Sell it

It really is all about greed isn't it? Their greed and your greed. Think you can drink that oil, just try it!

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Permalink Reply by Tom Copley on December 30, 2010 at 1:09pm

There's a little bit more to it than that, Sharon. Marcellus shale is prospective for natural gas, not oil--maybe natural gas liquids (NGLs) in southwest PA. I wouldn't recommend it, but you can only drink natural gas if it is first refrigerated into liquid natural gas  (LNG), Please read this opinion piece that I wrote last year. It spells out a couple of positives.

 

Read more

Permalink Reply by Sherry on January 2, 2011 at 2:04pm

Tom,

I liked your opinion piece, but then I have the utmost respect for those who see the overall big picture of this DOMESTIC play.  We have the NG under our own land; we don't have to be at the mercy of countries who can use it against us.

Permalink Reply by Tom Copley on January 2, 2011 at 5:25pm

Thanks, Sherry. As shale gas production expands, and the price of natgas remains competitive, there will be some opportunities to substitute for oil and coal, especially in electric power generation.

However, to gain maximum leverage from shale gas there needs to be a way to convert it into a transportation fuel. Compressed natural gas (CNG), of course, is great, but there is a "chicken-and-egg" issue with it so far as distribution goes. You can't find CNG filling stations, and so long as there aren't enough places to fill up, people will be reluctant to spend the extra bucks to equip their cars and trucks for CNG.

There are also several approaches collectively known as gas to liquid (GTL) conversion. The Pickens Plan has been promoting converting our long-haul truck fleet to liquid natural gas (LNG). Converting to LNG requires a refrigeration process and on-board refrigeration to keep the liquid fuel cold,

Another GTL approach has been promoted by a company called Sasoil that converts natgas to synthetic Diesel. My personal favorite GTL approach though is to convert gas to metanol (wood alcohol), and market it in much the same way ethanol is sold in the midwest as E-85.There are some minor conversion costs such as new seals and tubing required for your car, but the cost tends to be quite affordable.

What you said is very possible; that is, to achieve greater energy independence. Once we crack the nut of using shale gas for transportation, it can really happen.

--Tom


Permalink Reply by PA roughneck on January 2, 2011 at 6:44pm

Tom,

  thanks for your insightful and informative posts.

  I have often thought that here in the Marcellus play a large step towards the greater vehicular use of CNG might be in powering the many trucks hauling water, pipe, casing, frac sand and other industry materials to and from drilling locations. With most of these trips being reasonably short hauls, a few strategically located fueling stations would enable the industry to not only reduce its trucking costs and put an end to the anti-drilling argument of diesel pollution and carbon emissions, but to also serve as a real world test bed of the viability of the concept.

  I know from my experiences drilling for gas in CO, that as oil prices rose, some operators were swapping out diesel powered rigs for those that ran on gas. I know it's not really viable at this point where Co's are busy drilling single holes to hold leases, but when things move into the development phase I'm sure they'll be looking at this.

  I do think that here in the Marcellus region we have a great opportunity to become an example to the nation of the real possibilities of gas, from use as a transportation fuel, to high efficiency power plants and even methane fuel cell tech. I'm sure that with the world class research institutions we are blessed with they'll find a few more.

  Here's to hoping we use this gift under our feet in the most productive and beneficial manner to us all.

    Ross

Permalink Reply by Tom Copley on January 2, 2011 at 10:07pm

Ross-- Great idea!!! I can totally see doing that.

How can it be implemented? You've got to get the attention of someone in the industry who cares about it.

--Tom

Permalink Reply by PA roughneck on January 3, 2011 at 3:50am

Tom-

  seeing has how most of the trucking is contracted to local companies quite possibly Harrisburg could make something like this a priority, tax breaks etc. for local co's that make the move. 'Course they'd have to get one of the gas co's on board-Pickens has a stake in Chief I believe-I'll have to shoot them off an email!

  Ross

Permalink Reply by Sherry on January 3, 2011 at 4:19am

Tom,

Your answer highlights, for me, one of the best parts of this forum... learning and expanding on an existent knowledge base.

I've witnessed viable LNG uses-Glenwood Springs-Aspen Colorado's mass transit system, Roaring Forks Transportation Authority.  Since we are closer to the pipeline capacities out here my hope is the upper east coast can lead the nation in LNG transportation uses. I have heard rumors of a few commercial LNG distribution stations in NY and hope they are more than rumors.

Again, Tom, thank you for your insight.

Permalink Reply by sharon kintz on December 30, 2010 at 1:50pm
Tom,

It sounds good, however I know a community in PA that certainly does not agree with some of your findings. Do you know what I am saying? ALso, if it is not about greed are you telling me everyone is holding out for more money because they are being noble? No, it's all about the money, all the way down the line. That is why the landman keeps coming back with a higher offer, first he low balls and then he throws out a few more crumbs. Admit it
, you know it is true.
Permalink Reply by sharon kintz on December 30, 2010 at 1:56pm
Have you talked to the community in PA who are paying the price? Have you put as much research in to the dangers to the environment? I would love to read it.
Permalink Reply by Tom Copley on December 30, 2010 at 2:29pm

Hi Sharon-- From the sound of it, you must be talking about Dimock, PA. I have very little doubt there were some failures there. I'm sure the company in question would love a "do-over", if one were possible. It's really a shame to see a conflict like that degenerate into a legal battle, because both sides would probably be far better off with some kind of mediated resolution to their issues.

Sure, I agree, people can sometimes be overly self-motivated, but given the right leadership and frame of mind, all aspire to a lot more.

Here is the most definitive research I have written on hydro-fracturing ("fracking"). See if you think it's fair to all sides of the debate...

Read More

--Tom

Permalink Reply by sharon kintz on December 30, 2010 at 3:22pm
Tom

You ask if it is fair. It is not complete, you are holding out. Tell us everything and I believe you do know.

Sharon
Permalink Reply by Tom Copley on December 30, 2010 at 4:01pm
Sharon--  I am an amateur who knew virtually nothing about this industry 2.5 years ago, and am completely self-taught. Perhaps it shows. Writing articles for WikiMarcellus has been my main pathway to learning more about the industry.

Sure, I have watched Gasland, and think Josh Fox is a great guy. However, I can't find much substantiation for some of the claims he makes especially about hydro-fracturing. Nevertheless, he's done everyone a great service by focusing attention on potential risks. I also think he's a super talented film maker, and might even give Michael Moore a run for his money should he keep on making documentaries.

So far as Dimock goes, my heart goes out to the people who had their lives turned upside down by the drilling, and hope they get justice. However, I also have considerable sympathy for Cabot Oil & Gas. The company has been demonized and thrown under the bus by almost everyone. It has been outrageously successful in its drilling activities--a result for which they are given very little credit.

It's obvious that it's not all about money, and there are great benefits to the drilling as well as more than a few problems.
--Tom

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