DOCSLIB.ORG

Application for Customer Rate Relief and Related Regulatory Asset Determination

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Application for Customer Rate Relief and Related Regulatory Asset Determination CASE NO. 00007062 ATMOS ENERGY CORP., MID-TEX § DIVISION AND WEST TEXAS § BEFORE THE DIVISION, APPLICATION FOR § CUSTOMER RATE RELIEF AND § RAILROAD COMMISSION RELATED REGULATORY ASSET § DETERMINATION § OF TEXAS ATMOS ENERGY CORPORATION, MID-TEX DIVISION AND WEST TEXAS DIVISION, APPLICATION FOR CUSTOMER RATE RELIEF AND RELATED REGULATORY ASSET DETERMINATION Atmos Energy Corporation (“Atmos Energy” or the “Company”) on behalf of its Mid-Tex Division and West Texas Division (“WTX Division”) files this Application for a Regulatory Asset Determination (“Application”). Atmos Energy’s Mid-Tex and WTX Divisions operate in Texas as gas utilities under Texas Utilities Code §§ 101.003(7) and 104.362(12). The Company’s Application is timely filed pursuant to the customer rate relief provisions contained in H.B. 1520, Texas Utilities Code, Chapter 104, Subchapter I, and the Railroad Commission of Texas (“Commission”) Notice to Gas Utilities issued on June 17, 2021 (“June 17th Notice”). In support of the Application, the Company respectfully shows the following: FEBRUARY 2021 WINTER WEATHER EVENT Winter Storm Uri was historic in its severity, its breadth, and its duration. Within a day of its arrival on February 11, 2021, Governor Greg Abbott issued an emergency disaster declaration for all 254 counties in the State of Texas. On February 14, 2021, the President of the United States approved the disaster declaration and ordered federal assistance to supplement state and local recovery efforts. Across the state, temperatures dropped to some of the coldest recorded in decades. By Monday after the storm’s arrival, temperatures in Dallas had dropped to five degrees, the coldest temperature recorded in the city since the late 1980s. On Tuesday morning, the temperature at the 1 Dallas/Fort Worth International Airport dropped to negative two degrees, tying a record low 20th century temperature for this area. Austin and San Antonio also saw single-digit temperatures for the first time in more than thirty years. By the time the worst weather had passed on February 19th, almost half of the state’s population was still dealing with disruptions in water service. And nearly 190,000 Texas homes remained without electricity. Overall, the storm had catastrophic impacts on the entire state, causing power outages, burst water pipes, and limited travel. The storm also dramatically impacted natural gas availability. The record cold conditions led to wellhead freeze-offs across West Texas when water present in raw natural gas froze at the wellhead and inside gathering lines, causing blockages that severely restricted production. Due to widespread rolling blackouts, many natural gas facilities lost electricity, without which they could not deliver natural gas to the power plants. Because a significant number of natural gas facilities were not listed as critical infrastructure, electric power was curtailed to them, further decreasing the overall supply of gas. In response, the Commission quickly acted and issued an Emergency Order modifying curtailment priorities to require continued service to residential and other human needs customers.1 The Commission also acknowledged the natural gas supply and demand issues facing natural gas service and the resulting consequence that local distribution companies (“LDCs”) “may be required to pay extraordinarily high prices in the market for natural gas and may be subjected to other extraordinary expenses when responding to” Winter Storm Uri.2 The Commission’s prediction proved to be true. These weather conditions, lack of electricity, high customer demand for natural gas, unprecedented gas supply interruptions, and the diminished availability of gas supply caused 1 Emergency Order, Railroad Commission of Texas (Feb. 12, 2021). 2 Notice of Authorization for Regulatory Asset Accounting for Local Distribution Companies Affected by the February 2021 Winter Weather Event, Railroad Commission of Texas (Feb. 13, 2021). 2 natural gas prices to soar to unparalleled highs due to severely constrained supply during a time of unprecedented demand and left LDCs, like Atmos Energy, struggling to procure gas supply volumes needed to ensure that its human needs customers continued to receive reliable service. For example, Mid-Tex customer demand during Winter Storm Uri was over 2 Billion Cubic Feet (“Bcf”) for eight consecutive days. For comparison purposes, the average demand per day for the prior week was approximately 1 Bcf, or half of what the Company experienced daily during Winter Storm Uri. Likewise, price escalation for gas supply during Winter Storm Uri was dramatic and significant. The average price increase among the Houston Ship Channel, Katy and Waha Hub delivery locations was a staggering 9,230.4%. Yet, even at these price levels, demand far outstripped available supply, and as the cold weather persisted, the situation grew worse for any entity seeking natural gas. These circumstances, despite the extensive efforts Atmos Energy undertook to prepare for the winter peak, led to the need to procure natural gas supplies during unprecedented market conditions to continue to serve human needs, customer demand, and maintain system support. In passing H.B. 1520, the Texas Legislature recognized the unprecedented nature of Winter Storm Uri and its financial impacts—both to customers and gas utilities. The new rate relief measures in Subchapter I of Chapter 104 of the Texas Utilities Code benefit customers and support the financial strength and stability of gas utilities in Texas. Consistent with those purposes and the Commission’s June 17th Notice, Atmos Energy requests a regulatory asset determination to recover the extraordinary gas procurement costs its incurred to provide service to customers and maintain its system during Winter Storm Uri through securitization and the issuance of customer rate relief bonds. 3 JURISDICTION The Commission’s jurisdiction in this proceeding stems from the adoption of Subchapter I in Chapter 104 of the Texas Utilities Code, which was passed by the Texas Legislature to provide customers with rate relief related to natural gas costs incurred during Winter Storm Uri. Atmos Energy’s Mid-Tex Division and WTX Division are LDCs that operate as gas utilities under Texas Utilities Code §§ 101.003(7) and 104.362(12). The Commission has exclusive, original jurisdiction to prescribe the manner and form of the books, records, and accounts for gas utilities under Texas Utilities Code § 102.101(a), (b) and (d). In addition, Texas Utilities Code § 104.365 gives the Commission jurisdiction to determine the regulatory asset amount to be recovered by a utility related to its extraordinary costs incurred for Winter Storm Uri. Upon making a regulatory asset determination, the Commission has exclusive, original jurisdiction based on Texas Utilities Code § 104.364(c) to issue a financing order to authorize recovery of extraordinary costs through securitization by creating customer rate relief property. SUMMARY OF REQUESTED RELIEF In accordance with the Commission’s June 17th Notice, Atmos Energy requests a Commission determination that its extraordinary costs, which total $2,038,997,976 were prudently incurred and should be recovered through the securitization process authorized in Subchapter I in Chapter 104 of the Texas Utilities Code. The Company’s extraordinary costs have been recorded as a regulatory asset in the books and records of the Company in accordance with the Commission’s Notice of Authorization for Regulatory Asset Accounting for Local Distribution Companies Affected by the February 2021 Winter Weather Event issued on February 13, 2021, the Uniform System of Accounts (“USOA”) prescribed for natural gas companies subject to the provisions of the Natural Gas Act (15 U.S.C. 4 Section 717 et seq) by the Federal Energy Regulatory Commission (“FERC”), and generally accepted accounting principles. In addition to demonstrating the prudence of its extraordinary costs related to Winter Storm Uri, the Company’s Application, with its supporting testimony and evidence, also establishes that the issuance of customer rate relief bonds: (1) will be the most cost-effective method of funding the reimbursement of Atmos Energy’s extraordinary gas costs as compared to conventional methods of recovery; (2) will provide tangible and quantifiable benefits for customers greater than would be achieved absent the issuance of customer rate relief bonds; and (3) is in the public interest and consistent with the purposes of Subchapter I, Chapter 104 of the Texas Utilities Code. Concurrent with its processing of the Company’s Application, Atmos Energy requests that the Commission establish a concurrent proceeding to issue a financing order that will allow the Texas Public Finance Authority to issue securitization bonds relating to the utility regulatory assets resulting from Winter Storm Uri.3 The swift establishment of a separate proceeding will facilitate the selection of a governing board, selection of a lead underwriter and start of necessary financing initiatives, and save valuable time between a Commission order on the amount of utility regulatory assets to be securitized and the actual securitization of those costs. It could also save customers millions in carrying costs associated with the need for those utilities to carry the extraordinary costs on their balance sheets until such time as securitization can occur. Alternatively, if the Commission determines that securitization should not be used to recover the Company’s extraordinary
Load more

Recommended publications
  • Best Research Support and Anti-Plagiarism Services and Training
    CleanScript Group – best research support and anti-plagiarism services and training List of oil field acronyms The oil and gas industry uses many jargons, acronyms and abbreviations. Obviously, this list is not anywhere near exhaustive or definitive, but this should be the most comprehensive list anywhere. Mostly coming from user contributions, it is contextual and is meant for indicative purposes only. It should not be relied upon for anything but general information. # 2D - Two dimensional (geophysics) 2P - Proved and Probable Reserves 3C - Three components seismic acquisition (x,y and z) 3D - Three dimensional (geophysics) 3DATW - 3 Dimension All The Way 3P - Proved, Probable and Possible Reserves 4D - Multiple Three dimensional's overlapping each other (geophysics) 7P - Prior Preparation and Precaution Prevents Piss Poor Performance, also Prior Proper Planning Prevents Piss Poor Performance A A&D - Acquisition & Divestment AADE - American Association of Drilling Engineers [1] AAPG - American Association of Petroleum Geologists[2] AAODC - American Association of Oilwell Drilling Contractors (obsolete; superseded by IADC) AAR - After Action Review (What went right/wrong, dif next time) AAV - Annulus Access Valve ABAN - Abandonment, (also as AB) ABCM - Activity Based Costing Model AbEx - Abandonment Expense ACHE - Air Cooled Heat Exchanger ACOU - Acoustic ACQ - Annual Contract Quantity (in reference to gas sales) ACQU - Acquisition Log ACV - Approved/Authorized Contract Value AD - Assistant Driller ADE - Asphaltene
    [Show full text]
  • An Arctic Engineer's Story 1971 to 2006
    An Arctic Engineer’s Story 1971 to 2006 by Dan Masterson To my wife Ginny and my sons, Andrew, Greg, and Mark ii Preface In 1971, I just happened to be in the right place at the right time. I had just completed my PhD and was looking for work. I was told to contact Hans Kivisild who had just been given a contract from an oil company to investigate an engineering issue in the Arctic. This started my career in Arctic engineering, just when the second major exploration phase was beginning in the western Arctic, 123 years after Franklin started the first phase of exploration in the area. This recent phase was also filled with individuals who were going “where few had gone before,” but unlike the earlier explorers, these recent explorers were accompanied by regulators, scientists and engineers who wanted to ensure that the environment was protected and also to ensure that the operations were carried out in the safest and most cost- efficient manner. Between about 1970 to 1995, several oil companies and Arctic consulting companies turned Calgary into a world leader in Arctic technology. It was a time that one could have an idea, check it out in small scale, and within a year or so, use it in a full-scale operation. During the next 25 years, industry drilled many wells in the Arctic using the technologies described in this book. In 1995, the oil industry pulled out of the Arctic mainly due to lack of government incentives and poor drilling results. In 2016, both the Canadian and United States governments declared a moratorium on Arctic drilling.
    [Show full text]
  • The Oil Boom After Spindletop
    425 11/18/02 10:41 AM Page 420 Why It Matters Now The Oil Boom Petroleum refining became the 2 leading Texas industry, and oil remains important in the Texas After Spindletop economy today. TERMS & NAMES OBJECTIVES MAIN IDEA boomtown, refinery, Humble 1. Analyze the effects of scientific discov- After Spindletop, the race was on to Oil and Refining Company, eries and technological advances on the discover oil in other parts of Texas. wildcatter, oil strike, oil and gas industry. In just 30 years, wells in all regions Columbus M. “Dad” Joiner, 2. Explain how C. M. “Dad” Joiner’s work of the state made Texas the world hot oil affected Texas. leader in oil production. 3. Trace the boom-and-bust cycle of oil and gas during the 1920s and 1930s. With the discovery of oil at Spindletop, thousands of fortune seekers flooded into Texas, turning small towns into overcrowded cities almost overnight. An oil worker’s wife described life in East Texas in 1931. There were people living in tents with children. There were a lot of them that had these great big old cardboard boxes draped around trees, living under the trees. And any- and everywhere in the world they could live, they lived. Some were just living in their cars, and a truck if they had a truck. And I tell you, that was bad. Just no place to stay whatsoever. Mary Rogers, interview in Life in the Oil Fields Oil, Oil Everywhere The oil boom of the 1920s and 1930s caused sudden, tremendous growth in Texas.
    [Show full text]
  • Reasonable Foreseeable Development Scenario for Oil and Gas Activities
    Reasonable Foreseeable Development Scenario for Oil and Gas Activities National Forests and Grasslands in Texas National Forests and Grasslands in Texas Grasslands and Forests National Prepared for the U.S. Forest Service by Kelsey Crocker and James F. Glover United States Department of the Interior Bureau of Land Management New Mexico State Office Final Report Amended November 2018 Reasonable Foreseeable Development Scenario for Oil and Gas Activities National Forests and Grasslands in Texas Prepared By: ___________________________ ___________________________ Kelsey Crocker, GIS Specialist James F. Glover, Geologist United States Department of the Interior Bureau of Land Management New Mexico State Office FINAL REPORT – AMENDED NOVEMBER 2018 RFD Scenario for Oil and Gas Activities—National Forests and Grasslands in Texas Contents Introduction ................................................................................................................................... 1 Guidance and Data Sources ........................................................................................................ 2 Assumptions and Findings .......................................................................................................... 3 Historical Activity ......................................................................................................................... 4 Recent Drilling Activity ............................................................................................................... 4 Oil and Gas Production
    [Show full text]
  • Final Report Small Producers Program
    RPSEA Final Report Small Producers Program Development Strategies for Maximizing East Texas Oil Field Production Contract No. 08123-16 July 15, 2014 Fred P. Wang Research Scientist Bureau of Economic Geology, Jackson School of Geosciences 10100 Burnet Rd., Bldg. #130, Austin, TX 78750 LEGAL NOTICE This report was prepared by the Bureau of Economic Geology, The University of Texas at Austin, as an account of work sponsored by the Research Partnership to Secure Energy for America, RPSEA. Neither RPSEA, members of RPSEA, the National Energy Technology Laboratory, the U.S. Department of Energy, nor any person acting on behalf of any of the entities: a. MAKES ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO ACCURACY, COMPLETENESS, OR USEFULNESS OF THE INFORMATION CONTAINED IN THIS DOCUMENT, OR THAT THE USE OF ANY INFORMATION, APPARATUS, METHOD, OR PROCESS DISCLOSED IN THIS DOCUMENT MAY NOT INFRINGE PRIVATELY OWNED RIGHTS, OR b. ASSUMES ANY LIABILITY WITH RESPECT TO THE USE OF, OR FOR ANY AND ALL DAMAGES RESULTING FROM THE USE OF, ANY INFORMATION, APPARATUS, METHOD, OR PROCESS DISCLOSED IN THIS DOCUMENT. THIS IS A FINAL REPORT. THE DATA, CALCULATIONS, INFORMATION, CONCLUSIONS, AND/OR RECOMMENDATIONS REPORTED HEREIN ARE THE PROPERTY OF THE U.S. DEPARTMENT OF ENERGY. REFERENCE TO TRADE NAMES OR SPECIFIC COMMERCIAL PRODUCTS, COMMODITIES, OR SERVICES IN THIS REPORT DOES NOT REPRESENT OR CONSTITUTE AN ENDORSEMENT, RECOMMENDATION, OR FAVORING BY RPSEA OR ITS CONTRACTORS OF THE SPECIFIC COMMERCIAL PRODUCT, COMMODITY, OR SERVICE. THIS PAGE INTENTIONALLY LEFT BLANK ABSTRACT The goals of this project were to evaluate deepening and behind-pipe opportunities and enhanced oil recovery (EOR) potentials to maximize recovery from the East Texas Oil Field (ETOF), a giant mature and marginal field currently operated by 114 small producers.
    [Show full text]
  • For Personal Use Only Use Personal For
    ABN 45 066 383 971 5 June 2015 PAGES (including this page):3 ASX Market Announcements CUE ENERGY OVERVIEW Cue is an Australian based oil & gas ASX Limited company with activities in Australia, Exchange Centre New Zealand and Indonesia. Level 4, 20 Bridge Street Sydney NSW 2000 THE COMPANY HAS: Long life production A strong balance sheet An active exploration program Cue acquires US conventional onshore oil CUE ENERGY DIRECTORS Geoffrey King (Chairman) Attached please find Cue Energy Resources Limited’s release with Stuart Brown respect to the above mentioned. Paul Foley Peter Hazledine Yours faithfully Brian Smith Andrew Young CUE ENERGY MANAGEMENT David Biggs (CEO) Andrew Knox (CFO) Andrew M Knox Jeffrey Schrull (Exp Man) Chief Financial Officer OFFICE Level 19 357 Collins Street Melbourne Vic 3000 CONTACT DETAILS Tel: +613 8610 4000 Fax: +613 9614 2142 EMAIL [email protected] WEBSITE www.cuenrg.com.au LISTINGS ASX: CUE ADR/OTC: CUEYY For personal use only ABN 45 066 383 971 RELEASE Cue acquires US conventional onshore oil production Melbourne, 5 June 2015: Cue Energy Resources Ltd (ASX: CUE) will boost oil output and gain significant potential for future production increases, through the acquisition of an 80% operated stake in the producing Pine Mills onshore conventional oil field, in Wood County, 160 km east of Dallas, Texas, USA. The acquisition, from Gale Force Petroleum of Canada (TSXV: GFE) includes a US$2 million cash payment, plus the obligation to carry US$1 million in operating and capital expenses for Gale Force’s retained interest over the next four years.
    [Show full text]
  • NB 8 Oil Field Unitization
    AGENDA REQUEST BUSINESS OF THE CITY COUNCIL CITY OF PEARLAND, TEXAS AGENDA OF: 5-9-16 ITEM NO.: Resolution No. R2016-81 DATE SUBMITTED: 5-3-16 DEPARTMENT OF ORIGIN: Administration PREPARED BY: Darrin Coker PRESENTOR: Darrin Coker REVIEWED BY: NA REVIEW DATE: NA SUBJECT: Resolution No. R2016-81; A Resolution by the City Council of the City of Pearland, Texas, supporting an improved statutory procedure that provides for unitization of depleted Texas Gulf Coast oil fields; and setting forth related matters thereto. EXHIBIT: Thursday Packet Information EXPENDITURE REQUIRED: AMOUNT BUDGETED: AMOUNT AVAILABLE: PROJECT NO.: ACCOUNT NO.: ADDITIONAL APPROPRIATION REQUIRED: ACCOUNT NO.: PROJECT NO.: To be completed by Department: Finance Legal Ordinance Resolution EXECUTIVE SUMMARY The Railroad Commission of Texas (RRC) is required to make and enforce rules for the conservation of oil and gas in Texas. Current, yet outdated law, prohibits the RRC from requiring field wide Unitization. Unitization is the joint operation among separate operators of existing drilling units within a common defined reservoir to maximize the recovery of oil. Unitization would provide for a democratic process of a super-majority of the working and royalty interests to vote on a Plan of Unit Development. Numerous entities have already expressed their support for Unitization as a means of preventing the waste of billions of barrels of stranded, but recoverable oil in Gulf Coast oil fields. There is a concern that without Unitization, numerous leases will be lost and numerous fields will be plugged and abandoned without recovering valuable resources. The attached resolution is intended to express the City’s support for an improved statutory procedure that provides for Unitization in Texas to protect untapped resources.
    [Show full text]
  • Rebuilding the Texas Railroad Commission Issue (Provisional) by J.W
    Oil, Gas & Energy Law IntelligenceIntelligenceLaw www.ogel.org ISSN 1875-418X Rebuilding the Texas Railroad Commission Issue (Provisional) by J.W. Coleman Published October 2020 This paper will be part of the OGEL Special Issue on "Law and Policy for Gas Flaring in a Low-carbon Economy". More information here: https://www.ogel.org/news.asp?key=660 This article will be published in a future About OGEL issue of OGEL (2020). Check websit e for final publication date for correct re OGEL (Oil, Gas & Energy Law Intelligence): Focusing on recent ference. This article may not be the developments in the area of oil-gas-energy law, regulation, final version and should be considered as a draft article. treaties, judicial and arbitral cases, voluntary guidelines, tax and contracting, including the oil-gas-energy geopolitics. For full Terms & Conditions and subscription rates, please visit our website at www.ogel.org. Open to all to read and to contribute OGEL has become the hub of a global professional and academic network. Therefore we invite all those with an interest in oil-gas-energy law and regulation to contribute. We are looking mainly for short comments on recent developments of broad interest. We would like where possible for such comments to be backed-up by provision of in-depth Terms & Conditions notes and articles (which we will be published in our Registered OGEL users are authorised to download and print 'knowledge bank') and primary legal and regulatory materials. one copy of the articles in the OGEL Website for personal, non-commercial use provided all printouts clearly include the Please contact us at [email protected] if you would like to name of the author and of OGEL.
    [Show full text]
  • Oilfield Acronym
    Oilfield Acronym MARSEC (US Coast Guard) Maritime Security System NTAS (US Department of Homeland Seurity) National Security Advisory System GAR (World Health Organization) Global Alert and Response DBCP 1,2-dibromo-3-chloropropane WQ A textural parameter used for CBVWE computations (Halliburton) OT A Well On Test ABAN Abandonment AGM Above ground marker AMSL above mean sea level AOF Absolute open flow AOFP absolute open-flow potential AGRU acid gas removal unit ACOU Acoustic ADCP Acoustic Doppler Current Profile (system) ALR acoustic log report ACQU Acquisition log aMDEA activated methyldiethanolamine AFP Active Fire Protection APS active pipe support ART Actuator running tool ANPR Advance notice of proposed rulemaking ADROC advanced rock properties report ALC aertical seismic profile acoustic log calibration report AAR After action reviews ACHE Air-Cooled Heat Exchanger AIRG airgun AIRRE airgun report AC Alaminos Canyon Gulf of Mexico leasing area ABSA Alberta Boilers Safety Association AHBDF along hole (depth) below Derrick floor AHD along hole depth AIV Alternate isolation valve ART Alternate response technologies AADE American Association of Drilling Engineers AAODC American Association of Oilwell Drilling Contractors (obsolete; superseded by IADC) AAPG American Association of Petroleum Geologists AAPL American Association of Professional Landmen ABS American Bureau of Shipping AIChE American Institute of Chemical Engineers AIME American Institute of Mining, Metallurgical, and Petroleum Engineers ANSI American National Standards Institute API American Petroleum Institute API American Petroleum Institute: organization which sets unit standards in the oil and gas industry ASNT American Society for Nondestructive Testing ASTM American Society for Testing and Materials ASCE American Society of Chemical Engineers ASME American Society of Mechanical Engineers WAV3 Amplitude (in Seismics) AVO Amplitude variation with offset (seismic) WellCAP An IADC standard for well control training APC Anadarko Petroleum Corp.
    [Show full text]
  • Hydrocarbon Geology Hydrocarbon – V Resources Utdallas 1
    .edu /~ Page metin 1 utdallas Resources – Hydrocarbon Geology v Outline Rocks Oil Formation Oil Migration Traps and Reservoirs Prof. Metin Çakanyıldırım used various resources to prepare this document for teaching/training. To use this in your own course/training, please obtain permission from Prof. Çakanyıldırım. If you find any inaccuracies, please contact [email protected] for corrections. Updated in Sumer 2019 .edu /~ Page metin 2 utdallas Rock Types v Volcanic (Igneous) Rocks: Crystalline solid rocks from cooled down magma. Metamorphic Rocks. E.g., marble develops under high pressure Sedimentary Rocks composed of sediments (grains, mud, salts) such as – Clastic: Collection/compaction/cementation of broken up rock pieces. Gypsum – Chemical (Crystalline): Including minerals and chemical salts For this & others, see the st » Gypsum: Calcium Sulfate Dihydrate: CaSO 4.2H2O. Soft rock for artifacts from ancient times. window case on the 1 floor Founders North building – Organic: Calcium from animal bones can combine with organic materials (proteins). » Proteins Amino acids including carbon (C), hydrogen (H), oxygen (O) & nitrogen (N). ← Volcanic Body fat is complicated Rock Metamorphic Clastic Chemical Sedimentary Organic CH Carbon-Carbon 2 bond Carbon- Nitrogen C bond C N Acidic Amino part COOH part NH2 Limestone, seashells Simple amino acid Sandstone, sand grains Rich in Calcite CaCO 3 Glycine NH2CH2COOH Shale, mud particles .edu /~ Page metin 3 utdallas Sedimentary Rocks and Shield v Sedimentary rock layers are on top of each other. Often sandstone is above shale which is above limestone. E.g., layering of rocks in Tulsa Densities of these are close 1.85-2.36 tons/yard3=2.4-3.1 tons/m3 Sandstone However, layering sequence of rocks on top of each other Shale Limestone depends on depositional sequence and materials, and can also be Basement rock altered by tectonic plate movements and earthquakes.
    [Show full text]
  • Securing the Supply Team 2: Ali Muhsen Phillip Mack Chapters Covered
    Securing The Supply Team 2: Ali Muhsen Phillip Mack Chapters Covered 11. Is the World Running Out of Oil? 12. Unconventional 13. The Security of Energy 14. Shifting Sands in the Persian Gulf 15. Gas on Water 16. The Natural Gas Revolution 11. Is the World Running Out of Oil? ● Peak Oil Theory: The world is at or near maximum output ● Consequences: Chaos! ● Aboveground risks (Unrelated to physical resources) Running Out Again and Again 1859 - Discovery of Oil in Titusville, PA. Main market was illumination (oil lamps) Times the world “ran out” of oil: 1. 1885. Oil was a “Temporary and vanishing phenomenon” - Then oil was found in Oklahoma, Texas, Ohio, and Kansas. Rise of the Automobile 2. WW1. Use of oil to fuel the war and growing numbers of automobiles. Seismic technology emerged from the war and further discoveries were made and in 1931 the East Texas oil field was discovered 3. WW2. 6 out of 7 billion barrels used by allies were from the United States. Discovery of the Middle East fields. Running Out Again and Again (cont.) 4. 1970s. October War by Arab countries on Israel in 1973. Embargoed oil shipments to the West. Prices Quadrupled. Followed by Iranian Revolution in 1978. Discovery of Alaska’s North Slope and Oil fields in the North Sea. 5. 21st Century “Peak Oil” - Oil consumption in China, concerns on climate change, moving away from carbon based fuels. Supplies continue to grow due to innovation and modern technology. The Supergiant Ghawar Field: ● Largest oil field in the world. ● First drilled in 1948.
    [Show full text]
  • World Petroleum Availability 1980-2000
    World Petroleum Availability 1980-2000 November 1980 NTIS order #PB81-145252 Library of Congress Catalog Card Number 80-600164 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Stock No. 052-003-00781-9 PREFACE The dependence by a large portion of the world on imported petroleum makes knowledge about the future availability of petroleum on the world market of great importance. This is particularly important for the United States and other developed countries, because of the large volume of oil they import. Most of the energy decisions faced by the United States in the next two decades depend critically on the oil import issue. The level of conservation we pursue, the rate at which we develop synthetic fuels, the resolution of the nuclear power debate, as well as other energy issues all depend on the availability, and conse- quent cost, of imported oil. Recent events in the Middle East illustrate that the availability of foreign oil is far more precarious than the physical resource base alone might suggest. In response to a Senate Foreign Relations Committee request for a review of global energy trends, OTA undertook this study, which estimates plausible levels of world oil production to the year 2000 and assesses the factors likely to determine which levels are actually reached. To determine that potential range of production, the study critically examines country-by-country capabilities for oil production, various estimates of what each country will actually produce, and prospects for new discoveries. Several world petroleum experts have reviewed the results of OTA’s analysis.
    [Show full text]