Brian Bohm

The first half of this post is essential reading from Methane Hunter Sharon Wilson: « Even if Texas wanted to regulate methane--they don't--with gas prices so low it would be extra hard. Operators will be looking for undetected ways to get rid of methane instead of paying to get it to market. I'm seeing lots of unrealistic headlines with claims such as the new rules will reduce methane by 80%. That needs to happen for sure, but those headlines are misleading. The reality is that no state has a system in place to adequately enforce the rules. As the industry continues expanding most state regulatory agency budgets remain flat at best. And some states like Texas are defiant, suing the EPA instead of even considering enforcement. But good job passing rules with lots of words on paper. “If your destination is to pass laws and never enforce them, then I guess we’re successful,” James Kenney, Enforcement Secretary New Mexico. https://lnkd.in/gQWcKzHp    »

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The WSJ writes—and as EnergyPoint Research further discusses in a separate post on its account—satellite and other data reveal the impact of oil and gas drilling on the Permian Basin’s landscape. What operators and researchers are most concerned about are forces pushing the ground up. A growing concern for residents and scientists is that wastewater from disposal wells could migrate into the aging, unplugged wells that litter the Permian by the thousands and contaminate drinking-water supplies or shoot to the surface, where the fluids could damage ranchland. As background, alongside crude, oil-and-gas companies are extracting gargantuan amounts of subterranean water—in the Delaware Basin, between five and six barrels of water are produced, on average, for every barrel of oil. To dispose of it, they inject billions of barrels of wastewater into underground disposal wells. Operators inject most of the water down wells that reach about a mile under the surface, which is convenient and relatively cheap. Drilling clusters of injection wells means companies don’t have to build expensive pipelines to link disposal sites together. Oil execs say the issue of water disposal is having an impact on their bottom line, driving up the costs for new wells. One reason is that concentrated volumes of water increase pressure underground, which then makes it more difficult for companies to drill down through those levels to shale rocks. Operators also fear that, if left unmanaged, these developments could dent local support for their activities. “Produced water management is probably one of the, if not the biggest, challenge in the Permian,” said Cody Comiskey, an earth-science adviser at Chevron. With shrinking options to discard wastewater, crude producers have to get creative. Some are looking for lower-risk formations to inject water into and ways to treat water so it can be reused for agriculture. Whether these efforts will pass regulatory muster or how much they will cost remains unclear. “There’s just no silver bullet,” Comiskey said. The volume of briny, polluted water that companies have to handle has skyrocketed. In 2013, companies discarded about 382 MM barrels of water. Last year, they injected about 3.4 B barrels of water down disposal wells. The Earth is noticing. The number of earthquakes in the Permian with magnitudes greater than 2.5 jumped from 42 in 2017 to 671 in 2022, per B3 Insight. In late 2022, a 5.4-magnitude earthquake in Reeves County. Texas regulators have imposed restrictions on injection volumes in the region, and the number of magnitude-3.5 earthquakes and higher has come down. In a related note, there's an emerging issue—and growing sense of urgency—around the need to improve methods used by the industry to estimate bottom-hole pressures of disposal wells. In the comments of this post, we've posted a link to an video on the issue from EnergyMakers Advisory Group. We recommend watching it. 🛢️💦 👀 #shale #water #permian

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EPA now aims to have 2026 RVOs out by Mar 2025 rather than the required Nov 2024 deadline, with policymaking now punted to well after the election. The 2024 spring regulatory agenda also makes no mention of 45Z guidance required from Treasury. Coupled with the recent overturn of Chevron deference, RIN and biofuel markets could soon be roiled by an unparalleled level of regulatory uncertainty. #renewablediesel #biodiesel #epa #rfs #uco #dco #bft #sbo #soybeanoil #soybeans #renewables #fuels #diesel #hedging #hvo #saf #distillate #refining #ethanol #e10 #e15 #fuels #45z #ira #canada #canola #airlines #aviation #jetfuel #jet #iata #a4a #crude #airlines #travel #truckers #truckstop #ev #evcharging #rng #refining #lcfs #carb #california #lowcarbon #carbonemissions #afpm #emissionsreduction #emissions #sustainableaviationfuel #sustainableaviation

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It is worth a reminder that the IPCC views Carbon Capture, Utilization, and Storage as critical in meeting Paris Accord goals as articulated in this open letter of last year from the Global CCS Institute.

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A rational approach to oil strategy must encompass reducing GHG emissions while supporting economic growth in developing nations worldwide. Merely advocating for decreased oil production falls short, as this article insightfully explains: https://lnkd.in/gQ-wgNCS. In today's world, it is crucial to thoughtfully consider the preservation of our environment and economies on a global scale. Share your thoughts in the comments below.

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This week, NW Natural is joining dozens of natural gas leaders at ONE Future’s 7th Annual Methane and Climate Strategies Workshop, sharing best practices and science-based standards as part of our commitment to reducing methane emissions throughout the natural gas value chain. Learn more about ONE Future in the 2023 Annual Report: https://lnkd.in/eaHvPx69

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A warning to a few select helium exploration companies (who shall remain nameless, but they know who they are) presently touting and promoting their respective “substantial” discoveries in what amounts to frontier area with zero to limited production history and/or infrastructure: A wildcat discovery well requires 18 to 24 months of data and production history, and specific data points (4 wells with at least a full year, in my opinion). It’s fine to be encouraged by the flow test rates and volumes in these isolated areas, but managements must be hyper cognizant that early results with only scant few wells (or only a single well) may not indicate ultimate long term economic capability of the acreage in the aggregate, most notably areal extent, choke management (flowback), and complete understanding of underlying geology related to an ongoing offset and subsequent full development program. Based upon what I have witnessed thus far with respect to a number of claimed meaningful frontier discoveries, I am far from compelled to validate any modeled type curve(s) I have witnessed to date. They are all highly speculative. Some will work, most will not. “Helium or Hydrocarbon Investment 101”.

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What a great first 2 hour online webinar on Renewable Energy 101 from the Colorado School of Mines yesterday, 6 May 2024! Great questions from enrollees and engagement with interactive quiz questions and surveys. Next we review the renewable energy resource assessment process with real world examples. https://lnkd.in/gi_nYt6x

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Some positive thoughts on the near term future for the industry.

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I got to admit - memories shouldn't be so short - one small error in the Gulf and you'll be a shadow of your former self. It's very unforgiving. I'd argue better risk adjusted dollars can be spent onshore, with repeatable, scalable, and low-risk (both dry-hole and environmental) unconventional resources. #TraditionalEnergy #OilAndGas #Shale #Energy

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Federal investigators found many opportunities were missed that could have prevented the Sept 2022 deaths of brothers Ben and Max Morrissey, 32 and 34 years old, who succumbed to fire-related injuries hours after they were caught in an evening explosion at a bp-operated refinery in Ohio. Our deep dive in The Wall Street Journal nine months ago is linked below in comments, along with an episode of The Journal podcast with powerful voices from people who lived through that day. For hours before the accident, BP supervisors downplayed refinery employees' concerns and only supported production shutdowns investigators described as too little, too late. In the months before the accident, during a major refinery turnaround--an intensive maintenance operation that shut down much of the facility--BP opted not to perform some work that would have rectified problems that internal records show the company knew about. Some of that work involved key pressure valves that failed on the day of the accident. (Our story last year went into the valve malfunctions--in a level of detail not publicly known at the time--and also the relentless barrage of alarms that hit control-room operators as they tried to wrestle an out-of-control refinery into submission. They were overwhelmed. It didn't work.) Days after the 2022 turnaround ended, BP announced it would sell its 50% stake in the refinery. It was the following month that the explosion and fire ripped through the century-old facility in Oregon, Ohio, a suburb of Toledo. This is important reading about lessons not learned, insufficient training, safety controls that missed the mark--how it all went so wrong. bp this month agreed to pay $125,000 to settle violations identified by OSHA related to the accident. It had contested the violations.

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I wrote about how American oil producers don’t determine global oil prices, but they can help prevent significant market swings in Independent Petroleum Association of America - IPAA's Energy In Depth - read here https://lnkd.in/g4npfRGS #energyprices #oilprices

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LONG-READ COLUMN: The US Gulf of Mexico is about to boom again -- 15 years after the Deepwater Horizon oil spill. BP and several other major oil companies are racing to develop the new frontier in the basin: ultra high-pressure, high-temperature oilfields in the Paleogene geological strata. "The timing of the potential bonanza is a paradox. It comes as the White House is telling Americans the country needs to transition away from fossil fuels to save the planet. It’ll be hard to break that habit if the US is swimming in oil. In fact, the country produces more oil than it consumes. It’s a politically incorrect embarrassment of riches. As long as this conundrum exists, I don’t see how the country will ever fully embrace the green energy transition. The country’s geological resources are so rich; its engineering prowess so unlimited; and its capitalist system so determined to make money that it can’t help but drill and drill and drill. Joe Biden may have green credentials to maintain but he’s presiding over American oil production that’s thriving from Alaska to Texas and now the US oilfields in the Gulf of Mexico — despite the complaints about the administration from the petroleum industry. And Biden will find it hard to relinquish the black stuff. That’s because it strengthens Washington’s hand in the geopolitical energy game it plays with OPEC+, which includes Russia. It’s also the American ace in the hole in the contest with an ever greener China, which is still heavily dependent on imported petroleum. In the quest to stay the No. 1 superpower, the US will be loathe to go green. That’s why the new spigots in the gulf are so important to America. And so, even as the climate warms, the most pressing issue isn’t to slow the extraction of Paleogene petroleum, but guarantee it’s done safely." Read the full Bloomberg Opinion column below:

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Choeib and I discuss the history of the Natural Gas Shale Boom! #naturalgas #energytransition #energy #renewables #shale https://lnkd.in/gytvvhuw

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Choeib and I discuss the history of the Natural Gas Shale Boom! #naturalgas #energytransition #energy #renewables #shale https://lnkd.in/gytvvhuw

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The US EPA announces groundbreaking rules mandating a 90% reduction in CO2 emissions from power plants by 2032. This decisive action targets existing coal and new natural gas plants, positioning carbon capture and sequestration as key solutions for achieving substantial reductions in the sector's carbon footprint. https://lnkd.in/gJnKizVw #EVNews #EV #EPA #ClimateAction #CO2Reduction #CarbonCapture #SustainableEnergy #CleanPower #EnvironmentalProtection #USPolicy #FossilFuels #CoalPower #NaturalGas #CleanTech #NetZero #BidenAdministration #CarbonEmissions #EcoFriendly #GreenPolicy

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One of the fastest and cheapest ways to reduce carbon emissions from big things that move is to switch to biodiesel and renewable diesel. We just need supportive policy to help grow the pool of these fuels. Expanding the renewable volume obligations is a great way to get this done.

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