EPRINC Non-Resident Fellow Trisha Curtis and Trustee Ben Montalbano build on some of their previous work concerning US shale productivity in their recent paper entitled “Completion Design and the Impact on US Shale Well Productivity.”They identify the factors contributing to sustained productivity growth in several US shale plays and examine some of the economic constraints facing well efficiency. As the nation adjusts to relatively stable and depressed oil and gas prices, Trisha and Ben’s paper outlines the current industry environment and highlights future challenges to increasing shale productivity. Their paper can be downloaded by clicking here.
The Homeland Threat to Affordable U.S. Energy
Lucian Pugliaresi penned an Op Ed in The Hill on the pending legal action by local California governments claiming that U.S. oil companies have created a nuisance by knowingly causing harm to the future of human life and property. He points out that missing from the list of defendants is the federal government which had an active and aggressive program, spanning Democrat and Republican, to promote and expand domestic oil and gas production. A copy of the Op Ed can be found here.
EPRINC Welcomes Emily Medina as a non-resident Fellow
EPRINC is happy to welcome Emily Medina as a non-resident fellow at EPRINC as we expand our research and outreach programs on U.S.-Mexican energy developments. Born and raised in Mexico, she has experience working with both the private and public sectors on important energy matters. More on Emily’s experience can be found here.
Hedging Haircuts and Big Basis Moves
EPRINC trustee Ben Montalbano and non-Resident Fellow Trisha Curtis, both co-founders of PetroNerds, have just completed an assessment of oil hedging positions of 25 major oil producers in the Permian Basin. Hedging is a valuable tool for distributing risk and allowing producers to protect revenue streams from price volatility. Hedges protect producers revenues when oil prices fall, but also limit gains when prices rise. In addition, when oil prices rise it may limit the supply response if a large volume of unconventional production is hedged. Ben and Trisha’s assessment shows the percent of total production that producers hedge varies, but heading into Q1of 2018 producers hedged about 20% of total output. A copy of their assessment can be found here.
EPRINC Hosts Workshop on the Scale and Scope of the North American Natural Gas Production Platform
On April 19, 2018, the Energy Policy Research Foundation Inc. held a workshop at the Willard Hotel on the on the scale and prospective growth of the North American natural gas production platform. The workshop participants provided essential foundation information and analysis to expand our understanding of the role of U.S. natural gas as a supply source to meet both domestic requirements and to serve export markets. As EPRINC begins the second year of our joint project with the Institute of Energy Economics Japan (IEEJ) on the “Future of Asian LNG,” the findings from the workshop will expand our knowledge base on the potential for U.S. natural gas to serve the growing Asian market.
The workshop participants addressed four themes; (i) the size and productive capacity of the North American natural gas resource base, (ii) regulatory constraints on moving natural gas to domestic and export markets, (iii) demand risks, and (iv) potential consequences to the cost structure of U.S. oil and gas production from ongoing trade disputes. More importantly, the workshop brought together a broad cross section of the Washington energy community and provided an informed discussion of the opportunities and challenges on the future of the natural gas resource base.
The workshop benefitted from an excellent and well-experienced group of analysts, industry experts and policy makers. Although the discussion was off the record, all the presenters agreed to permit EPRINC to post their presentations and these can be found here.
Photos from the event can be found here.
The U.S. Renewable Fuel Standard Background, Controversies, & Reform, or, This Crisis, … or the Next?Offering a U.S. perspective at the Argus Global Gasoline Conference, EPRINC’s Max Pyziur gave a presentation on the RFS titled “An Overview of the Renewable Fuel Standard, Gasoline Blending Challenges And Pathways For Reform.” He also participated in a panel discussion on fuel quality and the potential to increase blends of ethanol, ETBE, and reformates. A copy of Max’s presentation and photos from the event can be found here.
Lucian Pugliaresi Presents on Energy Security at JINSA Meeting for IDF Officers
On April 10, 2018 in Washington, DC, the Jewish Institute for National Security Affairs (JINSA) invited Lucian Pugliaresi to meet with a group of visiting officers of the Israeli Defense Forces (IDF) to discuss North American energy trends and energy security policy. A major natural gas find off the coast of Israel is bringing enormous opportunities for regional natural gas supplies, but also presents some important energy security challenges. A copy of Lucian’s presentation to the visiting IDF delegation can be found here.
Untapped Potential: Why Developing ANWR Still Makes Sense
EPRINC’s Will Pack and John Dahlberg explore the large net economic value of the Arctic National Wildlife Refuge in their recent paper entitled: “Untapped Potential: Why Developing ANWR Still Makes Sense.” This value is mainly driven by the expensive existing infrastructure, which will soon be lost without further development in the North Slope. The paper can be found at the following link.
EPRINC Welcomes Ash Shastri as a Distinguished Fellow
EPRINC is pleased to announce that Ash Shastri has joined us as a Distinguished Fellow. Ash brings a wealth of experience on global natural gas markets and Indian energy policy. As EPRINC proceeds with the second year of our joint project with the Institute of Energy Economics Japan (IEEJ) on the Future of Asian LNG, Ash’s deep understanding of the intersection of energy policy and natural gas markets will be an invaluable contribution to this effort. Ash is now working on an assessment for EPRINC on the primary forces likely to shape natural gas demand in India. We expect to publish the report in March 2018.
Lucian Pugliaresi Presents at the London Campus of ESCP
On January 29, 2018 Lucian Pugliaresi gave a presentation at the Research Center for Energy Management at the London Campus of ESCP, Europe’s oldest business school. The title of the talk was The American Oil and Gas Renaissance — Reshaping World LNG Markets. The power point presentation that accompanied the talk can be found here.
EPRINC’s Lucian Pugliaresi Presents in Frankfurt
In December, EPRINC chaired the US Energy Stream’s “5th Frankfurt Gas Forum 2017” in the Schlosshotel Kronberg in Frankfurt, Germany. At the Forum, Lucian Pugliaresi made a presentation on the growing importance of the North American Petroleum Renaissance in shaping world LNG markets. A copy of that presentation can be found here.
EPRINC’s president Lucian Pugliaresi, along with IEEJ Chairman and CEO Masakazu Toyoda, summarized the main findings of the Joint EPRINC IEEJ study at the 2017 LNG Producer-Consumer Conference. A brief video of Lucian’s presentation can be found here.
Anthony Livanios, CEO of US Energy Stream, has joined EPRINC as a distinguished fellow. He brings over twenty-five years of experience in working alongside, oil majors, oil independents, and national oil companies, on intergovernmental agreements, pipeline negotiations, LNG projects, geopolitical risk assessments, and market intelligence. We look forward to his good counsel and broad experience. A full biography of Anthony can be found here.