Energy

Epic Droughts: Fracking, Water Supply In Mexican Standoff

by Oilprice.com •  • Comments Off on Epic Droughts: Fracking, Water Supply In Mexican Standoff

Fracking poses a growing risk to water supplies. Groundwater contamination has been making headlines, but in parched states like Texas and California, fracking’s massive consumption of water threatens fracking itself.

Chaos Breaks Out In Natural Gas, Price Tripled Since April 2012

by Wolf Richter •  • Comments Off on Chaos Breaks Out In Natural Gas, Price Tripled Since April 2012

“Volatile,” a word that is often used to describe the price of natural gas with its random-appearing jumps and plunges, head fakes, and whiplash-inducing turnarounds, no longer describes the price of natural gas. “Chaotic” would be a better term.

From “Glut” To Panic: Natural Gas Soars

by Wolf Richter •  • Comments Off on From “Glut” To Panic: Natural Gas Soars

On Friday, when stocks were plunging, natural gas soared nearly 10%. The highest close since June 2010. Up 20% for the week. Up 170% from April 2012. And it’s just the beginning. Because after the glut comes the panic.

Outrageously Ballooning Costs Hit Major Oil Companies

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Shell’s earnings plunged, eaten up by huge costs, delays, and lower production. Chevron’s Gorgon LNG project is $20 billion over budget. Italy’s ENI blows $50 billion on the Kashagan oil field, five times what it expected. Now oil companies are cutting back, with consequences.

Already Toast? Mexico’s Energy Reform Buzz vs. Oil Theft, Corruption, And Organized Crime

by Oilprice.com •  • Comments Off on Already Toast? Mexico’s Energy Reform Buzz vs. Oil Theft, Corruption, And Organized Crime

A pipeline explosion in Tezoyuca, Mexico, injured seven and forced the evacuation of 800 families. It was caused by a tap to steal liquefied petroleum gas. Mayor Arturo Ahumada Cruz affirmed that the pipeline is perpetually tapped.

California Water Crisis Meets (Already Iffy) Fracking Boom

by Oilprice.com •  • Comments Off on California Water Crisis Meets (Already Iffy) Fracking Boom

California is sitting on the largest tight oil formation in the US, the Monterey Shale. Interest is heating up. The legislature passed a controversial law to regulate fracking and allow the industry to drill. But fracking requires lots of water.

Natural Gas Squeeze? “Panic hasn’t ensued just yet”

by Wolf Richter •  • Comments Off on Natural Gas Squeeze? “Panic hasn’t ensued just yet”

Record demand has pushed natural gas in storage to the lowest level for that week since 2005. And in 2005, the price of natural gas spiked to its all-time high. Something has to give.

Fracking Fluids to Blame for Rail Car Explosions

by Oilprice.com •  • Comments Off on Fracking Fluids to Blame for Rail Car Explosions

There has been a surge of derailments of trains carrying crude oil that resulted in huge, deadly explosions, highly unusual for crude oil trains. But the oil originated from the Bakken shale formation in North Dakota.

Iran, Russia Ruffle US Feathers With Oil Swap Deal

by Oilprice.com •  • Comments Off on Iran, Russia Ruffle US Feathers With Oil Swap Deal

Iran and Russia are in talks about a potential $1.5 billion oil-for-goods swap that could boost Iranian oil exports by 50%, which didn’t go over very well in Washington.