Offshore Oil Spills Versus Onshore Groundwater Contamination
May 28 2010 - 8:25AM
Marketwired
www.rothmanresearch.com - The world economies are highly dependent
on the Oil & Gas industry to provide energy. On a statistic
level, global oil consumption is currently anticipated to be
approximately 1000 barrels per second or 86.4 million barrels
daily, and projections for 2030 puts oil demand somewhere around
118 million per day. These figures highlight the urgent need for
countries to secure oil supply so as to maintain economic growth or
simply to continue existing economically. The number of drilling
activities worldwide is on the rise to cater for the overwhelming
demand from existing economic powers and emerging economies. With
this surge in drilling and exploration activities, environmental
concerns are also at an all-time high. The recent oil spill in the
Gulf of Mexico caused by an oil well blowout in late April at
BP-owned Deepwater Horizon offshore drilling rig has opened the
debate on oil exploration and drilling activities' impact on the
environment and the economy.
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The Deepwater Horizon incident has somehow questioned the
present safety systems that are in place, and there is a growing
expectation that such offshore activities will become financially
costly and more challenging as industry watchdogs scrutinize the
possibility of tightening safety measures. The immediate
consequences following the spill is that the U.S. has stopped
issuing new offshore drilling leases pending positive insights that
offshore drilling can be made safer. This situation has also
reopened the viability of pursuing onshore shale gas exploration
and production. Even if the Obama administration and the Congress
are still lingering on the advantages of shale gas, many industry
experts believe that the future of the U.S. economy and environment
policies could use natural gas as a strong platform to fix urgent
issues. In recent years, many exploration and drilling companies
have started to embrace the potential in the shale gas industry.
One of the biggest highlights within the shale gas industry at the
end of 2009 was the $41 billion deal from ExxonMobil to purchase
XTO Energy Inc. (NYSE: XTO).
*Direct & free downloadable research report on XTO Energy Inc. is available by signing up now at
http://www.rothmanresearch.com/article/xto/23550/May-28-2010.html
However, shale gas production also comes with its own
controversy concerning the horizontal drilling and 'fracking'
process (hydraulic fracturing) to retrieve gas. The debate this
time is that the onshore extraction procedures to retrieve gas from
shale rock could have serious contamination issues on underground
water sources. Whilst still very difficult to validate, benzene
contamination to aquifers or other water sources close to shale
mining operations is still aggressively disputed by industry
players.
XTO closed up by $1.52 at $43.39 yesterday and American Oil & Gas Inc. (NYSE Amex: AEZ) also
traded upwards finishing at $6.51.
Oil Prices is currently at $75.12 per barrel and natural gas is
at $4.33 per million Btu.
*Complimentary downloadable research on American Oil & Gas Inc. is accessible upon
registration at
http://www.rothmanresearch.com/article/aez/23551/May-28-2010.html
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