Posts Tagged ‘gas’

Shale gas in Europe worries Putin

October 25, 2014

It might seem counter-intuitive for Russia to be against the advent and development of shale gas in Europe since they themselves have huge quantities of oil and gas bearing shale in SiberiaBut Russia has a very large investment in conventional natural gas production and pipelines (through Gazprom) which must be protected and nurtured. Putin needs to ensure revenues and that exports of conventional natural gas gives them a reasonable return on the investment before moving onto shale gas. About 30% of Europe’s gas comes from Russia. Russia needs Europe to go slow with its own shale gas production and to continue buying Russian gas at reasonably high prices for as long as possible. So much so that Russia has even been supporting anti-fracking groups in Europe. (It is a little ironic when the European anti-fracking alarmists take well disguised Russian funds and play into Russian hands).

The MotleyFoolNow there are accusations that Russia is working hard to keep Europe dependent on its gas supplies. According to Nato chief Anders Fogh Rasmussen, Russia is doing this by funding anti-fracking groups. That’s something that some of the larger groups deny, but it would be hard to suss out where all of their donations come from in the anti-fracking movement.

There are good reasons for Russia to undertake such a covert operation. For starters, Gazprom would suffer greatly if its European business started to slip away. Second, by keeping Europe hooked on Gazprom gas, Russia maintains a strong bargaining position in world politics.

That, however, just gives the United States more reason to come to the aid of its European allies. Right now, the export of U.S. natural gas is severely limited. With the combination of horizontal drilling and hydraulic fracturing (fracking) in the U.S., however, the flow of gas has outstripped demand and pushed U.S. domestic gas prices to record low levels.

While being able to sell natural gas to Europe would be a huge win for Europe politically and U.S. gas drillers financially, it would also be a big win for pipeline operators like Kinder Morgan (NYSE: KMI  ) . Moving natural gas from where it’s drilled to where it’s used made up roughly 50% of Kinder Morgan’s business last year. The business isn’t about natural gas prices, either; it’s about providing a service. CEO Richard Kinder describes it this way: “We operate like a giant toll road.” So, if natural gas starts going overseas, Kinder Morgan will be involved in the process and make money doing it.

The possibility of surplus shale gas from the US entering Europe and depressing sales of Russian natural gas is a nightmare economic scenario for Vladimir Putin. Even the recent drop in oil prices has seriously unbalanced the Russian budget which needs an oil price of over $100 to be in balance.

Putin takes part in final session of 11th Valdai International Discussion Club meeting

Putin at the 11th Valdai International Discussion Club meeting in Sochi

Putin is clearly worried. Russian President Vladimir Putin took part at the plenary session of the Valdai International Discussion Club in Sochi. He talked up the risks with US shale gas to Europe and talking up the benefits of Russian gas.

TassPutin: Europe’s transition to American shale gas will be suicidal for EU economies

Russian President Vladimir Putin believes that transition to shale gas will be suicidal for the EU economies. In his speech at the Valdai discussion club on Friday, Putin said that Russia’s trade turnover with the European Union stood at 260 billion dollars in the first half of 2014 even despite sanctions. He assumed, however, that the trade volumes could fall if Russia stopped all gas and oil supplies to Europe.

“We assume that it can happen at the will of our partners in Europe. But it’s hard to imagine,” Putin said, explaining that alternatives to Russian gas and oil supplies were worse.

It is either the crisis-hit Middle East where the “Islamic State” militants have stepped their operations or deliveries of shale gas and shale oil from the United States.

“We can imagine that /deliveries/ of shale oil and shale gas from the United States are possible. But how much it will cost?” Putin asked.

“This is going to be a direct way to reducing their own competitive ability because it is going to be more expensive than our pipe gas or oil delivered from deposits in Russia,” the Russian president went on to say.

“They are simply going to kill their competitive ability. What kind of a colony Europe should be to agree to this option. But I believe that common sense will prevail. The same is true of Asia,” Putin said in conclusion.

For very many reasons the very best thing that Europe (and Asia) could do would be to expedite the production of their own shale gas. It would bring down energy prices, stimulate growth, increase jobs, increase independence from Russia, increase exports, increase competitiveness against the US and consolidate energy intensive industries which are moving out. But this would have to overcome the opposition of the alarmist, European green parties who have a remarkable facility for being counter-productive.

Opposing the development of shale gas in Europe gives Russia the edge on the geopolitical playing field.

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Adapting to climate change requires the further development and use of fossil fuels

July 31, 2014

The single thing that differentiates the human species from every other known species on earth has been the control and use of fire.The step change then from primitive to modern humans has been due not least to the control and development of the combustion process and the utilisation of fossil fuels. This in turn has multiplied many times the intensity of energy available to be harnessed by man. I would suggest that the human capability of handling change is largely a function of the power intensity available.

power intensity

power intensity

Fossil fuels have been demonised (by association with carbon dioxide emissions) for the last 30 years. In spite of that most  of the growth in the developing world has been – and continues to be – powered by fossil fuels. Fortunately the lack of evidence of any significant linkage between man-made carbon dioxide and global warming  (which is still the politically correct ideology) is beginning to be realised. The unnecessary, misplaced and ineffective increase of electricity prices in countries which have curtailed their use of fossil fuels has prolonged the recession and has cost many millions of jobs.

We have now had almost 20 years with the highest level ever of fossil fuel utilisation but “global temperature” has remained stubbornly static. In the last decade global temperatures have declined slightly. The hypothesised link between man-made carbon dioxide (which constitutes only about 3% of carbon dioxide emissions) and global temperature is well and truly broken. All the various climate computer models – which build on this link being amplified – have failed miserably.

The indicators of a global cooling cycle having started are piling up.

  1. There is more ice in the antarctic than has ever been measured
  2. There is more ice in the arctic than about a decade ago
  3. Total ice cover is higher now than has ever been measured
  4. Ice cover on the Great Lakes reached levels not seen for over 50 years and has persisted into the spring (even summer) later than has been observed for at least 40 years.
  5. The expected super El Nino forecast for this year has been dampened by a cooling Pacific and only a mild El Nino event – if at all – is now to be expected
  6. Sea level rises are no different to the long term average for sea level recovery since the last glacial minimum and may even have slowed.
  7. The deep oceans are cooling and are no repository of “hidden heat”
  8. The net cooling effect of clouds has been underestimated in nearly all models and cloud cover over the world is increasing (slightly).
  9. Man made water vapour is of greater significance than man made carbon dioxide for climate effects. But man made water vapour is almost insignificant compared to the water vapour flux due to evaporation and respiration.
  10. Solar effects are virtually ignored by all climate models but the sun does not much care for models and is reaching a low level of activity comparable to the Dalton or Maunder Minima.

Crying wolf about global warming has been the politically correct thing to do for 3 decades. Before that it was politically correct to be alarmist about the coming ice age. No doubt all the old fears about an ice age can be dusted off and recycled.

Climate change has been the most powerful force which has shaped human evolution and expansion. Sea level changes and patterns of precipitation and desertification have driven both evolution and migrations. Sea level during an ice age is about 120 m lower than it is today. More land is exposed in equatorial and tropical regions during a glacial period while land is rendered uninhabitable by the ice sheets of the north. But even primitive humanity survived during the glacials.

It is the global cooling cycles and not global warming cycles which will place the greatest demands on farming and energy. The greatest sea level change that humanity has had to – and will have to – adapt to  is the 120 m difference between glacial and interglacial conditions. During an ice age precipitation will drop sharply and river water flows will decline. Hydro power will all but dry up. It is the inevitable coming of the next ice age that will pose the real challenge – not the 1 m sea level rise that may come with another warming cycle. And when the ice age comes again it will be fossil fuels which will keep the home fires burning. It is the further exploitation of nuclear energy and fossil fuels in all its forms – coal, oil, natural gas, shale gas, gas from methane hydrates – that will be needed. It is the availability of power at the intensities provided by nuclear power and fossil fuel combustion which is what will provide humans with the wherewithal to cope with climate change, whether warming or cooling, but especially when the next ice age begins.

Whatever the alarmists would have us do in the short term, reality will eventually bite. The use of fossil fuels will – thankfully – continue as will the exploration for new sources of gas. The next generation of nuclear power plant will be developed – even though nuclear alarmism has led to a dearth of nuclear engineers. No doubt some market niches will be filled by wind and solar power but that will not be very significant in the large picture.

 

Heavyweights in Europe backing away from “green” follies

January 27, 2014

The beginning of the end of “green” profligacy? Perhaps – but the EU is still dominated by earnest, self-righteous, politically correct, fanatical, “green” fantasists.

Nevertheless it is a change of political climate in the right direction – from angry, hot alarmism  to a healthy, cold scepticism.

Lobby groups such as Greenpeace and Friends of the Earth are not pleased. And that itself is a good sign. After all – as the great sage John Gummer has pointed out – such groups have been infiltrated and taken over by the Trotskyites.

The inanity of those who would connect weather with global warming is stupefying. I don’t call it “climate change” since if change could include “global cooling” all the warmists would be left without any faith and be out of a job. 

  1. ‘We must not demonise coal’ – German environment minister
  2. UK: Climate scepticism blamed as Owen Paterson slashes spending on global warming
  3. UK: David Cameron pledges to rip up green regulations

Germany:

Germany’s environment minister, Barbara Hendricks, says coal-fired power is important to the country’s economic security and should not be subject to extreme negativity.

In a separate development, Ms Hendricks told Power Engineering International that a court decision, which found the forced shutdown of the Biblis nuclear power plant to be illegal, would not have any impact on Germany’s plans to wind down its nuclear power industry. Speaking to Frankfurter Rundschau, Ms Hendricks said that while the energy transition’s dependence on coal power was ‘undesirable’, it was necessary for the country’s stability, particularly as “we can no longer expect gas to flexibly complement eco-energy.”

“Gas is unprofitable while coal is booming. We must not demonize coal. We still need to transition to a guarantee security of supply.”

She added that ‘rectivating’ the energiewende meant tacking the undesirable development of coal’s eminence. However this, she said, is to be a long term goal governed by market mechanisms/ETS. ETS, which would have to be reactivated. 

In her view backloading of 900 million ETS-certificates is to be a first step even if it is not enough. “The two billion CO2 allowances, which are too much on the European market, must be permanently removed. The 900 million ETS certificates, for which the EU has recently decided on an interim basis, are not enough. We will aggressively fight in the EU for a functioning CO2 trading system.”

UK:

The Department for Environment, Food & Rural Affairs (Defra) will spend just £17.2m on domestic “climate change initiatives” this financial year, a 41 per cent decline on the previous 12 months, according to its response to a freedom of information request. …. 

The dramatic cut in domestic climate change spending comes in Mr Paterson’s first full-year as Environment Secretary – he took up the post in September 2012 . The spending now represents just 0.7 per cent of the department’s total budget for the year, down from 1.2 per cent last year.

Defra is in charge of preparing, or adapting, Britain for global warming, while the Department for Energy and Climate Change is responsible for mitigating the risks. ….  One source who worked with the Environment Secretary said: “Adapting to climate change in itself is not a priority for Owen Paterson. He doesn’t believe that floods have anything to do with climate change, so he calls the biggest aspect of adaptation ‘flood management’. When you talk to him, you don’t use words like ‘adaptation’ – instead you talk about the economic impacts and opportunities and present it as a market solution.”

UK:

David Cameron will on Monday boast of tearing up 80,000 pages of environmental protections and building guidelines as part of a new push to build more houses and cut costs for businesses.

In a speech to small firms, the prime minister will claim that he is leading the first government in decades to have slashed more needless regulation than it introduced.

With gas from methane hydrates added to shale and natural gas, the world has gas for a thousand years

May 3, 2012

Methane hydrates represent the largest source of hydrocarbons in the earth’s crust.

Methane clathrate (CH4•5.75H2O), also called methane hydratehydromethanemethane icefire icenatural gas hydrate, or gas hydrate is a solid clathrate compound (more specifically, a clathrate hydrate) in which a large amount of methane is trapped within a crystal structure of water, forming a solid similar to ice. Originally thought to occur only in the outer regions of the Solar System where temperatures are low and water ice is common, significant deposits of methane clathrate have been found under sediments on the ocean floors of Earth. 

The worldwide amounts of carbon bound in gas hydrates is conservatively estimated to total twice the amount of carbon to be found in all known fossil fuels on Earth.

(more…)


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