Projected Alaska North Slope oil production at risk beyond 2025 if oil prices drop sharply

Oil production on Alaska's North Slope, which has been declining since 1988 when average annual production peaked at 2.0 million barrels per day, is transported to market through the TransAlaska Pipeline System (TAPS). Because TAPS needs to maintain throughput above a minimum threshold level to remain operational, its projected lifetime depends on continued investment in North Slope oil production that itself depends on future oil prices. In the Annual Energy Outlook 2012 low oil price case, North Slope production would cease and TAPS would be decommissioned, which could occur as early as 2026.

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EIA survey shows Gulf Coast plants recovering from hurricane outages

In response to Hurricane Isaac, EIA invoked its emergency-activation survey Form EIA-757B to collect daily data on the status of natural gas processing plant operations. The survey, completed Friday, September 7, showed that Hurricane Isaac caused considerable disruption to processing infrastructure, although it had a negligible effect on natural gas prices because of ample onshore production and surplus storage.

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Working natural gas storage capacity grows 3% year-over-year

EIA estimates that the demonstrated peak working gas capacity for underground storage in the lower 48 states rose 3%, or 136 billion cubic feet (Bcf), to 4,239 Bcf in 2012 compared with 2011. EIA's report compares data from April to April; since April 2012, EIA analysts said 7.5 Bcf has been added to working gas storage capacity cited in the report, and they estimated that another 32 Bcf could potentially be added by year-end.

Demonstrated peak capacity is the aggregate peaks for a rolling five-year period of what storage operators actually put in the ground. It differs from design, or engineered, capacity (a larger volume), which is what the nation's storage facilities could physically hold. The demonstrated peak volume is what typically is considered a proxy for full storage.

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Pad drilling and rig mobility lead to more efficient drilling

Developments in drilling methods and technology are leading to efficiency gains for oil and natural gas producers. For example, "pad" drilling techniques allow rig operators to drill groups of wells more efficiently, because improved rig mobility reduces the time it takes to move from one well location to the next, while reducing the overall surface footprint. A drilling pad is a location which houses the wellheads for a number of horizontally drilled wells. The benefit of a drilling pad is that operators can drill multiple wells in a shorter time than they might with just one well per site.

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Energy-related carbon dioxide emissions down in 2011

Annual energy-related carbon dioxide (CO₂) emissions fell 2.4% in 2011 compared to the level in 2010. Several factors combined to produce this drop, including slower economic growth, weather, and changes in the prices of fuels, which played out differently in major economic sectors. Energy-related carbon dioxide emissions have declined in the United States in four out of the last six years.

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Natural gas demand at power plants was high in summer 2012

Natural gas use for power generation rose this summer because of hot-weather-driven electricity demand for air conditioning coupled with low natural gas prices. According to Bentek Energy, estimated daily natural gas use to produce electric power (also called power burn) averaged 26.3 billion cubic feet per day (Bcf/d) so far in 2012 (Jan 1 - Aug 15), up 24% compared to the same period for 2011. Bentek Energy, which has been estimating power burn since January 2005, said that 17 of the 25 highest days of power burn since 2005 occurred this summer between June 28 and August 9.

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NRG-GenOn acquisition plan would create the largest independent power producer

In late July 2012, the electric power company NRG announced plans to acquire GenOn, another independent power producer with assets in some shared markets, which would create a new company with 47 gigawatts of capacity in 21 states. The combined company would be the largest independent power producer in the United States, although the acquisition is still pending approval.

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Strait of Hormuz is chokepoint for 20% of world’s oil

International crude oil and liquefied fuels movements depend on reliable transport through key chokepoints. In 2011, total world crude oil and liquefied fuels consumption amounted to approximately 88 million barrels per day (bbl/d), and more than one-half was moved by tankers on fixed maritime routes. Chokepoints are narrow channels along widely used global sea routes, some so narrow that restrictions are placed on the size of the vessel that can navigate through them. The map shows chokepoints that are critical areas for global energy security because of the high volume of oil that moves through waterways.

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Electric grid operators monitoring drought conditions

Prolonged drought can affect power plants that rely on large volumes of fresh water for a variety of reasons. Though there have been few reported problems this year, lower water levels are a potential concern for grid operators and system planners during periods of extended drought.

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Drought increases price of corn, reduces profits to ethanol producers

Drought conditions in Midwestern states have reduced expectations for the amount of corn that may be harvested in 2012, and contributed to a 35% rise in the price of corn from June 18 to August 29. During the same time period, the spread between ethanol and corn prices (known as the 'crush spread') declined by $0.22 dollars per gallon.

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