Will Alberta's Oil Sands Go Nuclear?

While the idea has been discussed and debated since the oil sands has come into existance, it looks as though Alberta's oil sands could finally be turning to, of all things, nuclear power to satisfy the outrageously large demand for electricity. The ambitious project, spearheaded by the local subsidiary of a mega-conglomerate, is focused on loosening up large quantities of bitumen encased in limestone. As usual, both investors and environmental activists looking for up-to-the-second facts and opinion are turning to the blogosphere.

NEI Nuclear, a well-respected blog that offers news and commentary on the commercial nuclear energy industry, observes that while the idea of nuclear power in the oil sands has been considered before, "[it] looks like this is an idea with some staying power." NEI Nuclear has been chronicalling the goings-on in the oil sands and has seen its fair share of smoke and mirrors in regards to nuclear energy powering oil sands projects they seem confident that the big name involved in the concept indicates that action could be close at hand. The difference? "This time, the name involved is Royal Dutch Shell."

NEI Nuclear also quotes an older post of theres from December in which they quote Canada's Natural Resource Minister Gary Lunn saying that he's "very keen to see a new partnership between Crown corporation Atomic Energy of Canada Limited (AECL) and a private Alberta company to build a Candu-reactor to power oilsands extraction."

Traditionally, oil sands projects have been fuelled by large quantities of natural gas. However, the amount of electricity required for Royal Dutch Shells' proposed project involves so much power, that the profit margin would be negated under current circumstances. Current estimates are that 60% of operating costs associated with an oil sands facility go directly to costs associated with natural gas.

Green Car Congress , well-respected for their opinions on green issues, has taken their research a few steps further, reporting that "Shell, through Calgary-based subsidiary Sure Northern Energy Ltd., paid the Alberta government C$571-million to acquire exploration rights 100 kilometers west of Fort McMurray."

The Energy Blog has a slightly different take on the matter in their latest blog post, quoting an item from World Nuclear News. "Energy Alberta is searching for communities to host the province's largest power station to provide emission-free power for oil sands projects. The company plans to build a C$6.2 billion ($5.6 billion) 2200 MWe twin Candu reactor plant in northern Alberta, and is looking at the town of Whitecourt among others. "

It seems like everybody plans to make cash from chaos in the oil sands and you can bet that investors and environmentalists will be paying attention to the goings-on in Northern Alberta for some time to come. As always, the best way to get the widest range of informed opinion is to keep an eye on the blogosphere.
About the Author

InvesLogic is something new. It's the first company to organize expert financial and business blogs worth reading into a new form of market intelligence. Please visit Inveslogic.com

World oil and gas

Oil and gas are some of the most important sources of energy on the planet and their availability is an immense factor as far as economic conditions are concerned. Oil represents about 40% of the globe's entire primary energy demand, while natural gas is beginning to have more and more uses, although its utilization has not met quite optimal considerations in the past

The general estimation is that the recoverable oil underneath the earth surface is of 2,330 billion barrels. An oil and gas study (Peack Oil by Colin Campbel, 1999) shows that out of the amount mentioned before, up to 90% labeled as discovered and approximately 50% produced. The same study shows that, today, the world consume reaches 4 barrels for each new one discovered.

This means that there is a production of about 22 barrels per year, while only six enter the area of those discovered. It is thus obvious that there is quite a big gap between consumption and discovery and that this gap is continuously widening as oil turns from a surplus to a deficit status. A later study mentions that if the report between productions and consuming remains the same, there might be resources for only another one hundred years left. The major oil and gas reserve locates in the Middle East and it represents about 65%. It is thus apparent that the distribution is not quite equitable and that consumption and production have a large gap separating them. Research has shown that North America, Far East, Oceania and Western Europe are the biggest consumers of oil, using about 77% of which they only produce 44.4% representing only 12.5% of the world's reserves. On the other hand, the Middle East generates 30% of the world's reserves and consumes only 6%.

There are a number of organizations formed in order to protect the exploitation of oil and natural gas. These organizations have as one of their main prerogatives to keep the influence of gas and oil under control as far as economical conditions are concerned.

Natural gas started to become more important as soon as the concerns about the diminishing amount of energy reserves have increased. These concerns as well as the ones regarding environmental hazards are putting more and more pressure on industries required to use a higher percentage of natural gas instead of using other sources of energy.

In order to make this official and to guarantee the compliance with its requirements, the legislation introduced developed at an international level. These new laws should control the operators. In this manner, many countries in the world are trying to use more natural gas, especially in the domestic environment. Most countries replace the use of oil with the one of gas in order to increase their exports or to reduce the amount of oil imported. The infrastructure for natural gas has experienced great development in most developed countries and gas has become a major focus for exploration. Most countries are trying to use as much natural gas as they can produce, however the countries in Western Europe are some of the largest consumers and depend on other countries to supply their need. Thus, many Eastern European countries very much rely on Russia, for example, to supply for their need of natural gas.

About the Author

Oil and gas form a mandatory component for the proper functioning of our society. The resources of natural gas can become quite problematic as the gap between production and consumption is getting wider every year.

Effect Of Current Oil Price to Global Oil Market

Current oil prices have increased almost 70% this year. There are a number of reasons for this increase, with three main reasons leading the list. First, there have been few new discoveries of oil in recent years. Second, there is a greater demand for oil especially from China, who is now the world's largest importer, second only to the United States of America. Third, there is uncertainty in many places around the globe over oil supplies because of war and terrorism. One example of this last point is the report on the arrest of more than 170 people suspected of plotting to attack of Saudi Arabian oil fields, dispute over Iran's nuclear program, and militant attacks and domestic disputes on Nigeria and Iraq.

These is a school of thought that teaches that oil price hikes are only the beginning of a long term trend. Current oil and gas prices are continuing to increase on a consistent basis, even in times of the year where they usually remain level or even drop a small about. This pattern has lead to a concern that an energy crisis is starting to emerge and the United States and every country in the world is about to experience a difficult period that will result in some hard changes in the way people live and work. The impact of higher oil prices on the economy and on investors is more complex that it would first appear. That is why taking a full global and historical perspective on the price of oil is important.

By looking at the Global Oil database, it can provide some analysis to help investors. Firstly, the increases in oil prices will have an impact on some economic sectors like the airline and auto industries. Secondly, high oil prices would certainly affect inflation. Recently, current oil price has already contributed to the moderate rise in U.S. prices. For Asian countries that experience higher oil demand in recent years, high oil prices would certainly be more unwelcome. China has already become a net oil importer. Net imports of oil would exceed 100 million tons this year, according to estimates. High oil prices would certainly eat into her trade surplus and hence trim economic growth. And lastly, as the demand for oil and human population increase, the world supply for oil will continueto decline. Thus, higher oil prices spur more exploration for oil, increase in the demand for oil substitutes like ethanol and biofuel, and encourage oil conservation.

About the Author

Mayoor Patel is the writer for the website http://oil-prices.oil-universe.com. Please visit for information on all things concerned with Current Oil Price

Gas Transmission - Behind the Scenes activity

Though it takes just a flick of a switch for the consumer to get natural gas, there is a huge amount of behind-the-scenes activity that is involved from the time natural gas is acquired from underground reserves, then processed and transported to the end user. The whole process involved in exploring oil and gas deposits is complex and full of risks and uncertainty. The trial-and-error element is huge considering oil and natural gas is only found thousands of feet underground. However recent technological advances have increased the success rate of locating and exploring natural gas reservoirs and enhanced the efficiency of gas transmission with reduced costs.

Extraction, production and processing of natural gas

Teams of geophysicists and exploration geologists are committed to locating potential underground oil and gas deposits. Then comes the daunting task of digging deep into the crust of the earth to find natural gas deposits that may or may not really exist. A team of drilling experts carries out onshore as well as offshore drilling using state-of-the art technology and innovative equipment.

After drilling the well, the commercial viability of the well has to be established taking into consideration the quantity of natural gas present and the costs of extraction. Natural gas, as it is found underground exists in association with a variety of different gases and compounds as well as with water and oil. This gas needs to be processed so that what reaches end users is almost entirely methane. Gas natural processing is carried out near the well itself to meet the high purity specifications that are required for natural gas transmission through the natural gas pipelines.

Natural gas transmission

Natural gas transmission is done through an elaborate and highly complex network of pipelines, also known as 'highways' of gas and oil transmission. Natural gas travels great distances through the pipelines at high pressure.

Gas transmission distribution is essentially carried out by three major kinds of pipelines:

* The gathering system, which comprise of low diameter, low pressure pipelines that are used in transporting raw natural gas from the source well to the processing plant. * The interstate pipelines, which are used for natural gas transmission across states clear across the country and intrastate pipelines, which are used for natural gas transmission within the state. The operational and technical details are the same for inter-state and intra-state pipelines. * The distribution system, which transports natural gas from gas storage facilities to end-users in homes and officers.

Gas Storage

Natural gas transmission as well as exploration and production are all closely linked to its storage. Gas processing as well its transportation, exploration and production are all lengthy processes and sometimes when the gas is ready to be used; it is not required right away. This ready-to-use gas is kept in gas storage facilities, which are large underground reservoirs, till it is needed. Natural gas storage is vital in order to maintain a reliable supply necessary to meet customer demands.

The three main kinds of underground storage include:

* Depleted gas reservoirs are most widely used because they already have existing wells, pipeline connections and gathering systems in place, which makes them easier to convert into storage facilities. * Natural aquifers are more suitable when there is a cap rock overlaying a water-bearing rock that has a sedimentary rock formation. The active water drive present in natural aquifers produces an increase in delivery rates. This kind of underground gas storage facility requires extra monitoring of injection and withdrawal performances as compared to depleted gas reservoirs. * Salt caverns are more expensive than the other two kinds of underground gas storage facilities. Their injection rating and withdrawal rate is very high because of the active gas capacity. The Gulf Coast states have the highest number of salt cavern underground storage facilities.

About the Author

Thomas H. Lindblom is a freelance journalism that is always lookig for iteresting topics to write about. "Gas Transmission - Behind the Scenes activity" helps us learn about the process of gas transmission, from the moment it is extracted, it's way through gas pipelines, until the moment it is distributed all over the world.

INVESTOR ALERT: OIL AND GAS INVESTMENT FRAUD

INVESTOR ALERT: OIL AND GAS INVESTMENT FRAUD BACKGROUND State securities regulators around the country warn that oil and gas investment scams are alive and well. High oil prices have created a heightened interest in investments in energy-related business ventures. Most oil and gas investment opportunities, while involving varying degrees of risks to the investor, are legitimate in their marketing and responsible in their operations. However, as in many other investment opportunities, it is not unusual for unscrupulous promoters to attempt to take advantage of investors by engaging in fraudulent practices. Although some of the con artists moved on to more lucrative venues since the oil boom ended in the mid-1980s, many continued to linger on in the oil field. Now with the constant fluctuation of oil prices, some of these people have made their way back to these kinds of scams. When there is a highly publicized economic circumstance, which creates an opportunity for money to be made legitimately, scamsters follow in the shadows to take advantage of the situation. WHAT ARE OIL AND GAS INVESTMENTS? Oil and gas investments take many forms, including limited partnership interests, ownership of fractional undivided interests in leases, and general partnerships. Tax consequences and investor liability vary according to the type of program. True general partnerships in which investors actively participate in the operations of the venture are not securities. A general partner, however, is personally liable for partnership debts. In a drilling limited partnership, an oil or gas company sells partnership units to investors and uses the money it raises to lease property and drill wells. In return for managing the project, the sponsor company usually takes an upfront fee that averages about 15-16% of one's investment (commonly referred to as tangible and intangible drilling costs) and also shares in a percentage of any revenue generated. In return, the promoter offers the investor the prospect of a substantial first year tax write-off and quarterly cash distributions from the sale of any oil and gas the partnership finds until the wells run dry. Drilling partnerships have always been a gamble, but recently, they have proven somewhat riskier than usual. This type of investment is very speculative, is a highly liquid investment and can have a long holding period.  FRAUDULENT SALES TECHNIQUES Fraudulent oil and gas deals are frequently structured with the limited partnership (or other legal entity) in one state, the operation and physical presence of the field in a second state, and the offerings made to prospective investors in states other than the initial two states. Thus there is less chance of an investor dropping by a well site or a nonexistent company headquarters. Such a structure also makes it difficult for law enforcement officials and victims to identify and expose the fraud. BOILER ROOMS & INTERNET PITCHES In order to attract the interest of potential investors, unprincipled promoters frequently use the Internet and "boiler room" offices with banks of phones manned by salespeople with little or no background in energy exploration, but plenty of experience in high-pressure sales. Their techniques include repeated unsolicited phone calls to members of the public, hyping the profitability of the deal. Some swindlers use professionally designed brochures. Beware of unsolicited oil and gas promotions on the internet and through e-mail. State securities regulators caution potential investors to beware of the following claims in a typical high-pressure sales pitch, whether through unsolicited telephone calls or e-mail messages: - You will have an interest in a well that cannot miss; - The risks are minimal; - A geologist has given the salesperson a tip; - The promoter has "hit" on every well drilled so far; - There has been a tremendous "discovery" in an adjacent field; - A large, reputable oil company is operating or planning to operate in the area; - Only a few interests remain to be sold and you should immediately send in your money in order to assure the purchase of an interest; - This is a special private deal open only to a lucky chosen few investors. INVESTOR CHECKLIST: HOW TO AVOID BEING SWINDLED State securities regulators advise potential investors not to be afraid to ask the hard questionswhen solicited for oil and gas investment opportunities. Investors wanting to make oil and gas investments should consider oil exploration and producing companies which are well- established and listed on the New York Stock Exchange. You can minimize the risk of being swindled if you resist pressures to make hurried, uninformed investment decisions. There are several steps you should take before parting with your money. State securities regulators have developed a checklist of five key areas to examine before investing.  1. The Registration Requirements * Ask if the offering is filed with the office of the state securities commission in your state or the state in which the promoters are located. If so, contact that agency for any information it may be able to provide. If the promoter claims that the offering is exempt from registration requirements in the particular state in which the offers and sales are made, find out which of the exemptions is claimed and the terms of the exemption. * Contact the state securities agency to confirm that the offering is indeed exempt. If the promoter claims a security is not involved at all, find out why and contact the state securities agency and confirm whether it really is a security being offered. 2. The Salesperson * If it is a legitimate deal, the salesperson will not be reluctant to answer questions or provide written explanations to questions. Ask the name of the person offering you the security, where he is calling from and his background, particularly in other oil or gas ventures. Ask what commission and/or other compensation the salesperson will receive. * Contact your state securities agency to find out if the promoter or salesperson has been sanctioned for previous violations of securities laws. 3. The Company * Ask the names of the principals of the company or the general partners offering the security, their backgrounds and experience in the oil and gas industry, and how long they have been associated with the company. Find out the history of the company, its capitalization, assets and retained earnings. What contingent liabilities does it have from other ventures? Does it have sufficient funds to cover unexpected costs? Is the tax treatment of the investments, as claimed by the promoters, supported by the Internal Revenue Service? * Find out the company's or general partners' history in drilling operations. In particular, ask how long it has been in the oil and gas business, the number of wells drilled, the number of wells completed as producing wells, and whether the company retained its interests in the wells it drilled. Determine if conflicts of interest involving the promoter are disclosed. All the above information should be contained in a prospectus or "offering documents" that the promoter must furnish potential investors before they commit their funds. 4. The Investment * Make sure funds raised are kept in a separate escrow account until used and that they won't be commingled with other funds. Also, be certain the funds will not be used for purposes other than those specified. Ask how much money is to be raised and the cost per fractional interest. Ask how much of the money will pay for advertising, salaries, sales commissions and any estimated profit to the company. Ask what type of conveyance document will be provided after any investment is made. * Assuming the well is completed, ask what the completion costs will be for each investor, including additional commissions to be paid (the purpose and amount), and whether investors may be obligated to pay in more money in the

About the Author

Mr. Martin is the founder and chief operations officer of Acuity Investigations, LLC based in Dallas, Texas. Acuity offers investor protection services such as: fraud protection and investor recovery services. His company is the developer of the DEVIL DOG Database and LEVEL3 Investor Protection program. He may be reached at: bmartin@www.acuityinvestigations.net or toll free, 888.583.9233, ext 704

Oil and Natual Gas Production in the Illinois Basin

Since its incorporation in June of 2000, Western Pipeline Corporation has been involved in oil and gas exploration in 5 states including six multi-well projects in the Illinois basin.

The Illinois basin is an oval depression containing Cambrian through Permian sedimentary rocks. A basin in geologic terms is a large-scale structural formation of rock. They are geologic depressions, the opposite of domes.

Three to five hundred million years ago Illinois was a shallow tropical ocean located near the equator at that time. The ocean left huge thicknesses of sand sediment behind which became sandstone. It also left behind billions of seashells. These shells and fragments of shells made of calcium carbonate combined to form limestone. During the Paleozoic Era the rocks were periodically bent and folded. The earth's crust periodically sank, creating the broad, depression called the Illinois basin.

The Illinois basin began as a failed rift. A failed rift occurs when continental rifting (when the Earth's crust and outer layer are pulled apart) began, but then failed to continue. After the rifting episode, the basin began to form as a thick succession of sandstone and carbonate rocks deposited above the center of the rift.

Basins appear on maps as almost circular or elliptical, with concentric layers of strata. The layers dip toward the center. If you look at the strata of a basin the oldest rocks are on the outside and get younger as you go in towards the center. Structural basins like the Illinois Basin are sources of coal, petroleum, and groundwater. The oil producing area of Illinois is part of the Illinois Basin. The Illinois Basin covers southern Illinois, western Kentucky and western Indiana.

Oil and natural gas have been produced in the Illinois basin from Paleozoic rocks. Most of the basin's hydrocarbons have been produced from sandstones, carbonate rocks as well as Devonian, Silurian, and Ordovician rocks.

The first attempt at drilling oil wells in Illinois was near Champaign in 1853. These wells produced "swamp gas" or "drift gas" from glacial fill but no oil. Since 1853, about 155,000 oil, gas, and injection wells have been drilled in Illinois.The first oil wells were drilled in the early 1860's. Commercial oil production began in Illinois in 1905. Most oil produced in Illinois from 1894 through 1937 was produced in shallow areas of less than 1000 feet. In 1937 deeper zones were discovered from 2,500 to 3,500 feet. The deepest well ever drilled was over 13,000 feet deep. Peak oil production occurred in Illinois between 1955 and 1963 with an average yearly production of 80 million barrels. The current yearly production is approximately 10-12 million barrels.

About the Author

Bob Jent is the CEO of Western Pipeline Corporation. Western Pipeline Corp specializes in identifying, acquiring and developing existing, producing reserves on behalf of its individual clients.

Offshore Oil Drilling Labor

Natural oil and its by-products are perceived as valuable commodities across the world. Obtaining this high demand commodity from reservoirs where it has collected deep within the earth proves to be an inexact and demanding undertaking. Adding to the challenge of the oil drilling industry, no concrete methods have been discovered for accurately determining the location of oil deposits. The only way to know for certain if a location contains oil is to actually drill into the ground at the risk of a costly disappointment. What's more, offshore drilling facilities must reach into the depths of the earth underneath the floor of the ocean using specialized industrial equipment to extract oil. Nonetheless, successful offshore oil drilling operations are set up at the locations of producing reservoirs throughout the world.

Oil drilling operations originally took place only on land. Next shallow water drilling evolved, and eventually extensive equipment made offshore deep ocean drilling feasible. Since oil forms from the remains of ancient sea life under intense heat and pressure for millions of years, the ocean bottom is a desirable site for oil exploration. For marine oil and natural gas drilling, offshore oil platforms are set up in the ocean above the location that is to be drilled. Platforms can be anchored to the ocean floor, float on the surface or create an artificial island in the sea.

Laborers who work on offshore oil drilling rigs typically spend weeks at a time at sea living either on the platform or in a nearby anchored ship. Many oil platforms contain amenities similar to those in hotels such as a means of eating, places for sleeping and laundry facilities which allow workers to reside on the rig for extended periods of time. A schedule is typically arranged such that workers stay offshore and work with members of their team for a specified number of days, then return to shore for another specified number of days. For instance, a common schedule is for a worker to stay offshore for fourteen days, and then return home for fourteen to twenty one days at a time. Anyone considering employment on an offshore rig should assess his or her ability to meet the physical demands inherent to the job as well as whether a career with extended time away from home is a suitable lifestyle. Offshore oil jobs can facilitate lucrative careers for fitting individuals.

About the Author

About the Author: Bob Jent is the CEO of Western Pipeline Corporation. Western Pipeline Corp specializes in identifying, acquiring and developing existing, producing reserves on behalf of its individual clients.