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September_23_2011
Bakken Setting Records Every Day
LNG gaining as tank truck fleet fuel
Chicago buys 80 natural gas Chevrolets for city fleet
Shell use of liquefied natural gas (LNG) marine fuel
September_23_2011
Entek Activities Niobrara GR Basin
Peterbilt First for Model 386 LNG
Indian Railways to replace diesel with natural gas
Microturbines For Hybrids

Bakken Setting Records Every Day
9/23/2011
The numbers for the month of August are impressive. August 31 saw a rig count of 202, the all time high for North Dakota. That number is only expected to increase, projected to reach 225 by the end of the year. As we come to the tail end of the summer season, drilling companies are pushing to get locations built and ready for winter. This means a rush of activity and increase in overall production. It also means increased economic opportunity as the state comes closer and closer to setting a new crude production record.

North Dakota continues to remain in the national spotlight in terms of its outstanding energy industry. Last week, the state was featured on CNBC's Mad Money w/ Jim Cramer and called "the Saudi Arabia of the United States" by the host. Not only is the oil industry of western North Dakota bringing people en masse from other states and providing thousands of jobs, it's also creating opportunities for the people of western ND to improve infrastructure, find employment, and thrive on the economic prosperity of the region.

Here are today's oil and gas stats: WTI Crude price:  $87.95 Brent Crude price:  $114.29 Natural Gas price:  $4.04 ND Rig Count:  200
Entek Activities Niobrara GR Basin
Entek Energy Ltd.|, September 01, 2011
 
Entek provided an update on the Niobrara Shale Oil Project Appraisal Program in the Green River Basin.
Battle Mountain 14-10L – The Frontier (secondary objective) has been successfully fracture stimulated. Limited testing has been performed before completion and testing operations start on the lowest of the Niobrara Benches in the well. Test results suggest the discovery of an oil prone sweet-spot in the Frontier Formation which is part of the Mowry Shale Resource Play. The play has been a secondary target across the Company's acreage since it tested hydrocarbons at an initial rate of 1.2 MMCFD and 10 BOPD in the Focus Ranch 12-1 well and since has shown significant oil and gas shows in each well where penetrated across the acreage.

Test results suggest that the 14 ft perforated zone in the Battle Mountain 14-10 well will be capable of around 20 BOPD and over 100 MCFD. It is most likely that the production from the Frontier will be comingled with production from the Niobrara once planned completion and testing operations in the well are complete. In the future the Frontier, like the Niobrara, is likely to become a candidate for horizontal drilling. The Company will provide an update as the appraisal program continues on the potential of the Frontier and Mowry Shale Resource Play across its acreage position.

The completion program for the Niobrara (primary objective), which includes fracture stimulation and testing, will be initiated this week with fracture stimulation planned around September 15.

Slater Dome (SD) Federal 24-9DL – The well has successfully reached its total depth of 8,300 ft after penetrating both the Niobrara and Frontier Formations. The well had significant oil and gas shows while drilling and was prepared for logging, with good hole condition reported. While pulling out of hole to run wireline logs a drill string connection mechanically failed. Operations are continuing to remove the drill string from the hole prior to logging.

C&C Cattle 18-8 – Location preparation is complete. It is anticipated that the rig will be mobilized from the 24-9 location to the 18-8 location over the next week. An additional rig is on standby to mobilize to the 18-8 location if operations on the 24-9 well take longer than expected.
LNG gaining as tank truck fleet fuel
Aug 26, 2011 By Charles E Wilson bulktransporter.com
 
On August 14, the first four truck-tractors in a 42-truck order were delivered to Fair Oaks Farms near Fair Oaks IN. Fueled with methane from the dairy farm, this milk-hauling fleet operation is being described as the largest transport-related renewable compressed natural gas (CNG) project in the United States. Fair Oaks Farms and their partners expect to have the CNG fleet fully operational by the end of September, at the latest. Partners include Ruan Transportation Management Systems, PacLease, and Clean Energy Fuel Corp. In its September issue, Bulk Transporter will publish an exclusive in-depth profile on Fair Oaks Farms’ CNG fleet operation. The cutting-edge CNG developments at Fair Oaks Farms came a week after Kenworth Truck Co invited a group of trucking publications--including Bulk Transporter--to attend a heavy-duty natural gas truck ride-and-drive event near Seattle WA. Among the vehicles at the program was a CNG-fueled T440 daycab tractor that is similar to the trucks selected for the Fair Oaks Farms fleet.

Kenworth currently offers four natural gas-fueled trucks. Editors had the opportunity to test drive a T800 daycab tandem-axle tractor with a 485-hp Westport HD GX15 (based on Cummins’ 15-liter ISX) engine fueled by liquefied natural gas (LNG) and tandem- and single-axle versions of the T440 with the 320-hp Cummins Westport ISL G running on CNG.
”We believe there is a big future for heavy-duty trucks fueled with natural gas,” said Andy Douglas, Kenworth national sales manager, specialty markets. “Customers are asking for these products, which use existing diesel technology that is robust, tough, and proven.  Here in the United States, we sit on the world’s largest natural gas reserves. Other countries are using it more in transportation than we are. Oil will continue to face price pressures, while natural gas prices have remained relatively constant.”

About 23,000 vehicles in the United States are fueled by natural gas at this time. That includes approximately 800 tractors that have gone into port drayage operations in California and other states as part of emission-reduction campaigns. In addition to the Fair Oaks Farms project, a number of tank truck fleets have purchased natural gas fueled trucks over the past couple of years. The largest tank fleet order to date was for 200 tractors that will be used in oilfield operations.

The event at the Paccar Technical Center in Mount Vernon WA gave representatives from Kenworth and Westport Power Inc an opportunity to show off the latest in natural gas engines offered with Kenworth trucks and discuss the benefits of natural gas as a fuel for tank truck fleets and other trucking companies. Kelly Mills, Westport HD’s Western US sales manager, pointed out that Westport has invested more than $250 million in natural gas fuel systems and has deployed more than 28,000 natural gas engines worldwide. “We see plenty of opportunity for this technology with US truck fleets,” he said.

More than 10,000 of the company’s nine-liter Cummins Westport ISL G engines have been produced. While nominally classified for medium-duty applications hauling less than 80,000 pounds gross combination weight, the engine in offered with a severe-duty exemption for certain local and regional bulk transport applications.

”This engine will handle 80,000 pounds under the right applications,” Mills said. “The operating area needs to be primarily flat terrain, because the engine isn’t available with an engine brake.”

Rated at 250 hp to 320 hp, the Cummins Westport ISL G can be fueled with either CNG or LNG. It is a spark-ignition engine that doesn’t need selective catalytic reduction (SCR) emission treatment technology or a diesel particulate filter (DPF).

The 15-liter Westport HD is available with engine ratings from 400 hp to 475 hp and is designed to be fueled with LNG and run in longhaul applications. With gross combination weight ratings of 80,000 pounds to 140,000 pounds, this is the ideal natural gas engine for longhaul tank fleets, according to Mills.

The Westport HD engine differs from the Cummins Westport ISL G in several ways. Most importantly, the Westport HD uses a fuel mix that includes about 5% diesel. This means the engine must have the SCR treatment system and the DPF required for fully diesel fueled engines, but the natural gas still delivers significant costs savings and reduces greenhouse gas emissions by 21% to 27% over equivalent diesel engines.
Peterbilt First for Model 386 LNG
September 16, 2011 | USA, Denton TX
Truck manufacturer Peterbilt Motors Company, a Texas-based PACCAR company, has received accreditation for developing the industry’s first SmartWay designated alternative fuel vehicle. The US Environmental Protection Agency’s (EPA) SmartWay Program has recognized Peterbilt’s Model 386 liquefied natural gas (LNG) truck as meeting the established fuel-saving, low-emission equipment requirements set for Class 8 trucks.

“Peterbilt is proud that the Model 386 LNG has been recognized as the industry’s first alternative fueled vehicle to obtain SmartWay designation,” said Bill Jackson, Peterbilt general manager and PACCAR vice president. “The Model 386 LNG SmartWay designated vehicle offers optimal fuel and emissions efficiency with horsepower and torque equal to a diesel-fueled engine, making it the ultimate environmentally sound performance solution for customers, and further demonstrates Peterbilt as an industry leader in developing innovative quality products.”

Equipped with a fuel efficient, aerodynamic package, the Model 386 LNG SmartWay designated vehicle is suited for a variety of applications, including line, bulk and tanker hauling.

“Peterbilt is always looking to achieve the next level of innovation and operating efficiency,” said Landon Sproull, Peterbilt chief engineer. “Through extensive aerodynamic analysis and testing, Peterbilt engineers combined the industry-leading Model 386 aerodynamic package with the Westport GX engine to provide the most fuel efficient, performance configuration.”

The alternative fueled vehicle is powered by the EPA-certified Westport GX engine, offering up to 475 horsepower and 1,750 lb-ft of torque. The 15-liter engine uses high pressure direct injection technology (HPDI), specialized cryogenic fuel tanks, and associated electronic components to facilitate robust performance and reliable operation. This technology uses a low cost, cleaner-burning fuel than diesel without compromising engine torque, power, fuel economy, or drivability, in addition to reducing greenhouse gas emissions by 25 percent.

Peterbilt offers other compressed natural gas (CNG) and liquefied natural gas (LNG) power platforms. Also powered by Westport GX engine, the high-performance Peterbilt Model 367 is the ideal vocational truck for a variety of dump, mixer and construction applications. In addition, Models 384, 365 and 320, equipped with the Cummins Westport ISL-G engine, can be specified with CNG or LNG offering 320 horsepower and 1,000 ft-lbs of torque, suitable for short-haul, regional, refuse and dump trucks with GCW/GVW ratings up to 66,000 lbs.
Chicago buys 80 natural gas Chevrolets for city fleet
Submitted by Hawke Fracassa on Thu, 09/22/2011
The city of Chicago has ordered 80 natural gas-powered vans and trucks from Advantage Chevrolet in Hodgkins, Ill. The contract awarded by the city asks Advantage to supply one of America's largest urban centers with up to 40 compressed natural gas-powered Chevrolet Express vans and up to 40 CNG-powered Chevy Silverado pickup trucks.

The dedicated CNG fuel systems will be installed on the Chevrolet Express Vans at IMPCO Automotive's state-of-the-art alternative fuels conversion plant in Union City, Ind., in conjunction with our partnership with General Motors," said Jay Sandler, director of OEM and Fleet Sales for IMPCO Automotive, a designer, manufacturer and supplier of alternative fuel components and systems for use in transportation applications.

Fuel systems for the Silverados will be installed by IMPCO Automotive's Certified Installation Partner, Auto Truck Group, in Bartlett, Ill., Sandler said.

General Motors Co., Chevrolet's parent company, produced 16,000 natural gas-powered vehicles last year for commercial and municipal fleets. The Chevy Express vans it manufactures use 6.0-liter Vortec V8 engines accompanied by "hardened exhaust valves and intake/exhaust valve seats" to process the fuel. The vans get between 200 to 300 miles, depending on how many tanks are on the vehicle. Expresses typically come with three or four fuel tanks, according to a GM Fleet and Commercial Web page that markets the vans.

"Advantage Chevrolet is pleased to be able to supply these environmentally friendly vehicles to the city of Chicago to help reduce the amount of particulate emissions and Nitrous Oxide being emitted into the Chicagoland atmosphere," said Rick Zureick, sales manager at Advantage Chevrolet.

Rob Lykins IMPCO's sales manager says such vehicles improve the environment:  IMPCO Automotive director of sales & marketing.
"We are proud the city of Chicago will utilize our dedicated CNG fuel systems to convert its expanding fleet of popular General Motors trucks and vans from gasoline to CNG,"  Our innovative CNG conversion systems enable fleet operators as well as individual vehicle owners to significantly lower their vehicle operating costs and reduce emissions while reducing our country's reliance on foreign oil."

There is a big picture, says Rick Nielsen, IMPCO's president.
"IMPCO continues to aggressively invest in future growth opportunities in North America by bolstering our automotive business with innovative new products that position us as the leader in the emerging U.S. natural gas vehicle market," Nielsen said.
Indian Railways to replace diesel with natural gas
Shashank Rao, Hindustan Times Mumbai, September 17, 2011 

The Indian Railways that is reeling under severe financial crises has planned to replace its fuel as a cost-effective move. They are looking at gradually reducing the use of diesel and opting for natural gas – an environment-friendly replacement used in locomotives or engines to haul trains.

The railways have begun the process of converting the diesel electric multiple unit (DEMU) trains to compressed natural gas (CNG)-based trains. Presently the DEMUs, which are slightly different in width and appearance than local trains, run on Virar-Dahanu stretch.   

The railways will initially replace the DEMUs in and around Delhi and might introduce them on stretches under the Western Railway. In all, the Indian Railways will introduce 50 CNG-based trains.

In addition to this, the diesel engines would undergo changes, to facilitate them to run on liquefied natural gas (LNG). This would enable these trains to run for at least 6 to 8 hours, which means passenger trains connecting two cities can easily be operated with the help of this engine. However, long-distance trains would continue to run on diesel engines.

Currently, the railways use approximately 250 crore litres of diesel for locomotives annually, which costs them around Rs10000 crore. And with the rising fuel cost, it is becoming increasingly expensive for the railways to run the show.

“We anticipate a drop in fuel expenditure by 30 percent in the long run once this technology is in place. It would cost us around Rs50 lakhs each to make necessary changes in diesel engines,” said a senior railway board official.

These engines would have a separate tank where LNG would be filled in. The railways are expecting it would around two years to make the necessary changes to the engines. Initially, the railways would use LNG at their factories and workshops.
Microturbines For Hybrids
dieselprogress.com 8/27/2011
Capstone Turbine Corp. announced that it has released new C30 and C65 natural gas fueled microturbines that meet California Air Resources Board (CARB) requirements for New On-Road Heavy-Duty Engines for Urban Bus – Hybrid service.

"Hybrid electric vehicle applications are a significant opportunity for Capstone as countries continue to implement stringent emissions standards," said Darren Jamison, president and CEO of the Chatsworth, Calif., company. "The ability to provide clean burning power generation helps meet California requirements today and sets the standard for other nations as they establish emissions requirements."

The Capstone natural gas fueled microturbines are the only engines certified to the CARB On-Road Heavy-Duty Engine emissions levels for Model Year 2011 that operate with no exhaust aftertreatment, the company said. Test emissions from both the C30 and C65 Natural Gas microturbines measured significantly below the CARB standard, Capstone said. The low levels were achieved using the next generation of Capstone's lean premix combustion technology. No aftertreatment equipment allows Capstone to achieve the low emission levels without impact to product efficiency, additional cost or increased vehicle weight.

Interestingly the announcement was something of a blast from the past for Capstone, as in the early 1990s, it was working with CARB and several vehicle manufacturers to develop microturbine generators for vans and other vehicle applications.
Shell use of liquefied natural gas (LNG) marine fuel
WorldOil.com 9/22/2011
Marine industry solutions provider and Shell Oil Company have signed a Joint Co-operation Agreement aimed at promoting and accelerating the use of liquefied natural gas (LNG) as a marine fuel. The agreement was signed in August 2011 and will run for several years.

Wärtsilä, Shell sign agreement to promote use of LNG as a marine fuel.   Marine industry solutions provider and Shell Oil Company have signed a Joint Co-operation Agreement aimed at promoting and accelerating the use of liquefied natural gas (LNG) as a marine fuel. The agreement was signed in August 2011 and will run for several years.
 
Supplies of low cost, low emissions LNG fuel will be made available to Wärtsilä natural gas powered vessel operators, and other customers by Shell. The Joint Cooperation Agreement will focus first on supplies from the US Gulf Coast, and then later expand their efforts to cover a broader geographical range.
 
Gas fuelled marine engines are seen as being a logical means for ship owners and operators to comply with increasingly stringent environmental legislation. This agreement aims at increasing and easing the availability of natural gas for marine engine use, as well as developing the supply chain and infrastructure to facilitate the bunkering of LNG fuel. The two companies will jointly move these developments to marine markets in order to enhance its rapid introduction and use.
 
Wärtsilä has been at the forefront in the development of dual-fuel engine technology, allowing the same engine to be operated on both gas and diesel fuel. This dual-fuel capability means that when running in gas mode, the environmental impact is minimized since nitrogen oxides (NOx) are reduced by some 85 percent compared to diesel operation, sulphur oxide (SOx) emissions are completely eliminated as gas contains no sulphur, and emissions of CO2 are also lowered.  Natural gas has no residuals, and thus the production of particulates is practically non-existent.
 
In addition to the environmental benefits that LNG fuel offers, the shipping industry is increasingly looking to gas as a means of reducing operating costs. With fossil fuel prices, and especially the cost of low carbon marine fuel, likely to continue to escalate, gas is an obvious economic alternative. In promoting gas propulsion, the two companies aim at reducing client risk, thereby accelerating market demand.
 
"It's an exciting time for the industry to have Shell, a major player, committed to increasing the availability of clean natural gas as a marine fuel. The marine community is becoming increasingly aware of the benefits provided by Wärtsilä natural gas engines as a means of reducing both costs and the environmental footprint. Natural gas engines represent a rare win-win, capturing emissions reduction and operational savings," says Christoph Vitzthum, Group Vice President, Wärtsilä Services.
 
Drawing from decades of experience in the development and application of natural gas engines for both the power generation and marine industries, Wärtsilä is the global leader in this advanced technology. "Clean, safe  natural gas represents a true shipping paradigm shift; years ago it was sail to steam, then came the move from steam to diesel, and now it's a new era for gas propulsion," says Jaakko Eskola, Group Vice President, Wärtsilä Ship Power.
 
"We are pleased to work with Wärtsilä to move forward with this significant step in introducing LNG-powered vessels into the US market, providing a clean, abundant and affordable fuel option," said David Lawrence, Shell's executive vice president Exploration and Commercial.