BOOM! Natural Gas May Have Profound Impact on Israel's Geopolitics

[Roudy]

......

The LINK for your Idiot post/map?

artIntifada.files.wordpress.com/2009/02/oil-in-gaza.jpg

LOL You steaming dung pile.

`

 

[docmauser1]

Then why are the prices rising in Europe ?

Printing naked money comes at a price, indeed.

 

[SmedlyButler]

wouldn't give a Palestinian toddler spit if she was dying of thirst in the Negev. What's that all about?

 

[Shaarona]

North Dakota flared off $1 billion worth of natural gas last year

By David Wogan | September 12, 2013

North Dakota is now the country’s second largest producer of oil behind Texas thanks to technologies like horizontal drilling and hydraulic fracturing, meaning previously hard-to-reach shale gas and tight oil can be accessed and brought to market.

But the relatively quick ramp-up in production has stressed the nation’s oil and gas infrastructure leading companies with a decision between investing in oil infrastructure (which bring a higher return) and investing in natural gas pipelines and compressor stations. Companies are increasingly trucking oil out on truck or shipping oil via rail lines (like the train that crashed in Quebec this summer).

Natural gas, on the other hand, faces two problems. For some sites, there are no pipelines or compression stations to take the gas from the wellhead to market. Other sites are connected to pipelines, but those are already at capacity and face congestion issues. Faced with this dilemma, energy producers are investing in getting oil to market, which fetches up to 30 times more than natural gas. So rather than laying new pipeline, companies are choosing to flare off natural gas instead.

The result is that between May 2012 and May 2013, North Dakota producers flared off roughly 30 percent of all natural gas coming out of the ground – a loss of $1 billion in fuel and the GHG emissions of adding 1 million cars to the road, according to an analysis by the sustainable development organization Ceres.

The practice of flaring has grown so much in North Dakota that the United States is now one of the top 10 flaring countries (alongside Russia, Nigeria, and Iraq).

North Dakota regulators have set a public goal to reduce flaring to at most 10 percent by an unspecified date. Currently under North Dakota state law, producers are allowed to flare for the first year of a well’s production, and apply for an extension if they can demonstrate that capturing the natural gas is not economically feasible. North Dakota regulators granted ninety-five percent of extension requests over the last two years.

Nationwide, flaring rates are much lower than in North Dakota. The U.S. Department of Energy estimates that 1 percent of natural gas is flared, while Texas flares just 0.4 percent of its natural gas.


North Dakota flared off - Scientific American billion worth of natural gas last year | Plugged In, Scientific American Blog Network

 

[Roudy]

North Dakota flared off $1 billion worth of natural gas last year

By David Wogan | September 12, 2013

North Dakota is now the country’s second largest producer of oil behind Texas thanks to technologies like horizontal drilling and hydraulic fracturing, meaning previously hard-to-reach shale gas and tight oil can be accessed and brought to market.

But the relatively quick ramp-up in production has stressed the nation’s oil and gas infrastructure leading companies with a decision between investing in oil infrastructure (which bring a higher return) and investing in natural gas pipelines and compressor stations. Companies are increasingly trucking oil out on truck or shipping oil via rail lines (like the train that crashed in Quebec this summer).

Natural gas, on the other hand, faces two problems. For some sites, there are no pipelines or compression stations to take the gas from the wellhead to market. Other sites are connected to pipelines, but those are already at capacity and face congestion issues. Faced with this dilemma, energy producers are investing in getting oil to market, which fetches up to 30 times more than natural gas. So rather than laying new pipeline, companies are choosing to flare off natural gas instead.

The result is that between May 2012 and May 2013, North Dakota producers flared off roughly 30 percent of all natural gas coming out of the ground – a loss of $1 billion in fuel and the GHG emissions of adding 1 million cars to the road, according to an analysis by the sustainable development organization Ceres.

The practice of flaring has grown so much in North Dakota that the United States is now one of the top 10 flaring countries (alongside Russia, Nigeria, and Iraq).

North Dakota regulators have set a public goal to reduce flaring to at most 10 percent by an unspecified date. Currently under North Dakota state law, producers are allowed to flare for the first year of a well’s production, and apply for an extension if they can demonstrate that capturing the natural gas is not economically feasible. North Dakota regulators granted ninety-five percent of extension requests over the last two years.

Nationwide, flaring rates are much lower than in North Dakota. The U.S. Department of Energy estimates that 1 percent of natural gas is flared, while Texas flares just 0.4 percent of its natural gas.


North Dakota flared off - Scientific American billion worth of natural gas last year | Plugged In, Scientific American Blog Network

Point being?

 

[docmauser1]

North Dakota flared off $1 billion worth of natural gas last year

Printing naked money, heating the sky, life's good.

 

[Mr Natural]

I hope they use the extra money for increasing their defense capabilities.

And stop hitting us up for $3 billion a year in foreign aid.

 

[Phoenall]

Hopefully the poverty stricken Gaza strip will reap some of the economic benefit. They have a significant shoreline in that area of the Mediterranean. An economic surge could help relieve some of
area tensions.

All 22 miles of it so hardly significant is it compared to Israel's 150 miles

 

[aris2chat]

Hopefully the poverty stricken Gaza strip will reap some of the economic benefit. They have a significant shoreline in that area of the Mediterranean. An economic surge could help relieve some of
area tensions.

All 22 miles of it so hardly significant is it compared to Israel's 150 miles

Gaza had farms, greenhouses, luxury hotels, casinos (not finished), an airport, piers for pleasure boats, amusement parks, camp grounds......and they sent rockets into Israel, or they destroyed their own structures and shut down entertainment

They could have had a thriving and energetic economy, but they chose war instead.

They chose t destroy instead of build, except tunnels for smuggling, or sneak attacks.

 

[Roudy]

Hopefully the poverty stricken Gaza strip will reap some of the economic benefit. They have a significant shoreline in that area of the Mediterranean. An economic surge could help relieve some of
area tensions.

All 22 miles of it so hardly significant is it compared to Israel's 150 miles

Gaza had farms, greenhouses, luxury hotels, casinos (not finished), an airport, piers for pleasure boats, amusement parks, camp grounds......and they sent rockets into Israel, or they destroyed their own structures and shut down entertainment

They could have had a thriving and energetic economy, but they chose war instead.

They chose t destroy instead of build, except tunnels for smuggling, or sneak attacks.

It's called Palestinian Mentality.

 

[toastman]

I hope they use the extra money for increasing their defense capabilities.

And stop hitting us up for $3 billion a year in foreign aid.

LOL No one is hitting the U.S up.

The U.S is the one who decides weather or weather not they will give aid to a country, not the country receiving the aid.

 

[abu afak]

...

You silly ass.. the world is awash in natural gas. We used to flare it off because we couldn't get it to market.

Natural Gas Soars as Cold Grips Homes, Drillers
January 24, 2014 (AP)
By JONATHAN FAHEY AP Energy Writer
http://abcnews.go.com/Business/wireStory/natural-gas-soars-cold-grips-homes-drillers-21653951

The frigid winter of 2014 is setting the price of natural gas on fire.

Friday, the price in the futures market soared to $5.18 per 1,000 cubic feet, up 10% to the highest level in 3.5 years. The price of natural gas is up 29% in two weeks, and is 50% higher than last year at this time.

Record amounts of natural gas are being burned for heat and electricity. Meanwhile, it's so cold that drillers are struggling to produce enough to keep up with the high demand. So much natural gas is coming out of storage that the Energy Department says supplies have fallen 20% below a year ago — and that was before this latest cold spell.

"We've got Record demand, Record withdrawals from storage, and short-term production is threatened," says energy analyst Stephen Schork. "It's a dangerous market right now."
........

 

[Shaarona]

...

You silly ass.. the world is awash in natural gas. We used to flare it off because we couldn't get it to market.

Natural Gas Soars as Cold Grips Homes, Drillers
January 24, 2014 (AP)
By JONATHAN FAHEY AP Energy Writer
Natural Gas Soars as Cold Grips Homes, Drillers - ABC News

The frigid winter of 2014 is setting the price of natural gas on fire.

Friday, the price in the futures market soared to $5.18 per 1,000 cubic feet, up 10% to the highest level in 3.5 years. The price of natural gas is up 29% in two weeks, and is 50% higher than last year at this time.

Record amounts of natural gas are being burned for heat and electricity. Meanwhile, it's so cold that drillers are struggling to produce enough to keep up with the high demand. So much natural gas is coming out of storage that the Energy Department says supplies have fallen 20% below a year ago — and that was before this latest cold spell.

"We've got Record demand, Record withdrawals from storage, and short-term production is threatened," says energy analyst Stephen Schork. "It's a dangerous market right now."
........

Its very temporary... because of the cold snap. Winter demand.

http://www.eia.gov/naturalgas/weekly/#jm-prices

 

[Shaarona]

The big discoveries that were made tended to contain more natural gas than anticipated. Gas is simply not as desirable as oil because it’s harder to get to market (especially when in far flung locales), and on an energy equivalency basis it sells at a deep discount to oil.

As you can see from the list below, the year’s biggest discoveries were all over the place, from Malaysia, to Mozambique, Egypt, Angola and Canada. The reserve amounts, as estimated by Tudor, Pickering, are given in BOE, meaning barrels of oil plus the energy equivalent in natural gas.

1. Agulha/Coral gas discoveries offshore Mozambique by Eni — 700 million BOE each
2. Lontra discovery in Angola by Cobalt International Energy CIE -2.72% – 900 million BOE
3. B14/B17 gas discoveries in Malaysia by Newfield Exploration NFX -2.49% – 850 million BOE
4. Ogo discovery in Nigeria by Afren / Lekoil — 775 million BOE
5. Nene Marine discovery in Congo Brazzaville by Eni — 700 million BOE
6. Tangawizi gas discovery offshore Tanzania by Statoil STO -3.29% – 575 million BOE
7. Coronado oil discovery in U.S. Gulf of Mexico by Chevron CVX -1.77% – 550 million BOE
8. Salamat gas discovery in Egypt’s East Nile Delta by BP – 500 million BOE
9. Maximino oil discovery in Gulf of Mexico by Pemex – 500 million BOE.
10. Bay du Nord discovery offshore eastern Canada by Statoil and Husky — 450 million BOE

Here’s hoping 2014 turns out better for the explorers.


The 10 Biggest Oil And Gas Discoveries Of 2013 - Forbes

 

[aris2chat]

The big discoveries that were made tended to contain more natural gas than anticipated. Gas is simply not as desirable as oil because it’s harder to get to market (especially when in far flung locales), and on an energy equivalency basis it sells at a deep discount to oil.

As you can see from the list below, the year’s biggest discoveries were all over the place, from Malaysia, to Mozambique, Egypt, Angola and Canada. The reserve amounts, as estimated by Tudor, Pickering, are given in BOE, meaning barrels of oil plus the energy equivalent in natural gas.

1. Agulha/Coral gas discoveries offshore Mozambique by Eni — 700 million BOE each
2. Lontra discovery in Angola by Cobalt International Energy CIE -2.72% – 900 million BOE
3. B14/B17 gas discoveries in Malaysia by Newfield Exploration NFX -2.49% – 850 million BOE
4. Ogo discovery in Nigeria by Afren / Lekoil — 775 million BOE
5. Nene Marine discovery in Congo Brazzaville by Eni — 700 million BOE
6. Tangawizi gas discovery offshore Tanzania by Statoil STO -3.29% – 575 million BOE
7. Coronado oil discovery in U.S. Gulf of Mexico by Chevron CVX -1.77% – 550 million BOE
8. Salamat gas discovery in Egypt’s East Nile Delta by BP – 500 million BOE
9. Maximino oil discovery in Gulf of Mexico by Pemex – 500 million BOE.
10. Bay du Nord discovery offshore eastern Canada by Statoil and Husky — 450 million BOE

Here’s hoping 2014 turns out better for the explorers.


The 10 Biggest Oil And Gas Discoveries Of 2013 - Forbes

Not even close. How on earth did Forbes make such a massive error?

 

[Shaarona]

The big discoveries that were made tended to contain more natural gas than anticipated. Gas is simply not as desirable as oil because it’s harder to get to market (especially when in far flung locales), and on an energy equivalency basis it sells at a deep discount to oil.

As you can see from the list below, the year’s biggest discoveries were all over the place, from Malaysia, to Mozambique, Egypt, Angola and Canada. The reserve amounts, as estimated by Tudor, Pickering, are given in BOE, meaning barrels of oil plus the energy equivalent in natural gas.

1. Agulha/Coral gas discoveries offshore Mozambique by Eni — 700 million BOE each
2. Lontra discovery in Angola by Cobalt International Energy CIE -2.72% – 900 million BOE
3. B14/B17 gas discoveries in Malaysia by Newfield Exploration NFX -2.49% – 850 million BOE
4. Ogo discovery in Nigeria by Afren / Lekoil — 775 million BOE
5. Nene Marine discovery in Congo Brazzaville by Eni — 700 million BOE
6. Tangawizi gas discovery offshore Tanzania by Statoil STO -3.29% – 575 million BOE
7. Coronado oil discovery in U.S. Gulf of Mexico by Chevron CVX -1.77% – 550 million BOE
8. Salamat gas discovery in Egypt’s East Nile Delta by BP – 500 million BOE
9. Maximino oil discovery in Gulf of Mexico by Pemex – 500 million BOE.
10. Bay du Nord discovery offshore eastern Canada by Statoil and Husky — 450 million BOE

Here’s hoping 2014 turns out better for the explorers.


The 10 Biggest Oil And Gas Discoveries Of 2013 - Forbes

Not even close. How on earth did Forbes make such a massive error?

I don't know what you are talking about.

 

[abu afak]

...

You silly ass.. the world is awash in natural gas. We used to flare it off because we couldn't get it to market.

Natural Gas Soars as Cold Grips Homes, Drillers
January 24, 2014 (AP)
By JONATHAN FAHEY AP Energy Writer
Natural Gas Soars as Cold Grips Homes, Drillers - ABC News

The frigid winter of 2014 is setting the price of natural gas on fire.

Friday, the price in the futures market soared to $5.18 per 1,000 cubic feet, up 10% to the highest level in 3.5 years. The price of natural gas is up 29% in two weeks, and is 50% higher than last year at this time.

Record amounts of natural gas are being burned for heat and electricity. Meanwhile, it's so cold that drillers are struggling to produce enough to keep up with the high demand. So much natural gas is coming out of storage that the Energy Department says supplies have fallen 20% below a year ago — and that was before this latest cold spell.

"We've got Record demand, Record withdrawals from storage, and short-term production is threatened," says energy analyst Stephen Schork. "It's a dangerous market right now."
........

Its very temporary... because of the cold snap. Winter demand.

Natural Gas - U.S. Energy Information Administration (EIA) - U.S. Energy Information Administration (EIA)

You Dishonest Sour Grapes tramp.
This is HUGE for Israel and everyone knows it.
It's so huge your wasting all your time back in your home-by-insemination Saudi Arabia posting here.

and you are now Unwittingly admitting you LIED.
NG was NOT "Falling".
In fact it was up even before the recent Cold Weather snap.
ALL Your posts are LIES.
You are a Sick and Pathological LIAR.

You didn't answer this from page one either LIAR:

The OP mentions Export. It doesn't matter how expensive it is to liquefy and export because huge profits will be made.
But the U.S. can't do a damn thing if Obama doesn't approve export licenses.
I wish Jewville all the success in the world because I think their nat gas discoveries are pretty damn cool.

Shaarona:

Natural gas is relatively cheap.. and Falling.

abu afak:

1. Natural Gas is a more Local commodity than Oil.
Prices vary more.
It's cheap where produced such as North America and the Persian Gulf states BUT Europe currently pays Russia Dearly for NG.

2. Israel has had to Import expensive Gas from others, so any positive carry while getting energy near free is a Huge WINDFALL.

3. Israel's first customer will be a 20 year deal with the Palestinians, no doubt paid for like everything else in 'palestine'... with Western Aid money.
Despite BS/BDS talk... Europe too is eyeing easily deliverable Israeli NG. (Pipe or short haul tanker)

4. Ergo, as the OP said, this changes everything, including motive to support the Hideous Islamic Theocracies that currently eat our moola.
`

I am and O&G investor and I understand the dynamics better than you and just requoted them above. No answer then either.
You are just getting hearsay whispered in your ear while some 80 yr old Sheik is porking you and you're transparently trying to make light of a New and terrific dynamic for Israel all on your clueless/pathologically lying own.
`

 

[Shaarona]

Natural Gas Soars as Cold Grips Homes, Drillers
January 24, 2014 (AP)
By JONATHAN FAHEY AP Energy Writer
Natural Gas Soars as Cold Grips Homes, Drillers - ABC News

Its very temporary... because of the cold snap. Winter demand.

Natural Gas - U.S. Energy Information Administration (EIA) - U.S. Energy Information Administration (EIA)

You Dishonest Sour Grapes tramp.
This is HUGE for Israel and everyone knows it.
It's so huge your wasting all your time back in your home-by-insemination Saudi Arabia posting here.

and you are now Unwittingly admitting you LIED.
NG was NOT "Falling".
In fact it was up even before the recent Cold Weather snap.
ALL Your posts are LIES.
You are a Sick and Pathological LIAR.

You didn't answer this from page one either LIAR:

Natural gas is relatively cheap.. and falling.

1. Natural Gas is a more Local commodity than Oil.
Prices vary more.
It's cheap where produced such as North America and the Persian Gulf states BUT Europe currently pays Russia Dearly for NG.

2. Israel has had to Import expensive Gas from others, so any positive carry while getting energy near free is a Huge WINDFALL.

3. Israel's first customer will be a 20 year deal with the Palestinians, no doubt paid for like everything else in 'palestine'... with Western Aid money.
Despite BS/BDS talk... Europe too is eyeing easily deliverable Israeli NG. (Pipe or short haul tanker)

4. Ergo, as the OP said, this changes everything, including motive to support the Hideous Islamic Theocracies that currently eat our moola.
`

I am and O&G investor and I understand the dynamics better than you and just explained them above.
You are just getting hearsay whispered in your ear while some 80 yr old Sheik is porking you.
`

You sure have a filthy mouth.

Israel is faced with several challenges.. They have to increase the size of their navy, protect the installations and work out how to get their gas to market.

And they have to hope that there is NOT so much natural gas available that the price is depressed.

I posted an excellent link for you to read.

 

[Shaarona]

Natural Gas - U.S. Energy Information Administration (EIA) - U.S. Energy Information Administration (EIA)

Natural Gas Weekly Update

excerpt:

While consumption of natural gas through the first three weeks of January exceeded comparable levels from last year, the amount of sendout from liquefied natural gas (LNG) terminals to U.S. consumers decreased by 29%, according to Bentek data. This was a decline from 0.81 Bcf/d in the first three weeks of January 2013 (0.9% of total U.S. natural gas consumption), to 0.57 Bcf/d in the first three weeks of January 2014 (0.6% of total U.S. consumption). As recently as 2010, LNG sendout satisfied 3.0% of total U.S. natural gas consumption during this period. LNG imports have declined significantly since then, with inland U.S. production meeting a greater portion of U.S. consumption, particularly in the greater Northeast.

This has resulted in reducing U.S. natural gas prices, making the nation less attractive for other countries that ship LNG in global trade. Greater inland U.S. production has increased the discount for spot natural gas traded at the U.S. benchmark Henry Hub in Erath, Louisiana, compared to the National Balancing Point spot price in the United Kingdom. The difference, which averaged $2.18 per million British thermal units (MMBtu) in 2010, increased to $6.92/MMBtu in 2013, according to EIA calculations based on data from Bloomberg, making the United States a relatively less attractive market for shipments of LNG spot cargoes.

 

[Shaarona]

The Daunting Challenge Of Defending Israel's Multi-Billion Dollar Gas Fields

http://www.forbes.com/sites/realspin...ar-gas-fields/

excerpt:

Physical security for these resources, however, remains a daunting challenge for a country that has historically given short shrift to its navy.

The rigs required to lift the gas from the sea floor are a target that some commentators have referred to as a “sitting duck” for terrorists. The gas platforms are to be situated outside of Israeli territorial waters, but inside Israel’s Exclusive Economic Zone (EEZ), an area roughly twice the size of Israel itself. Inside this zone any foreign vessel is legally allowed to approach within half a kilometre of Israeli infrastructure before defensive action can officially be taken.

IDF officials concede that they do not have the resources as of now to properly secure the infrastructure at sea. In particular, defense officials in Tel Aviv express concerns that terrorist groups might attempt to disrupt operations though suicide operations, with divers, depth charges, surface-to-surface missiles, or UAVs.

Rig owners, including Houston-based Noble Energy, are working intensively in conjunction with the IDF to ensure the security of their investment. There are private armed security forces on each platform that have radar to monitor sea traffic in the area. These radars are designed to link up with those operated by the IDF, measures that will be supplemented by increased naval patrols and UAV surveillance.

Navy officials have lobbied hard for a supplementary budget of $820 million, arguing that they required four new vessels, additional defense hardware, and more manpower, but recent budget constraints across the government left just $790 million USD in new funds for Israel’s entire military, only a fraction of which is earmarked for naval expenditures.

Even with capped funding levels, however, the Israeli navy has recently signed contracts to acquire two state-of-the-art German-built MEKO class F221 frigates bound for patrol of the Mediterranean gas fields, an apparent sign that their argument has won over most doubters. The two frigates will be armed with Israeli-built Barak 8 medium-range air defense systems alongside the 76mm guns and on-board surface-to-air missile systems and are a positive step in the right direction for Israel’s maritime security needs.

Yet how the battle to protect these rigs plays out depends at least in part upon a domestic Israeli battle over priorities, planning, and the ultimate value of the resources at play. Israeli naval officials claim that there is 1400 billion cubic metres (BCM) of natural gas in Israel’s new wells, amounting to $260 billion in assets that now need to be protected by the state. They therefore claim that the navy’s latest budgetary request represents just 0.45% of projected revenues from the gas fields over the next twenty years.

However, according to the Tzemach Committee charged with reviewing Israel’s natural gas policy, 1400 BCM is actually a hypothetical estimate that includes not just proven, recoverable reserves, but also “prospective reserves” with “various probabilities of geological success”.

Further, the Israeli government’s predicted share of this revenue through taxes and royalties is only about $60 billion, according to Prime Minister Benjamin Netanyahu at a press conference this summer.

Even after accounting for a recent announcement by Tamar’s rig owners that they have discovered small additional amounts of natural gas, it seems likely that Israel’s navy has arguably inflated the (already considerable) value of natural gas at the site in order to procure the equipment and funding that they say is needed to defend Israel’s critical new energy infrastructure.

Regardless of how its intramural battle over spending and defense priorities plays out, Israel’s rivals in the region seem perfectly happy to invent new pretexts to threaten Israel’s nascent energy security. Turkey,Lebanon, and Hezbollah have all challenged Israel’s access to its rich new natural gas fields.

And according to Israeli intelligence officials, when Hezbollah sent a drone into Israeli territory in 2012, it actually did so by flying over one of Israel’s older natural gas rigs off the coast of Ashkelon. And that’s not even accounting for Hamas and Hezbollah’s widely recognized arsenals of sophisticated missiles, which pose an obvious danger to Israel’s newer Mediterranean rigs.

Many countries maintain a navy to protect their coastline and offshore assets from threats out at sea,but no other country has to account for the sorts of strategic threats that Israel faces to its promising energy windfall.