Electric utilities note that power generated from natural gas is inexpensive, reliable, and clean. By the way, natural gas supplies are almost unlimited. Ready to learn more about clean electricity production?

Due to the shift largely from coal to natural gas, carbon emissions from electricity production in the United States have dropped dramatically and are now at mid-1980’s levels.

Electricity production from coal has dropped from nearly 50 percent of the total seven years ago to under 20 percent today, while electricity from gas has risen from about 20 percent seven years ago to 35 percent now, according to the Energy Information Administration.

An abundance of inexpensive American gas is transforming global energy markets, providing important geopolitical gains from the export of liquefied natural gas. In the battle to weaken Russia’s economic grip on Europe, we’ve turned to the commercial world’s most basic weapons — competition. Increasing the export of LNG has given Europe an alternative source of natural gas.

What really brings home the new reality is a milestone reached last year, when America eclipsed Russia as the world’s top producer of natural gas. This adds up to a very different outlook than the one 15 years ago when the U.S. was heavily dependent on imported natural gas.

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Source: Thehill.com

There is a risk of drilling through prior underground industrial work. Potentially inadequately documented, new drilling must be all the more cautious. This is as the Marcellus and Utica Shale extraction continues to boom. It is mostly in the eastern and southeastern counties of Ohio. Read more about the extraction process details.

Drilling superintendent at an Ascent pad in Richland Township lights up. It is when asked what measures are now taken to safely get in the ground. Thousands of feet below the surface, and extract natural gas while protecting local drinking water tables.

“Everything we do is documented, we GPS-track every movement of our drill through the earth, and every layer we drill is cemented until well below the water table,” said McGee. “Everything we’re putting in the ground (when drilling) comes from Mother Nature, the bentonite and barite — are just finely ground rocks, the diesel comes from the ground, the water we use is cleaner than drinking water”. According to James McGee

Oil and gas drilling began in Ohio in the early 1800s, hydraulic fracturing (also known as fracking) was then first used in the mid-1800s to source water and by the 1950s began being used to extract natural gas.

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Source: Newsandsentinel.com

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Extra Oil Pipelines

U.S. shale play will need extra oil pipelines pipeline capacity up to 500,000 bpd by the end of 2030 to ship soaring crude output to markets, Wood Mackenzie said in new research this week.

Midstream operators are set to add 4 million bpd of Permian-to-Gulf Coast pipeline capacity by the end of 2022.

By the mid-2030s, Permian-to-Gulf Coast pipeline utilisation will surpass 92% in the absence of further investment, necessitating pipeline expansions or greenfield capacity,” said John Coleman, principal analyst, North America crude markets at WoodMac.

The Permian Basin, located in West Texas and Southeastern New Mexico, has emerged as one of the most prolific oil and gas regions in the United States. With its vast reserves and favorable geology, production in the Permian has skyrocketed in recent years, surpassing pipeline capacity. This has led to a significant challenge in transporting the produced oil from the region to the market, causing a strain on the Midland oil prices compared to other U.S. benchmarks.

A Blessing And A Curse

The rapid growth of production in the Permian Basin has been both a blessing and a curse. On one hand, it has brought about a surge in job opportunities and economic prosperity in the region. However, the existing pipeline infrastructure has struggled to keep up with this exponential growth, leading to a bottleneck in takeaway capacity. As a result, the surplus of oil has driven down prices in the Midland area, which has had a negative impact on the profitability of producers operating in the region.

This issue of production outpacing pipeline capacity has highlighted the need for significant investments in new infrastructure to alleviate the strain on the Permian Basin. Several pipeline projects are currently underway to address this challenge and increase the region’s takeaway capacity. Once completed, these pipelines will enable more efficient transportation of the produced oil to refineries and export terminals, ultimately reducing the price differential between Midland and other U.S. benchmarks.

In conclusion, the Permian Basin’s rapid production growth has outpaced the existing pipeline capacity, resulting in a significant impact on the Midland oil prices. However, with ongoing efforts to expand the region’s takeaway infrastructure, it is expected that the price differentials will eventually narrow, benefiting both producers and consumers alike. The Permian Basin continues to be a key player in the U.S. energy sector, and as investments in infrastructure continue, its potential for further growth and development remains promising.

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Source: oilprice.com

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Oil prices inched higher Tuesday, rising on OPEC’s newly extended production cuts and tensions with Iran, but still under pressure from demand concerns tied to slowing global growth and the trade dispute between the U.S. and China.

“A decade ago, or even a few years ago, oil prices would probably be a lot higher,” even with these same concerns, Harder said. “But because of this slowing economic growth and, of course, the boom in American oil production over the last decade, we’re seeing prices more tempered despite the fact that there’s all this unrest and uncertainty going on.”

Harder spoke shortly after the U.S. Energy Information Administration, a statistics-focused offshoot of the Department of Energy, released its short-term energy outlook. The report showed U.S. oil production booming, particularly in the oil-rich area of western Texas known as the Permian Basin.

“That report … finds that [U.S.] oil production is continuing to break records,” Harder said. The agency estimated that U.S. production totaled 11 million barrels per day in 2018, an all-time high for production and year-over-year growth.

“It should be 13 million barrels a day in the next year, and that’s more than double what it was just a decade ago,” she said. “That’s significant.”

The U.S. is also boosting its standing in the petroleum market, becoming a net exporter of petroleum-based products rather than an importer, based on the EIA report.

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Source: CNBC.com

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Natural gas price prediction whipsawed first moving higher and then reversing course closing down 1.7% on the trading session.

Natural gas prices whipsawed moving lower after hitting a fresh 5-week high. Support is seen near a trend line break out experienced at the tail end of last week near 2.34. Resistance on natural gas prices is seen near the July highs at 2.47.

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Source: FXempire.com

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