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Saudi Aramco launches largest shale gas development outside US

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Saudi Aramco is launching the biggest shale gas development outside of the United States to boost domestic gas supply and end the burning of oil at its power generation plants, Chief Executive Officer Amin Nasser told Reuters on Monday.

The world’s top crude oil exporter has for years battled for market share with rapidly expanding shale oil producers in the United States, which in just a decade have developed capacity to pump millions of barrels per day of oil from rock formations that were previously too costly to tap.

Saudi Arabia fought a price war aimed at putting the U.S. shale industry out of business just six years ago, which ultimately failed. Now, the country has adopted the techniques developed in U.S. fields – which started with gas – for the huge $110 billion Jafurah shale gas field project. Aramco said it received the go ahead for the project on Saturday.

If Aramco hits its targets for development of the field, Saudi Arabia would become the world’s third largest gas producer by 2030. The world’s top two gas producers are the United States and Russia.

Nasser said Aramco had developed fracking using seawater, which will remove the obstacle that a lack of water supply represents to fracking in the desert.

“A new shale revolution is taking place (in Saudi Arabia), it’s commercial and we are using seawater,” in the fracking process, Nasser said in an interview in Saudi Arabia’s oil-producing Eastern Province.

“A lot of people said it doesn’t work outside the U.S…. because fracking uses a lot of water and we are not rich with water. But we are using seawater.”

Aramco has drilled 150 wells since 2013 in the Jafurah shale gas field to prepare the development plan, he said.

The Saudi state oil group has worked with international oil service companies such as U.S.-based Schlumberger, Halliburton Co. and Baker Hughes Co. on the field and to develop the technology to fracture the rock and release the oil and gas it holds, a technology known as fracking. Those firms are active in U.S. shale fields.

Aramco will hold bidding rounds for work on the fields, and these and other firms are likely to be involved, Nasser said.

Outside the United States, oil firms have had limited success developing shale reserves for a variety of reasons- either due to lack of expertise, a scarcity of water or other resources, lack of infrastructure, or proximity to large population centers.

The Jufarah field is near the Gulf coast, so has relatively easy access to seawater, which will have to be lightly treated before using in fracking, Nasser said. It is also close to the world’s largest oilfield, Ghawar, so has easy access to existing energy infrastructure. Aramco has also identified local sand that can be used for fracking.

The process requires pumping water, sand and chemicals into the fields at high pressure.

“It is very economical, we were able to really cut the cost significantly to make it commercial,” Nasser said. “It is the biggest unconventional (development) outside North America.”

The new shale gas development would help the country to reduce burning an average of 800,000 barrels per day of crude and fuel for electricity, Nasser said. That would free up more crude for export if needed, he said, and reduce emissions.

The priority will be to supply domestic demand, Nasser said.

Saudi Arabia’s Crown Prince Mohammed bin Salman issued an order on Friday for Jafurah’s gas to be used primarily by domestic industries such as petrochemicals to support the kingdom’s Vision 2030 development plan, the prince’s economic reform strategy to diversify away from oil.

Listing Aramco last year was one of the pillars of the plan. The Saudi energy giant went public in December by floating a stake on the local stock exchange.

The development may also position Saudi Arabia as a gas exporter, Nasser said. The preference for exports would be through pipelines to nearby countries rather than developing costly liquefied natural gas export terminals, he added.

“The minute we satisfy the local requirement we will export,” he said.

Gas exports could help Saudi Arabia’s Gulf region allies to avoid dependency on Qatar for gas supply. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed political, trade and transport ties in 2017 with top gas exporter Qatar, accusing it of supporting terrorism, which Doha denies.

The UAE imports 2 billion cubic feet of natural gas per day from Qatar using the Dolphin pipeline.

Aramco plans to invest $110 billion to develop Jafurah and expects production to start in early 2024. Nasser said output would reach around 2.2 billion cubic feet per day of sales gas by 2036, with an associated 425 million cubic feet per day of ethane.

The field would produce some 550,000 barrels per day of gas liquids and condensates, he said, around 50% more than current output of just over 1 million bpd.

Gas reserves in Jafurah, the largest unconventional non-associated gas field in Saudi Arabia, are estimated at 200 trillion cubic feet of raw gas.

Nasser said the company has other similar projects under consideration.

“We just started on the non-conventional.”

reuters



44 Comments on "Saudi Aramco launches largest shale gas development outside US"

  1. Abraham van Helsing on Wed, 26th Feb 2020 2:07 am 

    “Saudi Aramco launches largest shale gas development outside US“

    “Peak oil supply”, priceless!

    They have an entire planet they can frack… and will, if they won’t be stopped.

    A likely Corona-induces global recessing, if not depression, will at least have a positive effect on the environment. The renewable share in Europe will skyrocket… with the existing fossil-renewable energy mix.

  2. Mick on Wed, 26th Feb 2020 4:04 pm 

    There main wells must be running low if there resorting to fracking it’s not making much money in the us so unlikely to be profitable there.

  3. Shortend on Wed, 26th Feb 2020 11:45 pm 

    Good, track away boys, keep kicking the BAU can down the road….

  4. Abraham van Helsing on Thu, 27th Feb 2020 1:42 am 

    Tesla has the best AND cheapest car batteries at a price of $158/kWh

    https://cleantechnica.com/2020/02/26/teslas-battery-costs-are-dropping-fast/

    Expect storage prices to further come down below $100/kWh by 2025.

    That would mean that a 40 kWh battery, sufficient to power a small car over 500-600 km would cost less than 4k.

  5. Sissyfuss on Thu, 27th Feb 2020 8:45 am 

    “That would free up more crude for export and reduce emmissions.” Does anyone else see the absurdity of this nonlogic?

  6. Kevin Cobley on Thu, 27th Feb 2020 7:36 pm 

    Ghawar is already the most fracked spot on earth, long before it started in the US.

  7. Duncan Idaho on Thu, 27th Feb 2020 7:57 pm 

    Vix
    39.16
    +11.60(+42.09%)

    LOL!

  8. Duncan Idaho on Thu, 27th Feb 2020 8:28 pm 

    182 of the new cases were in the southeastern city of Daegu, the location of a church at the centre of South Korea’s outbreak.

    Religion has several ways of killing you.

  9. makati1 on Thu, 27th Feb 2020 9:19 pm 

    WTI Crude 46.46 -0.63
    Brent Crude 51.01 -0.72

    The oily limbo bar is moving down. How low can it go? LMAO!

  10. Abraham van Helsing on Fri, 28th Feb 2020 2:02 am 

    New offshore wind initiative in the Netherlands, NothH2:

    https://www.dvhn.nl/groningen/Immens-windpark-op-Noordzee-en-grote-fabriek-in-Eemshaven-Groningen-waterstofpakhuis-van-Europa-25396409.html

    3-4 GW by 2030 and 10 GW by 2040
    0.8 million ton green hydrogen
    Partners: Groningen Seaports, Gasunie en Shell
    NortH2 wants to be major power supplier for Germany
    No electricity for grid, hydrogen only

  11. Abraham van Helsing on Fri, 28th Feb 2020 2:48 am 

    https://www.spiegel.de/wirtschaft/unternehmen/north2-wasserstofffabrik-in-den-niederlanden-unternehmen-planen-umweltfreundlichen-energiespeicher-a-adf7d8bd-a2a8-4237-b81c-f13092f08f06

    10 GW hydrogen would mean that for the Netherlands renewable storage problems would be largely solved. Distribution can and will be done via the existing natural gas grid, eliminating the need to expand the electricity grid. The Netherlands has the ambition to be the #1 renewable hydrogen producer by 2030:

    https://youtu.be/OEePUwO0ZK0

  12. REAL Green on Fri, 28th Feb 2020 6:12 am 

    “Australian grid struggles with renewables boom: report”
    https://tinyurl.com/uk6pzsf energy reporter

    “Australia’s independent Energy Security Board (ESB) has reported a “remarkable growth” in renewable energy, driven by cheaper equipment and government support with rooftop panels accounting for 5 per cent of production…Tasmania, which uses almost 100 per cent renewables, is followed by South Australia, with 53 per cent. More populous states recorded levels of 10-20 per cent although the share is increasing rapidly…The Australian Energy Market Operator had to intervene twice during 2019 to prevent major failures because of inappropriate frequency, voltage, inertia and system strength…Many solar and wind farms are having their output cut and some new projects have been forced to wait to get connected in the grid. “The grid is congested. It’s weighed down and it’s not coping with the rapid change that’s occurring across the energy system at the moment,” said Thornton. ESB chair Dr Kerry Schott said the surge in renewables posed a return threat to the grid and its ability to regulate supply. “The system wasn’t built for [renewable sources], but neither was anyone else’s system in the world and everyone is going through the same type of change,” she said.”

  13. world grater supremacist muzzies jerk on Fri, 28th Feb 2020 6:14 am 

    don’t worry supertards will deploy solid state transformrs which does load and supply management that can cope with intermittent natue of renewables and bidirectionalf flow

  14. Davy on Fri, 28th Feb 2020 6:15 am 

    “Schlumberger Chief: Crazy Shale Growth Is A Thing Of The Past”
    https://tinyurl.com/s4ufuu5 oil price

    “While shale production will continue to grow this year and in future years, the rate of growth will slow considerably, to 600,000 to 700,000 barrels per day this year, and even worse—to just 200,000 barrels per day in 2021, after which it will plateau, never to the previous rate of growth. Unless, of course, there are significant developments in new technologies that will allow E&P companies in the United States to lower their costs, Le Peuch said. This isn’t the first time that analysts and industry players have called the end to the rapid growth in US Shale that has forever changed the landscape of the global oil industry. And while most believe that US shale cannot possibly sustain the rapid rate of growth it has seen up until now, few agree on when, exactly, this rapid growth will slow to next to nothing.”

  15. REAL Green on Fri, 28th Feb 2020 6:49 am 

    “Wind has overtaken the top position for renewable generation in the U.S., EIA says”
    https://tinyurl.com/yx58skyf renewable energy world

    “Annual wind generation totaled 300 million MWh in 2019, exceeding hydroelectric generation by 26 million MWh. Wind generation has increased steadily during the past decade, in part, EIA says, because the production tax credit (PTC), which drove wind capacity additions, was extended…Another important point is that the average annual capacity factors for the hydroelectric fleet between 2009 and 2019 ranged from 35% to 43%. The average annual capacity factors for the U.S. wind fleet were 28% to 35%. Capacity factors are the ratio of the electrical energy produced by a generating unit for a specified period of time to the electrical energy that could have been produced at continuous full power operation during the same period.”

  16. REAL Green on Fri, 28th Feb 2020 7:24 am 

    “Shell Exploring World’s Largest Green Hydrogen Project”
    https://tinyurl.com/r8y8p54 greentech media

    “Oil major Shell has started feasibility work on what would be the largest green hydrogen project in the world. The plans would see 3 to 4 gigawatts of offshore wind capacity established in the North Sea by 2030 purely for the manufacture of green hydrogen. Electrolyzers will be based in Eemshaven, along the northern coast of the Netherlands, and potentially offshore as well. The project could be expanded to 10 gigawatts of offshore wind by 2040 dedicated to green hydrogen production.”

  17. world grater supremacist muzzies jerk on Fri, 28th Feb 2020 7:33 am 

    Grate ZH posting supertard imma swipe it oh yea

  18. Davy on Fri, 28th Feb 2020 7:41 am 

    “Hundreds Of Millions Of Dollars Lost” As Shipping Rates Collapse Due To “Hugely Disruptive” Virus”
    https://tinyurl.com/yx6waetz zero hedge

    “The gears of the global economy have jammed, as demand and supply shocks from China risks triggering the next economic crisis. Paralysis is quickly developing across the global economy, as sea and land ports in China have reduced activity. When supply chains are severed, economies on both sides of the world are damaged. International Chamber of Shipping (ICS) Secretary-General Guy Platten told Reuters on Wednesday that revenue shocks have already hurt shippers this year. Platten said tanker rates had plunged upwards of 80% since the virus outbreak began last month. He said the virus is “hugely disruptive” for the shipping industry as demand for raw materials from emerging and developed economies has dramatically slowed. “On the finished goods side of it you’ve got empty containers for example in China and you’ve got a shortage of containers in the (United) States because the manufactured goods are not getting out of China and being transported around the world. It’s affecting all the supply chain throughout the shipping industry,” he said. Platten said shipping rates have crashed in various vessel classes. “We know that container lines are doing empty sailings. It would be hundreds of hundreds of millions of dollars (that) would be in jeopardy now.”

  19. grater world supremacist muzzies jerk on Fri, 28th Feb 2020 7:55 am 

    Grate news whitey supertard bill Warner posts 25 questions on supremacist muzzies jerk with his wife

    Imma swipe it for my blog

  20. Abraham van Helsing on Fri, 28th Feb 2020 8:41 am 

    North2 halleluja videos:

    https://youtu.be/Y3XxiSERjIo

    https://youtu.be/pptY86ZVw1g

  21. Abraham van Helsing on Fri, 28th Feb 2020 8:45 am 

    “ “Hundreds Of Millions Of Dollars Lost” As Shipping Rates Collapse Due To “Hugely Disruptive” Virus””

    2020 is going to be far worse than 2008. Could take years to recover from and old school, US-centric globalism likely will be a thing of the past.

    Right-wingers paradise.p if there were not that strange pain in the back.lol

  22. Davy on Fri, 28th Feb 2020 8:50 am 

    “2020 is going to be far worse than 2008. Could take years to recover from and old school, US-centric globalism likely will be a thing of the past. Right-wingers paradise.p if there were not that strange pain in the back.lol”

    LOL. So much for that Turdroad I mean silk road and the cloggo Eurasian empire. cloggo will put lipstick on any pig he finds supporting his fantasies

  23. Davy on Fri, 28th Feb 2020 8:55 am 

    The cloggo Eurasian empire:

    “European Nightmare As Turkey “Opens The Gates” On Refugees While Covid-19 Ravages Nearby Iran”
    https://tinyurl.com/u72fasz zero hedge

    “As coronavirus ravages Iran and threatens to spread through the broader Middle East, potentially hitting refugee and war-torn populations hardest, it appears Erdogan is now making good on prior threats to “open the gates” of a flood of refugees on Europe. On Friday top Turkish officials were quoted as saying Turkey has no choice but to “loosen” its stance on the some 3.4 million refugees it is hosting…Turkey has announced it has opened its until now sealed border with Idlib for at least 72 hours, and will allow unhindered passage of refugees to Europe…Needless to say, we now have a dual crisis unfolding that’s indeed even more of a “nightmare” for Europe and the world than many could have predicted: a refugee flood, borders being opened, and the global threat of Covid-19.”

  24. Duncan Idaho on Fri, 28th Feb 2020 9:13 am 

    Dow 30
    24,808.02
    -958.62(-3.72%)

    The Fat Boy and the Thugs need to do something fast!

  25. Abraham van Helsing on Fri, 28th Feb 2020 9:44 am 

    “European Nightmare As Turkey “Opens The Gates” On Refugees While Covid-19 Ravages Nearby Iran”

    In 2015, the 1.5 million invaders were responsible for the meteoric rise of rightwing parties, now represented in most if not all European parliaments.

    If in 2020, similar scenes will push Europe “to the next level”. The Brexit-timing and Trump still in office, plus Corona, bringing down the economy, are all the necessary ingredients for further heating up Europe towards the Grand Finale of multicult, where leftist heads are going to roll.

  26. Duncan Idaho on Fri, 28th Feb 2020 9:51 am 

    Plan to drain Congo peat bog for oil could release vast amount of carbon
    https://www.theguardian.com/environment/2020/feb/28/ridiculous-plan-to-drain-congo-peat-bog-could-release-vast-amount-of-carbon-aoe#maincontent

    Sounds like something the Fat Boy would be interested in?

  27. world grater supremacist muzzies jerk on Fri, 28th Feb 2020 10:57 am 

    Grate prosts u guyes
    Please keep up
    Don’t forget to respect supertard

  28. world grater supremacist muzzies jerk on Fri, 28th Feb 2020 11:12 am 

    today is uppertard appreciation day for giving us (those without the means and not inthe pay account of putin) a place to exercise rites that whitey supertard founders gave us.

  29. Duncan Idaho on Fri, 28th Feb 2020 11:28 am 

    The last full moon of February
    stalks the fields; barbed wire casts a shadow.
    — Jane Cooper, “Hunger Moon”

  30. Duncan Idaho on Fri, 28th Feb 2020 11:38 am 

    1877 — US: The American Government, like a common thief, seizes Black Hills from Lakota Sioux in violation of treaty.

  31. Mick on Fri, 28th Feb 2020 1:49 pm 

    Watching this collapse unfold is so entertaining much better than anything on t.v . Don’t you just love seeing the fat boy looking agitated and blaming everthing including the dems on the stock market free fall but not realising the whole thing was a massive bubble and the virus was the pin

  32. makati1 on Fri, 28th Feb 2020 4:27 pm 

    Mick, watching the second half of the US’ Fourth Turning is going to be a suspense filled adventure. The next 10 or so years will be a real wake-up call for the greedy, lazy, dumbed-down Amerikans.

    “According to the authors, the Fourth Turning is a Crisis. This is an era of destruction, often involving war or revolution, in which institutional life is destroyed and rebuilt in response to a perceived threat to the nation’s survival.” Google

    Anyone not preparing to ride it out with minimal pain, deserves what is coming. So be it.

  33. Abraham van Helsing on Fri, 28th Feb 2020 5:00 pm 

    Khamenei on the JQ:

    https://twitter.com/khamenei_ir/status/1229753005899157504?s=20

    “We are against the rule of oppression and arrogance. This is what we mean by “America.” Today, the peak of arrogance is the US, which is controlled by the wealthy Zionists & their corporate owners. The US is a manifestation of oppression. Thus, they’re abhorred by the world.”

  34. makati1 on Fri, 28th Feb 2020 5:41 pm 

    More Amerikan hypocrisy in action:

    “Here’s Why I Don’t Really Trust the Official American Coronavirus Numbers”

    https://www.theorganicprepper.com/can-we-trust-the-official-american-coronavirus-numbers/

    “A lot of folks have distrusted the numbers coming out of China since the very beginning of the coronavirus outbreak. That uneasy feeling was justified when it was discovered that many patients weren’t being counted because they were never tested…

    Looking at China’s official response and looking at the American official response, I see some troubling similarities that make me wonder if our own numbers are accurate at all….

    First of all, very few tests have actually been performed in the United States. As of Feb. 26, 2020, the CDC reported that only 466 tests had been performed in the US and the criteria for being tested is so narrow as to render the statistics useless.”

    “Plausible deniability?” Time will tell. When Amerika starts shutting down…

  35. Davy on Fri, 28th Feb 2020 5:48 pm 

    “More Amerikan hypocrisy in action:”

    So what makato1, you said yourself its nothing anyway and the flu is so much worse. LMFAO. Who is the hypocrite? Now you are admitting it is bad and trying to point fingers. Turns out your wonderful Asia exported death to the world, AsiaUp alright.

  36. makati1 on Fri, 28th Feb 2020 6:27 pm 

    True, Davy,I did say that. However, you and most USMSM Sinophobes, have been beating the “China is lying” drum every day. So, now, it is Amerika that is lying and you want to divert the assertion. Amerikans are major hypocrites and you are one of the worst Davy.

    When the dust settles, maybe by summer, we shall see if it was worse than the normal flu. Until then…much to do about nothing. But it may close down the US, IF they ever admit the real numbers.

    Have you ever considered that this might be a US bio-weapon that is boomeranging? If it takes the US economy down, what will 2021 be like? Not pleasant, I am sure. I’m glad I do not live there. I will likely cancel my US trip until … maybe never. Mask up! LOL

  37. Davy on Fri, 28th Feb 2020 6:39 pm 

    “True, Davy,I did say that. However, you and most USMSM Sinophobes, have been beating the “China is lying” drum every day.”

    AH, nope, not me. Do you have evidence?

    “ So, now, it is Amerika that is lying and you want to divert the assertion. Amerikans are major hypocrites and you are one of the worst Davy.”

    BS, stupid, The US is like most other nations who are unprepared for this. It is not about lying it is about not being prepared.

    “When the dust settles, maybe by summer, we shall see if it was worse than the normal flu. Until then…much to do about nothing. But it may close down the US, IF they ever admit the real numbers.”

    AH, no, again makato, a huge amount of economic damage has been done. The flu can’t compare to this. Yea, we will see abut the death rate by then but as it is now the flu isn’t shit in comparison. You are full of shit old man. It will be poetic justice once you catch the virus as I imagine you will. Being in the 15% death category will make it touch and go. No place to go for a respirator. Not good makato1.

    “Have you ever considered that this might be a US bio-weapon that is boomeranging?”

    LOL, more likely a failure occurred at the Wuhan, China and the Biosafety Level 4 laboratory (BSL-4) from which it is believed the infectious disease escaped. https://tinyurl.com/wmkasyt

    “ If it takes the US economy down, what will 2021 be like? Not pleasant, I am sure. I’m glad I do not live there. I will likely cancel my US trip until … maybe never. Mask up! LOL”

    Makato1, Asia is going down now. The US is still fine. We may follow you down but as it stands now Asia is flat-lining. Poor guy, you can’t catch a break. LMFAO

  38. world grate supremacist muzzies jerk on Fri, 28th Feb 2020 6:54 pm 

    grate days for postings u guyes
    so much info for my blog i use to generate passive income
    theync has vids of muzzies being roasted, it has begun. i love dotheads
    we need to dry age muzzies and feed to fishes

  39. REAL Green on Fri, 28th Feb 2020 10:20 pm 

    Everybody here no’s were an idiot Davy. We don’t need to keep proving it.

  40. Mick on Sat, 29th Feb 2020 10:30 pm 

    I’m with you on the forth turning mak I head a podcast on it and it seems to be playing out pretty much spot on

  41. FuelShortageComing on Sat, 29th Feb 2020 10:46 pm 

    CBC News Alerts
    @CBCAlerts
    Ontario reports 3 new confirmed cases of coronavirus, bringing the number of confirmed cases in the province to 11.

    https://twitter.com/CBCAlerts/status/1233845930492907521

    I have said everything I had to say about this and the end of western civilization

  42. FuelShortageComing on Sat, 29th Feb 2020 10:49 pm 

    Ontario confirms 3 new positive cases of coronavirus. There are now 11 confirmed cases in Ontario, 20 in Canada.

    https://twitter.com/CBCAlerts/status/1233855129318805507

  43. Davy on Sat, 29th Feb 2020 11:02 pm 

    11 cases out of 15,000,000 peoples REAL bad Feul shortage. Canadas in REAL bad trubble. Nows the time for mass hysteria and panic.

    WE ALL GONNA DIE!!!

  44. Mick on Sat, 29th Feb 2020 11:07 pm 

    I think this is it after 10 or so years of methadone to the markets Nothing seems to be working evan fat boys tweets are failing to spruce the markets 2020 will be as far as the can will be kicked . Hope u all stocked up u might need it soon

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