Japan Disaster To Boost Shift To NatGas?

There are different 'degrees of disaster'. And while the Fukushima nuclear debacle may not be another Chernoble, it most certainly has reasonable people re-examining the wisdom of building more nuclear reactors. Whether you're 'for' or 'against' nuclear power, and whether you believe we can do it safely or not, there's still the question of, "Does it even make financial sense?"

Factoring in the initial costs of building a reactor, the inevitable cost overruns and add-ons, the costs of waging legal battles vs. the anti-nuke crowd, and the security & waste management involved, you wind up with numbers that are mind boggling. And now, after the Japanese incident, who knows what an insurance policy for a nuclear reactor will cost ... that is, if you can even get one.

At a time when nuclear power was seemingly getting a new lease on life, we have once again been reminded that we're no match for the awesome power of Mother Nature, be it earthquake, tsunami, or runaway nuclear reaction. Factor in human error and incompetence and it gets really dicey. Think it can't happen here? A while ago, it was discovered that one of our own nuclear reactors in California (earthquakes?) ran for 18 months with the facility unaware that the power had been shut off to the backup cooling system.

With the Middle East in turmoil, ever-more-costly oil supplies dwindling, nuclear shortcomings highlighted, and renewable energy sources decades away from reality, what are we left with? A huge supply of cheap natural gas right under our feet. And all we have to do is harvest it. What are we (our leaders) waiting for?

Range To Sell More Assets - Will Focus On Marcellus

Range Resources, the first company to seriously explore the Marcellus Shale, announced that it is going to be selling even more of it's assets to focus on it's investment in the Marcellus. Just this past February, Range agreed to sell off it's Texas holdings for $900 million. Range CEO John Pinkerton was quoted as saying, "We're a relatively small company and we've found probably the largest gas field in the US. We're going to need all the capital we can find."

Pinkerton said that Range can be profitable selling natural gas at $4 per thousand cu. ft. and will sell off it's lower-end assets as needed to fund it's Marcellus development plans. Range plans to spend $1.4 billion this year, $1.4 billion in 2012, and even more in 2013. I guess we know which state isn't going to benefit from those huge investments.

Chevron Ready To Gear Up

It's been reported that Chevron will drill up to 70 wells in the Marcellus this year. Chevron got into the game when it purchased Atlas Energy in November of 2010. They reportedly paid $9,000 per acre for the huge tracts of land involved. Atlas probably paid landowners anywhere from $100 to $1000 per acre. Someone made a lot of money on this deal.

Marcellus Drillers Saving / Recycling Water

Oil & Gas companies that perform hydraulic fracturing in the Marcellus Shale are typically recycling about two thirds of the water they use. These are the results of a study by Penn State hydrogeologist David Yoxtheimer. "The industry is striving to reuse as much flowback water as possible", Yoxtheimer said.

Many who are opposed to Marcellus development site extreme water demand as a problem. However, statistics clearly show that other industries comsume much more water.