The Briefing Room
General Category => Science, Technology and Knowledge => Energy => Topic started by: Elderberry on April 09, 2021, 11:28:43 pm
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Houston Chronicle by Paul Takahashi 4/9/2021
Hydraulic fracturing activity in North America has nearly recovered to pre-pandemic levels, but flaring levels remain historically low, according to a new report.
The number of new hydraulic fracturing jobs hit a 12-month high of 1,064 wells in March, setting the stage for oil production to rise in the second quarter, according to Rystad.
The Norwegian energy research firm said oil production in the Permian Basin has largely recovered from the February winter storm, which caused the largest disruption to U.S. oil production in its history. Rysad said it counted 429 new hydraulic fracturing jobs in the Permian in March, up from 260 in February and well above the 300 well completions needed to maintain pre-pandemic output.
More: https://www.houstonchronicle.com/business/energy/article/Fracking-nears-pre-pandemic-levels-but-flaring-16088808.php (https://www.houstonchronicle.com/business/energy/article/Fracking-nears-pre-pandemic-levels-but-flaring-16088808.php)
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The reason there are a lot more fraccing is not due to effect from any winter storm. It is due to much higher oil prices.
These wells had been drilled some time before and have been awaiting higher prices, which have now come.
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California Moves to Ban Fracking—as Gas Prices Hit 3-Year High
California’s proposed ban on fracking comes as global demand for energy is increasing.
Thursday, April 8, 2021
Jon Miltimore and Brad PolumboCalifornians often serve as test subjects for progressive policies. With its latest proposed ban, the Golden State may end up serving as a cautionary tale.
“Answering the call of Gov. Newsom, Democratic California lawmakers introduced a bill to ban fracking by 2027, in the fifth largest economy in the world,†Fox Business reports. “The bill, from Democratic state Sens. Scott Wiener of San Francisco and Monique Limon of Santa Barbara, would prohibit new fracking permits or renewals by Jan. 1, 2022, while also banning permits within 2,500 feet of homes or schools.†...
As Justin Wolfers of the left-leaning Brookings Institution has explained, the economics of fracking are not complicated. The process vastly simplified the extraction of fossil fuels, which made production less expensive and therefore reduced prices.
“Overall that makes consumers better off,†Wolfers explained. ...
Some might say these concerns still warrant intervention. But it’s important to understand California’s ban would come with serious costs.
The fossil fuel industry supports roughly 366,000 jobs state-wide, according to Fox Business. California Assemblyman Vince Fong warned that the state’s regulatory move would “devastate the local economy†and “destroy careers in California.â€
There’s little doubt that California’s ban would place thousands of livelihoods in jeopardy. But the reality is that the effects would go well beyond those employed in the industry—and well beyond the Golden State. ...
Full story at Foundation for Economic Education (https://fee.org/articles/california-moves-to-ban-fracking-as-gas-prices-hit-3-year-high/).
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California Moves to Ban Fracking—as Gas Prices Hit 3-Year High
California’s proposed ban on fracking comes as global demand for energy is increasing.
Thursday, April 8, 2021
Jon Miltimore and Brad PolumboFull story at Foundation for Economic Education (https://fee.org/articles/california-moves-to-ban-fracking-as-gas-prices-hit-3-year-high/).
Makes one question the sanity of Chevron on why it remains in the land of Gaia worshippers who hate oil and gas, even though they depend upon it to survive.
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The reason there are a lot more fraccing is not due to effect from any winter storm. It is due to much higher oil prices.
These wells had been drilled some time before and have been awaiting higher prices, which have now come.
Right. The backlog of DUCs is being completed, and often infrastructure to handle the gas is in place to keep the crews who put in feeder lines and production equipment going (and take advantage of lower rates).