Category Archives: Off Shore Resources

Fire Ice–Biggest Source Of Natural Gas On The Planet


The US Geological Survey (USGS) cited estimates of the methane (CH4) trapped in global methane hydrate (aka methane clathrate, Fire Ice, etc.) deposits are 3600 times more than the 2016 US consumption of natural gas. The 2016 US   consumption of natural gas (natural gas is mostly methane), according to Donn Dears, was 27.5×10^12 cubic feet.

The estimate of trapped gas in the deposits ranges from 10^17 to 5×10^18 cubic feet*.  Those are estimates and further those estimates probably include some amount of methane hydrate that will never be economical to produce. Even so, oil reserves that were supposed to have peaked many years ago, keep growing because of new technology. eg. Fracking.  So, who knows?

*(For the non-engineer or scientist that might not know how much that is, it can be restated as 1 followed by 17 zeros to 5 followed by 18 zeros cubic feet of natural gas.)

Where are the hydrate deposits found?

Methane hydrate deposits are found (or predicted) to be associated with continental margins and onshore permafrost areas. The chart below global areas where deposits are to be found.


First, let’s discuss where the methane originates. Methane is largely produced by micro-organisms that act on the plankton that has accumulated deep in the ocean floor sediments.  In the upper layers of the sediment where the temperature and pressure are suitable, the rising CH4 bubbles are captured in very cold water and the hydrate is formed. While methane produced biogenically is considered the most widespread source, there is another source.  Thermogenic methane is produced where high pressures and high temperatures cook organic matter.

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Dependance On Petroleum?—More Than Just Use As A Fuel


How much do you depend on petroleum-based products?   A few of the non-fuel uses are previewed in the following video:

 


<p><a href=”https://vimeo.com/31586887″>Hydrocarbon Man</a> from <a href=”https://vimeo.com/user8463025″>Robert E. Bailey</a> on <a href=”https://vimeo.com”>Vimeo</a&gt;.</p>

 

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Mr President, You Owe American An Apology.


Rebloging a posting from Oilpro.com titled “Mr. President, you owe America an apology. We did drill our way to $2 gas.”  

The President has done about everything imaginable to make the price we pay for energy skyrocket. He has prevented drilling for oil on Federal lands but he obama-rising-gas-prices-cartoon-four-more-yearscould not do anything about State and private land. It is disgraceful that the media lets him get away with his retrospective claims that the lower prices were his doing. He even claimed he had approved oil being pipelined from Canada.

Anyway, Marita Noon tells of the misinformation that the President feeds to low information crowd.

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‘’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’

MY PRESIDENT YOU OWE AMERICAN AN APOLOGY. WE DID DRILL OUR WAY TO $2.00 GAS.

“We can’t just drill our way to lower gas prices,” President Obama told an audience four years ago at the University of Miami. Like this year, it was an election year and Obama was running for re-election. Later in his speech, he added: “anybody who tells you that we can drill our way out of this problem doesn’t know what they’re talking about, or just isn’t telling you the truth.” He scoffed at the Republicans for believing that drilling would result in $2 gasoline—remember this was when prices at the pump, in many places, spiked to more than $4 a gallon: “You can bet that since it is an election year, they’re already dusting off their three-point plans for $2 gas. I’ll save you the suspense: Step one is drill, step two is drill, step three is drill.”

Well, Mr. President, you owe America, and the Republicans, an apology. Your snarky comments were wrong. The Republican’s supposed three-point plan, which you mocked, was correct.

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New Oil And Gas Find In The Mediterranean.


A large field (named Zohr) containing up to 30 trillion cubic feet of natural gas has been discovered off the coast of Egypt. The Italian oil group Eni, owner of rig_3424204bthis field, says it is almost 5000 feet below the water surface and covers an area of about 40 square miles. Eni proposes that it be piped into Egypt for use.

The Telegraph.co.uk posting titled ‘Supergiant’ gas field discovered in Mediterranean” says:

“Egypt consumed 1.7 trillion cubic feet of natural gas last year, according to BP’s most recent Statistical Review of World Energy. At the same rate of consumption, the Zohr discovery could supply the country for almost two decades.

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“Drill Baby Drill”.   Does The President Think We Don’t Remember What He Said?


oil-fuel-of-the-pastPresident Obama has made it nearly impossible to access off-shore and Federal Lands for oil and natural gas development. See here and here. He campaigned in 2012 (He always is campaigning— he is much better at that than governing) saying that “Drill Baby Drill” was an empty slogan which would have no effect on crude oil prices. See the following Fox News report:

Back when gas topped $4 a gallon, Republicans chanted “drill, baby, drill” at rallies across the country — arguing more domestic drilling would increase supplies, reduce dependence on foreign oil and boost the U.S. economy.

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Will The OPEC Cartel Break Up?


Because the OPEC cartel provides about 40% of the world’s crude oil, it has been able to control the crude oil price.  Its members meet and set the amount of crude they will produce for sale opposite the forecast world demand.  They can reduce or increase production to raise or lower prices. Other major crude producers outside of OPEC have been able to sell all their crude oil but acting independently are unable to displace OPEC’s role as the selling price arbiter.   As you would expect, OPEC wants the price to be high but recognizes that if they set it too high, demand will drop and competitors will be encouraged to prospect for more crude.   Within OPEC, the members have their own issues that make setting the production levels and thus the price, not easy.  However, Saudi Arabia, currently the world’s largest producer of  crude oil,  is said to be the primary voice in this process.  When the OPEC members meet, as they did on May 31st, to set the production level/price, one big factor was how much of their government’s budget is derived from the oil revenues.  And what is the price of crude oil that makes that budget whole? The graph below, from the American Interest’s posting “OPEC Sweats: How Low Can Oil Prices Go?illustrates the price needed to balance their government’s budget:

2013_fiscal_breakeven_point-e1370293236725

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Why Has The Price Of Gasoline Gone Up.


The US Department of Energy’s Energy Information Agency (EIA) says that the recent rise in gasoline prices was due in part to an increase in the cost of crude oil and the “crack price spread”. The average U.S. retail price for regular motor gasoline is up about 45 cents per gallon since the start of 2013, reaching $3.75 per gallon on February 18.  Crack price spread is defined as: “Crack spreads are differences between wholesale petroleum product prices and crude oil prices. These spreads are often used to estimate refining margins. Crack spreads are a simple measure based on one or two products produced in a refinery (usually gasoline and distillate fuel). They do not take into consideration all refinery product revenues and exclude refining costs other than the cost of crude oil.”

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