Exploring Hydrocarbon Depletion
coffeeguyzz wrote:The spot price at the Algonquin citygate and, I believe, Tetco M6 NY could skyrocket if there is an extended cold snap. Next winter may be worse as there will be fewer coal burners available for backup.
The $972 million AIM project will bring additional natural gas from the Appalachian Basin into New England. The project is the largest pipeline project since 2007 to transport natural gas into New England from outside the region. The pipeline will provide an additional 342 million cubic feet per day (MMcf/d) of pipeline capacity to the New England market.
The $63 million Salem Lateral Project will provide capacity for the Salem Harbor Power Plant, a converted coal-to-gas electric power plant due to be in service in June 2017. Once completed, the 674 megawatt power plant will use up to 115 MMcf/d of natural gas to generate electricity for New England consumers.
ROCKMAN wrote:Goner - "...when it takes years to implement changes...". Actually in the case of LNG exports: possibly decades. LNG sales contracts lock in for 20 years often with an addfitional 10 year option tacked on. IOW if US LNG sellers lock in a lot of foreign contract sales in the next few years all that NG will leave the US market place regardless of domestic demand. Even if domestic NG prices triple our consumers wouldn't even be able to outbid those foreign buyers because the contract price is usually benchmarked to Henry Hub prices.
IOW our consumers will be denied access to ever Btu of LNG exports contracted over the next few years for decades into the future. Same situation with long term contracts currently being signed with pipeline exports to Mexico's PEMEX. Consumer aren't complaining today. But wait until 2027 when folks up north can't heat their homes during an Arctic vortex or manufactures have to shut down for while. Which is what happened a couple of decades ago up north. And we don't have to look that far back. From just last summer:
"California regulators and utility executives are staring down a natural-gas shortage in the Los Angeles area that could trigger up to two weeks of electrical blackouts this summer. The state’s electric grid operator warned Friday that it may call for emergency reductions in electricity use on Monday and Tuesday, when a heat wave in Southern California is expected to push up demand for air conditioning. Without conservation, officials fear power plants could run out of fuel and trigger rolling blackouts."
Anadarko “has been among the most aggressive in selling noncore assets, which will likely continue in 2017 as well, with its Eagle Ford assets in the queue,” Mr. Tameron said.
coffeeguyzz wrote:This successful areal expansion of the Utica is one of the more unheralded stories in this Shale World today, IMHO.
AdamB wrote:coffeeguyzz wrote:This successful areal expansion of the Utica is one of the more unheralded stories in this Shale World today, IMHO.
Shell was discussing their success in the Utica in NE Pennsylvania at the national AAPG conference, in 2015 I believe. They made the statement during their presentation session that the main gas play in the Appalachian basin will, ultimately, not be the Marcellus.
This seemed to be backed up the local experts right about the time Shell was discussing this.
http://wvutoday.wvu.edu/n/2015/07/14/ut ... -wvu-study
coffeeguyzz wrote:The past several months have seen numerous Marcellus wells come online flowing 15/20/25 MMcfd for a few months, but nothing can compare with the few successful Deep Utica wells in SWPA.
The casing pressure on some have approached or exceeded 10,000 psi.
coffeeguyzz wrote:Only a few, the Scotts Run being most noteworthy, have maintained long-term (10 month +/-) high flow rate, but the production is extremely high.
The SR flowed 29 MMcfd for 9 months, has cumulative over 11 Bcf in 15 months online, all with a lateral 3,200' long.
This calendar year, both the Deep Utica potential and the Upper Devonian formations will have several wells drilled and should provide more clarity on future prospects.
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