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Topic: US Oil  (Read 1530 times) previous topic - next topic

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  • ken
  • [*][*][*][*][*]
  • Global Moderator
Re: US Oil
Reply #30
Must be some salt caverns in Utah....

Some years ago I read a idea someone had to store excess electrical energy without using batteries. They would run compressors and fill a cavern that has a inner cement coating with air pressure. Then when they needed energy they could release it and turn the wheel generating electricity.
That had to be someone looking for government handouts, Solyndra style. I guess it could work, but why not find out by capturing said energy from a flowing natural gas well first.

Sort of related, back in 1969 or a year or two later, I worked in a natural gas processing plant that stripped natural gas of its propane, butane and heavier to get the btu content to 990 to 1010 btu/cuft utility specification. We had more propane etc than could sell or store in surface tanks so company management decided to store it in a depleted natural gas reservoir below the plant. Come time to harvest the stored energy and there was none to be found. It wasn't near as funny then as it is now.
Kind of like reabsorbed into the earth or leaked out. What gets me is the burning off of gas. Most likely not cost efficient to capture and pipe it.

Re: US Oil
Reply #31



[/quote]
Kind of like reabsorbed into the earth or leaked out. What gets me is the burning off of gas. Most likely not cost efficient to capture and pipe it.
[/quote]

Gas flaring bugs the heck out of me. When I worked up stream oil business in Williston Basin during the early 1980's, by law, we had 30 days from first production to get the associated gas connected to sales or shut in the well till a connection was made, not arranged, but actually made. I visited the area last Thanksgiving and there were flares everywhere. What a waste and when did the law change or enforcement terminate? Up until this week, the oil was worth a lot more than the natural gas. As a rule of thumb, it takes about 5.65 MMCF of gas to equal a barrel of oil in equivalent btu's. $1.80 gas is btu equivalent to roughly $10 oil so gas has been a bargain for  long time.

Re: US Oil
Reply #32
I was talking with a friend in natural gas transmission business that commented a company was applying to regulators to repurpose a gas pipeline to crude oil storage. That is an interesting wrinkle, but the solution is not more storage for oil being produced at a loss. If cost of money was reasonable, there would not be a bunch of cheap loans financing uneconomic oil production. This is the result of subsidizing the shale oil business, it is keeping what should be bankrupt companies afloat and consuming wealth via subsidies and now potentially unconventional storage. It is government picking winners that are losers.

Maybe this should be in the ABSURD thread.

  • ken
  • [*][*][*][*][*]
  • Global Moderator
Re: US Oil
Reply #33
I was talking with a friend in natural gas transmission business that commented a company was applying to regulators to repurpose a gas pipeline to crude oil storage. That is an interesting wrinkle, but the solution is not more storage for oil being produced at a loss. If cost of money was reasonable, there would not be a bunch of cheap loans financing uneconomic oil production. This is the result of subsidizing the shale oil business, it is keeping what should be bankrupt companies afloat and consuming wealth via subsidies and now potentially unconventional storage. It is government picking winners that are losers.

Maybe this should be in the ABSURD thread.
I don't know how the pay to play scheme in the oil sector works. Still learning.

Re: US Oil
Reply #34
Basically, the original drilling economics by oil producing companies for drilling in shale reservoirs was flawed, either by design or ignorance, but it was flawed as no one has or is making money in shale oil. The basic flaw was weighing the influence of reservoir permeability on production rate declines, which was masked by exposing huge surface area for drainage into the wellbore via horizontal drilling and fracture treating. The initial production numbers were good and used to fleece lenders to fund drilling at a clip that overshadowed the declines in legacy wells. Like all Ponzie schemes, it  reached its limit when new money failed to fund the losing venture. Sensing this, lenders quit lending and rig count shrunk and overall production from shale reservoirs was in decline. Shale was in the throws of bankruptcy long before Chinese coronavirus with oil at $60/bbl. The demise was accelerated with demand associated price collapse, but not caused by it.

The oil is still there, the industry still has not found out how to produce it economically. Trump wanting to save the shale producers is saving a losing cause For grins, hydrates are a naturally occurring clathrate in the arctic permafrost and below it. Someday the industry will figure out how to produce it and natural gas reserves will be seriously enhanced. It will require a pipeline and between permitting and indigenous (first nations) peoples' desire to extract confiscatory terms, will make it difficult.

Re: US Oil
Reply #35
For Entertainment Purposes Only.