2014 February 21

The Master Resource Report 2014-02-21

Could natural gas storage really fall below 1,000 Bcf?

According to the EIA gas storage report last week ended with 1,443 billion cubic feet (Bcf) of natural gas in underground storage. This is the lowest level at this time of year in a decade. Could storage levels fall below 1,000 Bcf?

One way to look at this is to consider how much gas was drawn from storage over the remaining period to the end of March during the record storage level year of 2012. During that five week period in 2012 483 Bcf of gas was drawn from storage (there was one week during the period with a fill) which would take current levels to 961 Bcf. Clearly this is not an impossible scenario. Stay tuned to see if the magic of the shale gas boom will come to the rescue.

So what does a former BP geochemist have to say about Peak Oil?

Steve Andrews had another great interview for the Peak Oil Review published by ASPO-USA on Monday, January 17th.

Q: Andrews:  BP has recently said definitively that “peak oil is dead.”  How does an oil super-major reach such a conclusion, at least for purposes of public policy dialogue?

Dr. Richard Miller: I can’t shed any light on why they’re saying that today because it hasn’t been their consistent position in the past.  A CEO like Lord John Browne clearly at least kept his options open on the idea; and he was the one who started to steer the company into alternative energy.  The one who really didn’t have any sympathy with peak oil was Tony Hayward; it was really sad to see him bring the company’s investments in photovoltaics and other non-conventional energy almost to a screeching halt, deciding that the company was going to become a pure hydrocarbons company.  That did seem very short-sighted.  What’s odd of course is that he’s a geologist, and a very good geologist.  You would think that someone like that could at least see that peak oil is not only coming, it’s quite probably here, in terms of conventional oil.

Steve Kopits video

Global Oil Market Forecasting: Main Approaches & Key Drivers

Steven Kopits, Managing Director, Douglas-Westwood

Tuesday, February 11, 2014   Columbia University