News from IHS CERAWeek 2014: BHP sees world lagging U.S. in shale for foreseeable future

BHP Billiton expects the U.S. to maintain its lead in shale development for some time. “The shale-gas revolution is unlikely to go global quickly,” CEO Andrew Mackenzie said at the IHS CERAWeek energy conference in Houston. “We are unlikely to see gas replace coal globally at the scale and pace seen here in the U.S.”

Hydraulic fracturing and horizontal drilling have unlocked shale deposits of oil across the U.S., and drilling efficiency has helped boost rig yields to record volumes from the Permian to the Bakken play. The U.S. met 86% of its energy needs in the first 11 months of 2013, the highest level since 1986, data from the Energy Information Administration show.

Too many unknown factors make it “impossible to forecast” when the rest of the world will catch up to shale development in the U.S., Mackenzie said in an interview after his presentation.

“You don’t have anything like the complex gathering and distribution systems” in the U.S, he said. “It’s kind of tough to think how you could transport that to a part of the world which has not had a gas industry before.”

BHP holds more than 1.5 million acres in the Eagle Ford Shale and the Permian Basin of Texas, the Haynesville Shale of Louisiana and the Fayetteville Shale of Arkansas, according to a Dec. 10 presentation.

The U.S. holds the world’s second-largest amount of recoverable shale oil and the fourth-largest of shale gas, according to the EIA.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.

Sound oil awarded Casa Tiberi gas field concession

Sound Oil reported that approval of the San Lorenzo Production Concession has now been received from the Italian Ministry of Economic Development. This concession permits the Company to commence commissioning operations at the Casa Tiberi gas field.

The Casa Tiberi gas field, located in the Marche Region, onshore Italy, was discovered in 2011 and the discovery well was completed with the perforation of a single zone at a depth of  571-581 m. The well tested dry gas at 1.3 MMscf per day on a 5/16" choke and is expected to achieve first commercial gas during the first half of 2014.

James Parsons, Sound oil' s CEO, commented:

"We are pleased to report continued operational progress in Italy.Whilst Casa Tiberi is one of our smaller assets it will add to Sound Oil' s near term production and revenue.  Operations on site are expected to commence in April, once construction of the production skid is complete."

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.