NGLS

Is There More Oil Below the Bakken Shale Than In It?

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The Three Forks formation in North Dakota, South Dakota and Montana could hold more undiscovered, technically recoverable oil than the Bakken Shale that lies above it, according to the United States Geological Survey’s (USGS) latest assessment.

The mean of the estimate for the two formations’ combined undiscovered, technically recoverable oil is 7.38 billion barrels, effectively doubling the 2008 estimate for the Bakken shale alone. The mean estimate for Bakken oil, at 3.65 bn bbls – the same as in 2008 – is just shy of the Three Forks’ 3.73 bn bbl estimate. Keep reading →

Published May 1, 2013 at 2:30 PM

Range’s Condensate Advantage: Location, Location, Location

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Range Resources’ position in the Marcellus, and the market access it offers, gives the a leg up over condensate producers in other parts of the country, according to the company’s Senior Vice-President Rodney Waller.

Range holds a million acres in the Pennsylvania portion of the Marcellus shale some in dry gas areas, and some in wet gas or “super rich,” where the production stream yields liquids, such as condensate and NGLs. Range Chief Executive Jeff Ventura noted earlier this year that in 2012, the company’s Marcellus wet gas acreage was producing 49% liquids, compared to 57% in the super rich area. Keep reading →

Published April 29, 2013 at 11:00 AM

NGLs to be Exported to Europe from the US Before LNG

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While LNG exports from the US are hotly debated, major shale gas player Range Resources was recently excited to proclaim it will be the first company to export natural gas liquids via ship from the US. Range has an agreement in place to begin ethane shipments to a petrochemical concern in Norway beginning in 2015.

We have a sales VP in Europe now – they [NGL sales team] got a call from China and there’s interest in Pittsburgh,” Rodney Waller, Range Senior Vice President said at the Independent Petroleum Association of America’s Oil & Gas Investment Symposium held last week in New York. Keep reading →

Published April 22, 2013 at 8:30 AM

Oil Refiner Looks to Rejuvenate East Coast Business Models with Rail

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US refining economics have been under pressure in recent years, particularly on the East Coast, where lack of infrastructure or bottlenecks forced some refineries to process crude imported from overseas markets at prices linked to the more expensive Brent benchmark. But independent refiner PBF Energy saw an opportunity and bought 3 major facilities between late 2010 and early 2011 in an effort to access increasing volumes coming on from the Bakken region and Western Canadian oil sands via rail.

PBF acquired 2 refineries located in Delaware City, Delaware and Paulsboro, New Jersey from Valero with a combined refining capacity of 370,000 b/d. Crude was traditionally transported to these plants via barge and ship along the Delaware River, but PBF constructed a crude rail unloading facility at the Delaware City refinery designed to accept shipments from the Mid-Continent and Western Canada at prices linked to West Texas Intermediate – the US benchmark grade – currently trading at a roughly $20/barrel discount to Brent. Keep reading →

Published January 8, 2013 at 8:00 AM

Breaking Down the US Energy Independence Discussion

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Few topics have received as much attention over the past year as the concept of an energy independent United States. In fact, energy independence featured prominently in the run-up to the US presidential election. But what does energy independence really mean?

In the US, energy can be broken down mainly into electrical power – which accounts for 63% of total US primary energy consumption – and liquid transportation fuels – which account for the remaining 37%. As reported earlier this year in Breaking Energy, the US is already effectively energy independent when it comes to power generation, so it is worth instead focusing on the transportation side of the equation, where the issue of importing energy is more relevant. Keep reading →

Published December 14, 2012 at 12:15 PM

Shale Gas Storage Revolution Rooted in History

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Does the US actually need more natural gas storage to accommodate rising production, or can it ‘finesse’ the storage it has to better balance shifting supply and demand fundamentals? The recent head of Ranger Midstream describes a revolutionary approach for a key sector in this video from a recent US Association for Energy Economics summit.

Storage is an essential but often unglamorous portion of what makes up a commodities market, and the history of the energy business – as is noted in this video – proves that storage access and storage infrastructure can impact outcomes for the more visible production and demand parts of the business. Keep reading →

Published December 13, 2012 at 2:30 PM

Natural Gas: Energy You Can Hold Infographic

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When people think about applications for natural gas in the US some of the most iconic images are kitchen stove burner tips and large power plants. However, natural gas liquids are widely used in manufacturing thousands of everyday products, as well as fertilizers and other applications that people may not be as familiar with. Keep reading →

Published November 19, 2012 at 11:00 AM

Data Centers Could Follow Methane Production to Marcellus as NGL Spread Grows

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The idea of powering energy intensive facilities with inexpensive methane from on-site rigs is gaining traction in the Marcellus Shale region. And one of the reasons for the interest is the intensifying focus by exploration and production companies on natural gas liquids.

NGLs, which include propane, hexane, butane, and pentanes, are produced by fractionation after well-gas is processed to separate them from methane and ethane (which can only be liquefied through cryogenic treatment). Keep reading →

Published June 14, 2012 at 2:15 PM

Getting to Market: Detours on the Road to Oil Abundance

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North America’s emerging oil shale abundance can fundamentally alter the US’s energy landscape, but experts say the road ahead may have a lot of detours.

The issues start with how much new supply can get to market. Keep reading →

Published April 5, 2012 at 9:00 AM