Tag Archives: Fracking

Joe Biden’s insane war on oil | Instant News


Joe Biden wants to take one of America’s great success stories of recent decades – and push it to the surface.

He will turn away from the immense wealth represented by the country’s proven oil and gas reserves.

Rather than focusing on producing cheap and abundant energy – the essential ingredient for human progress through all of human history – he will start that fool’s errand trying to adjust the world’s thermostat 80 years from now.

After 50 years of efforts to reduce our dependence on Middle Eastern oil, which miraculously happened in the end, Biden will force America to turn to solar and wind power, industries that currently depend on China’s supply chain.

While California has embraced the radical goal of a carbon-free grid by 2045, and has drastically increased energy prices in the state, Biden has seen and stepped up Golden State’s move by embracing the 2035 goal.

All of this was confirmed by Biden’s statement at the end of the debate last week he wanted to move away from oil, Which is a mistake only for anyone who has not paid attention to the energy plans influenced by the Green New Deal.

It’s a funny time wanting oil and gas kneecaps. Proven natural gas reserves in the United States are higher than ever, thanks to American-made technological innovations. Several years ago, the United States surpassed Russia and Saudi Arabia in crude oil production. In recent years, exports of petroleum and natural gas have increased. And, of course, the increase in natural gas has reduced US carbon emissions.

It must be considered a national power to be built, not a national disgrace to be placed on a sliding path to extinction. Fossil fuels are a very useful source of energy, and no hype about renewable energy can obscure that fact.

In 2019, petroleum, natural gas, and coal accounted for 80 percent of overall energy consumption in the United States, according to the US Energy Information Administration. Renewable energy only reaches 11 percent, and most of it comes from biomass (wood and biofuel) and hydroelectric power. Despite being heavily subsidized, the combination of wind and solar is only responsible for about a third of our renewable energy.

As Danish economist Bjorn Lomberg pointed out, the share of US energy coming from renewables has decreased over the past century. The emergence of fossil fuels is a boon to mankind, a great advance on renewable energy, wood and dung.

“Over a century and a half,” wrote Lomberg, “we gave up our dependence on renewable energy and supported the Industrial Revolution with fossil fuels.”

The oil and gas industry should also be valued as a source of good American jobs. Petroleum engineers make about $ 137,000 a year, pump systems and refining operators, $ 72,000 a year, wellhead pumps, $ 58,000, and a $ 44,000 roustabout, according to the Bureau of Labor Statistics.

The idea that we will aim for transition to wind and the painless sun is fantasy. Germany has spent tens of billions a year making this happen. Its renewable energy program has doubled energy costs, while fossil fuels still account for about 80 percent of its energy supply.

If we think avoiding fossil fuels will convince other countries to do the same, we are fooling ourselves. As in the United States, China’s industrial take-off has coincided with a boom in coal use. China is still building coal-fired power plants very quickly. The Middle Kingdom has plans to add more than current US coal-fired capacity in addition to the tremendous use of coal, which accounts for more than half of the world’s total.

Biden’s plan is an attack on American ingenuity and wealth, not to mention common sense. At least after last week, no one could say he wasn’t warned.

Twitter: @RichLowry

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Deutsche Bank Germany will not support oiland or new coal projects | Instant News


Frankfurt-based Deutsche Bank joined a long list of European lenders and insurance companies who said they would not support the new oiland project.

The German bank said the new fossil fuel policy would also prohibit investment in projects that use hydraulic fractures or fracking in countries with scarce water supplies and all new oil and gas projects in the Arctic region.

Read more:

The share of foreign production in oiland Alberta fell from 33% to 16%, the analysis shows

It said the ban on oiland financing, effective immediately, would include exploration, production, transportation or processing, which appeared to include oiland pipelines and upgraders or refineries.

He said he would stop financing and capital market transactions involving coal mining no later than 2025 after achieving last year’s goal of reducing its loan exposure to coal-fired power plants by 20 percent. It said it would not finance new coal power plants.

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Read more:

Germany will spend billions to speed up the closure of coal-fired power plants

Deutsche Bank said the move was part of a commitment to harmonize its credit portfolio with the aim of reducing greenhouse gases from the Paris Agreement.

Two years ago, Europe’s largest bank, HSBC Holdings plc, announced it would no longer offer financial services for new oil or pipeline projects, a move that led to the producer of Suncor Energy Inc. vowed to end all business with HSBC, including in its conventional oil. operations in Europe.

© 2020 The Canadian Press

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Environmentalists worry Colorado will see a surge in oil and gas wells left as industrial tanks – Colorado Sun | Instant News


When the oil market and economic craters are hampered by a new coronavirus pandemic, environmental groups and grassroots are worried about a potential surge in abandoned oil and gas wells, but state regulators state that risks appear to be limited.

The Colorado Oil and Gas Conservation Commission held a meeting Monday to review the status of oil and gas operations in Colorado and regulatory oversight of these activities.

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“I want to dispel the myth that operations are not safe during the economic crisis,” said COGCC Executive Director, Jeff Robbins.

However, groups such as Conservation Colorado and the League of Oil Impacted Coloradans say the country will be poorly prepared – logistically or financially – to deal with the rise in abandoned wells.

“The Commission does not have sufficient insight into the financial health of operators in the state, and reports and submissions submitted by operators are not enough to provide a clear picture of environmental risks and public safety that are becoming market turmoil for the people of Colorado,” Andrew Forkes-Gudmundson, LOGIC deputy director, said in an email.

Of course there has been market volatility when oil prices, first hit in a price war between the main producers of Saudi Arabia and Russia and then burdened by economic recession caused by a pandemic, have plummeted.

Spot prices for West Texas Intermediate crude, the US benchmark, fell from a high of $ 60.05 a barrel at the end of 2019 to a low of $ 16 a barrel in April. It closed Monday at $ 24.65 a barrel. Colorado oil prices, due to limited transportation, are slightly lower.

This has led to widespread investment cuts by operators and bankruptcy concerns. The first company to file for bankruptcy reorganization was Whiting Petroleum Corp. based in Denver on April 1.

MORE: The Colorado oil and gas drilling hedge will make money flow – for now – because prices have plummeted

Howard Boignon, COGCC deputy chairman and an oil and gas lawyer, said industry sources said the glut of oil had made it difficult to find takers for their production and that had caused the company to not complete the well and close the newly drilled.

The number of drilling rigs operating in the state has dropped to four on May 4 from 22 at the end of 2019, according to the COGCC.

Notice for drilling new wells or hydrofracture wells, to release oil and gas from shale rocks, cut in half between March and April to a little more than 50 for each. In April 2019, there were 160 notices to be drilled and 186 notices.

The number of temporary wells abandoned was also 2,049 in April, an increase of 37% from April 2019.

But the decline in drilling actually poses less risk to public health and safety, the state regulator told the commission.

“Spills originate from flow lines and tanks,” said Mike Leonard, commission field operations manager. “If there are no products or less products moving through them there is less risk.”

Robbins said that despite the limitations created by the pandemic, commission staff continued to inspect the well.

Inspectors conducted 4,193 well checks in April and 4,685 inspections in March – up 45% from inspections in March and April 2019.

“There is nothing less noticeable today than the strict surveillance that took place before this pandemic,” Dan Haley, president of the Colorado Oil and Gas Association, a trade group, wrote in a statement to The Sun. “The industry adheres to these controls while taking appropriate safety precautions in the field to prevent coronavirus infections.”

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Leonard also made a difference between the various ways the operator stopped production. The well can be closed, which basically means shutting down the valve and leaving everything in place so that it can be quickly put back into production.

The operator temporarily leaves the well by removing the main equipment, making the well unable to produce. The well can also be drilled but not cracked, leaving it a hole in the ground.

For example, Extraction Oil and Gas Inc., one of the most active drillers on the Front Range, said in an earnings call with analysts Monday that they released a drilling and fracking crew and did not drill wells again until prices improved. The company also made a closure plan aimed at closing the most unproductive wells.

The wells that are the biggest concern for environmental groups and the community are wells that are completely abandoned. Most of these wells are plugged in, according to COGCC specifications, by operators who no longer use them.

The number of blockage operations in Colorado in March and April fell by around 18% to 485 compared to the same period in 2019.

Leonard said most of the blockage operations were focused on old vertical wells in areas where new horizontal flake wells were drilled. When new drilling fell, so did the clogging activity, he said.

One operator also turned off the plugging crew because its members tested positive for COVID-19, a disease caused by coronavirus, he said.

An even greater concern from environmental activists and community advocates is that wells can be left unplugged and abandoned, or orphaned, if the operator goes bankrupt or leaves the country.

There is 275 orphan wells and 422 related orphan well sites in the state and there is an annual budget of $ 5 million to deal with these sites, according to the COGCC annual orphan well report. The average cost to install a well is $ 82,500.

Even with next year’s budget reduction for this program, as part of efforts to reduce the country’s budget deficit, there will still be around $ 5 million to spend as a result of money rolling in from previous years, the COGCC said.

MORE: Colorado is the only state without funds for rainy days. Now coronavirus means paying the price.

Conservation Colorado, in a letter to the commission, noted that the US Energy Information Administration projects that 2020 will experience the largest year-on-year decline in global oil consumption since 1990. “This event will cause a wave of oil bankruptcy in America. the coming months, “the group warned.

Commission staff acknowledged that he did not have the capacity to monitor and identify operators who might be at risk. By the end of 2019 there were 42,153 active wells operating in Colorado and 421 operators – but only 40 drillers controlled 90% of the wells, Robbins said.

“COGCC does not have access to operator confidential financial information or fiduciary expertise needed to determine whether a solvent operator is bankrupt,” the staff said in the white paper.

Robbins said the commission depended on monthly production reports submitted by each operator to assess the status of their operations. The COGCC also tracks bankruptcy filings and press reports.

“COGCC is wise to re-examine the urgent problem of orphan wells in our country, the problem of millions of dollars that can only grow due to external economic pressures and poor financial and oil industry financial decisions before this public health crisis,” Kelly Nordini, executive director of Conservation Colorado, said in a statement. “Major polluters must be held accountable for the full costs of the impact of their business without leaving Coloradans.”

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