U.S. Gasoline demand slips (page 1 )
So is this really a “Game Changer”? (page 1 )
Water & Energy in Texas & Saudi Arabia (page 2 )
Saudi Arabia hits 10 mb/d, 30 year high (page 2 )
Oil is fungible (page 3 )
Mexico’s crude production update (page 4 )
US energy independence is imminent
Over the last couple of week the press has been flooded sprinkles with various articles on the basic theme the United States is on the verge of “Energy Independence”. Whether it is from shale gas or the pending flood of high grade crude from the Bad Lands of North Dakota it is inevitable.
There are several questions generated by this flurry of news but the two that interest me are why now and why from so many news sources at once. It is as if there was a PR release on the topic distributed to the news rooms around the country.
Well in a way that is what has happened. It comes down to group getting very excited about the same topic in the energy industry and trying to maximize their benefits from it at the same time. “JOBS…!!”
For politicians desperate for some news on the jobs front the energy sector is one of the few bright spots and it has the added bonus of helping with looking like energy policy.
For the oil and gas industry it is the lever of job creation they hope to use to pry open regulatory roadblocks to further drilling expansion. This is especially true in the area of fracking as it relates to shale gas development.
So now not only are natural gas and Bakken oil going to make the U.S. energy independent, they are going to solve the jobs crisis too. As Jim Mulva, CEO of ConocoPhillips said Tuesday in Qatar, “We don’t need any new miracles, the miracles have already occurred.” Isn’t it nice to know we needed miracles all this time?
This week’s report takes a further look at some of these miracles and whether they will save us.
Also I strongly encourage you to take a few minutes and read this article by my friend Derik Andreoli. He has written an absolutely superb article on the North Dakota Bakken and the latest hype surrounding “Energy Independence”.
The Bakken Boom – A Modern Day Gold Rush
By Derik Andreoli
“That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach”. Aldous Huxley
In 2009, U.S. oil production began to climb after declining for 22 of the previous 23 years. The shale oil production of the Bakken formation, which straddles the Montana-North Dakota border and stretches into Canada, has been a significant contributor to this temporary uptick in oil production. (click this link to read the full article online)