Growing environmental concerns has meant that oil and gas pipelines are no longer being built as rapidly as they used to be. A new remote-sensing technology, with research beginning in space, however aims to detect dangerous leaks in pipelines quickly and efficiently. The clincher: This technology is not only affordable; it saves money and could eventually save the industry.
North America’s shale gas boom is now so big that that it is now visible from space. According to a report by the Financial Times, the volume of unwanted excess gas being burnt off is increasing so quickly that shale fields can now be easily identified in night-time satellite photography, leading to concerns about wastage and environmental pollution.
According to data from the World Bank, global gas flaring rose by around 2 billion cubic meters to 140 billion cubic meters in 2011, mostly due to the rise in shale oil exploration in the United States.
Ukraine has signed a major shale gas deal with global oil giant Royal Dutch Shell, a significant step towards weaning itself off Russian gas imports.
Due to be signed at the World Economic Forum in Davos, the 50-year production sharing agreement, reportedly worth $10 billion, will mark the biggest contract yet to tap shale gas in Europe and the largest single foreign investment in the former Soviet republic.
Electric cars have been touted the future of motoring as the supplies of oil dwindle and the cost of fuel at the pump sky rockets. But if every car was electric, how much would the government stand to lose in terms of road tax and more significantly fuel duty? Will the shortfall be accepted in this age of budget austerity?
Electric cars are often heralded as the future of motoring: Energy efficient, environmentally friendly and economical. But what would actually happen if every motorist did go down the electric car route?
2012 has been a stellar year for oil and gas. From East Africa to North America, new technology, major new discoveries, an unparalleled appetite for exploration and a metamorphosing perception of risk have changed the playing field.
We’re looking at potential rather than existing production, and here are our Top 5 picks for this year:
We have to start with Kenya, the biggest success story of the year.
There’s been plenty of talk about potentially radical US foreign policy changes as a result of the shale boom. While one shouldn’t expect any dramatic US foreign policy move away from the Middle East, factors are influencing a greater focus on Asia. Only one thing is certain in this transforming world: The shale boom is real and the implications are many and difficult to predict.
BP’s quest to drill for oil in Russia’s arctic region has thus far been a roller coaster ride of corporate cobwebs and political power plays. Yet despite facing incredible difficulties in pursuing Russian ventures, BP is clearly convinced that the stakes are high enough and the likely returns strong enough to make the hassle worthwhile.
The “shale revolution” has been grabbing a great deal of headlines for some time now. A favourite topic of investors, sector commentators and analysts – many claim we are about to enter a new energy era with cheap and abundant shale gas leading the charge. But on closer examination the incredible claims and figures behind many of the plays just don’t add up.
In its latest World Energy Outlook released last week, the International Energy Agency (IEA) predicted, among other things, that the U.S. would overtake Saudi Arabia as the world’s largest oil producer by 2020; and become a net oil exporter around 2030. This forecast however may be unrealistically optimistic, as oil prices must rise at an alarming rate to meet the increasingly expensive production cost.
Historically, energy companies have been less than keen to invest in areas such as Sudan, Iraq and Yemen – where political and social instability down the years often spelled danger for both infrastructure and personnel. Today however, with political risk no longer limited to just developing countries, more and more energy companies, particularly the junior oil and gas companies, are venturing into Africa and the Middle East – creating an opportunity for risk comparison with so-called “safer investments”.
