Tag Archives: shale oil

National Energy Board approves four more LNG licenses in British Columbia – no time to waste

Four more proposed liquefied natural gas (“LNG”) projects in British Columbia have received approvals for export licences from the National Energy Board, bringing the total number of licenced projects to seven. Three of the four projects have major backers and include These four projects include: BG Group’s Prince Rupert LNG Exports Ltd., the Petronas-led Pacific NorthWest LNG Ltd. and Exxon Mobil Corp.’s West Coast Canada LNG Ltd. The fourth project is a smaller venture called Woodfibre LNG Export, planned for the Squamish area north of Vancouver. The NEB is reportedly reviewing an additional four applications on top of these seven granted licences.

None of the approved projects, however, are in the terminal construction stage because the proponents say they first need to learn details of the B.C. government’s plans for taxation of the LNG industry and internal assessments still must be conducted on the economics of proceeding.

Apparently none of the approved projects are in the construction stage. One of the reasons construction has not started is that the various proponents need to understand the BC governments taxation plans for the LNG industry. With the NEB doing their part the BC government can ill afford to delay the process as perhaps the entire Canadian natural gas industry is in jeopardy.

Just the day before the NEB announced their license approvals, the Energy Information Administration released their Annual Energy Outlook that forecasts the frack induced boom in natural gas and oil production will continue through to 2040. Natural gas production is forecast to rise a staggering 56% from 2012 to 2040 and will reach 37.6 trillion cubic feet (Tcf) and the report also predicts that the U.S. surpass Saudi Arabia as the world’s biggest oil-producer in 2015. Truly an amazing turn of events. So it is quite clear that the U.S. will not be needing Canadian natural gas any time soon, and Canada better move fast to save the Canadian natural gas industry.

If Canadians want to retain the billions of dollars generated and the thousand of jobs created by the Canadian natural gas industry, it is absolutely imperative that the pipelines to carry gas to the BC coast, and LNG facilities to process it for export must be approved and built as soon as possible. There is no time to waste. The U.S. once our largest customer is now our largest competitor and will not revert back to being a customer till at sometime after 2040. By 2040, a robust global LNG distribution network will be in place making LNG distribution worldwide efficient and cost effective. In order for Canada to compete effectively it is apparent a domestic distribution system that plugs into the global network must be in place.

While Ottawa reviews the licenses, BC debates tax schemes, and Canadians debate about pipelines and LNG distribution systems, other countries around the world are building out their distribution facilities and moving forward in being first to market, and first to service the energy hungry markets in Asia. The opportunity is there for Canada to seize but there is no time to waste.

Update: Today, the Northern Gateway Pipeline review will be released.

Read more @ The Globe & Mail: NEB Approves four more LNG license in BC, but await Ottawa’s blessing

Prudent Development of North America’s Abundent Natural Gas and Oil Resources

HRN supports the exploration and development of shale gas throughout North America and the world. Today’s technology makes the frac process both effecient and environmentally safe. And the technology continues to improve.

This is a report published by the National Petroleum Council on the prudent development of North America’s abundant natural gas and oil reserves. The key word here is “abundant”.North America can make effecient use of domestic resources to create a more self suffecient energy supply that creates jobs and provides increased economic benefits in North America.

National Petroleum Council slide presentation: “Prudent Development”.

 

Shale gas technology continues to evolve and bring down costs

Technology for unlocking natural gas and oil from tight shale rock formmation continues to evolve and bring down the costs of shale exploration and development. Lower costs make shale development more competitive and more economic to explore further.

Graphical representation of Packers Plus' StackFRAC system

Graphical representation of Packers Plus' StackFRAC system

To meet demand  for more stimulation stages in horizontal wells, Packers Plus launched its new 20 stage StackFRAC(R) HD “High Density” Multi-Stage Fracturing System. The system allows for “increased production through longer laterals and shorter stage lengths; costs are further reduced by smaller frac strings and liner sizes.”

Where only two years ago, major companies exploring shale gas used a price of $6 to $8 for shale  gas wells to break-even. The break-even point for most companies is now below $4, and expected to fall further making shale gas (and oil) a very attractive investment proposition for exploration and development companies. Any increase in current prices for natural gas would lead to a profit win fall. It is one of many reasons why companies are investing millions of dollars into shale gas areas like BC’s Horn River basin.

The average conventional gas well in Western Canada produces about 250,000 cubic feet of gas a day. Major producers like EnCana Corp. and Exxon Mobil are reporting initial results from their Horn River wells that use multistage technology are coming on at initial rates of 11, 18 and 20  million cubic feet per day. In addition, shale gas wells are usually lower pressure, and longer life as compared to conventional wells. With upfront costs coming down with technology innovations like Packer Plus’ StackFRAC system, the economics will continue to attract investment capital to shale gas, and the Horn River basin.

Bill Gwozd, a gas supply analyst for Ziff Energy in Calgary is quoted:

“If you can get more bang per well, it becomes more efficient to exploit and root out the basin. We’re bullish, but some producers are even more bullish than that.”

PR Newswire: Packers Plus launches new 20 stage completion system

* Recommended reading – Calgary Herald: Packers Plus leads drilling revolution