BP's Worldwide Statistical Review of Energy

We archived BP's 2012 statistical review here.

Today, we have the 2013 review and without further editorial comment (i.e. except to note how important domestic energy production is to a country's, state's or province's prosperity), we introduce the review with an email announcement from the company's chief economist, Christof Ruhl, kindly provided by Dawn Patience:

July 16, 2013

 
It’s been a while since my last post – because my team and I have been on the road since the launch of the Statistical Review of World Energy in June, taking the presentation to audiences literally around the globe. It is a great opportunity for us to get out, to meet people who are as interested in energy markets as we are, and to hear what’s on their minds.

I have been struck by the variety of reactions and of issues around the globe;

1.  In the US, a sense of elation, post shale “revolution” – understandably so, if one looks at the 2012 numbers

2.  In Asia, a sense of worry about high import prices and the prospects of global integration, especially of natural gas markets

3.  In Europe, a palpable sense of embarrassment at carbon pricing and generally, the state of climate change policies

4.  There are also a fair number of issues audiences everywhere have in common: No one talks about “peak oil” any more, or about peak-anything-else for that matter. If anything, it is peaks in consumption which may become an issue. People wonder where next for shale resources, whether it may be in their own backyards, and what it would take (and mean) to get at them. Audiences are at their most reluctant in my memory about bringing up climate change in discussions – it used to be the first question everywhere, now we have to bring it up.

On all of these, more in later blog posts.

One of the themes of the Review which seems to capture everyone’s interest is the shift in the centre of gravity from the established markets of the OECD countries to the developing markets outside the OECD.

A few numbers first: worldwide primary energy consumption (all fuels) increased by 52% over the last 20 years – that’s a lot more than most people would forecast for the next 20 years, ourselves included, and it happened without much fanfare. Over the last ten years alone, global energy consumption increased by 30% – almost all of which in the so-called developing world, the countries outside the OECD.

(More here….  You likely read it here first!  -dh)

Medicine Hat News by Steve Rennie.  OTTAWA – One of Stephen Harper’s former cabinet ministers is urging First Nations to seize the “incredible opportunities” in the energy and natural resource sectors before they get left behind.  (Note: see our earlier comment on Aboriginal differences re: fracking.  -dh)

NGP Photo by Jim Prentice (NGP Photo), who left government to become a top banking executive, said Tuesday that aboriginal peoples in this country now have the chance to cash in on a once-in-a-lifetime opportunity – but the clock is ticking.

“They will need to seize that opportunity and use the so-called duty-to-consult to really negotiate economic participation in some of the resource projects that are happening across Canada,” he told The Canadian Press.

“These are incredible opportunities. They don’t come along necessarily very often, and so I think there’s a historic opportunity, I think, over the next 25 years for First Nations to benefit from these opportunities if they negotiate to their advantage.”

Prentice delivered the same message Tuesday in Whitehorse at the annual gathering of the Assembly of First Nations.

His words carry considerable weight with many First Nations people. The former aboriginal affairs minister and land-claims negotiator is well-respected for his work on – and approach to – First Nations issues.

You likely read it here first.  -dh

On Tuesday, North Carolina Governor Pat McCrory wrote Secretary of Interior Sally Jewell, urging Federal support for oil, gas and wind development in the state's adjacent federal waters. We'll provide more on that letter tomorow.

ENERGY IN DEPTH, TODAY'S FRACK LINKS:

NATIONAL

Gasland II: Not Truthland. Resources for the Future, Blog. The second round of unabashed and one-sided bashing of the oil and gas industry, and in particular shale gas, played on HBO Tuesday. Gasland II opens with comments from Robert Howarth, a Cornell professor who has questioned the climate benefits of natural gas relative to coal with his own estimates, which wrongly assumed that all methane not accounted for as production was released into the air, rather than being captured or flared.
 
Natural gas helps Calif. survive heat wave. National Geographic. Yet when temperatures rose over a weeklong period to record highs throughout the Golden State—well above 110⁰F (43.3⁰C) in some places before the wave lifted July 5—the lights stayed on and air conditioners kept humming. How did California do it? It wasn't wizardry, but mundane moves to bolster supply and curb demand—a combination of natural gas, renewable energy, and conservation—that made California more resilient than some forecasters anticipated when the heat rolled in.
 
Once-Coveted Asian Oil Riches Take Backseat to U.S. Shale. Wall Street Journal. Once captivated by Asia’s untapped oil-and-gas riches, some midsize U.S. energy producers are now selling their Asian assets as the North American shale revolution offers bright prospects closer to home.
 
Interior Chief Uses Industry Know-How to Defend HF Rules. Bloomberg. U.S. Interior Secretary Sally Jewell drew on her experience as a former oil-industry engineer to defend proposed federal regulation of hydraulic fracturing for oil and gas on publicly owned land. NOTE:E&E News (sub req’d) also reports.
 
Top Colo. regulator says fracking critics 'misinformed'. E&E News (sub req’d). Lepore said Tuesday during a panel discussion at the Northern Colorado Energy Summit in Loveland that banning the use of fracking essentially bans gas development, forcing the state to look to other sources such as coal for energy and driving up electricity costs that would be borne in some way by all the state's residents, according to the Coloradoan. Residents who "storm city hall and demand you protect their health, safety and welfare armed with misinformation" aren't considering the impacts to energy costs by banning fracking, Lepore is quoted as saying.

INTERNATIONAL

Gas prices could fall by a quarter with shale: Government. The Telegraph. Gas prices could fall by a quarter and help bring down household energy bills if Britain exploits its shale gas reserves, a report commissioned by Ed Davey, the Energy Secretary, suggests.
 
Argentine indigenous people protest against shale. BBC News. Members of the Argentine Mapuche community have protested against a deal struck between Argentina's state-owned energy company YPF and the US firm Chevron to extract shale oil and gas from one on the largest deposits in the world.
 
UK government over-estimating future fuel prices: Kemp. Reuters. Britain's government is basing its policy recommendations on outdated and unrealistically high projections of future fossil fuel prices – which could be causing it to over-estimate the cost of imports and threatening to skew cost-benefit analyses of alternative policies.
 
Chevron $1.24 Billion Deal Leads YPF Post-Repsol Shale Hunt. Bloomberg. Chevron Corp. (CVX), the world’s second-biggest oil company, signed the first agreement with Argentina’s government since it nationalized YPF SA (YPF) in 2012 to help develop shale oil and natural gas in Vaca Muerta.
 
UK Shale Will Help Chemical Producers Compete, Ineos Says. Bloomberg. The U.K.’s shale gas, an untapped resource that has polarized politicians and environmentalists, will help refiners and chemical makers be competitive by cutting costs and curbing imports from rivals, Ineos Group AG said.
 
No cowing shale. Buenos Aires Herald, Op-Ed. Tuesday’s shale fuel agreement between YPF and Chevron lends itself to more than one interpretation but only the staunchest environmentalist critic of fracking could fail to see the deal as good news.
 
Australian Millionaire Backs Shale-Owner AJ Lucas. Wall Street Journal. Australia’s Paul Fudge, who is valued at 685 million Australian dollars (US$623 million) according to BRW Magazine’s Rich List, has backed Australian energy-and-mining company AJ Lucas Ltd. , according to a filing.
 
Water companies warn over water quality. Utility Week. Water companies have issued a stark warning to the shale gas industry that the quality of drinking water "must be protected at all costs" and fracking must not harm public health.  The call came from Jim Marshall, policy and business adviser at industry body Water UK.

ARIZONA

Potential targets for shale-oil and shale-gas exploration in Arizona. Tucson Citizen.  In a previous post, “Shale oil potential of Arizona,” I reported on the Arizona Geological Survey's assessment of the Mancos Shale in the four-corners region of Arizona, Utah, Colorado, and New Mexico.
 
ILLINOIS

Behind the HF boom, a sand mining rush. WBEZ News. LaSalle County, about 80 miles southwest of Chicago, has historically been the silica mining capital of the country. Now with the fracking process coming to some of Illinois’ downstate communities, the frac sand issue is grabbing a little more attention, although, as of yet, the downstate prospecting for natural gas wells has little effect on the sand mining industry in the northern part of the state.

LOUISIANA

Tuscaloosa Marine Shale viability remains in doubt. Greater Baton Rouge Business Report. Feliciana landowners waiting to see if they're sitting on the nation's next hot oilfield play likely will have to wait a little longer, says Gifford Briggs, vice president with the Louisiana Oil & Gas Association. "
 
MICHIGAN

Pros and cons of 'fracking' debated in Ottawa County. Michigan Live. More than 200 citizens showed up at a public meeting to hear the pros and cons of hydraulic fracturing, or “fracking,” at Ottawa County’s Fillmore Street Complex on Wednesday, July 17.

NORTH DAKOTA

U.S. moves more oil out of North Dakota by rail than the Trans-Alaskan pipeline.Scientific American. Currently, half of all oil coming out of the Bakken shale is transported by railroad (more than the third by pipelines). In its Draft Assessment of the Keystone XL Pipeline, the U.S. State Department estimates that by the end of this year 800,000 barrels per day (bpd) of oil will be carried out of the Bakken on rail cars.

NORTHEAST

Pre-drill benefits: Consol Energy's airport prospects pay off now. Pittsburgh Post-Gazette. Marcellus Shale drilling won't start on Pittsburgh International Airport property for another year, but Allegheny County already is seeing dividends from a multimillion-dollar deal with Consol Energy.
 
Report outlines state's shortcomings to protect oil, gas leaseholders. Uniontown Herald Standard. In the event of fracking or drilling damages, Pennsylvanians and their communities may not be adequately covered financially when — or if — the bill comes, a new report says.
 
DEP: Cabot to plug well. Independent Weekender. A natural gas well in Dimock Twp. that is a focus of a state investigation into leaking methane has been deemed “unviable” and will be plugged after the investigation is finished, a Department of Environmental Protection spokeswoman said Friday.
 
Chilean Energy Companies Eye Marcellus Shale. StateImpact PA. Chilean energy executives interested in Pennsylvania’s Marcellus Shale natural gas are in the middle of a three-day trade visit to the state. The tour comes on the heels of Pennsylvania Governor Tom Corbett’s own trade trip to Chile last April.
 
North Strabane Supervisors Poised to Vote on Marcellus Shale Gas Lease. Canon-McMillan Patch. North Strabane Township supervisors are poised to make a decision regarding a possible non-surface Marcellus Shale gas lease deal when the board meeting next week.
 
Revenue from shale dips in Murrysville, neighboring communities. Tribune Live. Compared to last year, most communities saw about a 10 percent dip in the amount of money doled out under Act 13, the state legislation enacted in 2012 that collects an impact fee from unconventional well drillers across the state.

OHIO
 
'Fracknation' will expose lies. New Philadelphia Times-Reporter. If you watched that liberal Josh Fox movie called “Gasland,” I would encourage you to watch “Fracknation.” They actually use hard science to expose all the lies Fox told in his movie.
 
Shale oil adds up to cash for pols. Marion Star. When Ohio Gov. John Kasich pitched his budget a few months ago, he made a big deal about a fracking tax that would bring billions of dollars to the state in the coming years.
 
Seminar stresses networking aspect of shale industry. Coshocton Tribune. Making her way around the room at a recent Utica Shale seminar, Charlotte Johnson had a smile, a handshake and a business card for everyone.
 
TEXAS

Railroad Commissioner will deliver Eagle Ford talk in San Antonio. San Antonio Business Journal.  Texas Railroad Commissioner David J. Porter will deliver the keynote address at Shale EnviroSafe, a conference in San Antonio focused on environmental, health and safety issues in domestic shale plays. Porter is scheduled to kick off the second-annual conference, which will run Oct. 14-16 at the Henry B. Gonzalez Convention Center.
 
Eagle Ford Development Program partners with Alicians. Alice Echo-News Journal.  In the midst of the boom of the Eagle Shale Ford, the Eagle Ford Shale Community Development Program is offering to partner with Alice to make the most of this time of prosperity.
 
Broadband company signs contracts for its new Eagle Ford shale network. San Antonio Business Journal. Broadband provider ERF Wireless Inc. has signed multi-year contracts with oil and gas clients eager to transport data over its newly completed wireless network serving the Eagle Ford Shale.