Pressure Grows on Fracking
From: Riggs Eckelberry
Los Angeles, May 10, 2013
Astaxanthin story makes page one!
Everyone loves an industry that is making money now! That’s the Astaxanthin industry.
Maybe that’s why yesterday’s story was Page One in yesterday’s Biofuels Digest, the leading industry daily…
This breakthrough is a major competitive advantage for Garden State BioEnergy, so look for other Astaxanthin producers to follow suit rapidly.
Onward into profitable markets!
Pressure grows on fracking
Steve Everley of the Independent Petroleum Association of America faced a mostly negative panel. He did a good job and made some good points.
But in the end, he had to make it clear that the petroleum industry is addressing problems such as water use:
I think the industry — you see movements toward recycling and reuse. In the Marcellus, you have very high rates of reuse and recycling of water. People are moving towards that in areas all across the country. So this is a challenge that the industry is responding to…
Yes, shale is turning into a major energy asset for the U.S. But opposition is fierce, and the petroleum industry must move aggressively to address concerns.
Among the biggest of these is water use.
Watch for fast-growing adoption of water cleanup systems to address the intense opposition in areas, like California, that have some of the largest shale formations.
The “treadmill” of shale exploration
The always-interesting Energy & Capital newsletter had this to say the other day:
… the decline rates of shale gas wells are steep. They vary widely from play to play, but the output of shale gas wells commonly falls by 50% to 60% or more in the first year of production. This is why I have called it a treadmill: you have to keep drilling furiously to maintain flat output.
In the U.S., the aggregate decline of natural gas production from both conventional and unconventional sources is now 32% per year, so 22 bcf/d of new production must be added every year to keep overall production flat, according to Canadian geologist David Hughes. That’s close to the total output of U.S. shale gas, after nearly a decade of its development. It will require thousands more shale gas and tight oil wells to keep domestic gas production flat.
Wow. That means only one thing: production from shale must continue to expand, and very quickly.
The combination of this ‘treadmill’ effect, and growing opposition in areas (like New York and California) where fracking needs to expand, will create, I believe, unstoppable forces for responsible environmental stewardship and the preservation of water stocks.
It’s nice to be where you’re wanted!
PS: The latest Big Biz Show is posted here.
Enjoy your weekend…
Riggs and Team
President & CEO
OriginOil, Inc. (OOIL)
The 50 Hottest Companies in Bioenergy, 2012-2013 (photo)
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