PDA

View Full Version : Exxon Says N. America Gas Production Has Peaked



Gold9472
06-27-2005, 07:25 PM
Exxon says N. America gas production has peaked

http://www.reuters.com/newsArticle.jhtml?type=electionsNews&storyID=8854988

Tue Jun 21, 2005 04:52 PM ET

NEW YORK (Reuters) - After weak prices in the 1990s due to oversupply, natural gas production in North America will probably continue to decline unless there is another big discovery, Exxon Mobil Corp.'s (XOM.N: Quote, Profile, Research) chief executive said on Tuesday.

"Gas production has peaked in North America," Chief Executive Lee Raymond told reporters at the Reuters Energy Summit.

Asked whether production would continue to decline even if two huge arctic gas pipeline projects were built, Raymond said, "I think that's a fair statement, unless there's some huge find that nobody has any idea where it would be."

Exxon is a major player in the two multi-billion dollar pipeline projects that could bring stranded arctic gas to Canada and the lower 48 states.

The Mackenzie Valley pipeline. which includes partners Imperial Oil (IMO.TO: Quote, Profile, Research) , Shell Canada (SHC.TO: Quote, Profile, Research) , ConocoPhillips (COP.N: Quote, Profile, Research) and the Aboriginal Pipeline Group, has been stalled due to land access issues with native groups in Canada.

At a cost of some C$7 billion (US$5.6 billion), the Mackenzie line could by 2010 bring up to 1.9 billion cubic feet per day of much needed arctic gas in Canada to fuel steadily rising demand.

The larger Alaska Highway Pipeline, also stalled as Exxon, BP (BP.L: Quote, Profile, Research) and ConocoPhillips seek fiscal terms with the state of Alaska and regulatory clarity from the Canadian government, could tap as much as 6 bcfd of gas from the Alaska North Slope by 2012 at a cost of $15-20 billion.

"In terms of those two projects, I think Mackenzie is somewhat ahead of Alaska. Obviously both of them have to go through Canada and to that extent the Canadian government has a significant impact on the timing of both projects," he said.

"The facts are that gas production continues to decline, and will start to decline even more rapidly. By the time we get to that period (2010-2012), we'll need it badly."

Stranded natural gas reserves on the Alaskan North Slope and in the Canadian arctic could total more than 40 trillion cubic feet, according to analyst estimates.

While the number of U.S. rigs drilling for natural gas has climbed about 20 percent over the last year and prices are at record highs, producers have been struggling to raise output.

Experts said easy onshore and shallow water basins have been mostly tapped or are off limits for environmental reasons, and new technologies like horizontal drilling have been draining wells in two or three years, a much faster rate than the five years or more during the 1990s.

The U.S. Energy Information Administration estimates that natural gas production will be flat this year and increase only one-half percent next year.

At the same time, demand for the cleaner burning fossil fuel is expected to grow by two percent this year and almost 2.5 percent in 2006, according to EIA, the statistical arm of the Department of Energy.

© Reuters 2005. All Rights Reserved.

Gold9472
06-27-2005, 07:42 PM
I broke this story WAY before Reuters... ;)

somebigguy
06-27-2005, 07:43 PM
This is good news. The fact that they are admitting this fact suggests they might do something about it.

Gold9472
06-27-2005, 07:44 PM
This is good news. The fact that they are admitting this fact suggests they might do something about it.

Dude... I don't mind the dick as much as I do the swastika. How does admitting the "Peak" benefit Exxon?

somebigguy
06-27-2005, 07:46 PM
Dude... I don't mind the dick as much as I do the swastika. How does admitting the "Peak" benefit Exxon?
Yeah, it doesn't surprise me that you don't mind the dick.

If this problem becomes well known and accepted, the chances of us developing alternative fuels in time is greatly increased.

Gold9472
06-27-2005, 07:49 PM
Yeah, it doesn't surprise me that you don't mind the dick.

If this problem becomes well known and accepted, the chances of us developing alternative fuels in time is greatly increased.

From everything I've heard, we would have had to start developing alternative sources 30 years ago in order to make a difference... The "Rich" areas of the country already have started building Windmills...

somebigguy
06-27-2005, 08:00 PM
From everything I've heard, we would have had to start developing alternative sources 30 years ago in order to make a difference... The "Rich" areas of the country already have started building Windmills...
Yeah, but it doesn't take 30 years to develop alternatives that we already have.

Solar, Wind, Bio-Diesel, ethanol

Already exist, we just have to adapt our infrastructure to them.

Gold9472
06-27-2005, 08:02 PM
I want to start seeing gas stations carrying Ethanol... it doesn't take much to convert stations...

somebigguy
06-27-2005, 08:12 PM
I want to start seeing gas stations carrying Ethanol... it doesn't take much to convert stations...
Dude, there is already about 15% ethanol in your gas. The oil companies are fighting like crazy to keep that percentage down.

Gold9472
06-27-2005, 08:13 PM
Really? Corn Oil is already mixed with our gas? I didn't know that.

somebigguy
06-27-2005, 08:15 PM
Really? Corn Oil is already mixed with our gas? I didn't know that.
At least it is up here. Supposedly you can mix it up to 85% ethanol without adverse affects, but the oil companies will have none of that. I'm pretty sure you have a percentage of ethanol in your gas as well...

beltman713
06-27-2005, 08:20 PM
There is a gas station chain in South Carolina that just started carrying an 85% ethanol gas at their stations.

Gold9472
06-27-2005, 08:20 PM
Kewl.

somebigguy
06-27-2005, 08:34 PM
There is a gas station chain in South Carolina that just started carrying an 85% ethanol gas at their stations.
Awesome!!! Thats what I mean. Necessity is the mother of all invention. High prices are gonna make these guys do something!!!

beltman713
06-27-2005, 09:17 PM
Not all cars can burn it.

The Shape
07-20-2005, 06:55 PM
Not all cars can burn it.
Lets not forget Movie Night.

miss_muffet
07-21-2005, 08:42 PM
i noticed casey's a chain gas station has ethanol in their gas.

somebigguy
07-21-2005, 09:32 PM
i noticed casey's a chain gas station has ethanol in their gas.
Yes, a lot of gas has a blend of 15% ethanol in it. I've been doing a bit of reading and found that most new cars support the new 85% ethanol blend called E85, so if anyone is looking at a new car, make sure it supports E85. It seems cars manufactured in the last few years should support it.

Originally I was planning on getting a diesel thinking I could make my own bio-diesel, however, I'm gonna wait and see what opens up first in my area, either an E85 or bio-diesel pump, then I'll decide what type of car to buy.

somebigguy
08-06-2005, 11:24 AM
The link to the story on the first page no longer works, here is an updated one:

http://today.reuters.co.uk/news/newsarticle.aspx?type=summitNews&summit=UtilitiesSummit&storyid=2005-06-21T205257Z_01_N21633104_RTRIDST_0_SPECIALEVENTII-ENERGY-SUMMIT-EXXONNATGAS-DC.XML&archived=true&show=all