petec Posted February 3, 2021 Share Posted February 3, 2021 Hi all I am (from a standing start) trying to figure out the impact on gas markets of any new policies by the Biden administration. In particular I'm interested in what might happen to fracking and the implications, and also whether any particular areas might see higher or lower prices due to fewer pipelines being built. If this has been discussed on another thread, please point me there. Otherwise (informed!) opinions and links would be great. Thanks! P Link to comment Share on other sites More sharing options...
SharperDingaan Posted February 3, 2021 Share Posted February 3, 2021 A few research pointers, that will help towards a better decision. Research what happens when fracks are done too near the surface. Gas and chemicals migrating into town aquifers, seeping out of the land, earthquake triggers, etc. Note the locations, local farming/ranching practice, frequency and type of damage, PTD drilling in the area, well abandonment history, and how the damage is being brought to light. This is the environmental issue triggering the response. Some reservoirs stand out. The sparsely populated rural land that is marginally productive at best, the tap water that can frequently be lit, and cattle that routinely die from contaminated water. Fracks that were too close together, or where there were too many for the reservoir, they were poorly done, and wells routinely abandoned. Companies containing the damage by compensating ranchers for their dead cattle, and denigrating the odd images of flaming taps and cattle poisonings. Bully the yokels to keep it quiet, and protect the high paying o/g jobs for the rest. Every reservoir has its own hairball, some worse than others. Fracking is just another tool. As experience has accumulated, it is being better applied, and is 'safer' as a result - lot of improvement between today and even just 5 yrs ago. It is also better to frack where there is stronger regulation/environmental protection (Canada) as it minimizes the worst of the abuses. However, for legacy wells, it's too late. Most would expect much tougher US regulation, and probably reservoir specific. Most would also expect reservoir ownership to consolidate under the majors, in return for legacy cleanups and better environmental management. Less drilling for a time, less US (light oil) production, and less associated importation of Cdn heavy crude for refining. Higher heavy oil inventory at Cushing, as a production buffer. US o/g will scream, but the reality is that the industry is done with the 'shale cowboy' disruption. Not a bad thing, and well overdue. SD Link to comment Share on other sites More sharing options...
JRM Posted February 3, 2021 Share Posted February 3, 2021 To me the worst side effect of fracking for oil is the flaring of associated gas that cannot be sold profitably. This practice should definitely be restricted more. Most fracking is targeted at oil formations, and associated gas is a byproduct. Sometimes a gathering line is available, but most of the time it is flared off. Most of the natural gas supply is from traditional sources. I'll post something if I can find some more detailed information. Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 3, 2021 Share Posted February 3, 2021 Maybe check out: https://www.cornerofberkshireandfairfax.ca/forum/general-discussion/energy-sector/450/ Link to comment Share on other sites More sharing options...
bizaro86 Posted February 3, 2021 Share Posted February 3, 2021 To me the worst side effect of fracking for oil is the flaring of associated gas that cannot be sold profitably. This practice should definitely be restricted more. Most fracking is targeted at oil formations, and associated gas is a byproduct. Sometimes a gathering line is available, but most of the time it is flared off. Most of the natural gas supply is from traditional sources. I'll post something if I can find some more detailed information. In Alberta we require gas to be conserved. So if you want to produce the oil you build a gathering line for the gas. Simple rule, good for the environment. It also improves the economics of future wells because the pipelines are already built at the front end. Link to comment Share on other sites More sharing options...
petec Posted February 3, 2021 Author Share Posted February 3, 2021 Do we know what the new administration is looking at? Banning fracking? Requiring it to be done better? Requiring pipes for flared gas? Or do we just not know? Link to comment Share on other sites More sharing options...
SharperDingaan Posted February 3, 2021 Share Posted February 3, 2021 Do we know what the new administration is looking at? Banning fracking? Requiring it to be done better? Requiring pipes for flared gas? Or do we just not know? There's lots of speculation, and 'lobbying/consultation', but we just do not know. Directionally, few expect a continuation of 'business as usual'. SD Link to comment Share on other sites More sharing options...
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