RE: Energy Policy

There is gas at the depths your friend was talking about. It is the deep
Anadarko basin. But, that basin is limited in area and simply will not
replace the coming decline in North American gas. And the wells are
extremely expensive.

> -----Original Message-----
> From: bpayne15@juno.com [mailto:bpayne15@juno.com]
> Sent: Wednesday, December 17, 2003 8:03 PM
> To: glennmorton@entouch.net
> Cc: gwcollins@algol.co.uk; asa@lists.calvin.edu
> Subject: Re: Energy Policy
>
>
> I talked to an engineer in Oklahoma earlier this year, and he said their
> state has a lot of gas at depths which will require higher prices to make
> it economical to produce. Is that the case in Texas also, or is there no
> gas at any practical depth?
>
> Bill
>
> On Wed, 17 Dec 2003 06:24:00 -0600 "Glenn Morton"
> <glennmorton@entouch.net> writes:
> >
> >
> > > -----Original Message-----
> > > From: asa-owner@lists.calvin.edu
> > [mailto:asa-owner@lists.calvin.edu]On
> > > Behalf Of Gary Collins
> > > Sent: Wednesday, December 17, 2003 8:14 AM
> > > I haven't been following this thread very closely,
> > > but I happened to notice this article in the news
> > > yesterday:
> > > "New hydrogen buses hit the road"
> > > http://news.bbc.co.uk/1/hi/england/london/3323527.stm
> > >
> > > It all looks very encouraging, but like many things
> > > seems to have its 'small print'. In this case, the caption
> > > to the final figure, which indicates that the hydrogen
> > > is 'sourced from natural gas' (!)
> > >
> > > So apparently in the short term it is not quite as good
> > > as it seems, but at least a step in the right direction.
> > > (Is it cheaper to source hydrogen from natural gas
> > > than it would be from water? )
> >
> > Yes, because to source it from water one must generate electricity.
> > Something like 40% of the world's electricity comes from natural
> > gas; 42%
> > comes from coal. Large quantities of heat energy are lost in that
> > conversion process. Neither source for hydrogen looks good over the
> > long
> > term. The spike in natural gas prices yesterday to above $6 per
> > million
> > cubic feet is due to the fact that the natural gas supply has not
> > been
> > keeping up with demand. I saw on the news today that some
> > industrial
> > consumers are wanting to investigate. The simple fact is that by
> > drilling
> > as fast as we can, we are barely increasing the Natural gas supply.
> > Matt
> > Simmons, an oil investment banker said this:
> >
> > "Our firm a year ago conducted a very intensive analysis of what
> > was
> > happening to the natural gas supply in Texas by examining the
> > detailed
> > records of the Texas Drill Commission from 50% of the state's
> > production in
> > 53 counties. What we found was amazing. What we found was that in
> > this 53
> > county area (this is 16% of the U.S. gas supply) the wells drilled
> > in 2001,
> > 2400 wells out of 37,000 wells that are in production created 30% of
> > the
> > total supply, and it turns out that 7% of these 2400 wells, 167
> > wells,
> > created 49% of the supply and the other 93% of the wells created
> > the
> > remaining 51%. These giant 167 gas wells - a year later, we went
> > back and
> > tested their January 03 production; they had suffered a decline
> > across the
> > board of an average of 82% in a year, so wells do decline rapidly
> > these
> > days" http://www.peakoil.net/iwood2003/MatSim.html
> >
> > We actually have had periods where rig count doubled but production
> > only
> > went up 1-2%! The gas isn't out there in North America.
> >
> >
> >
>
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Received on Wed Dec 17 22:06:23 2003