OPEC's Sept. 28 announcement that its members had reached an agreement to cut crude oil production by up to 700,000 barrels a day pushed oil prices up more than 8 percent.
Crude oil traders should enjoy the price surge while it lasts, because it won't last long. OPEC's ability to control production, and therefore world crude oil prices, was eliminated by the U.S. shale energy revolution.Read More Share
A recent poll found that public support of fracking has declined to 36 percent, down from 40 percent a year ago. Presidential candidates have debated whether or not fracking should be banned.
This makes fracking sound like it is an option, that fracking technology could be banned and we could still enjoy abundant and secure energy at affordable prices.Read More Share
Almost daily, we read headlines that say renewables are on track to replace fossil fuels and move the world toward a low-carbon future. Such platitudes appear to give credibility to the notion that the best days of the oil and gas industry are behind us. But those assertions are unrealistic.Read More Share
While the U.S. is a net exporter of petroleum products, it is still a net importer of crude oil, resulting in a petroleum trade deficit, the gap between the value of petroleum imports and exports. That gap fell to its lowest value in April, the lowest trade deficit since 1999, at seasonally adjusted $3.13 billion in April, according to the Census Bureau and reported by Bloomberg.
Three factors are responsible for the declining petroleum trade deficit. First, the shale energy revolution resulting from fracking combined with horizontal drilling doubled U.S. production of crude oil, catapulting it to being one of the top three crude oil producers in the world. Second, Congress approved a bill sponsored by Texas Congressman Joe Barton that lifted the 40-year old ban on crude exports, pushing up exports of crude oil and petroleum to $7.19 billion in April. Third, cheap American crude oil and natural gas helped U.S. refiners ramp up exports of gasoline and other refined products, cutting into the petroleum deficit and turning the U.S into the world’s biggest exporter of crude oil and petroleum products.
Thanks to the shrinking petroleum trade deficit as a result of fracking, the U.S. trade deficit declined to $531.5 billion in 2015 from the record $762 billion trade deficit in 2006. A lower deficit means overall exports are gaining on imports. That's good for the energy industry and all U.S. businesses that will create more U.S. jobs.Share
June 14, 2016
An Open Letter to Mayor Mike Rawlings and Members of the Dallas City Council
We represent the Texas Independent Producers & Royalty Owners Association (TIPRO), the Texas Alliance of Energy Producers (The Alliance), the Texas Oil & Gas Association, and the Barnett Shale Energy Education Council. Our organizations include large and small members of the Texas oil and natural gas industry, as well as large and small mineral estates and trusts. We also serve as resources about oil and natural gas development in the Barnett Shale region of North Texas and all across the state.Read More Share
Dallas Ozone Resolution Based on Dubious Anti-Drilling Assumptions
On June 15 the Dallas City Council will consider a resolution that recommends major changes to the yet to be finalized Texas State Implementation Plan (SIP) for reducing ozone, specifically the non-compliance region that includes 10 counties in the Dallas-Fort Worth area. Unfortunately, the City is being used as a pawn by environmental groups whose primary goal is not to promote clean air, but to encourage more federal control and reject state authority.Read More Share
The Energy Information Administration projects that shale natural gas and oil tight oil production will more than double by 2040. In the recently released “Reference Case,” the Annual Energy Outlook 2016, projects that production from shale gas and tight oil plays will grow from about 14 trillion cubic feet (Tcf) in 2015 to 29 Tcf in 2040. Shale wells would then make up 69% of the 2040 total dry natural gas production compared to 51% currently.
Demand for natural gas is expected to push natural gas prices up with natural gas spot prices at the Henry Hub rise to about $5 per million British thermal units (MMBtu) through the mid-2020s from an average of $2.62/MMBtu in 2015, then remain near or below $5/MMBtu (in 2015 dollars) through 2040. Demand will be driven by a shift away from coal in the industrial and utility sectors plus increases in exports of LNG (liquefied natural gas).
Improvements in fracking technology will help production keep pace with demand (both domestic consumption and exports), resulting in relatively stable natural gas prices throughout the projection period, according to the EIA report.Share
The United States is in the midst of an energy revolution. Once considered to have dwindling energy resources and a dangerous reliance on foreign imports, the United States now has the distinction of being the largest combined oil and natural gas producing country in the world. Few experts saw this transformation coming, and it was made possible by the use of hydraulic fracturing (fracking) and horizontal drilling, which allowed oil and natural gas to be unlocked from tight rock (shale) formations. This revolution first began in North Texas 35 years ago, with the Barnett Shale being the birthplace of modern-day fracking. This report examines the history of the Barnett Shale, the role it has played in changing global energy dynamics, and the economic benefits it continues to provide to the Dallas-Fort Worth region.
Read the entire report here.
A recent report from WFAA attempted to blame a water problem in a southern Wise County subdivision on Barnett Shale natural gas wells without any evidence whatsoever. The reporter, Brett Shipp, interviewed residents of Chisholm Springs who complained of a rotten egg smell and skin rashes.Read More Share