Oil & Energy
The Joy Of Natural Gas
Tired of high gasoline pump prices? Wondering why, with our fearsome energy hunger, all the energy seems to be in the Middle East? That was yesterday’s story.
Almost overnight — well, in a few short years — the energy picture has been changing in the US. We are not energy beggars anymore. We have energy bounty — and that does not include the energy from wind and sun, or the controversial energy from the atom.
Now we have plenty of the most versatile of the hydrocarbons — more versatile than coal, and oil. It is natural gas; and it is going to change the face of America remarkably quickly, whether it is used to make electricity for electric cars or is burned directly in cars.
Natural gas is the new oil, maybe the new gold, and certainly the most exciting energy development in a long time.
Indeed, it is a Cinderella story: a hopeless orphan who is now the belle of the ball.
Originally, natural gas was found in conjunction with oil and was regarded as something of a nuisance. It was mostly cursed and “flared” or burned at the well; and it is still flared when there is no way of moving it to market, either in a pipe or as a liquid. Cities favored a low-grade gas made from coal for lamps and heating because coal could be transported by rail.
But natural gas turned out to be a wonderful feedstock for fertilizers and many other manufactures and chemicals. It also demonstrated its superiority over coal gas for heating and cooking, and a network of pipelines spread across the nation.
Even as the usefulness of natural gas spread, so did the political desire to control it. The Federal Power Commission, the predecessor of today’s Federal Energy Regulatory Commission, issued what became known infamously as the Permian Basin decision. It said that natural gas in interstate commerce had to have the price regulated by the federal government.
The result was two classes of gas, interstate and intrastate. It was a disaster, coming as the demand for gas was rising.
Then came the 1973 Arab Oil Embargo, which meant that gas was wanted for things oil had been used for up until then. Growing gas demand coincided with severe shortage not only in the pipelines, but also in proven reserves in the ground — low regulated prices had cut into exploration. The outlook for gas was bleak.
By 1977, the Carter administration had declared natural gas a “depleted resource.” There was panic. Newspapers listed all the good things we got from natural gas. Congress decided it was too useful to be burned, and it passed the Fuel Use Act.
Henceforth, gas was to he husbanded. Pilot lights on domestic cooking stoves were banned, as were all decorative uses of flames. Even the eternal flame at Arlington National Cemetery was nearly extinguished.
In 1987 natural gas was deregulated, and the companies started exploring and drilling again. The gas shortage transformed itself into a “gas bubble.” When I told a meeting of Wall Street analysts in the early-1980s that natural gas would again be used for electric generation they were disbelieving. As I left the building, one analyst said to another, “Very droll, but he doesn’t know what he’s talking about.”
But it did happen, and in a big way; not only was more natural gas being sought, but technology was set to change the amount of gas available and the way it could be used.
The first technological advance was a very efficient, gas-burning machine for utilities, the aero-derivative turbine. Then came horizontal drilling, which allows a single gas or oil well to stretch out tentacles for miles in every direction. This drilling technology opened up old gas and oil fields for further exploitation and made new ones very profitable.
The final jewel in the natural gas crown was the ability of drillers to start breaking up rocks in the shale band — between 6,000 and 9,000 feet below the surface — in areas that were not before thought to contain gas. The first, and largest field thus developed, is the Marcellus field which extends through Pennsylvania, New York, West Virginia and Ohio.
El Dorado now — except for environmental concern about the chemicals used to break the rock, in a process called “fracking.” Also, groundwater has been affected in many locations; and there is video of tap water burning.
But proponents of natural gas point out that it has half the greenhouse emissions of coal, and few or no nitrous oxides. Natural gas is set to do for the United States what North Sea oil has done for Britain and Norway.
King, executive producer and host of “White House Chronicle” on PBS, resides in Washington, DC, United States.
Llewellyn King
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor