How to create an oil and gas boom without fracking
American oil and natural gas companies are ramping up their drilling in the Gulf of Mexico as they seek to exploit a vast natural gas field that’s believed to hold as much as 7 trillion cubic feet of recoverable gas.
But those efforts are stymied by a lack of permits.
“If you drill a well and don’t get a permit, you just can’t drill,” said Matt Smith, an energy analyst at the New York-based Wood Mackenzie.
Smith said a recent study by the Energy Information Administration found that the total reserves in the North Sea have shrunk by roughly 30% since the early 1990s, leaving only 2.8 trillion cubic yards of recoverables for U.S. and U.N. regulators to tap. “
It’s a little bit of a red flag to me that the U-K., the United Kingdom, and other countries don’t have these permits.”
Smith said a recent study by the Energy Information Administration found that the total reserves in the North Sea have shrunk by roughly 30% since the early 1990s, leaving only 2.8 trillion cubic yards of recoverables for U.S. and U.N. regulators to tap.
But Smith also pointed to the fact that the vast oil and petroleum-rich areas of the U, K., and NE are subject to seismic monitoring restrictions, making it virtually impossible for drillers to drill within those areas.
“There are a number of reasons why we don’t want to drill in these areas,” Smith said.
“First, it’s very difficult to get an order from the US. or U. K. or elsewhere to drill.
Second, we have the same problem as we have in other parts of the world where the geology is different.
And third, we don.sibly drill in areas that are very inaccessible.
So the U., K., NE, and Ogasawara areas are just not a place for a lot of oil and fuel to be produced.”
While fracking is being used as a last resort in a number for shale oil and shale gas drilling, Smith said it is unlikely that any major oil and energy companies will move their operations there, or move production of oil to places that are more remote from other countries.
“The U.k. doesn’t have much of an oil-producing region,” Smith told Fox News.
“I’m not sure we would have seen oil and other commodities like natural gas in the UK, Canada, France, Australia, or Russia, which are all very different from the United State.”
While some shale oil companies may have trouble finding enough resources in the United Sates, Smith says they’re still likely to make money because of the low cost of drilling, the higher profits, and the high price of gas.
“They are very efficient, and they can do things that are expensive to the U.” he said.