August
2016
Hello
-
Please enjoy this edition of
the Prospect Resources
newsletter
Did
You Know - How is
Natural Gas Extracted
from Shale?
Conventional
natural gas is found in
fields or deposits
relatively close to the
earth's surface. Shale
gas refers to natural gas
that is trapped within shale
formations much deeper,
approximately one mile below
the surface. Shale refers to
the fine-grained sedimentary
rock layer that can be rich
in petroleum and natural
gas. The US has abundant
shale gas, estimated to be
enough to cover consumption
for multiple decades to
come.
Shale
gas is extracted by a method
knows as "horizontal
fracturing" known more
commonly as "fracking".
There is considerable debate
over the merits and
environmental impact of
fracking.
With some variation,
fracking breaks down into
four rough process steps:
- Explorers dig down
into the shale deposits,
then direct the drill head
to move sideways,
essentially creating a
horizontal well. The well
is fortified with
concrete.
- Charge blasts,
typically shaped one cm in
diameter are set off along
the well walls. Fissures
begin to develop
around the well.
- Water and sand are
pumped in at high pressure
to open the fissures and
free up the gas particles.
- The gas flows back
through the well up to the
surface where it is
collected.
There
are many video resources
that illustrate shale gas
extraction. Some are
available here.
Energy
Emergency Response
Energy systems have become
more integrated and various
terror and cyber threats
continue to evolve.
Consequently, the need for a
comprehensive national
energy emergency response
policy and action plan is now
much more acute.
US Energy Secretary
Ernest Moniz has therefore
called for an increase in
investment for such a
response.
The Department of Energy (DOE)
recently announced up to $34
million in funding of twelve
projects covering different
energy sectors across nine
states. The funding
is subject to
appropriations and focuses
on protection of
America’s critical energy
infrastructure.
Increased environmental events
over the past few years,
including the
recent flooding in
Louisiana also underscore the
necessity of readiness for
energy emergency response.
For more details, click here.
MISO
Changing its Capacity
Market Structure
MISO, Midcontinent
Independent System Operator,
Inc., is the organization that
ensures reliable supply of
electricity throughout parts
of the Midwest, North and
South of the USA, as well as
one province in Canada (see
regional graphic below).
Generation plants are closing
in parts of the region in
record numbers due to
environmental regulation and
copious supply of natural gas.
As a result, MISO has
needed to restructure the way
capacity is guaranteed. The
plan, to be submitted to
regulators later this year,
will set prices for capacity
three years in advance rather
than just two months, and will
give incentives for generators
to create excess supply.
For more details, click here.
 
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