Posts

Showing posts from 2021

Why the Utica Shale is Under-Appreciated

Image
In the United States, there are seven main Shales (Bakken, Niobrara, Permian, Eagle Ford, Haynesville, Marcellus, and Utica). The Permian and Eagle Ford Shale, located in Texas, are the highest producing Shales in the United States. Among all of them, the Utica Shale seems to be the one with less popularity despite bringing many investments and job opportunities for Ohio. In today's post, we will discuss why the Utica Shale is under-appreciated and how it has benefited Ohio. Marcellus Shale Perhaps one reason why the Utica Shale is under-appreciated is that it's located right next to the Marcellus Shale. The latest report estimates that the Marcellus Shale yields about 14.4 billion cubic feet of natural gas per day. In 2015, it was the source for over 36% of the shale gas produced in the United States and 18% of the total dry gas production of the United States. Of course, the Utica Shale is small in comparison to the Marcellus Shale. Despite that, the Utica Shale still holds s

What Is Fracking Doing To Your Health?

Image
  Without a doubt, you've come across hundreds of articles both in favor and against fracking. If you've been a long-time reader of The Daily Digger, you've also been able to see many different news articles related to the pros and cons of fracking. While some (both in favor and against) base their reasons on scientific facts, others may take the liberty to add their facts that aren't scientifically proven.  Today we will try to explain if fracking can harm your health. We won't take a side in this matter; instead, state the scientific facts. All the information used in this article is taken from the  NIEHS  (National Institute of Environmental Health Sciences).  The Process of Hydraulic Fracturing We won't get into too much detail, as a lot is involved, but basically, it's a process used to extract natural gas and oil from deep rock deposits known as shale. Water, sand, and a mix of chemicals are forced into horizontally drilled wells, causing the shale to

Arctic Air Freezes Permian Shale Fields

Image
  For the past few days, many states have been severely affected by an Arctic cold front. Out of all of the states, Texas seems like the one being hit the hardest. Some areas of Texas have  gone as low  as 0F, something unheard of for the past 30 years. U.S. oil production has dropped by more than 2 million barrels a day (the equivalent of about 18% of overall U.S. crude production) as freezing weather brings to halt key producing states that have never had to deal with freezing Arctic blasts. The Permian Basin, the most profitable U.S. oil production region, is the one affected the most by the Arctic weather since its located in west Texas and southeast New Mexico. Production cuts were also significant in the Eagle Ford, located in southern Texas, and the Anadarko basin in Oklahoma. Since the start of the Arctic cold snap, oil prices have fallen slightly because most refineries have closed due to the cold, reducing the amount of crude needed right now. One company benefiting from this

U.S. Oil Demand Increases After months in Decline

Image
  The U.S. oil market seems to be getting back on its feet. With oil price getting back to its  former price , the oil demand is steadily increasing as well. For months now, the Asian market has been a helping hand in keeping the global oil market alive, especially for the U.S. market. With the stabilization of global oil demand and production, domestic refiners are processing the most crude oil since the economy's massive halt in March. The increase in demand is due to the vaccine-driven boost, which is planned for this summer. Without a doubt, this will help the U.S. oil market recover from the hit it took during the pandemic. West Texas Intermediate crude is one of the domestic refiners that has seen a significant increase in demand. The price has picked up at least 50 cents a barrel compared to a few weeks ago, today being close to  $60 a barrel . In comparison, Brent crude in London has gone up to $63 a barrel.  With the current extreme cold weather affecting Texas, propane an

Chesapeake Energy Emerges After Officially Clearing Bankruptcy

Image
  Chesapeake Energy Corp was once the  second-largest natural gas company  in the United States. These days, however, it is a shadow of its former self. On Tuesday, the company exited Chapter 11 protection and is making some significant changes.  This article will consider some modifications to Chesapeake's business model and give you an idea of what to expect from the company in the coming months.  Reduced Workforce As part of the restructuring plan, the company is reducing its staffing levels to adapt to the challenging market. Recently, Chesapeake announced their plans to cut its workforce by 15 percent. And just last week, they made another round of layoffs in Oklahoma City, where about 220 people were affected. Free Cash Flow Chesapeake is pledging to produce free cash flow, which is increasingly common in shale. This financial decision is not free from criticism from shareholders, who argue that this prioritizes production growth over investment returns.  Robert Lawler, who

Oil Price Is Surging To a New Level

Image
Since the outbreak of the COVID-19, the financial market has taken a lot of unprecedented hits. One of the worst ones was the hit of the  U.S. oil trading, which collapsed. Companies like West Texas crude fell to minus $37.63 a barrel.  Fortunately, oil has risen steadily since late last year as COVID-19 vaccines began to be produced. Something that has also helped is the supply curbs from OPEC and its allies' which spur hopes that global stockpiles will continue to accelerate. These things are great news for the economy as it has pushed oil prices back to a stable spot. West Texas Intermediate futures increased 2.4%, while the global Brent benchmark came back within sight of $60 . Oil rose toward $55 a barrel in New York, reaching its highest level in a year as the virus-recovery rally advanced. The physical market has also shown strength these past weeks. Royal Dutch Shell Plc plundered the North Sea market, buying the most benchmark-grade loads in a day in 10 years in the S&

Biden Administration and the Future of Fracking

Image
            The Biden administration has kept its promise in fighting climate change by temporarily halting ( for 60-days) oil and gas licenses on federal lands and waters. It seems it's the first step in banning new drilling on federal acreage. Federal drilling makes up 25% of America's crude oil production , which means it's a significant contributor to energy supply while also contributing heavily to America's greenhouse gas emissions.      As you can imagine, this has made many environmentalists quite happy as it's the start of a fossil fuel-less America. On the other side, the oil and gas industry has expressed its concern as this directly affects the American economy. New Mexico Oil & Gas has stated that this will affect thousands of blue-collar workers and the loss of millions in support for public schools, first responders, and healthcare services.       One area of the oil and gas industry that can be affected by these upcoming laws is fracking, which

Do You Know The History of Fracking?

Image
  In 2018, 59% of total oil production in the U.S came from hydraulic fracking, which means it accounted for more than two-thirds of domestically manufactured gas. By 2024, fracking will reach an astounding $68 billion market value! Of course, fracking is not a new drilling method as you can trace it back hundreds of years. That's why we want to consider the history of hydraulic fracturing (fracking). We will be stating historical facts about it and focusing on the major historical occurrences that have influenced modern-day fracking. Pre-Fracking Days The idea of fracking started back in 1862 when Edward A.L. Roberts (Civil War veteran) witnessed Confederate soldiers exploding artillery rounds into a canal that obstructed a battlefield. At the time, Edward A.L. Roberts called it superincumbent fluid tamping. On April 26th, 1865, Edward A.L. Roberts began experimenting with exploding torpedoes, which consisted of lowering a torpedo containing an amount of powder from fifteen to tw