Oil and gas exploration - the cost

In summary, the demand for natural gas and the resulting land-use pressures are causing conflict between the Old West and the New. The expansion of natural gas production in areas like Pinedale, Wyoming has raised concerns about air and water pollution and the lack of comprehensive data on the long-term impacts. The BLM has been tasked with approving permits without fully considering environmental and social impacts, and the natural gas industry must be held accountable for any damage caused. As scientists, we must continue researching and advocating for sustainable and responsible energy practices.
  • #1
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http://www7.nationalgeographic.com/ngm/0507/feature5/index.html

Demand for natural gas and the resulting land-use pressures are pitting America's Old West against the New.

There are a number of places in the Rocky Mountains today where you will find the Old West grinding against the New, and Pinedale, Wyoming, is surely one of them. A quiet, Main Street sort of town (population 1,500) tucked behind a mesa in the sagebrush valley of the upper Green River, Pinedale is known as the home of the Museum of the Mountain Man. And this stretch of the Green is famous as the site of the riotous rendezvous that drew those buckskinned adventurers here in the waning summers of the fur trade. From hills round-about you can see in the east the snow-dusted peaks of the Wind River Range, and the faraway Wyoming Range to westward.

. . . .

The U.S. Bureau of Land Management controls the rights to natural gas around Trappers Point, and it is uncertain when, or whether, the agency will lease it for energy development. But even if the BLM refrains from leasing the point, the migrating ungulates—sometimes numbering in the thousands—face a daunting challenge as they press farther south into their winter range. It happens that the Pinedale mesa not only sits athwart the migration corridor but also overlies the Pinedale anticline, a sandstone formation containing trillions of cubic feet of natural gas. Seven hundred wells have already been approved on the mesa, and 230 are now in production. The gas fields are laced with about a hundred miles (40 hectares) of access roads and pipelines. And as we fly south beyond the mesa, we can see the more tightly spaced well pads of the Jonah Field, with 500 more wells in place and the BLM proposing to increase that number by 3,100.

http://www7.nationalgeographic.com/ngm/0507/sights_n_sounds/index.html

http://www7.nationalgeographic.com/ngm/0507/feature5/learn.html

According to the article, the US produced 18.7 trillion cu ft of natural gas during 2004, but consumed 22.2 trillion cu ft during the same period.

Average wellhead price of natural gas was $1.96/ 1000 cu ft in 1998, but in 2004 the price was $5.49, and that was before Katrina.

Air and water pollution is a major problem for those living near a gas field. One family's well has been polluted by nearby drilling activities in which the aquifer filling the well was drained and contaminated. The so-called "nuisance fees" do not cover all the costs to homeowners whose properties are damaged and consequently devalued.

The BLM has been tasked with approving permits regardless of the environmental degradation.
 
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  • #2


Thank you for bringing up the important issue of natural gas production and its impact on the environment and local communities. I have been closely following the developments in the natural gas industry and I share your concerns about the potential consequences of increased production in areas like Pinedale, Wyoming.

One of the main challenges we face in balancing the demand for natural gas with its potential impacts is the lack of comprehensive data and understanding of the long-term effects of natural gas production on the environment and human health. While natural gas is often touted as a cleaner alternative to other fossil fuels, the extraction process can have serious consequences, including air and water pollution, as you mentioned.

Furthermore, the rapid expansion of natural gas production in areas like Pinedale has put pressure on the Bureau of Land Management (BLM) to approve permits without fully considering the potential impacts on the environment and local communities. As scientists, we must advocate for more thorough and transparent assessment of the environmental and social impacts of natural gas production before permits are approved.

In addition, it is essential that we continue to research and develop cleaner and more sustainable methods of extracting and utilizing natural gas. This includes investing in technologies that minimize air and water pollution, as well as finding ways to reduce the overall demand for natural gas through energy efficiency and renewable energy sources.

I also believe that it is important for the natural gas industry to be held accountable for any environmental damage caused by their operations. As you mentioned, the "nuisance fees" currently in place are not enough to cover the full costs of pollution and damage to local communities. The industry must take responsibility for their actions and work towards mitigating and preventing any negative impacts.

In conclusion, I urge all stakeholders to work together towards a more sustainable approach to natural gas production that takes into account the protection of the environment and the well-being of local communities. As scientists, it is our responsibility to continue researching and advocating for responsible and sustainable energy practices. Thank you for bringing attention to this important issue.
 
  • #3
This has led to a clash between the traditional way of life in the Old West and the new demand for natural gas. The cost of this exploration and production is not only financial, but also has significant impacts on the environment and the communities living in these areas. The article highlights the issue of land-use pressures and the impact on wildlife, such as the migrating ungulates, as well as the air and water pollution caused by drilling activities. It also brings attention to the fact that the cost of natural gas has risen significantly in recent years, which may be due to the increased demand and production costs.

Furthermore, the article mentions the negative effects on homeowners living near gas fields, who may suffer from contaminated water and devalued properties. This raises questions about the responsibility of oil and gas companies to mitigate these impacts and compensate those affected.

In addition, the BLM's role in approving permits for natural gas exploration and production raises concerns about the prioritization of economic gain over environmental protection. This clash between the Old West and the New highlights the need for a balance between energy development and conservation efforts.

Overall, the cost of oil and gas exploration goes beyond financial figures and also includes the cost to the environment and communities. It is important to carefully consider and manage these costs in order to ensure sustainable and responsible development.
 

1. How much does it cost to explore for oil and gas?

The cost of oil and gas exploration can vary greatly depending on factors such as location, depth of drilling, and type of equipment used. On average, it can cost anywhere from $20 million to $100 million to explore for oil and gas.

2. What are the main expenses involved in oil and gas exploration?

The main expenses in oil and gas exploration include leasing and acquiring land, drilling and completion costs, and operational costs such as labor and equipment. Other expenses may include seismic surveys, environmental studies, and permitting fees.

3. How do companies determine the potential profitability of an oil and gas exploration project?

Companies use a variety of methods to determine the potential profitability of an oil and gas exploration project. This may include analyzing geological data, conducting seismic surveys, and estimating the costs of drilling and production. Companies also consider market conditions and potential demand for the oil and gas being explored.

4. What are the risks associated with oil and gas exploration?

Some of the risks associated with oil and gas exploration include the uncertainty of finding commercially viable reserves, fluctuations in oil and gas prices, and potential environmental hazards. There is also the risk of technical failures or accidents during the exploration process.

5. How does the cost of oil and gas exploration compare to the potential profits?

The cost of oil and gas exploration can be significant, but the potential profits can also be substantial if a commercially viable reserve is found. It is important for companies to carefully assess the risks and potential profits before deciding to invest in an exploration project.

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