Natural Gas

Past and future at Total’s Elgin/Franklin project

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Four weeks after the Elgin G4 well sprung a leak above the production platform in the North Sea, Total has spudded the first of two relief wells as backup in case the attempt to kill the well from above doesn’t work. It will take 6 months to drill the wells, however, and an estimated 200,000 cubic meters of gas has been released so far – reportedly enough to heat all of Aberdeen for a decade. In this post, I will provide some additional background on the history of this project and what Total E&P UK’s plans were prior to the leak and subsequent shutdown of all production.

Review: Falling Through Time by Patricia Comroe Frank

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Since its beginnings, the sleeper-awakes scenario has been one of the most commonly used frameworks for introducing fictional utopias and dystopias–yet somehow it doesn’t feel overdone. The reason, I suspect, is that the sleep is incidental to the story, the true focus being the new world order and how it compares with the old. That’s certainly the case with Patricia Frank’s Falling Through Time, the story of a woman who travels into the future and takes us on a sort of guided tour of it. Her name is Summer Holbrook, and she’s a prominent advertising executive who goes missing while vacationing in Alaska. After suffering a spill down a glacier crevasse, she freezes, falls into suspended animation and is found and rescued by a band of expeditioners in the year 2084.

ODAC Newsletter – Apr 20

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Approval of hydraulic fracturing for gas in the UK moved a step closer this week as a DECC commissioned report on the seismic impact of drilling at Cuadrilla’s Lancashire operation advised ministers to proceed. The report recommended a tightening of procedures around drilling, including a pre-injection diagnostic phase, and a traffic light warning system halting operations should an earthquake over 0.5 magnitude occur…

The dumbest guys in the room: Is Cheniere Energy a contrarian indicator for natural gas?

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Some people seem to have a knack for hopping aboard a trend just before it ends. Cheniere Energy Inc., owner of the largest liquefied natural gas (LNG) import facility in the United States, appears to be a case in point. In the world of finance, Cheniere would be what is called a contrary indicator, one that suggests that a trend is about to reverse.

Arctic Opening: Opportunity and Risk in the High North (report)

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Lloyd’s of London, the world’s biggest insurance market, has become the first major business organisation to raise its voice about huge potential environmental damage from oil drilling in the Arctic.

The City institution estimates that $100bn (£63bn) of new investment is heading for the far north over the next decade, but believes cleaning up any oil spill in the Arctic, particularly in ice-covered areas, would present “multiple obstacles, which together constitute a unique and hard-to-manage risk”.

ODAC Newsletter – Apr 13

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The IEA poured oil on troubled waters, so to speak, in its April Oil Market Report this week, suggesting a possible “turning of the tide for market fundamentals”. The agency said supply is ahead of demand for the first time since 2009, though geopolitical threats remain…

Exponential Economist Meets Finite Physicist

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Some while back, I found myself sitting next to an accomplished economics professor at a dinner event. Shortly after pleasantries, I said to him, “economic growth cannot continue indefinitely,” just to see where things would go. It was a lively and informative conversation. I was somewhat alarmed by the disconnect between economic theory and physical constraints—not for the first time, but here it was up-close and personal. Though my memory is not keen enough to recount our conversation verbatim, I thought I would at least try to capture the key points and convey the essence of the tennis match—with some entertainment value thrown in.