km,” he said. used will transfer to the water table. another partner, although “we have learnt The acquisition of seismic can be Realm’s CEO predicted a positive lessons.” He stressed that gas was present complicated, although Szabo noted outcome. “Frac water can be sensibly in the Mako trough; the only question Falcon’s success in this case. However, disposed of – be it in safe deep was: “how we drain these systems and moving from exploration into formations or, after extensive treatment, how efficiently this can be done.” development is also likely to run into into above-ground water systems” and it BNK’s Hill made similar points on problems, primarily because of the will be shown to have a “minimal to non- sticking with development. “You cannot “statistical” approach to drilling. existent impact on the water table,” be discouraged by disappointing results,” Shale requires numerous wells for its Elston said. he said. “We’ve drilled good wells, exploitation and this has been successful we’ve drilled bad wells [in North in the US and Canada, with reports that Politics America]: everything is applicable in some shales can be developed with well Shale gas will be developed in Europe Europe. The shales are all different, you spacing of as little as 400 feet (120 and there is increasing evidence of have to have the experience level and the metres). Such development seems interest in this area, for instance, Total tenacity to work your way through it ... extremely unlikely in Europe given the signed up to explore an area in France but you can bring the experience and the population density. recently. (See: Total wins French shale databases from the US into these Companies from North America have gas permit, page 9) [European] shale plays and you’ll be able hailed the lack of royalties in Europe, However, there are also noticeable to make a lot more rapid progress.” noting this will act to reduce costs and obstacles to this development. Politicians Hill summed it up, saying: improve returns. “Resources are owned will face competing interests. Concerns “Exploration is easy, completions are the by sovereign governments in Europe, so are growing within the EU over reliance problem.” The BNK official went on to we’re not having to pay landowners on foreign energy, particularly from say that service costs would be fairly direct, unlike in North America,” Russia. However, it remains open to high in the near term, but would fall as Realm’s Elston said. question whether this long-term strategic demand for their work picked up. However, the flip side of this royalty- goal can trump short-term opposition and free environment is that local landowners environmental worries. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 5. Unconventional OGM 12 April 2010, Week 01 page 5 COMMENTARY Falcon’s Szabo was confident that the Australia may well be a key production might offer contract flexibility to attract EU would back shale work. “It is clear point, either converting the feedstock investors. the EU would like more [domestically into LNG or consuming it domestically The largest source of shale gas outside produced] gas and this must include for power, as the country’s reliance on North America, though, is likely to be the unconventional,” he said. coal leads to high levels of greenhouse former Soviet Union (FSU). The industry will grow in Europe but gas (GHG) emissions. Development here would allow Gazprom not to the same extent as seen in North Furthermore, officials from the to retain its role as the world’s top gas America. Looking further ahead, one Egyptian General Petroleum Corporation company. Ultimately, shale gas could might consider South America as a (EGPC) told UOGM that the North reinforce the old ties of gas dependence potential destination, where Total is African country was considering for Europe, rather than sever them. reportedly considering Argentina. pursuing shale gas development and BP faces shareholder revolt over oil sands strategy BP’s plans to step up activity in the oil sands has drawn criticism from a group of the company’s shareholders By Kevin Godier A group of BP shareholders oppose the company’s oil sands strategy on environmental grounds The group has filed a special resolution on the issue to be voted upon at the company’s AGM on April 15 Fellow European super-major Shell is facing a similar resolution at its AGM in May UK super-major BP is stepping up its reality that has earned Canada near- reserves held more cost-effective growth activity in the oil sands sector, where it is pariah status among green groups and potential. The company has subsequently something of a late entrant. The ride is pockets of the scientific community. reversed that decision, on the grounds not without its bumps, however, as that higher oil prices and the difficulty in demonstrated by recent action taken by a Big problems? replacing conventional reserves have group of over 100 shareholders who are The dissident BP shareholder grouping, made the oil sands an essential play. concerned that the company is which includes Britain’s public-sector In 2008, a US$5 billion asset swap underestimating the sectoral risks, workers union, Unison, and Boston with Husky Energy gave BP 50% of the especially the potential cost of expected Common Asset Management, has filed a Sunrise oil sands project, a US$2.4 regulations on greenhouse gas (GHG) special resolution to be voted upon at the billion development whose first oil emissions. company’s April 15 annual general production from a 200,000 barrel per day The oil sands industry was hit hard by meeting. The resolution demands that the development facility is expected in 2014. the global economic meltdown and a firm publish a full report next year about In March, BP then paid an undisclosed drop in oil prices, with a glut of project the financial, environmental, social and amount for a majority stake in Value cancellations or decisions to mothball reputational risks associated with its Creation’s undeveloped Terre de Grace schemes evidence of the recession’s planned Alberta oil sands investments. oil sands project in the Athabasca region impact. However, higher oil prices and BP formed an oil sands study group in of Northern Alberta. tentative signs of economic revival have the late 1970s, which concluded that triggered renewed investor interest. technology costs were too high and that Interrupted momentum Despite the potential influx of fresh much of the most promising properties The call for a special report by the capital, the environmental concerns that for “in situ” (below ground) oil recovery dissident investors will cast a minor pall hang over the sector refuse to go away. had already been taken by rivals Shell over the growing momentum behind oil Oil sands production is one of the and Exxon. It acquired some oil sands sands at the world’s third largest publicly world’s largest single sources of man- properties, but then sold them in 1999, traded oil company. made GHG emissions, an environmental after concluding that conventional oil Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 6. Unconventional OGM 12 April 2010, Week 01 page 6 COMMENTARY The group’s holdings in BP are valued But Exley said he was encouraged that motion. at about GBP150 million (US$230 BP had made public statements about the A similar resolution is being tabled million), according to an April 6 report in resolution. Via written declarations, BP against Shell at its AGM on May 18. the Globe and Mail, representing just a has replied to the dissident shareholders Shell’s board has responded to this by tiny fraction of BP’s GBP118 billion by saying it is well aware of the risks of publishing a report on its oil sands London Stock Exchange value. the oil sands, including “the potential activities a full year earlier than Nevertheless, FairPensions, the British impact of carbon pricing on investment expected. consulting group that lobbies pension viability.” At a wider level, environmental groups funds to make morally responsible It also pledged to use the latest are intensifying global campaigns to investments, hopes the resolution, which technology to ensure the Alberta hammer home their message to the has already received considerable media operations would emit the lowest public and lawmakers that oil sands are attention in the UK, will “raise awareness possible amounts of carbon dioxide, and among the world’s most damaging and prompt investors who are not really said it would consider equipping the energy sources. engaged to get engaged” on the risks of Sunrise project with carbon capture and the oil sands investments, said Duncan storage (CCS) technology. However this Enhanced activity Exley, FairPensions’ campaigns director. technology is highly expensive and has On the other hand, the oil sands industry The FairPensions campaign is being so far been resisted by oil and power has seen some significant movement in backed by several celebrities and generation companies. recent months. Devon Energy recently politicians in the UK, including Liberal BP also maintains that oil sands paid US$500 million to buy a 50% Democrat MP Simon Hughes. In a developments are required to meet global interest in BP’s Kirby oil sands property, statement, Hughes said the “tar sands are energy demand, which it expects to rise while French super-major Total a very risky investment, financially, by 40% by 2030, with fossil fuels announced it would proceed with environmentally and socially ... supplying most of the increase. development at its Joslyn Creek project, Governments should lead by example despite experiencing major setbacks with and be a responsible investor; for this Campaigners progress the property. reason, it is essential that the MPs’ Some analysts believe that the anti-oil In another sign of renewed pension fund supports these resolutions.” sands campaigners have made significant commitment to oil sands, Total and its Fair Pensions has predicted that the progress, whatever fate befalls the partner ConocoPhillips agreed in January resolution is nonetheless likely to to ramp up the production target for fail, given that some prominent their jointly owned Surmont project pension funds have already said they to 110,000 bpd from an early target intend to vote against it. of 27,000 bpd by 2015. The UK Local Authority Pension In late 2009, Chinese oil major Fund Forum said in a March 30 PetroChina paid US$1.8 billion to statement that it had advised its acquire a 60% stake in Athabasca members to oppose the resolution, Oil Sands Corporation’s MacKay arguing that BP had already River and Dover oil sands projects. provided sufficient evidence that its This all seems to indicate that a lot approach to oil sands was well of big players are now willing to bet grounded. major dollars that the oil price will “No evidence was found to move significantly higher in the indicate BP had adopted a position years ahead, even as the oil sands that was not supported by technical industry struggles to convince and economic research. The forum governments outside Canada that it also does not believe BP or their is doing all it can to minimise the partner have failed to meet the wide impact of development and range of local requirements set by production on the environment. government to protect the While BP cannot yet boast any oil environment and local sands production, it seems to have communities,” it said in a statement. come to terms with any internal Separately, RiskMetrics, which anxieties that oil sands makes voting recommendations to developments may cause excessive institutional investors, confirmed environmental damage and might that it would also advise BP require too high an oil price to be shareholders to reject the proposal. economically sound. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 7. Unconventional OGM 12 April 2010, Week 01 page 7 POLICY Philadelphia calls for fracking ban Officials for the city of Philadelphia have At issue specifically is that the the US,” he said. Moreover, Stone asked a state agency to ban hydraulic company must receive a permit before it Energy is complying with all local, state fracturing because of fears about the takes water from a tributary of the and federal regulations governing gas contamination of drinking water. The Delaware River so that it can frack, a development, he said. Other municipal controversy is starting to mirror events in process that is usually highly water- areas are expected to investigate fracking New York State, where the dispute over intensive. A Philadelphia City on the heels of the news that the US the safety of the gas drilling method is councilwoman, Blondell Reynolds Environmental Protection Agency (EPA) liveliest. New York City is seeking a ban Brown, who introduced the resolution, will conduct a comprehensive US$1.9 on fracking in its vast watershed. said of fracking, “Long-term impacts can million research study into the practice. Philadelphia has specifically asked the take years or decades to develop, and we The country-wide study, which will Delaware River Basin Commission to have too many examples of that. Long- not be completed until 2012, will probe deny a drilling permit to Louisiana’s term impacts can be devastating.” the “potential adverse impact” that Stone Energy and any other company A spokesman for Stone Energy, Tim fracking may have on water quality and that wants to use hydro fracking in its O’Leary, told Reuters that fracking was public health, said the agency in March. watershed. Officials with the council harmless to the water supply. “Stone “There are concerns that hydraulic contend that Stone Energy, which is now Energy believes that hydraulic fracturing fracturing may impact ground water and seeking two drilling permits, began work technologies are a safe and proven surface water quality,” the EPA noted. in part of the river basin without the method of accessing ample domestic necessary approval, reported Reuters. sources of clean natural gas needed by SHALE GAS Shift in Canadian gas production forecast Canada’s National Energy Board (NEB) The move would primarily be driven “Natural gas is shifting not only in has released a short-term report on by activity in the tight and location but also in type, which can natural gas drilling that foresees a shift in unconventional gas plays throughout translate into opportunities for many in production from Alberta to British northeastern BC in the Montney and the industry,” noted NEB’s chairman, Columbia (BC) over the next two years. Horn River areas. Gaétan Caron. More than 210 wells could be drilled in Montney and 70 wells in Horn River in 2010 alone, said the report, called: “Short-term Canadian Natural Gas Deliverability 2010-2012.” Meanwhile, Alberta’s gas production is expected to decline over the next few years from 12.7 billion cubic feet (360 million cubic metres) per day to 8.5 bcf (241 mcm) per day. Neighbouring BC will see an increase from 2.7 bcf (76.5 mcm) per day to 3.7 bcf (105 mcm) per day. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 8. Unconventional OGM 12 April 2010, Week 01 page 8 SHALE GAS Even so, Canada’s overall natural gas Capital spending on natural gas gas right now, the board noted, and some production is expected to drop from 2010 projects will stabilise and then increase of the new technology that was designed to 2012 as drilling activity slows down. over the projected time period, predicted to extract shale gas is being used for oil In 2012, gas “deliverability” could be the board. The number of “drilling days” extraction in parts of Alberta and down to 13 bcf (368 mcm) per day, down will increase about 11% from 45,659 Saskatchewan. Capital investment in oil from 15.1 bcf (428 mcm) per day as days in 2010 to 50,512 days in 2012. production is drawing some investment recently as 2009. Drilling for oil is more profitable than away from gas, it said. New gas plant approved for Horn River Basin Canada’s National Energy Board last report of greenhouse gas (GHG) accommodate up to 830 mcf (23.5 mcm) week approved a C$1 billion (US$995 emissions and on possible ways of per day of incremental gas from the million) new gas plant to serve increased reducing and capturing carbon from the seven producers. shale gas production from the Horn River shale gas processing. The company’s Earlier this year EnCana Corp., also of Basin in British Columbia. existing Fort Nelson gas plant can Calgary, had secured a certificate for Spectra Energy Transmission will process 1 bcf (28 mcm) per day of gas. environmental assessment for its Cabin build the Fort Nelson North gas- In March 2009, Spectra announced it Gas Plant Project, to be located near Fort processing facility – and a small pipeline had received firm customer commitments Nelson. The plant will process as much loop – to serve the increasingly busy east – and subsequently contracts –for 760 as 800 mcf (22.7 mcm) per day and will side of the Horn River area. The plant mcf (21.5 mcm) per day in gathering and cost between C$800 million (US$796 will be able to process around 250 processing capacity from seven million) and C$1 billion. The plant will million cubic feet (7 million cubic producers operating in the basin. As a be built ‘capture ready’ to address the metres) per day of gas. result of several upgrades, to be issue of GHG emissions and must One of the conditions is that Spectra, completed in 2012 and including explore carbon capture and storage through its Vancouver-based subsidiary construction of the Fort Nelson North (CCS). Westcoast, will have to submit an annual plant, Spectra hopes to be able to Talisman sells conventional assets to tighten focus on shale plays Talisman Energy is sharpening its focus being sold were “excellent,” it could not 40,000 boepd as it focused on freeing up on booming North American shale gas “effectively compete for capital within capital for more investment in plays by selling some conventional oil [its] emerging strategic asset mix. These unconventional shale gas production. and gas assets for C$1.9 billion (US$1.89 sales are value-accretive and will help Many other large Canadian producers billion). [it] focus on, finance and build [its] are also selling their conventional assets The sales, announced on April 7, growing, low-cost North American shale to prepare for new investments in the consist of five separate transactions with gas business.” growing Canadian shale gas industry, mostly unnamed parties, covering assets The acreage being sold is located in the including EnCana Corp., Suncor Energy producing about 42,500 barrels of oil greater Peace River Arch, central Alberta and Nexen. The rationale among these equivalent per day, 90% of which is Foothills and greater Hinton areas in companies is that conventional gas is natural gas production. Talisman said the Alberta, and in Ontario. unable to compete with the productivity sales would be finalised by the end of Talisman said in January that it was and economies of scale of shale gas. June. looking to sell non-core conventional Talisman said that although the assets assets in North America producing about Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 9. Unconventional OGM 12 April 2010, Week 01 page 9 SHALE GAS As of the end of 2009, Talisman had the company on key assets, including unit of Toronto asset-management firm sold assets producing 38,000 boepd for North American unconventional shale Dundee Corp., as one of the buyers, but C$3.2 billion (US$3.19 billion) after gas plays. would not identify the other president and CEO, John Manzoni, Talisman spokeswoman Phoebe purchasers. announced a strategy in 2008 to refocus Buckland confirmed Eurogas Corp., a Total wins French shale gas permit French oil major Total has been awarded Total also operates the Lacq and The Montelimar permit will boost the the Montelimar shale gas permit in the Meillon gas fields in the southwest of company’s bid to boost production from south of France for a period of five years. France, in which it has a 100% interest. unconventional resources, including Total will have a 100% stake in shale gas. the 4,327-square km exploration Total is also seeking permits to permit following its acquisition of explore for unconventional gas in the French affiliate of the US Devon Argentina and earlier this year it Energy, which was jointly allocated agreed to buy a stake in Chesapeake the permit. Energy’s US gas assets for US$2.25 In a statement, Yves-Louis billion. Darricarrère, president of Shale gas’ potential is said to be exploration and production, said: exciting in Europe. Analysts believe “Total has committed to a there are substantial amounts of shale programme of work that is aimed at gas to be found in Sweden, Poland, confirming the presence of shale gas Germany, France and Austria. in the region and [at] appraising the Furthermore, unlike in the US, a possibility of economical significant chunk of Europe’s development of these resources. prospective shale gas resource lies Should the first geological activities under rural land, thereby lessening the be promising, exploration wells will fears of urban groundwater be drilled in order to evaluate this contamination. potential.” SHALE OIL Platts to provide Bakken price assessments Platts is to provide the world’s first price “This new high-quality crude oil stream runs down from Canada and into North assessments to value crude oil produced is expected to help meet Midwest Dakota and Montana. The first oil flowed from the Bakken shale field in the central refining demand and potentially that of from the Bakken shale in 1951; however, US. the US Gulf Coast. Because of its up until recently it has been difficult to “Thanks to favourable economics and importance, the industry needs a means extract. advances in technology, production from of placing a value on this crude. Our new Times have now changed and this unconventional crude oil source has price assessments address this need by horizontal drilling and fracturing risen dramatically in recent years,” said providing a transparent price discovery techniques have been applied to drilling Esa Ramasamy, director of Americas process and daily pricing information.” for oil in shale formations. market reporting at Platts in a statement. The formation of the Bakken shale Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 10. Unconventional OGM 12 April 2010, Week 01 page 10 SHALE OIL Platts has reported current US Bakken The Bakken shale fields are currently using the company’s Market-on-Close crude output at 200,000 barrels per day the largest oil reserve in the US, with (MOC) methodology, which, said Platts, and the North Dakota Pipeline Authority estimated recoverable reserves of 4 “Identifies bid, offer and transaction data estimates that the Bakken field’s yield billion barrels. by company of origin and results in a could rise to between 400,000 bpd to Platts’ Bakken blend assessments of time-sensitive end-of-trading-day daily 500,000 bpd over the next 10 years Bakken Blend ex-Clearbrook and price assessment.” before dropping back. Bakken Blend ex-Guernsey will be made OIL SANDS CAPP anticipates jump in oil sands output Industry watchdog Canadian Association in Calgary on April 7 to reignite business permanent a 5% front-end incentive on of Petroleum Producers (CAPP) has competitiveness in the province and the drilling of new natural gas and projected oil sands output from Alberta attract new investments. conventional oil wells; a 14% reduction will be 1.55 million barrels per day in “Alberta’s advantage has always been of maximum royalty rate to 36% for both 2010 and will increase to 1.66 million its ability to build investor confidence unconventional and conventional natural bpd in 2011. In 2009, production was and compete successfully for global gas output, and a reduction to 40-50% 1.34 million bpd. capital dollars. Contrary to the ‘gambler’ earlier – for crude oil production. The “Momentum is picking up once again stereotype of the oil and gas industry, reductions will be capped off at in the province, with [the] oil price global capital is not the kind of money maximum natural gas and crude oil stabilising at US$80 per barrel and that goes to the race track or to a casino prices of US$9 per million British demand increasing,” said CAPP’s looking for good luck. Rather, it looks thermal unit and US$82 per barrel president, David Collyer. “In the current for stability and long-term return on respectively. year, total investment in Canada’s oil and investment and does not like uncertainty “We are certainly encouraged by the gas sector is estimated to be C$40 billion or frequent changes in policy and new fiscal measures. But, there is a great [US$39.75 billio], compared to C$35 regulation,” Collyer said. deal more work to be done. Royalty billion [US$34.78 billion] in 2009. Last Providing regulatory stability in the curves and other fiscal details need to be year, investments in Alberta alone were province is very much on the agenda of firmed up by end May,” Collyer said. He C$24 billion [US$23.85 billion], with a the Tory government in Edmonton, added: “The regulatory part of the vast majority being in the oil sands which in early March announced changes competitiveness review is just now sector.” to the existing royalty structure issued in getting under way and has ambitious Collyer’s statement was made on the late 2007. Offerings under the new targets to deliver substantive process sidelines of a major campaign launched competitiveness review include: making improvements by year-end.” Imperial Petroleum establishes new oil sands unit Imperial Petroleum has formed a new Imperial said it owned a 33.3% interest processing outside of Canada, using a company, Arrakis Oil Recovery, to in Arrakis with two other partners, non-thermal, mechanical and chemical develop a new process to recover including the technology provider, and closed-loop process to recover the bitumen or heavy oil from tar and oil would manage the new company. It said bitumen. The chemical employed in the sands. that Arrakis had been granted a licence to process is not a solvent and is both non- The Evansville, Indiana-headquartered the new technology for oil sand toxic and biodegradable. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 11. Unconventional OGM 12 April 2010, Week 01 page 11 OIL SANDS In connection with Arrakis, Imperial Jeffrey T Wilson, Imperial’s president. research and development facility owned also signed an engagement agreement Wilson expanded on the practice: “The by the technology provider on oil sands with Hyde Park Capital Group and process operates without hot water or from Oklahoma, Texas and Utah. The Charlotte Capital Partners to raise steam and without any solvents, either initial installation will process some US$6.1 million for the initial facility hydrocarbon or otherwise, so there are no 2,400 tonnes per day of oil sands installation planned for late summer emissions issues. The process produces a containing an average of 8% bitumen and 2010. clean sand residue while separating the should generate approximately US$20 “We believe that the technology bitumen in an eco-friendly manner. million annual cash flow. The first developed and licensed to Arrakis is the Operating costs are significantly less than facility will be located at a site on which most advanced, cost-effective and conventional processes because the several million tonnes of the material environmentally friendly processing chemical medium is re-cycled and re- have already been mined.” technology available for recovering used. The process has been pilot tested bitumen from tar and oil sands,” said on several tonnes of material at the AOSC’s roller coaster ride Athabasca Oil Sands Corp. (AOSC) estimates that it will not achieve barrels of probable reserves, 26 million raised almost C$1.35 billion (US$1.34 commercial production from Canada’s barrels of possible reserves and 7.1 billion) through its recent initial public oil sands before 2015. It will use a billion barrels of contingent reserves. It offering (IPO), the richest Canadian technology that is unproven in carbonate recently formed a C$1.9 billion (US$1.88 share floatation since 1999. However, the reserves – steam-assisted gravity billion) partnership with state-owned Calgary-based company’s shares quickly drainage rather than mining – to recover PetroChina for a 60% share in two oil lost C$440 million (US$437.3 million) bitumen from oil sands deposits. AOSC sands projects in northeastern Alberta, during its first day of trading on April 8. described its technology as having a MacKay and Dover. At the close of the first day of trading smaller surface footprint, using less The correction in stock price was not on the Toronto Stock Exchange, its water and not requiring tailings ponds. unexpected given the complexities of shares were C$16.90 (US$16.79), down “The shares were simply overpriced producing from the oil sands. “Oil sands 6.1% or C$1.10 (US$1.09). The 75 compared to other early stage oil sands are a really, really labour-intensive, cost- million shares, priced at C$18 players, given that the technology is intensive investment proposition,” (US$17.89) each, represented a 19% unproven for 25% of the company’s Steven Conville, who helps manage stake in the company. On April 9, the reserves, and because of the estimated about C$8 billion (US$7.95 billion) at second day of trading, the stock fell 7.1% timing of production,” an unnamed Macquarie Private Wealth, told to close at C$15.70 (US$15.60). analyst told the Calgary Herald. Oil Bloomberg. “I’m not sure people are The money raised in the company’s prices had also weakened. really into the sizzle at this point in time. IPO had startled observers. AOSC According to AOSC, it has 114 million People want steak.” HEAVY OIL Nexen seeks sharper focus with sale of heavy oil assets Calgary-based Nexen is planning to sell sell its assets. Proposals to Scotia barrels of oil equivalent per day of some heavy oil properties around the Waterous are due by May 3, 2010. natural gas. Additionally, the area has the Alberta and Saskatchewan border, near The bank has said Nexen’s properties – potential for enhanced oil recovery Lloydminster. amounting to approximately 225,000 net (EOR) and large original-oil-in-place According to Scotia Waterous, the acres (910 square km) of land – to be (OOIP) fields that could work well with investment banking arm of Scotia Bank, sold include established production of thermal or chemical methods of Nexen has engaged the bank’s services to 15,000 barrels per day of oil and 2,000 extraction. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 12. Unconventional OGM 12 April 2010, Week 01 page 12 HEAVY OIL Add in the infrastructure of pipelines, A Nexen spokesperson, Carla Yuill, focus on its international operations, oil batteries and a working field office and told reporters that the sale “is because we sands operations and shale gas. Nexen’s this sale could well be one of the largest, want to streamline our core strategies … Lloydminster sale is estimated to fetch if not the largest, Canadian property We do think we can get good prices, C$600-800 million (US$600-800 deals of 2010. given low differentials.” million). The legacy of Nexen’s properties dates The property sale fits in with a It is possible the proceeds could back to the 1970s and 1990s, when they statement from Nexen’s CEO, Marvin significantly reduce Nexen’s debt but belonged to Occidental Petroleum and Romanow, in December 2009, when he analysts have been reported as saying Wascana Energy. Nexen started out as said the company would be disposing of this is more of a strategic shift and that Occidental in 1971 and acquired approximately C$1 billion (US$1 billion) the money will probably be reinvested in Wascana in 1997. worth of assets over the next two years to the company’s core businesses. New foreign investors line up for Iranian heavy oil fields Iranian media have reported a deal is Ordibehesht, which begins April 21, and dispatched envoys to visit the companies close between the National Iranian Oil named the consortium as the Iranian– and evaluate their financial capabilities. Company (NIOC) and an Iranian- Australian KIPC joint venture. Iran has struggled for years to find the Australian consortium backed by Samimi said the development plan for cash and the technology to develop its Chinese financing, for the development the three fields was signed in 2009. “The energy sector, as sanctions and political of three heavy crude oilfields in the KIPC consortium has submitted the pressure have kept foreign firms away. southern part of the country. master development plan on Western companies in particular are The Iranian Oil Ministry’s SHANA Kouhmound, Kaki and Boushgan and the increasingly wary of investing in the website reported on April 5 that Bahman plan has been approved by the ... board country because of an international Samimi, in charge of the development of of directors of the National Iranian Oil dispute over Tehran’s nuclear ambitions. heavy oilfield projects at NIOC, said the Company,” Samimi said, in an exclusive On March 10, Shell announced it had contract concerned the development of interview. stopped supplying refined petroleum to the onshore Kouhmond, Kaki, and The KIPC has introduced a number of Iran. The government has shifted to Boushgan oilfields in Bushehr province companies as financiers, mostly Chinese, energy-hungry Asian countries such as in southern Iran. No financial details of SHANA said, adding that buyback China, India and Malaysia for the deal were available. contracts would be signed after the NIOC hydrocarbon investments. SHANA said the contract was to be approved the proposed financing signed during the Iranian month of companies. He said the NIOC had COAL-BED METHANE UCG potential highlighted by fund manager An Australian fund manager has although CBM has become one of the do share similarities … those who have highlighted that underground coal biggest stories in the resources sector in come across underground coal gasification (UCG) can be considered as the past three years, highly efficient UCG gasification often say, ‘We have seen the often overlooked younger brother to techniques are starting to emerge from its some pilot plants work; conceptually it coal-bed methane (CBM). shadow. looks good, but there are still some According to LimeStreet Capital On April 6, the Sydney Morning question marks hanging over its head resources fund manager Stephen Bartrop, Herald quoted Bartrop as saying: “They until it is commercialised.’” Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 13. Unconventional OGM 12 April 2010, Week 01 page 13 COAL-BED METHANE “However, given that for one cubic director, Len Walker, one of the UCG In March, Cougar announced ignition metre of coal you get 20 times the pioneers in Australia, said that rising of its flagship Kingaroy project in amount of energy out of a coal seam energy demand had put the technology in southeast Queensland and the successful through UCG than through CBM play. production of synthetic gas. Cougar will technology, it really is just a matter of “Apart from Linc Energy, Carbon soon undertake a series of trials, time before it comes into its own.” He Energy and ourselves, which are the big underground and on the surface, which stressed that this would have “huge three in the space, I have counted six or will be used for a pre-feasibility study implications for Australia’s vast seven other listed companies that have and a subsequent bankable feasibility for coalfields.” recently popped up and which are all a planned 400-MW power station. UCG technology was developed in the promoting UCG in different ways,” he 19th century. Cougar Energy’s managing said in the newspaper report. West Bengal pipeline planned for CBM transportation India’s Essar Oil plans to lay a 160-km from its Raniganj block in West Bengal of 4 million cubic metres per day, given pipeline from Durgapur to Kolkata in in the first quarter of 2010. Initial output the PNGRB’s requirement of having West Bengal to transport gas from its is expected to be 9,000-10,000 cubic 33% excess capacity for leasing out to coal-bed methane (CBM) blocks to metres of gas per day, with peak third parties. consumers in the state. production of 3.5 million cubic metres The Raniganj block holds 4.6 trillion The company said the natural gas per day envisaged in mid-2013. cubic feet (130 billion cubic metres) in pipeline would help ease some of the A special purpose vehicle would be set place and recoverable resources of environmental concerns stemming from up for executing the project, Essar said. around 1 tcf (28.3 bcm). the abundance of steel and coal plants in Besides Raniganj, the pipeline may also In the Rajmahal Block, where Essar the region, the Press Trust of India be used to transport gas from Essar’s was declared the provisional winner in a reported on April 7. Rajmahal CBM block in neighbouring recently concluded auction of CBM Essar Oil has applied to the sector’s Jharkhand. Shishir Agrawal, head of areas, an in-place resource of 9.5 tcf (269 regulator, the Petroleum and Natural Gas Essar Exploration Production Division, bcm) has been estimated with Regulatory Board (PNGRB), for said in the application that 15 test wells recoverable resources of 4.7 tcf (133 permission to lay a 24-inch pipeline, had already been drilled in Raniganj and bcm). according to the company’s application. 500 more were planned. Essar is likely to start producing CBM Essar has suggested a pipeline capacity GTL/CTL Alter NRG seeks strategic partner for Alberta CTL project A final investment decision (FID) is erupted in late 2008 damaged its identified, told UOGM. “We are aiming awaited at Alter NRG for its proposed prospects. for three categories of companies – with 40,000 barrel per day coal-to-liquids “We are on the look-out for a strategic mining and extraction experience, oil (CTL) project in northern Alberta. company to partner on the project. We companies based in Alberta and project For the past two years, the Calgary- have huge coal reserves and the project is engineering and construction firms. The based firm has been seeking finances to feasible, but no particular time frame has successful partner will be offered a 60% move ahead with the project. However, been set to break ground,” an Alter NRG stake.” the global economic downturn that official, who did not wish to be Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 14. Unconventional OGM 12 April 2010, Week 01 page 14 GTL/CTL In the summer of 2008, Alter NRG had strategic partner by Q3 2010 and forge interest in joining the project as a filed a public disclosure document with ahead with the FEED [front-end strategic partner, but no final decision the Energy Resources and Conservation engineering and design] package,” the was taken,” the official pointed out. Board (ERCB) to move ahead with the official said. The FEED contract will Alter NRG has in-place coal resources CTL plant at Fox Creek. Estimated to take about 10 months to complete. of 850 million tonnes, of which 468 cost C$500 million (US$497.1 million), Last year, Alter NRG signed an million tonnes are recoverable. The the project was to be built in two stages, agreement with Houston-based KBR to project’s economic model is based on each with capacity to produce 20,000 bpd provide pre-FEED services, besides revenues from the sale of diesel to of liquids. The first phase was slated to working out the precise project costs, consumers in the province and naphtha to start production by late 2014 and would procurement and construction strategy pipeline companies that could use it as a produce 33,000 bpd of diesel and 7,000 and also the selection of a technology diluent. bpd of naphtha. provider. “Our target now will be to select a “At that time, KBR had also expressed Sasol to explore for shale gas in Karoo Basin South Africa’s Sasol is joining the global Sasol is seen to have a particularly clear now produces commercial quantities of shale gas rush. technological advantage. petrol and diesel from coal and natural Sasol Petroleum International (SPI), The Karoo Basin shale resource is seen gas using this technology, and its gas-to- the company’s exploration arm, along as potentially providing Sasol with a liquids (GTL) process is widely regarded with Norway’s Statoil and US-based low-carbon feedstock for its gas-to- as a global leader. Chesapeake Energy, has submitted a liquids (GTL) plants. The basin covers an With the price of oil rising, even as gas joint application for onshore petroleum area of over 700,000 square km. prices are plummeting, Sasol is profiting exploration rights in South Africa’s Promising petroleum exploration plays in from its processes that convert gas into Karoo Basin. The application is expected the basin include coal-bed methane petroleum products. to take about 12 months to process. (CBM), shale gas and conventional Sasol’s CEO, Pat Davies, told South Chesapeake is already in a joint crude. Africa’s local Mining Weekly that the venture with Statoil in the Marcellus Throughout the years of apartheid, GTL process was a particular strength for shale, a large formation that underlies Sasol built up considerable experience in the company: “This puts us in a very parts of the US states of New York and manufacturing unconventional fuels, good space. We make our money in GTL Pennsylvania. However, the move by based on the Fischer-Tropsch process, a in the price of gas versus the price of oil, Sasol and its partners into Karoo is the technology that turns gas into liquids that because we take gas and we convert that first South African participation in the was first developed by Germany during into oil, so the bigger that gap, the more global race to produce shale gas and the Second World War. The company money we make,” he said. NEWS IN BRIEF April 13 and included about 91,000 gas production. March’s agreement POLICY acres. Sales had also been planned for settled a lawsuit by the groups charging June and August. BLM’s Montana office that BLM in its resource management BLM suspends oil said it decided to delay those sales “in plans failed to consider how development order to bring more certainty to industry of the leases, most of which are located and gas lease sales and in light of expected litigation.” The in areas of coal-bed methane and On April 8, the Bureau of Land decision comes in the wake of a conventional natural gas development, Management delayed all oil and gas lease settlement BLM signed last month would contribute to warming of the sales in Montana, North Dakota and suspending 61 oil and gas leases on atmosphere. South Dakota while the agency studies nearly 38,000 acres in Montana the GREENWIRE, April 9, 2010 their potential impact on climate change. agency sold in 2008 until it considers the The next sale had been scheduled for greenhouse gas emissions from oil and Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 15. Unconventional OGM 12 April 2010, Week 01 page 15 NEWS IN BRIEF given jurisdiction over the use of a SHALE GAS Professor: Fracking controversial method of extracting gas not a cleaner from shale deposits, ahead of an US to share shale alternative important meeting this week. The London-based oil company wants experience Natural gas obtained by the controversial decisions on drilling techniques such as The US plans to offer other countries technique of hydraulic fracturing may hydraulic fracturing – which uses high- help in determining whether they have contribute significantly to greenhouse pressure liquids to force fissures – to be big natural gas resources trapped in shale gas emissions and so should not be taken at state level, rather than being left rock and show them how to bring those considered as a cleaner alternative to coal to the Environmental Protection Agency supplies to market, a top US State or oil, according to a Cornell University (EPA), whose specialist committee meets Department official said on April 7. The researcher. Although natural gas, when on Wednesday to discuss its concerns. US has officially offered its assistance to burned, produces only about half of the BP is also opposed to the public China and India, and other countries with carbon dioxide emissions of coal, that disclosure of the chemicals used in potentially large shale gas resources that calculation omits greenhouse gas fracturing, on the basis that the are under consideration include Jordan, emissions from the well-drilling, water- information is commercially sensitive – Poland, Chile, Uruguay and Morocco, trucking, pipeline-laying, and forest- something that will anger according to Goldwyn. felling that are part of the production of environmentalists, who are highly NEW CENTER, April 8, 2010 hydraulically fractured natural gas, suspicious of the process. Although BP Ecology Professor Robert Howarth was unable to comment, the New York US, China target argues in a new paper. Combining the Times published a “discussion draft” said shale gas effects of combustion, production, to have been produced by BP which says: distribution, and leaked methane from “States with existing oil and gas Shale gas, like coal-bed methane and gas hydraulically fractured natural gas gives regulatory programmes have the hydrates, comes under the umbrella of the fuel about the same greenhouse gas authority to and are best situated to unconventional gas. Commercial interest emissions as coal and about 30% more continue regulating hydraulic fracturing in unconventional gas (or oil) goes up than diesel or gasoline, Howarth says in processes and procedures.” when oil prices shoot. Oil engineers have the draft paper published in mid-March. THE GUARDIAN, April 4, 2010 been able to solve the technological REUTERS, March 31, 2010 challenge of coaxing the gas out of the Goodrich to buy shale by a technique called hydro- Atlas shares rise Eagle Ford, fracturing. Therefore, we currently have the shale-gas boom, led by the US. China Shares of Atlas Energy Inc. rose by 20% Haynesville assets is said to be targeting 30 billion cubic after a shale extraction deal with Reliance Industries Ltd (RIL) was Independent oil and gas explorer metres of shale gas per year, equivalent Goodrich Petroleum Corp said it will buy to half the country’s demand. announced. An unusually large number of Atlas call options were also traded on 35,000 net acres in the Eagle Ford shale BUSINESS LINE, April 10, 2010 and 4,200 net acres in the Haynesville April 9. For every put option trade, there shale in Texas. RIL in US shale JV were over six calls traded, resulting in an The Eagle Ford deal involves about extremely low put-call ratio – a sign of Mukesh Ambani-promoted Reliance high bullishness. Evidently, Atlas’s US$15 million in upfront cash payment Industries Ltd (RIL) Friday said it has Marcellus shale assets had been valued at while the Haynesville deal has no upfront signed a US$1.7 billion joint venture far lower levels by the markets compared cash consideration. Goodrich expects to agreement with US-based Atlas Energy with the valuation RIL agreed to for a spud its initial Eagle Ford shale well in Inc. for the extraction of shale gas in the 40% stake. Atlas has a total area of the second quarter and run one or two US. Reliance will acquire a 40% 584,000 acres under its control in the rigs in the play during the second half. “undivided interest” in about 300,000 net Marcellus fields. The acquisition boosts the company’s acres of undeveloped leasehold held by LIVE MINT, April 10, 2010 Haynesville shale inventory to about Atlas in the core area of the Marcellus 89,500 net acres. Goodrich maintained its Shale in Pennsylvania, the company said BP fights to limit 2010 capital expenditure budget of in a statement. Reliance will pay US$339 US$255 million, but said it reallocated million in cash upon closing and an controls on about US$50 million, or about 20 percent additional US$1.36 billion in the form of fracturing of the amount, to leasehold, drilling and a drilling carry. BP is lobbying on Capitol Hill against a completion costs associated with the IN.COM, April 9, 2010 federal US environmental agency being Eagle Ford Shale oil play. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 16. Unconventional OGM 12 April 2010, Week 01 page 16 NEWS IN BRIEF Shares of the company, which has a production in North America. Exxon has majority of its properties in Louisiana Experts see shale unconventional gas acreage in Central and Texas, closed at US$17.97 Friday on gas affecting and Eastern Europe. But Exxon and other the New York Stock Exchange. companies seeking to exploit those overseas supplies REUTERS, April 12, 2010 reserves will likely have to find ways to Potential natural gas production from operate in heavily populated areas – just Nighthawk eyes shale formations has dramatically like in the US, where some of the largest shale ‘sweet spots’ improved North America’s supply shales are in urban North Texas or the outlook, three panelists agreed during a Northeast. “These are the same issues US player Nighthawk Energy has Washington energy conference. The that we face in the US,” Tillerson said. announced that four 3-D surveys over the technology behind it also could change EXXONMOBIL, March 31, 2010 Jolly Ranch project in Colorado gas supply patterns overseas and established potential sweet spots in the influence domestic demand for other Argentina to develop Cherokee and Atoka shale packages. The fuels, they added. US supply assumptions company also said it started a three-well more unconventional have been turned upside down in the last vertical drilling programme at the Jolly 3 years, they observed at the Apr. 7 gas Ranch project in Lincoln County, natural gas breakout session at the Gas y Petroleo del Neuquen (G&P), the Colorado. Nighthawk said two of the Annual Energy Outlook Conference state oil company of Neuquen province, three wells - the Craig 6-4 and the Craig cosponsored by the US Energy this year will launch an auction for 16-32, in the Bolero field – were Information Administration and Johns contracts to explore and develop 10 development wells, while the third one, Hopkins University’s School for secondary fields in the southwestern John Craig 11-2, near Limon, was an Advanced International Studies. “I province of Argentina, newswire Telam area previously undrilled by Nighthawk. sometimes wonder if we would have reported. G&P already has carried out On March 23, Nighthawk, which holds a built 14 billion cubic feet of LNG import two auctions for secondary fields, as it 50% stake in Jolly Ranch, said it had capacity if we’d known about this,” said seeks to boost output and widen reserves. drilled 13 wells in the region, with 11 of Benjamin Schlesinger, president of The province is attracting attention for its them seeing initial testing and production Benjamin Schlesinger & Associates tight and shale gas potential. G&P of more than 24,000 barrels of oil. LLC. Michelle M. Foss, chief economist technical manager Alejandro Aubert said Running Foxes Petroleum, the operator, and head of the University of Texas at the exploration licenses are for four holds the remaining 50% interest. Austin’s Centre for Energy Economics, years, except if non-conventional UPSTREAM, April 12, 2010 suggested that US shale gas development reserves are sought, when the timeframe would respond to market demand. “I also will be extended. Alberta-Colorado think the potential could be greater if the TELAM, April 5, 2010 shale JV technology improves further,” she said. Stealth Ventures Ltd., Calgary, signed a OGJ, April 9, 2010 Russian shale gas joint venture with MOI Resources Ltd., a debate private Saskatchewan operator, to ExxonMobil quietly The Russian federal legislature, the develop gas in the Cretaceous Colorado optimistic about Duma, has recommended the government Group shales resource play in western shale evaluate Russia’s potential in shale gas. Canada. Terms were not disclosed. The Deputy Duma Speaker and energy European gas shale formations in Europe Cretaceous Colorado Group in the committee member Valery Yazev show promise, but they need to be better Western Canadian Sedimentary Basin is explained that “There has been studied before their potential can be represented almost continuously in a something of a technological unleashed, Exxon Mobil Corp.’s CEO 1,000 km east-west profile. Of the more breakthrough in shale gas” which has Rex Tillerson said. “We have to than 250,000 wellbores that penetrate the already halted projects to build LNG understand the shale resources better in Colorado, most were drilled to target plants in many countries. The US, China Europe,” Tillerson told reporters. deeper horizons. Meanwhile, following and Australia have already begun to stop ExxonMobil, the world’s largest Stealth’s initial downspacing approval by building facilities to produce and handle publicly-traded oil and gas company, has the Alberta Energy Resources LNG. Canada has also joined in shale gas made big bets on shale – a tight, natural Conservation Board to proceed with production. gas-rich rock formation that US oil eight wells per square mile on two OGR, 2010 companies have discovered how to tap sections of land in the Wildmere, Alta., profitably in recent years, creating an area, Stealth has added 17 more sections. unprecedented boom in natural gas OGJ, April 5, 2010 Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 17. Unconventional OGM 12 April 2010, Week 01 page 17 NEWS IN BRIEF Jordan. Under the deal, JOSECO will dig Shale may reduce EOG to seek partner 12 wells and carry out geological, Ukrainian reliance on for shale oil geophysical and chemical studies in the first year to determine an estimated Russia EOG Resources’s CEO, Mark Papa has reserve of one billion tonnes of oil shale Prime Minister Mykola Azarov’s announced that the company may seek on a 51 square km plot of land in Bayer unsuccessful trip to Moscow last week to out a partner to develop its natural gas area. In the second year, the company ask for a discount on natural gas imports assets as the company shifts its focus to will carry out engineering, environmental was yet another reminder of Ukraine’s finding oil. Although the Houston-based and feasibility studies on the use of energy dependence. But a technology energy company is shifting its focus to advanced Russian technology and report revolution that is already transforming oil, it still has assets in prolific onshore to the NRA. Minister of Energy and production in the United States offers natural gas fields such as Texas’ Barnett Mineral Resources, Khaled Irani, said hope to wean energy hungry Ukraine off Shale, the Haynesville Shale in Texas after he signed the accord with the its reliance on Russia. Shale gas, which is and Louisiana, and the Marcellus Shale chairman of the board at JOSECO, natural gas trapped in rock rather than in Pennsylvania and other states. “We are Majed Khalifa, that the deal followed porous reservoirs, already accounts for not going to be focusing on North lengthy studies and negotiations with the 20% of US production. And with American gas growth,” Papa said during government. Khalifa said that his exploration under way in Western a meeting with analysts, adding the company had signed in 2009 key Europe, energy giants such as Royal company may look for a joint venture agreements with the Pioneer Company; a Dutch Shell and TNK-BP are now partner to develop its assets, “but there joint Russian-Saudi firm to build and considering Ukraine as a potential are no immediate plans to do so.” EOG operate a retorting system of oil shale source. plans to spend US$5.1 billion in capital called UTT-3000 to exploit oil shale and UKRAYINSKA PRAVDA, April 01, this year to pursue oil and natural gas extract petroleum by using the surface 2010 liquids in places like the Eagle Ford mining technique. He added that the Shale, a hydrocarbon-rich rock formation UTT-3000 system uses a dry distillation SHALE OIL in South Texas. EOG Resources has technique, which does not consume large acquired 505,000 acres with estimated amounts of water during the distillation reserves of 900 million barrels of crude Shale oil output to be oil equivalent. The company plans to use process. Khalifa noted that the a game-changer: the drilling techniques it pioneered in technology would set the cost of a barrel of oil extracted from oil shale between EOG places like the Barnett Shale to unlock oil US$25 and US$30. The accord comes as EOG Resources’ CEO, Mark Papa has reserves in the Eagle Ford. Energy part of the Kingdom’s efforts to reduce said that oil output from rock formations companies have learned to drill dependence on imported energy through known as shales will change the face of horizontally through these dense rock developing an oil shale industry in oil production in the US. The Houston- formations and break them apart, Jordan and the region. In 2009, the based energy company plans to spend releasing the hydrocarbons trapped government sealed two agreements with US$5.1 billion in capital in 2010 to within. Papa said the company will Royal Dutch Shell Oil and the Estonian pursue oil and natural gas liquids in continue to seek out rock formations that company, Eesti Energia, to tap the places like the Eagle Ford Shale, a have the potential for oil production and Kingdom’s deep reserves of oil shale. hydrocarbon-rich rock formation in the company is “not satisfied” with its The NRA estimates the Kingdom has 40 South Texas. EOG Resources has current oil asset portfolio. “The vast billion tonnes of oil shale deposits in acquired 505,000 acres with estimated majority of our investments will be going various areas at various depths. reserves of 900 million barrels of crude to oil or liquids projects,” Papa said. JNA, April 11, 2010 oil equivalent. Oil from shale rock DOW JONES NEWSWIRES, April formations will be a “North American 7, 2010 OIL SANDS/ industry game changer,” Papa said NRA signs oil shale HEAVY OIL during a meeting with investors on April 7, adding that the Eagle Ford is one of deal the largest discoveries in the US of the Ship runs aground On April 11, the Jordan Natural last 40 years. Resources Authority (NRA) the Jordan On April 9, Australian salvage crews Dow Jones Newswires, April 7, Oil Shale Energy Company (JOSECO) started pumping 950 tonnes of heavy oil 2010 signed a memorandum of understanding on from the Chinese coal ship, which ran under which the latter would carry out oil aground off the Queensland sea on April shale exploration and drilling in southern 3. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 18. Unconventional OGM 12 April 2010, Week 01 page 18 NEWS IN BRIEF The fuel was being pumped onto a 50- issues that may have an impact on the metre barge, Maritime Safety exact timing and how we comply,” said Iran to reduce heavy Queensland (MSQ) general manager Pius Rolheiser of Imperial Oil, which is oil prices Patrick Quirk said. But he did not know developing the Kearl project in northern National Iranian Oil Co. is set to cut how long it would take to pump out all Alberta. He added: “Operators like official selling prices for heavier grades the oil from the ship, which belongs to Imperial may well need flexibility to of crude supplied to Asian refiners to 15- China’s Shen Zhen Energy Transport apply the technologies as they’re month lows after reductions by Saudi Company. developed.” Arabia. The state oil company will set CHINA DAILY, April 9, 2010 CANADIAN PRESS, April 6, 2010 Iranian Heavy for May shipments at Canada oil sands, Canada’s oil sands US$1.60 per barrel below the average of Persian Gulf benchmark Oman and greens meeting promotes role Dubai grades, based on a quarterly derailed Several industrial associations banded formula tied to Saudi Arabian Oil Co. An attempt by Canada’s top oil sands together on April 7, in a campaign aimed prices. That is US$0.10 lower than April, producer and an environmental think at emphasising the role of the energy bringing the discount to its widest since tank to bring officials from the energy sector in the economy of Alberta, February 2009. industry and green groups together to Canada’s top oil-producing province. BLOOMBERG, April 9, 2010 discuss ways to end growing animosity The aim for the sector, which has been was derailed in March by discord and a under fire from environmental groups ONCG eyes Canada legal battle. Suncor Energy Inc. and the opposed especially to oil sands oil sands assets Pembina Institute invited representatives development, is to convince people in its ONGC, India largest energy explorer, is from several major oil sands producers home territory about its role in the eyeing oil sand assets in the shores of and environmental nongovernmental economy and efforts to improve Canada. However, the discussions are organisations to an informal “fireside environmental performance, said the still in preliminary stage as it has been chat” at the Vancouver Art Gallery on Canadian Association of Petroleum found. The experts in ONGC are of the March 24 to end what they said was a Producers (CAPP), which is leading the opinion that if the region turns out to be lack of constructive dialogue. However, push. The groups also hope to avoid rich in resources close to 10,000 barrels the meeting was cancelled a few days government policy moves that might be of heavy oil can be obtained per day. It later over “the level of tension, detrimental to its well-being, CAPP will be worth US$1 billion. specifically a legal dispute, between a President David Collyer said. The GT, April 9, 2010 subset of companies and a subset of Alberta government recently backtracked on increases to the royalty system after ENGOs,” according to the letter months of heated debate. BP to test heavy oil rescinding the invitation. “At this time it seems the basic pre-conditions are not in REUTERS, April 7, 2010 process on North place,” it said. Slope REUTERS, April 7, 2010 Oil sands backing BP will begin producing heavy oil in a Athabasca has raised US$1.35 billion, four-well US$100 million test production No cleanup plans considerably better than the US$750 project in late May or early June in what approved as deadline million initially expected, while its will be the first sustained production test looms partnership with PetroChina International from the Ugnu formation, a vast pool of Investment Co. gave investors heavy oil at shallow depths just below Oil sands companies are still in debate confidence the company could succeed in the permafrost layer underlying the North with Alberta’s energy regulator over the notoriously expensive oil sands. “It Slope. BP will use the Cold Heavy Oil cleaning up their toxic tailings ponds was really the endorsement from Production System, or CHOPS, even though the deadline for them to start PetroChina,” Laura Lau, an energy and technology to tap the Ugnu heavy oil, the is just over a year away. A spokesman resources fund manager at Sentry Select goal being to eventually supplement for the Energy and Resources Capital Corp. in Toronto, said on March conventional oil production from existing Conservation Board says the timeline for 31, the day after the IPO was announced. North Slope fields, which are being converting the vast sludge ponds into PetroChina bought 60% of Athabasca’s depleted. safer dry tailings is fixed, but oil sands MacKay River and Dover oil sands The technical challenges are formidable, operators say the schedule is still under projects for US$1.9-billion in August BP spokesman Steve Rinehart said. negotiation. “We have been in discussion 2009. with the board on a number of technical FP, April 1, 2010 Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 19. Unconventional OGM 12 April 2010, Week 01 page 19 NEWS IN BRIEF The biggest is getting the thick oil to range of 88% to 95% at the beginning of US$1 billion in developing the blocks flow at all. BP and ConocoPhillips are the month plummeted to 65% on April known as Ayacucho 2 and 3, plus Junin now producing viscous oil, which is 12, although it swung back closer to the 3. heavier and thicker than conventional normal range by April 28 – the day of the PRENSA LATINA, April 11, 2010 crude oil, but the Ugnu oil is even duck deaths. thicker. EDMONTON JOURNAL, April 7, CBM ALASKA JOURNAL OF 2010 COMMERCE, April 9. 2010 CBM summit US analyst applauds Greenpeace holds Venezuela’s oil Judging by the newly introduced and ongoing coal-bed methane (CBM) Statoil strategy regulations to accommodate growing demonstration Martin Hutchinson, a US economic domestic demand in Indonesia, China Greenpeace are demonstrating against analyst, praised Venezuela’s strategy of and India, it is clear that interest in CBM Statoil’s oil sands project in Canada at bringing together a diversity of partners as potential energy source is on the rise. Statoil’s offices outside Oslo. Around a for developing the Orinoco Belt, a For this reason, CMT is bringing together dozen demonstrators from Greenpeace territory that contains large deposits of key officials, top industry decision have started a demonstration against extra-heavy crude, news service RNV makers and CBM experts to the 3rd Statoil’s involvement with oil sands reported. The strategy is “surprisingly CBM & Unconventional Gas Summit in projects in Canada outside the company’s rational,” he wrote in an article carried Hong Kong on June 10 & 11, 2010. office at Vækerø, just outside Oslo. The by French newspaper Le Monde. With PRWEB, April 6, 2010 organisation has handed out leaflets the diversification of partners, about oil sand to Statoil employees, Venezuelan President Hugo Chavez “has County gives nod for encouraging the employees to vote reduced the risk of economic plant zoning change against the company’s involvement in dependency,” he said. “The On April 6, North Dakota’s Stark County such projects at this year’s annual determination of Chavez is to not depend Commission members voted to allow a general meeting. The meeting will be on the US, historically the biggest oil zoning change for a coal plant near South held May 19, and Greenpeace says that client of Venezuela.” Orinoco’s reserves Heart. The rezone will not take place they will keep on demonstrating until are thought to be as much as the total until the coal company complies with that date. “Statoil’s general meeting is a world reserves of conventional oil, he conditions set by commissioners. South great opportunity to show that we care said. Heart Coal, a company owned by Great about the climate. I’ve just been to some RNV, April 8, 2010 Northern Power Development, requested oil sand fields in Alberta, and I am the zoning change on around 7,780 acres shocked. It’s beyond a shadow of a doubt Venezuela, Russia to facilitate a coal mine and construction that something like this never would team up on extra- of a coal gasification plant. More than 15 have been allowed in Norway,” said heavy oil project people spoke out about concerns over the Martin Norman in Greenpeace. company during a meeting of the county OILINFO, April 12, 2010 Venezuela and Russia plan to work Zoning Board on April 5. together on developing an extra-heavy THE DICKINSON PRESS, April 6, Court told of ‘upset’ crude project in Venezuela, newswire 2010 at Syncrude mine Prensa Latina reported. “It is a project of extreme strategic importance for facing Data reported to the oil sands regulator up to the energy problems of the planet,” Experts eye methane suggested there was “an upset” at the Venezuelan President Hugo Chavez said. draining in wake of Syncrude mine in the weeks before more “From there we are going to supply oil to disaster than 1,600 waterfowl perished in the half the world.” The deal is for mine’s massive tailings pond, a court Climate considerations could encourage developing an additional three fields in mine companies to drain and use heard on April 6. Richard Houlihan, a the Orinoco Belt, which has huge senior Energy Resources Conservation methane from their coal beds and reserves of extra-heavy oil. The countries effectively enhance worker safety – a Board official, said reports to his agency already are working together on the showed wide variations in the amount of practice some experts say could win development of Junin 6, with production favour in the wake of the deadly disaster bitumen recovered from the operation in starting out this year at 50,000 barrels a April 2008. He said bitumen recovery this week at a West Virginia mine. day. It is expected to reach up to 450,000 from the Aurora mine that was in the barrels per day. Russia will invest up to Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 20. Unconventional OGM 12 April 2010, Week 01 page 20 NEWS IN BRIEF The UN Economic Commission for be 9,000-10,000 cubic metres per day commence in June 2010. The 25 billion- Europe (UNECE), in a set of new with peak production of 3.5 million cubic rupee plant will come up in Vijayawada guidelines released on April 7 , said metres per day envisaged in mid-2013. in Andhra Pradesh and will be set up by draining methane can allow coal mining Peak output will last for 20 years. three joint venture partners, with one of companies to both reduce explosive BS, April 7, 2010 them being Bharat Heavy Electricals Ltd. hazards and lower emissions of a potent (BHEL). A V Krishnan, the executive greenhouse gas. Raymond Pilcher, CH4 gets another director of BHEL-Tiruchirappali chairman of UNECE’s Task Force on the chance (Tiruchy), said design for the 182MW Economic Benefits of Improving Mine plant has been completed. The project In a move that could help the Deep CH4 Safety Through Extraction and Use of will be set up by three partners including consortium – that provisionally won Coal Mine Methane, said the report was Department of Science, ApGenco and seven coal-bed methane (CBM) blocks in particularly geared toward countries like BHEL. India for exploration in 2009, and China and India, where coal mining is BS, April 7, 2010 subsequently faced the possibility of growing and accidents are far more rejection – the law ministry has told the GTL/CTL common. At least 25 miners were killed government that it can accept fresh in the mine blast, the country’s worst information from the bidder. Deep CH4 since 1984. Four other miners were still had earlier complained that it was being CTL conference missing on April 7. denied an extra opportunity to prove its Limpopo premier, Cassel Mathale, will CLIMATEWIRE, April 8, 2010 credentials before the final award of lead a provincial delegation to participate Essar CBM Pipeline blocks. in the 2010 World Coal-to-Liquids BT, April 1, 2010 Congress in Beijing, where experts and Essar Oil plans to lay a 160 km pipeline investors will share experiences and from Durgapur to Kolkata to transport BHEL ready to expertise in the development of coal-to- gas from its CBM blocks to consumers in launch work on ICG liquid technology. “Our new Limpopo West Bengal. The company is likely to Employment Growth and Development start producing gas found below coal plant Plan identifies the need for downstream seams, called coal-bed methane (CBM), Work on India’s first and biggest beneficiation of coal and diversification,” from its Raniganj block in West Bengal Integrated Coal Gasification Combined said Mathale. this quarter. The initial output is likely to Cycle (ICGCC) power plant is likely to BN, April 12, 2010 Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 21. Unconventional OGM 12 April 2010, Week 01 Back Page NEWSBASE INFORMATION HEADLINES FROM A SELECTION OF NEWSBASE MONITORS THIS WEEK CUSTOMERS INCLUDE Oil and Gas Sector AfrOil Ghana has awarded the Offshore Accra block to a consortium led by Australia’s Tap Oil. AsianOil Petronas is to list two subsidiaries on the Malaysian stock exchange in 2010. ChinaOil CNOOC’s net profit fell by 34% year-on-year to US$4.3 billion in 2009, EurOil Total has been awarded the Montelimar shale gas permit in the south of France for a period of five years. FSU OGM Rosneft's Vankorskoye is on track to reach output of 510,000 bpd in 2014. GLNG The Golden Pass LNG terminal expects its first LNG shipment to arrive in the fourth quarter of 2010. MEOG BP has awarded contracts worth US$500 million for drilling work on Iraq's Rumaila oilfield. NorthAmOil The world's deepest facility, Perdido in the Gulf of Mexico, has started producing. For further details on the stories above and NewsBase’s entire product range: tel: +44 (0) 131 478 7000 e-mail: news@newsbase.com Copyright © 2010 NewsBase Ltd. www.newsbase.com