Posts tagged ‘Hydraulic fracturing’

04/09/2014

Water Shortages Will Limit Global Shale Gas Development – Businessweek

If all the world’s theoretically recoverable shale gas could be developed, our supply of clean-burning natural gas would expand 47 percent—lowering both greenhouse gas emissions and energy prices, according to estimates from the Washington-based World Resources Institute.

Shale drilling in China's Sichuan Province

The hitch is that the process for extracting shale gas, called hydraulic fracking, sucks up as much as 25 million liters (6.6 million gallons) of water for each well. A report from WRI (PDF), “Global Shale Gas Development: Water Availability and Business Risks,” released on Tuesday, shows that roughly 38 percent of the world’s shale gas and oil lies buried beneath water-stressed regions. This means that extraction efforts will be difficult and expensive, as well as economically and environmentally risky.

China has the world’s largest estimated deposits of shale gas (1,115 trillion cubic feet), according to studies by the U.S. Energy Information Administration. Yet China is also one of the world’s most naturally water-stressed nations: It is home to a fifth of the world’s population but only 7 percent of its freshwater resources. WRI’s team compared maps of China’s potential shale plays with available water and found that 61 percent of China’s shale lies in arid regions. (China recently slashed in half its mid-term projections for shale gas development, from a goal of over 60 billion cubic meters annually to 30 billion cm by 2020.)

via Water Shortages Will Limit Global Shale Gas Development – Businessweek.

15/03/2013

* Beans means bonanza as oil frackers turn demand for guar into gold rush | The Times

The Times: “Just as America’s booming shale gas industry has helped to wean the country off an unhealthy dependence on imported Middle Eastern oil, a new national addiction is emerging — to the Indian guar gum on which the industry depends.

A merchant paints numbers on sacks of guar as a laborer loads them onto a truck at a grain market in Jodhpur, India

Soaring demand for guar from US oil companies — whose apparently insatiable appetite stems from its use in making the drilling fluids used in the process of hydraulic fracturing or “fracking” for shale gas — triggered a 374 per cent surge in Indian exports between January 2011 and January 2012.

With 80 per cent of global production of guar — which means cow feed in Hindi — India has a near monopoly on the bean, a fact that has led to a bonanza for Indian farmers who witnessed a ninefold increase in prices during 2012. “The price increase has been just astronomical,” says Naveen Mathur, commodities analyst at Angel Broking in Mumbai.

For decades, apart from cow feed, powdered guar has been used as a thickener in toothpaste, pet food and ice cream, but global demand has mushroomed in recent years because oil companies such as Halliburton and Schlumberger have required huge quantities for use as a thickening agent in the fluid needed to squeeze shale gas out of rock formations deep underground.

Almost overnight, guar has become India’s biggest agricultural export, shipments of which were worth $4.9 billion between April and January 2012, roughly double the value of the country’s exports of basmati rice and cotton combined.

Like the Texan oil booms of the 19th century, the guar rush is having a similar effect on the desert state of Rajasthan, where most of it is grown and where some farmers have earned more in a single season than the previous ten put together.

Guar beans, which are milled and powdered to produce gum that is eight times more viscous than cornstarch, grows only in rare climatic conditions — arid areas watered by intermittent but heavy monsoon rains.

But the huge surge in prices and exports has prompted some to ask whether the boom can last.

As Indian farmers frantically plant new areas to meet demand, US oil scientists in Houston are desperately trying to come up with synthetic alternatives, such as carbon methyl cellulose, which could rival guar on both price as well as efficacy.

Others are trying to develop new strains of guar that can be grown in different climatic conditions.

So far, they have not managed to do so — and India’s guar boom looks set to continue.

via Beans means bonanza as oil frackers turn demand for guar into gold rush | The Times.

17/07/2012

* Fracking in U.S. Lifts Guar Farmers in India

NY Times: “Sohan Singh’s shoeless children have spent most of their lives hungry, dirty and hot. A farmer in a desert land, Mr. Singh could not afford anything better than a mud hut and a barely adequate diet for his family.

Farmers waited this month to receive free guar seeds from an Indian company.

But it just so happens that when the hard little bean that Mr. Singh grows is ground up, it becomes an essential ingredient for mining oil and natural gas in a process called hydraulic fracturing.

Halfway around the world, earnings are down for an oil services giant, Halliburton, because prices have risen for guar, the bean that Mr. Singh and his fellow farmers raise.

Halliburton’s loss was, in a rather significant way, Mr. Singh’s gain — a rare victory for the littlest of the little guys in global trade. The increase in guar prices is helping to transform this part of the state of Rajasthan in northwestern India, one of the world’s poorest places. Tractor sales are soaring, land prices are increasing and weddings have grown even more colorful.

“Now we have enough food, and we have a house made of stone,” Mr. Singh said proudly while his rail-thin children stared in awe.

Guar, a modest bean so hard that it can crack teeth, has become an unlikely global player, and dirt-poor farmers like Mr. Singh have suddenly become a crucial link in the energy production of the United States.”

via Fracking in U.S. Lifts Guar Farmers in India – NYTimes.com.

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