Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Shale Gas Initiative Brings Morocco to Our Doorstep

Commodities / Natural Gas Dec 16, 2010 - 07:50 AM GMT

By: Money_Morning

Commodities

Best Financial Markets Analysis ArticleKent Moors writes: Last Friday morning, in my office in Pittsburgh, I met with a delegation from Morocco. The five officials were from Office National des Hydrocarbures et des Mines (ONHYM), the national agency overseeing oil, gas, and mining. They're here in the United States under the provisions of a Department of State (DOS) initiative on the major new energy source - shale gas.


And they gathered in my conference room in Pittsburgh to discuss how to best manage this significant new source of fuel.

A Game Changer
The DOS project is the Global Shale Gas Initiative (GSGI), launched in April to help make the United States' extensive experience in shale production available to countries around the world. The emphasis so far has been on the shale gas side - although North Africa in general, and Morocco in particular, may also have significant deposits of oil shale.

GSGI recognizes two very important developments.

First, shale is going to change the energy sourcing mix significantly. (As game-changers go, this one is huge). Second, it may just be the most significant opportunity for the export of American hydrocarbon technology and know-how to come along in generations.

Both of these developments are going to provide major advantages for the rest of the world - and major profits for us.

Moving forward, new oil and gas shale production will be providing considerable options for plays in exploration and production (E&P) companies, as well as in technical providers.

As subscribers to my Oil & Energy Investor advisory service very well know, I have written extensively on the shale gas moves in both the United States and Canada.

Yet this is hardly a North America-only play.

Shale gas is already under development in Western Europe, and plans are advancing quickly for major projects in China. However, the geology tells us that the Middle East and North Africa (MENA) region may well hold more shale than any other area on Earth.

And that's what brought this Moroccan delegation to Pittsburgh to see me.

Three Keys to Shale Gas
There is no question North Africa is excited about its shale prospects. Yet several of the countries have had difficulty identifying projects.

That has led the Tunisian oil and gas authority - the Entreprise Tunisienne d'Activités Pétrolières (ETAP) - to organize a workshop devoted to unconventional gas early next year.

Only a few potential deposits of shale gas have been identified thus far in Tunisia. But on the other hand, the country has a number of tight gas reservoirs that are hard to exploit because they lack natural links leading to drilled wells. The reserves must be artificially stimulated in order for the gas to be extracted.

Tight gas - like shale gas - requires hydrofracking and horizontal drilling. Deposits have been identified in Tunisia on blocks being developed by Italian major Eni SpA (NYSE ADR: E), Austrian state company OMV AG (OTC ADR: OMVKY), Pioneer Natural Resources (NYSE: PXD), and several smaller private companies.

ETAP would like to hammer out a contractual framework to organize exploration for unconventional gas. (That's the same reason the ONHYM delegation came to talk to me.) Sonatrach, the Algerian state company, is probably furthest along in the region - having already spudded test wells and identified shale gas reserves at the Belkacem Boumediene deposits.

But everybody in the region needs three things: 1) a plan; 2) access to technology; and 3) help in developing what are likely to be very large blocks.

That is where the GSGI project comes in.

Morocco Needs U.S. Help
Morocco has known about its potential shale boon for several years. ONHYM has been trying to make the most out of three shale oil deposits located near Tangiers, Timahdit, and Tarfaya.

The junior San Leon Energy PLC (OTC: SLGYF), owned by Irish businessman Oisin Fanning, holds rights on Tarfaya, while Brazilian major Petrobras Energia Participaciones SA (NYSE ADR: PZE) is exploring the Timahdit deposit. But no significant work has yet been carried out on the two permits (although San Leon is moving ahead with an oil shale test plant that should be operational next year).

Despite the lack of early success, there are good reasons why these companies are continuing the effort. The two deposits are potentially huge - with Timahdit believed to hold some 15 billion barrels and Tarfaya almost 22 billion barrels.

GSGI also has come along at a good time for the Moroccan government.

You see, the government is showing some impatience in moving forward with all of this. That has led to movement with unusual partners.

In late May, Energy Minister Amina Benkhadra signed a memorandum of understanding with the Estonian state-owned company Eesti Energia (also called Enefit) to exploit Morocco's own shale oil potential. Enefit at one time was the world's largest producer of oil shale, benefiting from several deposits in Estonia. It also has developed a technology to produce electricity from oil shale.

Yet Enefit is not large enough to make the difference Morocco needs.

So ONHYM has come to the United States in search of assistance and a better fit in joint venture partners. The DOS is now hard at work facilitating that attempt, meaning it should hold significant promise for both Moroccan and U.S. companies.

I have agreed to provide help to ONHYM as they design their plan and regulations. That means when developments really start moving, I'll be in the perfect position to fill you in.

[Editor's Note: Dr. Kent Moors, a regular contributor to Money Morning, is the editor of "The Oil & Energy Investor," a newsletter for individual investors. In a career that spans 31 years, Dr. Moors has been consulting the energy industry's biggest players, including six of the world's Top 10 oil companies and the leading natural gas producers throughout Russia, the Caspian Basin, the Persian Gulf and North Africa.

As the preceding interview so clearly illustrates, Dr. Moors' experiences - as well as the unrivaled industry access, contacts and insights he possesses - are the backbone of the Energy Advantage, an energy-sector advisory service that enables investors to capitalize on his contacts and his global-energy-sector insights. For more information on that service, please click here.]

Source : http://moneymorning.com/2010/12/16/shale-gas-initiative-morocco/

Money Morning/The Money Map Report

©2010 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in