Weekend Edition: Japan Extracts First Shale Oil

Japan Petroleum Exploration (JAPEX) announced last week that it retrieved oil from a layer of shale 1,800 meters below the Ayukawa oil and gas field located in Northern Japan.

ayukawa oil and gas field

That was not your typical horizontal well completed with multi-stage fracking. It was simply an acid treatment test by pumping hydrochloric acid through an existing well into a shale rock layer (Onnagawa shale formation).

What’s the size of the prize? 100 million barrels in shale oil reserves. That’s nearly 8% of Japan’s annual oil consumption.

But it’s too early to tell if the shale play is commercial, the next well will be drilled in April 2013. It could take a few years before a similar industry to North America takes place. That’s assuming fracking is not blocked by environmentalist groups.

News Roundup:

Revenge of the fossil fuels: Setbacks mount for renewable energy sector

Qatar, Exxon venture wins first U.S. LNG export permit

Greece looks out to sea for gas wealth salvation

IEA head sees no golden age soon for European gas

Are electric cars bad for the environment?

Carnival Mentions

Dividend Articles and A Carnival – Wealth Artisan

Yakezie Carnival – Baseball Playoffs Edition

Carnival of Wealth, Pre-Debate Edition

Have a Great Weekend!