I read Mr McClendon’s brief answer to the charges in the Tulsa World - they sounded pretty plausible but I guess we’ll never know what went on. I have been corresponding with owner relation for some questions I have and expressed my sympathies, I’m sure they are all in a state of shock there
I assume everyone has already heard the news, but here it is…
http://kfor.com/2016/03/02/police-former-ceo-of-chesapeake-aubrey-m…
Just read it a few minutes ago myself Nathan. Wonder who will take over AEP? JC
I have great sympathy for Aubrey’s family.
Evap ponds are probably not going to be used unless they can find a way to keep the oil from skimming on top. Waste water management rules are mostly federal and the EPA has deemed environmentally exposed oil as hazardous. However I did read where the plastic ponds had continuous skimmers. Trucking is expensive, so oil price will need to rise. http://www.fws.gov/mountain-prairie/contaminants/contaminants1b.html
Here’s the EPA rules the operators have to comply with: https://www3.epa.gov/epawaste/nonhaz/industrial/special/oil/oil-gas…
Chevron announced that it will focus on US shale and hopes to triple its production in U.S. shale by the end of the decade. Chevron and the Saudis have been partnered for over 7 decades which could be the reason Saudis refuse to cut production. Chevron profits when shale companies have to sell or go bankrupt. http://www.chevron.com/countries/saudiarabia/
Regarding new OCC limits cutting back water disposal: I see these discussions about reducing water disposal but never see a discussion about the alternatives. As I posted here months ago (and my post was promptly answered) when I was a kid I remember water being floated out into evaporation pools but I guess that’s not allowed now (I’m not complaining - probably for a good reason). So if the OCC cuts back the amount of water that can be reinjected back underground, what are the alternatives to simply cutting production? What are producers actually doing now?
Thanks.
I’ve read about the evap pools too GWT & I think the problem was partly that the chemicals were seeping to the water table, wells and such. I posted a while back that I saw somewhere that a company was making a huge plastic/rubber inflatable ‘pool’ to hold waste water - but it might not hold enough gallons or be too expensive to suck the water out and cart it away somewhere else to be feasible. Also I read that OK is accepting waste water from out of state, that doesn’t make sense. I have the same question about alternatives
Thanks, all. Yeah, way back 50 years ago, my Uncle knew the evap pools were dangerous. (I, of course, wanted to go play around them or fish in them). I suppose Martha had the answer (as she always does). The current price doesn’t support the alternatives so production will be cut back. I can imagine trucking this much water is very expensive. Plus…to where? Yes, we still have a drought here in California but probably don’t need this expensive water. I was wondering if there were places willing to accept it and maybe pipelines to transport it. Doesn’t sound like either exist. Not surprising. Thanks again.
GWT, I found this. It involves surface leasing. http://www.saltwaterdisposalinstitute.com/alternatives-to-high-volu…
GWT, Propane frack or other alternatives can be used instead of hydraulics to reduce waste water amounts and production water can be injected back into oil bearing formations for enhanced oil recovery. The EPA UIC program doesn’t regulate wells solely used for production. Right now the problem with the alternative frack is cost. $30 oil price won’t support it.
Thanks, Martha.
Martha, will the announcement just now that Atlantic drilling will be banned by the administration be a good thing for on-shore shale?
maybe that explains today’s bump in WTI?
Thanks Martha. Pretty exciting. Now waiting on report from the other one. Same surface hole but heading in another direction from what I could tell by looking at the survey map on the Drilling Permits. Top located in the northern part of 16 but landing point and bottom are in 9. I also remember what you told me some time ago that they could (if profitable) drill more wells from current location. Jimmy
Jimmy, Deep water ocean drilling costs more than on-shore shale, so shale production is the only way to compete when the World is over producing oil and driving the price low. It’s my opinion that the current oil situation is being manufactured, so it’s somewhat predictable.
800k of 1.9 million is a fairly significant discrepancy. I think Boone Pickens may have been on to this when he said on Mad Money that the oversupply was smaller than we think.
WSJ March 17, 2016: Where did 800,000 B/D Go? Maybe they never existed.
http://www.msn.com/en-us/money/markets/crude-mystery-where-did-8000…
RW, It’s been a manufactured inaccuracy from the get go.
Jimmy, If you are interested search online horizontal directional drilling, multi lateral drilling, and pad drilling for detailed explanations and photos.