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Evaporative Ponds

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WHAT IF WE COULD STOP CARBON DIOXIDE EMISSIONS FROM POWER PLANTS?

In theory, carbon capture is simple. Carbon dioxide produced when fossil fuels are burned to produce electricity is captured and then stored deep underground instead of being released into the atmosphere, where they become heat-trapping greenhouse gases. Because large amounts of energy are required to concentrate carbon dioxide molecules together so they can be caught (imagine how much easier it is to grab a handful of feathers when they are in a pillow case versus floating in the air), current carbon-capture technology is expensive. It’s just one of several technical and economic hurdles facing large scale use of carbon capture.

The fuel cell could be a fundamental shift in carbon capture because it can trap the gas while also generating electricity. This is important in power generation, where every percentage increase in efficiency matters.

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Why American oil can keep booming despite crazy swings

A few words from Saudi Arabia about OPEC and Russia pumping more sent crude crashing 8%in the span of just a few days. The dramatic sell-off wiped out a chunk of the recent spike above $70 a barrel that was driven by concerns about President Trump’s sanctions on Iran.

 Yet the crazy price moves are unlikely to derail the years-long recovery for the American oil industry from the 2014-2016 crash, which wiped out hundreds of thousands of jobs and sparked dozens of bankruptcies.

 

Enormous improvements in shale drilling technology have made oil companies more resilient than the last time they faced major volatility. US oil production is soaring and on track to shatter all-time records.

Equally important: The boom-to-bust oil industry is working hard not to repeat mistakes of the recent past. Companies have slashed costs, cleaned up their balance sheets and adopted a more disciplined approach aimed at avoiding expensive projects that can lead to financial trouble.

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Oil prices have surged above $70—here are 4 key reasons behind the rally

In recent months, oil prices have risen to levels not seen in 3 ½ years, reflecting a steady, albeit volatile, ascent to a fresh peak, after a global glut of crude sent energy markets into a tailspin in 2014. The recent rally comes amid the possible reinstatement of sanctions on Iran; however, a number of factors have fueled U.S. benchmark oil’s march to a perch above $70 a barrel.

The Organization of the Petroleum Exporting Countries’ efforts since the start of last year to curb global production have had the biggest influence on crude values, along with growing demand for oil and Venezuela’s output woes.

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Oil Holds Near $68 as Rising U.S. Drilling Counters OPEC Curbs

Oil held near $68 a barrel as increasing drilling in the U.S. countered price gains driven by OPEC’s plans to continue tightening crude inventories.

Futures in New York dropped as much as 0.8 percent after data showed American drillers added five working oil rigs last week, stoking fears over surging U.S. output. The May oil contract gained 1.5 percent last week before expiring Friday as OPEC producers said supply curbs should continue in order to revive investments in oil and gas production.

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Chesapeake Declares Wyoming Oil Economical

This piece follows up on one I wrote back in early February commenting on Chesapeake Energy Corporation’s (NYSE:CHK) Powder River Basin ambitions. The main idea is that by restarting drilling activity in the area, Chesapeake Energy Corporation may uncover its next billion dollar divestment opportunity, and recent operational updates paint a favorable picture (with caveats).

Only Chesapeake

Leave it to Chesapeake to bring one well online in a play and declare it insanely economical right away. Management’s latest forecast for the Turner play in Wyoming’s Powder River Basin is that when realizing $35 per barrel of oil (this is a crude heavy play), those wells break even on an incremental basis.

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Mysterious Outage In Libya Could Drive Oil Prices Higher

It’s been a rollercoaster ride for Libya’s oil sector the last few months. With production from this important OPEC player swinging wildly with unstable politics in the country.

And news this week suggests things just got worse for Libya’s oil industry — in a major way.

Unnamed sources in the country told Bloomberg Wednesday that Libya’s largest oil field, Sharara, has been suddenly shut in. With the pipeline carrying crude from this massive operation having been completely idled.

As a result, sources said Libya’s overall oil production has now fallen to 560,000 barrels per day. Coming just days after Libya’s National Oil Corp. had publicly pegged the country’s production at 700,000 b/d.

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Gas Pioneer Chesapeake Embarks on Oil Quest

Chesapeake Energy Corp., the No. 2 U.S. natural gas producer, thinks it has a one-word answer to its debt issues: Oil.

Chief Executive Officer Doug Lawler is focusing 60 percent of the Oklahoma City-based driller’s 2017 budget on crude oil projects, mostly in South Texas, Oklahoma and Wyoming shale fields. The company plans about 320 new crude wells this year, compared with 90 for gas, Lawler said on Feb. 14. The hoped-for result: Oil output, set to grow 10 percent in 2017, could grow by double that rate next year.

The former deep-water exploration chief for Anadarko Petroleum Corp. has been striving to bring the gas producer back on its feet after inheriting suffocating debt, collapsing cash flow and wilting reserves 3 1/2 years ago. Lawler’s emphasis on crude derives from the fact that oil fetches three or four times more money on an energy-equivalent basis.

“He likes to set big goals and this is the biggest one of all,” said James Sullivan, senior analyst at Alembic Global Advisors in New York, one of six analysts following the company with the equivalent of buy ratings on Chesapeake’s stock.

 

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OPEC reports big Saudi oil cut, boosting compliance with deal

Top OPEC oil producer Saudi Arabia made a large cut in its crude output in January to support prices and lessen a glut, helping boost compliance with the group’s supply-reduction deal to a record high of more than 90 percent.

The Organization of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years. Russia and 10 other non-OPEC producers agreed to cut half as much.

Supply from the 11 OPEC members with production targets under the deal fell to 29.888 million bpd last month, according to figures from secondary sources that OPEC uses to monitor its output. OPEC published the data in its monthly report on Monday.

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Trump tax reform could ‘transform’ global oil market, says Goldman Sachs

The Republican Party’s proposed shift to border-adjusted corporate tax (BTA) could have a significant impact on the global oil market, pushing US crude prices higher and triggering large-scale domestic production, said analysts at Goldman Sachs.

The border tax intends to boost US manufacturing by taxing imports while exempting US business export revenues from corporate taxation.

“If implemented, the impacts on the oil market would be significant,” Goldman said.

The switch to BTA would lift US crude futures 25 percent over global prices and provide an incentive for local producers to boost output.

“We expect WTI [US crude benchmark – Ed.] could move to a $10 per barrel premium to Brent from a $3 discount – a $13 (+25 percent) relative move immediately,” Goldman said.

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