Natural Gas, Fueling an Economic Revolution

Fareed Zakaria explains at the Washington Post how shale gas is fueling an economic revolution:

[The increase in shale gas production] might also help explain why high oil prices are not slowing down the U.S. economy as much as has been feared. Robert Hefner, a natural gas entrepreneur and author of “The Grand Energy Transition,” points out that the cost of heating 65 million American homes by natural gas has fallen $20 billion annually.

The environmental concerns are well taken. But the best studies out now — such as one by a committee that included the head of the Environmental Defense Fund — suggest that fracking can be done in a safe and responsible manner. Many of the riskiest practices are employed by a small number of the lowest-cost producers, a situation that calls for sensible regulation. Larger companies would probably welcome a set of rules, because they would want to follow best practices to protect their reputation and brand.

Revenues Rise for Israeli Natural Gas Company

Delek Group said that it revenues in 2011 were NIS 59.2 billion, a 38% increase compared with NIS 42.8 billion in 2010.

Net income in 2011 totaled NIS 2.6 billion, a 53% increase compared with net income of NIS 1.7 billion in 2010.

Operating profit in 2011 totaled NIS 1.6 billion, a 32% increase compared with NIS 1.2 billion in 2010.

How Does Fracking Work?

People often fear what they don’t know or understand. Here is a simple video that explains how hydraulic fracturing works.

Natural gas prices continue to collapse

CNBC has a report on the “collapse” of natural gas prices even as supply continues to increase:

Natural gas prices are falling near levels last seen in the 1990s, which could help spur the U.S. to develop more uses for the fuel, including transportation.

The collapse in natural gas prices to decade lows amid record supplies have changed the dynamic of the energy industry.

Natural gas is already displacing coal in power generation, driving coal’s share to the lowest level since the 1970s, and promises to drive it even lower. And there’s more talk now that it could replace some gasoline in transportation.

Shell signs first Chinese shale gas deal with China National Petroleum Corp

Royal Dutch Shell Plc (RDSA) signed China’s first shale-gas production sharing contract as the world’s second-largest economy seeks to unlock resources similar to those that sparked the U.S. natural gas boom.

Shell and China National Petroleum Corp (CNPZ)., the state- controlled parent of PetroChina Co. (857), agreed to explore, develop and produce shale gas in the Fushun-Yongchuan block in the Sichuan basin, an area covering about 3,500 square kilometers (1,350 square miles), London-based Shell said in a statement on its website yesterday.

Hydraulic fracturing, the technology behind shale gas that breaks open underground rocks, allowed the U.S. to become the world’s biggest gas producer. China may have 50 percent more shale gas reserves than the U.S., according the U.S. Energy Information Administration.

Ford F-250 bi-fuel to debut at Moab Off-Road Safari

NGV Global News: Venchurs Vehicle Systems (VVS), which offers both compressed natural gas (CNG) conversions for Ford and off road products/specialty vehicle builds through its VWerks division, will combine the two worlds at the upcoming Moab Easter Jeep Safari, showcasing the performance capabilities of both programs. According to PT Muldoon, VP of Engineering for VVS, CNG is currently focused towards the fleet industry and Moab brings about an opportunity to introduce CNG to a new market of dedicated off-road enthusiasts.

VVS, a QVM (qualified vehicle modifier) for Ford offering both bi-fuel and CNG dedicated conversions for F-250/350 trucks, will showcase its bi-fuel system at Moab (March 31-April 1). In the US state of Utah, Moab is often referred to as the “Mecca of four-wheeling” making this event the perfect place to showcase the trucks’ performance capabilities. A CNG filling station was recently opened there.

“Natural Gas Day” at Italian Oil&nonoil Conference

From NGV Global News: As a mark of the strength of the natural gas vehicles segment in Italy, and for Europe in general, Italy’s Oil&nonoil conference and exhibition has dedicated a full day of debate and investigation into the future of natural gas fuel, with special attention to its ecological qualities and its economic and social advantages. In cooperation with Assogasmetano, Federmetano and NGV System Italia, the “Natural Gas Day” will be held at the Modena Fiere Exhibition Centre on May 14.

How many motorway service stations will distribute natural gas in two years time? What does the future hold for liquefied natural gas? What is the potential of bio natural gas (biomethane)? When is it convenient for public and private fleets and waste collection companies to have an internal distributor of natural gas? These and other questions will be answered at the event.

Poll: American support hydraulic fracturing by more than 2-1

And well they should. Who are these 22%?

Energy in Depth reports:

Americans consistently support more domestic energy development, and they also highly value a clean and well-protected environment. So it’s of little surprise that a new poll released today shows that 57 percent of Americans support the use of hydraulic fracturing. Only 22 percent oppose the process, which means nationwide support outstrips opposition by a more than two-to-one margin.

The specific question asked:

A process known as hydraulic fracturing, sometimes called fracking, is used to drill for oil and natural gas in shale oil reserves. Do you favor or oppose the use of fracking to produce more oil and natural gas in this country?

Clean Energy: Supply chain fleet operators increasing turn to (natural) gas power

From LNG World News: In increasing numbers, major U.S. contract freight carriers are deploying heavy-duty natural gas-powered trucks to support their customers’ supply chain transport requirements. Clean Energy Fuels, North America’s leading supplier of natural gas fuel for transportation, contracts with carrier fleet operators to provide CNG or LNG fueling services at Clean Energy public access stations nationwide.

Among the most recent for-hire fleet operators to opt for natural gas fuel are Premier Transportation, headquartered in Atlanta, Georgia; Transplace, Frisco, Texas, and Glacier Transportation & Logistics, Atlanta, Georgia; Dillon Transportation LLC, Burr Ridge, Illinois; C.R. England, Salt Lake City, Utah; Ryder Dedicated Logistics, El Segundo, California; CEVA Logistics, Hoofddorp, the Netherlands; and Werner Enterprises, Omaha, Nebraska.

So What Is Fracking?