{"id":10590,"date":"2015-08-01T07:20:54","date_gmt":"2015-08-01T12:20:54","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10590"},"modified":"2015-08-01T07:20:54","modified_gmt":"2015-08-01T12:20:54","slug":"a-reality-check-for-u-s-natural-gas-ambitions","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10590","title":{"rendered":"A Reality Check For U.S. Natural Gas Ambitions"},"content":{"rendered":"

A Reality Check For U.S. Natural Gas Ambitions<\/a><\/h3>\n

Something unusual happened while we were focused on the global oil-price collapse\u2013the increase in U.S. shale gas production stalled (Figure 1).<\/p>\n

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Figure 1<\/strong>. U.S. shale gas production. Source: EIA and Labyrinth Consulting Services, Inc.<\/p>\n

(click image to enlarge)<\/p>\n

Total shale gas production for June was basically flat compared with May\u2013down 900 mcf\/d or -0.1% (Table 1).<\/p>\n

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Table 1<\/strong>. Shale gas production change table. Source: EIA and Labyrinth Consulting Services, Inc.<\/p>\n

(click image to enlarge)<\/p>\n

Marcellus and Utica production increased very slightly over May, 1.1 and 1.5 mmcf\/d, respectively. The Woodford was up 400 mcf\/d and \u201cother\u201d shale increased 300 mcf\/d. Production in the few plays that increased totaled 3.3 mmcf\/d or one fair gas well\u2019s daily production.<\/p>\n

Related:\u00a0The Broken Payment Model That Costs The Oil Industry Millions<\/strong><\/a><\/p>\n

The rest of the shale gas plays declined. The earliest big shale gas plays\u2013the Barnett, Fayetteville and Haynesville\u2013were down 25%, 14% and 48% from their respective peak production levels for a total decline of -4.8 bcf\/d since January 2012.<\/p>\n

The fact that Eagle Ford and Bakken gas production declined suggests tight oil production may finally be declining as well.<\/p>\n

To make matters worse, total U.S. dry natural gas production declined -144 mmcf\/d in June compared to May, and -1.2 bcf\/d compared to April (Figure 2). Marketed gas declined -117 mmcf\/d compared to May and -1 bcf\/d compared to April.<\/p>\n

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Figure 2<\/strong>. U.S. natural gas production. Source: EIA and Labyrinth Consulting Services, Inc.<\/p>\n

(click image to enlarge)<\/p>\n

Although year-over-year gas production has increased, the rate of growth has decreased systematically from 13% in December 2014 to 5% in June 2015 (Figure 3).<\/p>\n

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Figure 3.<\/strong>\u00a0U.S. dry gas year-over-year production change. Source: EIA and Labyrinth Consulting Services, Inc.<\/p>\n

(click image to enlarge)<\/p>\n

This all comes at a time when the U.S. is using more natural gas for electric power generation. In April 2015, natural gas used to produce electricity (32% of total) exceeded coal (30% of total) for the first time (Figure 4).<\/p>\n

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…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

A Reality Check For U.S. Natural Gas Ambitions Something unusual happened while we were focused on the global oil-price collapse\u2013the increase in U.S. shale gas production stalled (Figure 1). Figure 1. U.S. shale gas production. Source: EIA and Labyrinth Consulting Services, Inc. (click image to enlarge) Total shale gas production for June was basically flat […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[2434,48,151,1851,2514,328,4363,548,554,1775,5332,722,7590,7725],"class_list":["post-10590","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-arthur-berman","tag-bakken","tag-commodities","tag-commodity-price-collapse","tag-eagle-ford","tag-fossil-fuels","tag-marcellus","tag-nat-gas","tag-natural-gas","tag-oil-price-collapse","tag-oilprice-com","tag-shale-gas","tag-us-shale-gas","tag-utica"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10590","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10590"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10590\/revisions"}],"predecessor-version":[{"id":10591,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10590\/revisions\/10591"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}