High oil prices push shale oil production

Cure expensive "medicine" is expensive in itself.unconventional gas Commodity markets this highly respected folk wisdom in the past decade has been the test of the U.S. oil industry, and only to a certain extent been proved.

High oil prices for the U.S. oil industry's strong revival provided the opportunity. Today, the U.S. oil industry is growing at five years ago could not imagine a way to recover. shale gasThe surge in oil production and help lower global oil prices. Since the summer since 2011, crude oil prices have been in decline.

Prospects for oil prices depends on many factors, including the health of the global economy and OPEC (Opec, referred to as: OPEC) response initiatives.

However, if only from the American point of view, there are indications that, although oil prices are unlikely to return in 2009 of $ 33 per barrel in recent trough (back to 1999 low of less than $ 10 per barrel even more impossible ),Ceramic proppant but it is still about $ 95 per barrel from the current (benchmark West Texas Intermediate crude oil price) levels fall further.

Advances in mining technology to reduce production costs

Combined with improved seismic imaging, recession velocity and underground geologic model, these technological advances lead to more drilling program was more effective implementation,Fracturing proppant while the cost per well also declined. These are just some of the improvements in terms of efficiency, revenue also comes from the producers of their joint adjacent terrain area, rather than the dispersion of small-scale leases. Through the joint use of equipment and production staff turnover achieved economies of scale.

While we expect higher productivity growth, however, because the huge leap in technological progress is likely to disappear, the growth rate will likely occur after reaching diminishing returns.ceramic ball Combining these cases, in fact, focused on the production of the most resource-rich areas and easy to reach areas, which means that the rest of the mining areas will be faced with the challenge of declining productivity.ceramic proppant Overall, we expect the fastest growth in crude oil production is likely to disappear within the next two years and after a slowdown in 2015.

Step by step development of new technologies

Since the development of the mobile device, the mobility development drilling has increased.hydraulic fracturing With conventional drilling equipment can only move linearly compared to the mobile device is capable of 360 degrees activities. The mobile device capable of 30 ft / hr fast moving, because the device is no longer need to be removed and reinstalled in a new location, not only greatly reduces the time for movement of the device, but also saves costs.

This may be migratory in another multi-platform development drilling technology has a huge role. Simply put,fracturing proppant this means that the same position (platform) have more than one horizontal wells, which can reduce the floor space at the same time to maximize the depth below the surface.

Assuming the same position can play multiple wells, construction management issues will not have to worry:shale gas each well based on their geographical location and geological conditions necessary to conduct an independent investigation, assuming the distance near the well, then they will also be enhanced affinity and thus more easy exploration and exploitation. Increased mobility also means the movement between the platforms easier and bring fewer environmental and capital expenditures.

Shale gas revolution in the energy infrastructure sector activate America

shale gas technology advances make the United States to become the world leader in the field of energy production is one of many large energy companies continue to increase in shale gas exploration and production areas of investment, making the United States energy infrastructure sector performance active. Over the past month, Chicago Bridge Iron and Steel Company's shares soared 20 percent,frac sand companies the U.S. leader in the field of energy infrastructure has become a "stock god" Buffett's favorite.

Analysts believe that the emergence of new drilling techniques to promote the U.S. natural gas output, but also to promote transportation and storage of natural gas companies to expand investment in infrastructure for gas liquefaction and storage, Proppant infrastructure engineering and construction spending growth so that benefit businesses. Estimated U.S. energy infrastructure needs $ 250 billion to $ 350 billion investment, the industry average annual growth rate will reach 8%.

Shale gas contamination risk arouses worries

Shale gas triggered by the " energy revolution " Masamori momentum , while mining the enormous water consumption , groundwater pollution problems began quietly affecting people's nerves .ceramic ball Chinese Ministry of Environmental Protection Engineer ten thousand too 29 in Beijing , said the ministry has not yet received the current shale gas project environmental impact assessment application , but any future development project must strictly carry out environmental impact assessment .

By the end of 2012 , China conducted a second round of MLR bustling shale gas exploration bidding . However, according to media reports , compared to the previous spectacle successful business in the new shale gas exploration and development of the actual input level as yet no substantive .

It is understood , including shale gas exploration, drilling , well completion process , the core technology is horizontal drilling and  hydraulic fracturing   . World-renowned consulting firm Accenture released a report earlier , generally required for drilling and fracturing 18,927,000 liters of water , the equivalent of 1,000 trucks transported water . In addition to a huge amount of water , shale gas extraction wastewater generated contains hydrocarbons, heavy metals , salt , and a hundred kinds of chemical substances, if the infusion or perfusion layer below the requirements of the inappropriate choice will result in groundwater contamination .

" After all, drill into underground shale gas , drill through multiple aquifer" , ten thousand too that shale gas does cause risk of groundwater contamination . He also disclosed that the current Chinese Academy of Environmental Sciences , Center for Environmental Assessment and other environmental research institutes under the Ministry of the Environment has developed the pros and cons of shale gas analysis report presenting the ministry .

Chinese population density, water scarcity and uneven distribution of seasonal water shortages distinctive characteristics. The concentrated distribution of shale gas in Sichuan , Chongqing, Guizhou, Yunnan and Guangxi and other regions, the complex geological conditions , underground river caves and more, increasing the difficulty of groundwater pollution prevention and control .

In ten thousand too seems to control the risk of groundwater contamination in shale gas development project before the environmental impact assessment must be carried out strictly on the possible water bodies, air and other environmental factors cause the system to conduct a comprehensive analysis of the risks . " If necessary, can also be international cooperation , learn from foreign research experience ."

In fact, the environmental risks of shale gas development and development concerns enthusiasm almost simultaneously .Fracturing proppant Some observers have pointed out here , from the Chinese " shale gas development plan ( 2011-2015 ) " , the current land, energy and other management department of shale gas development to the environment , ecology and human health impacts of inadequate consideration and recommended from the environmental efficiency of resources , ecological environment carrying capacity and environmental optimization of the level of risk , and many other shale gas development plan , good for sensitive targets avoidance and protection measures .

Ten thousand that day too is organized by the China Journalists Association 's third period " ' Chinese Dream' with Chinese ecological civilization " news cafes revealed the above information .

China both opportunities and challenges

With the U.S. dependence on Middle East oil significantly reduced , China from Saudi Arabia, Iraq , Qatar and other countries imported increasing oil and gas resources , accounting for the share of exports in these countries is also rising .

Although the short-term Chinese oil demand enough to reach the U.S. level, but growing rapidly. Traditional oil-producing countries in the Middle East , while U.S. imports decreased access to new export markets , exports to the inevitable , these changes also shows the pattern of the world oil market is undergoing subtle changes .

On the other hand , the U.S. oil exports and the adjustment of energy strategy for China and the United States , Canada and other countries to create the conditions for energy cooperation . United States in the field of energy, especially in the  unconventional gas  and new energy fields to further expand mutually beneficial cooperation in space . U.S. crude oil exports to China is a good start , the future U.S. crude oil , liquefied natural gas exports to China will continue to increase bilateral cooperation in unconventional oil and gas energy development and technological exchanges and cooperation will become increasingly frequent.

With the U.S. offshore oil and gas and the rapid development of unconventional oil and gas , as well as the strengthening of the role of new energy alternatives , future U.S. oil and gas imports will continue to decline in Canada 's oil and gas exports to the U.S. will fall . Excessive dependence on energy exports in order to solve the situation of the United States , Canada is also seeking to diversify export channels , turning to Asia . China and Canada and other North American countries , the energy partnership will increasingly strengthened.

However, the U.S. crude oil exports only U.S. energy strategy to adjust the performance and one of the results , the background is the United States in recent years, especially since the global financial crisis in the political , economic, military , diplomatic and other areas strategic adjustment . As a rising power, China in the changing situation in the global energy challenges and pressures greater .

First, domestic oil production potential is limited , increasing external dependence . Chinese oil resources per capita is only 5.4% of the world average since 2010, oil production barely maintained at a level of around 200 million tons . In the absence of significant technological breakthrough or a major discovery in the case , Ceramic proppant the local yield potential is very limited. At the same time , rapid growth in oil demand , security for the increasing pressure . In 2012, China 's dependence on foreign oil by 58% over energy security , especially oil security has become an important issue must be addressed .

Second, the situation in the Middle East and oil transport channel security impact on China increased. 80 percent of China's oil imports from the Middle East and Africa , through the Strait of Malacca, through which 38% of the Strait of Hormuz , "national oil fortunes " for less than 40%. U.S. dependence on Middle East oil reduced role in the Middle East have also changed . China 's dependence on Middle East oil rising geopolitical risks , transport security has become China had to directly face the issue. China has not as powerful as the United States military and diplomatic strength to control the Middle East situation. Once the major changes , the oil will have a significant impact on safety .

Third, China 's peripheral situation will be more complicated. Reduce the U.S. dependence on oil imports gained greater strategic development. The Obama administration took office, began to focus on the fight against terrorism original strategic focus to Asia , Hydraulic fracturingto consolidate its leading position in the region . U.S. high-profile "return to Asia " in Northeast Asia , the East China Sea , South China Sea and other regions of the situation even more complicated , the original dispute and conflicts under certain conditions may be intensified, affecting the process of China's peaceful rise .

Limited impact on short-term and long-term impact of a huge

Short term, the U.S. oil exports more symbolic than practical significance, direct impact is limited. Over the past 10 years, U.S. exports to Canada only a small amount of crude oil ,ceramic ball the annual export volume of 800 million tons ( 2011 data ) . Although domestic oil production capacity improved, but the oil is completely independent from great distance , from a net oil output is out of reach.

One area in North America to achieve energy independence as possible. International Energy Agency (IEA) predicted that output growth in accordance with the current trends, by 2017 , the United States may be more than Saudi Arabia, the world's largest oil producer . 2012 , IEA in the " World Energy Outlook" that America's future oil and gas production increases, the global energy landscape will undergo radical changes. In the global energy map of the significant changes in the North American leader. The next 10 years, the U.S. energy self-sufficiency rate will keep rising , it is possible to achieve energy independence within North America ,Unconventional gas that is outside of North America 's energy dependence is reduced to below 5% level.

The second is to speed up the flow of global oil change . With the resource situation changes , technological progress and economic development , global oil and gas production and consumption are adjusting territory among the U.S., EU and Asia 's oil imports three major economic zones gradually clear the main channel . U.S. oil imports have formed the core of the North American , South America, Africa and the Middle East as a complementary pattern. Sides of the Atlantic ( the Americas and West Africa ) became the absolute main foreign oil supplies , the U.S. nearly 70 percent of its oil imports come from the Atlantic .

China , Japan and India, the Asia-Pacific region's oil consuming countries are highly dependent on Middle East oil supplies. Some agencies are expected , the future of China , India and other emerging markets will drive global energy demand continues to be important engine of growth , dependence on Middle East oil will be further deepened.

Third is part of the income of oil-exporting countries affected. U.S. shale oil production rise and increase self-sufficiency , the greatest impact of some of the oil-producing countries in Africa . Since 2010, Africa's crude oil exports to the United States significantly reduced , the U.S. market was originally from Nigeria, Algeria , Angola and other countries of crude  shale gas  oil was quickly replaced . In 2012, the United States is no longer Angola 's largest oil buyers, imports accounted for only 11% of its total exports , behind China and India.

Fourth, the oil market competition may be more intense. U.S. oil self-sufficiency and export of crude oil increased to improve the international oil market supply, the maintenance of the global energy supply and demand balance and price stability is of great significance . Including the United States OECD ( OECD ) countries, slowing growth in oil consumption occurs or downward trend in global oil supply and demand tight pattern will be mitigated to some extent . However, these countries long-established pattern of high energy consumption in the short term is difficult to change . The oil-consuming countries in the process of reshaping the balance of the oil market , are trying to build and strengthen their own can be driven , secure, stable oil supply system. Under the action of various forces , between developed countries , developing countries , between developed and developing countries around the oil resources of the competition between the long-term will continue to exist, and may under certain conditions tends to be intensified.