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Bi-Fuel – Get Your Green On!

It may sound like a big cliché for me to say, however, now really is an exciting time to be involved with generators and engines. I say this with only the up-most sincerity knowing full well that the current trend of generators could continue on its current trend of more conventional diesel models. However, there are also a number of exciting new options that have created optimism in the industry. More specifically, I am referring to the exceptional advances in generator and engine technology that have made appearances in the industry as of late, and that have subsequently begun to provide some exciting new options for many users. One of the most notable is the bi-fuel engine generator. I strongly believe that it has the potential to change generators for the better. For those unfamiliar with a bi-fuel system, it is a type of diesel engine ignited through compression and operates on both diesel and natural gas combustion, but with a strong emphasis on the latter. The simultaneous usage of natural gas and diesel give bi-fuel generators more adaptability and efficiency for users when relying on the power source for a number of different functions. It is hard to argue that the bi-fuel engine generator is not a bright light in our industry and represents a more eco-conscious awareness as well.

A Little More About Bi-Fuel Engine Capabilities

The bi-fuel system provides a reliable and more environmentally friendly method of standby power than traditional diesel generators. Upon ignition, the bi-fuel generator runs off of only diesel fuel, which is most of the extent of the fuel source’s involvement within the generator. Although, as the bi-fuel engine system continues to run, it predominantly operates on natural gas at around 90 percent, with the remaining10 percent coming from diesel. As you can likely imagine, this detachment from diesel fuel allows users to rely less on the fuel source and more on natural gas, which is easier to store. Additionally, bi-fuel allows generators to extend run times through the process. This is especially useful for those that rely on generators, diesel in particular, during long power outages, such as a storm or other natural disaster. While cost may be a concern for some thinking about buying a bi-fuel generator, the cost of such models is only incrementally higher than conventional diesel generators, and is generally well-worth the extra expense.

Get Your Green On

Because bi-fuel predominately uses natural gas opposed to traditional generators, which mostly, if not entirely, run on diesel, they are considered by many experts to be “greener.” Natural gas is cleaner burning and therefore releases fewer emissions into the air when in use. This is a significant improvement from diesel, which comparably does have higher amounts of emissions. What’s more, bi-fuel generators let off 30 percent fewer nitrogen oxides emissions and 50 percent less particle matter compared to diesel models.

Whether you are looking for a generator with improved performance, or a model that can help your company get its green on, I personally recommend the bi-fuel option. It is easy to say that it will be the wave of the future for our industry, but I truly believe that you will be hearing about bi-fuel a lot in the future. Because it has the potential to improve so many aspects of how generators improve backup power supplies and other useful functions, there is enormous potential there. If you are at all hesitant about the bi-fuel generator, you should at least give it some consideration as it can save your facility in a pinch, and help improve the environment in the process.

For more information on WPP bi-fuel solutions, see our bi-fuel FAQ sheet.

The Growth In Argentina Is Exploding!

In a country emerging as a large oil and gas producer, there is undoubtedly a need for energy. In the case of Argentina, there is no difference. The country’s shale plays have tremendous potential for companies to expand, businesses to start-up, and for investors to prosper. At Worldwide Power Products, as a company, we are excited to be increasing our involvement in Latin American counties such as Argentina. We will provide diesel generators, engines, and many other types of power products to aid companies in tapping the shale plays scattered throughout Argentina’s basins.

In some ways you could say we are looking to fulfill Argentina’s demand for energy, and while we may only play a small role in that fulfillment, the large growth in population will definitely require further power generation to the region. In addition, major petroleum companies are expanding, resulting in a virtual explosion of oil drilling throughout the country, also requiring more readily available energy.

Argentinian Shale

Undoubtedly, the U.S. has had its fair share of recent shale plays, but Argentina is also becoming a noteworthy member of the shale community. So noteworthy in fact, Argentina has found itself third on a list — compiled by the U.S. Energy Information Administration — of countries with the most shale gas potential, behind only the U.S. and China. More specifically, the vast majority of shale oil reserves sit under the Neuquén Basin, which is located in Western Argentina, spanning much of the Rio Negro, La Pampa, and Mendoza provinces. Thus far, upwards of nearly 150 million barrels of oil and significant amounts of gas have been found leading a large number of people in the industry flocking to the area.

With such big oil potential in Argentina, it only makes sense that the various shale plays will need back up power generation. There could be all the oil in the world sitting in Argentina, but with no power to tap into it, there really is no point. This is where Worldwide Power Products comes in — providing natural gas generators and other essential power products to companies in the area.

Private Investors

Additionally, the country’s Ministry of Federal Planning has vamped up its enticement of foreign companies to tap into shale plays in Argentina. While some companies, such as Repsol, out of Spain, have been met with some government intervention, a lot still remains to be seen on how the government will react to the sudden shale boom in the country. There definitely seems to be mixed signals coming out of the Argentine government, with one cabinet member calling for the nationalization of YPF, one of the country’s largest oil and gas companies, thus potentially dramatically increasing the governments involvement with the country’s oil and gas production. It is uncertain weather this will actually happen or if it is merely an idea that will fail to find fruition with little or no resistance to drilling activities.

For private investors, the best way to get in on Argentina’s shale action is to put your money in a company like Apache. In just the last six or seven years, the company has transformed into one of the major oil and gas companies in the country. In fact, it is currently the fifth largest with involvement in over 30 oil fields spanning nearly four million Argentine acres and four of the country’s basins.

Just as remote areas of the U.S. have recently seen a boom in shale drilling, similar desolate areas of Argentina have been experiencing a similar boom. Oil and gas companies have been setting up shop in all the major shale basins throughout the country and private investors have been jockeying to invest in companies faced with the least amount of government resistance. Undoubtedly, it will be fun to see how the region develops, but I guess we will just have to wait and see how it all plays out.

The Next Boom Town !?!

Admittedly, I am not a fortune-teller, but I do honestly believe that Cline Shale has the potential to create a boom-town atmosphere in the Midland region. It may be easy for just about anyone to say such a thing of an oil play, however, the Cline Shale area truly holds something special.

It sits more than 9,000 feet under Cline Shale, which is, for the most part, along the eastern border of Texas’ Midland Basin. It stretches nearly 150 miles from the north end to the south, spanning around 70 miles wide in four counties.

Cline Shale Potential
With a number of wells showing significant promise in testing, the Cline Shale area has the potential to experience a drastic influx in drilling activity similar to that of oil plays in North Dakota and other parts of Texas. In fact, some believe the area could hold somewhere around 30 billion barrels of oil based on the nearly 10,000 sq. miles Cline Shale encompasses. What’s more, companies such as Laredo, Apache, Devon, Fire-wheel, and a number of others have already invested in Cline Shale with varying degrees of initial development. In fact, Laredo has over 140,000 prime Cline Shale acres. Apache has over half a million acres with six wells in the planning phase, and Devon has almost 390,000 acres in the area as well. As you can see, companies are buying up land and quickly planning the next phase of their operations, which lucky for us, will most certainly include the need for natural gas generators and engines.

Real Estate Boom
With potential for years to come in Cline Shale, it is expected that the area will turn into somewhat of a boom-town. I suspect this means a dramatic increase in real estate developments all over Reagan, Glasscock, Howard, and other outlying Texas counties.
This sounds familiar to the current housing situation in the North Dakota, where oil plays such as Bakken Shale have created a deficiency of housing, but wealth of jobs. In my opinion, the same could hold true for Cline Shale, although hopefully the local real estate developments will learn from the mistakes of other oil plays. In fact, many communities around the area are already concerned that the current housing developments will not be built in time for the boom, due in part to the fact that an increase in activity is currently underway. Real estate companies in the Cline Shale region have already been feeling the pressure to provide housing for people moving to the area for work, with one local realtor mentioning he gets frequent calls from people desperate for housing.

Business Boom

In addition to the housing boom in the Midland Basin and surrounding areas, I also suspect there will be a dramatic increase in commercial business. After all, where there are people and jobs there will need to be restaurants, along with grocery and retail stores. With the increase in drilling activity, it is almost certain that a wide range of new businesses will begin to sprout up in counties like Howard and Sterling. For our industry, it means the area will need more engines and generator sets.

Perhaps an even better determinate of the potential for community development in the Cline Shale play is longevity. In other words, the longer the area is consistently producing oil, the more established and developed the community can become. Development is key to the community, because as we have seen in the past, a major oil play that goes broke can quickly turn from a boom-town to a ghost town.

In Comparison
To better illustrate the potential Cline Shale has to increase housing and business development, I like to compare it to the current Bakken play. The United States Geological Survey reports that Bakken Shale will likely produce over four billion barrels of oil, which still yields in comparison to what is expected of Cline Shale. If the amount of oil produced in an area is any indication of the additional community development, then this leads me to believe that Cline Shale will likely need more real estate and business development than Bakken. What’s more, Cline Shale is projected to produce more barrels than the seemingly endless oil supply of Eagle Ford, which is estimated to produce up to 10 billion barrels.

Cline Shale is undoubtedly another boom-town in the making, which is an exciting time for a community, especially one so isolated. Like Bakken, and many other oil plays throughout the country, a lot still remains to be seen about its production, and the subsequent real estate and businesses that develop in the region. Personally, I always enjoy watching an oil play develop, because as someone that works with generators, I find the unpredictability exciting — oil plays adds a sense of intrigue to any related industry.

Provided by : http://theclineshale.com

Eurozone and the US Economy

In an election year, news coverage focuses mostly on local and national politics so it can be hard to follow world news. Since the 2008 financial crisis, however, smaller European countries including Greece and Ireland, as well as major Euro players like Spain and Italy have been struggling to stay afloat. Now the Eurozone is teetering on the edge of collapse with countries like Greece threatening to leave and revert to their old currency. What is happening on the global stage and what effect does it have on U.S. gas and oil price?

Recently, the BBC reports that the Eurozone agreed to a deal that relaxed strict European lending laws that have made it so hard for struggling countries to get back on track. These measures should help Italy, Spain, and Greece; however, some experts worry that Greece is only postponing a decision to leave the Eurozone. By and large, though, this spells good news for Europe and global stock markets. Markets rose after the deal was reported.

While Europe seems to be getting a handle on finances, its countries are a bit stuck in the mud, so to speak, when it comes to growth. This means less U.S. trade and a sluggish American economy because Europe’s our largest trading power. Other ways Europe affects our economy:

  • U.S. banks invest in European banks
  • Stagnant European market spells reduced profit for American companies
  • Stocks and money markets are losing value

As the U.S. recovers financially, chaos in Europe could lead America back into recession. Financial drama on the global stage makes everyone nervous because it hits close to home. There’s another way the Eurozone crisis can affect Americans: Oil prices that impact everything from the gas in your car to the cost of the diesel fuel for the generator that can power your AC in a summer brownout.

After this great deal hammered out in Europe, oil prices stopped their 90-day downward slide and rose over 9%. At the same time, gas prices hit a 6-month low. Sanctions on Iranian oil and a tanker leak in the North Sea mean oil supply will be limited for some time. Will oil and diesel prices climb higher? Are you prepared to foot the bill if they do?

Let’s face it: Summer is a time of high energy demand. When the grid overloads, hurricanes loom large, or storms knock out power lines, generators can keep your company operating and power that much-needed AC. Natural gas generators cost less to operate than diesel generators. With oil prices climbing and European instability having the potential to make or break the cost of diesel, which type of fuel do you want to be putting in your generator?

-Mark

Shale Energy and the Development of the Modern Economy

In a June 2009 Energy Information Administration study, nearly two-thirds of American oil was imported from overseas. Alaska contributed just 11 percent of domestic oil, with various oil fields in the continental U.S. supplying the rest. Just three years later in 2012, the U.S. is producing 38% of its own oil domestically, and taking measures to reduce dependence on gas and oil.

What’s the major difference between 2009 and 2012? Shale oil and gas. Okay, shale oil isn’t exactly new: In the 19th century, shale oil plants were built. However, crude oil is easier to extract, so as more crude oil deposits were found–and extracted–shale oil plants shut down. With the cost and scarcity of oil, America and other countries have gotten back into shale oil and gas. And America holds vast shale oil reserves–nearly as much as the world’s existing oil reserves, according to the Government Accountability Office.

Shale natural gas reserves have drastically cut the price of natural gas in America, making it incredibly cheap. These natural gas and oil reserves have the potential to transform America from a country weak in energy into an energy-rich nation. The explosion in natural gas led General Motors to develop two trucks that run on ng, improving fuel efficiency and cutting oil dependency. And long-haul trucks that fuel up with gas instead of oil save substantially at the pump. While LNG pumps might not be at every truck stop from California to Maine, they will be soon.

Proponents say America can step up oil exports, effectively turning the energy boom into cold cash that just may help the economy recover, create jobs, and foster innovation. Financial giant Citigroup estimated that shale oil could grow the U.S. GDP by 0.5 percent a year for the near future. This growth could make energy investment the type of expense that gives back substantially.

Not everyone is gung-ho on shale oil and gas, however. Critics claim the boom is slowing down–and with it, the potential for economic growth. A Credit Suisse report noted that we can expect those rapid-fire increases in shale production to slow. Sure, shale oil and gas production will still be substantial, but the boom-level growth of recent years might just be a flash in the pan. Meanwhile, states struggle to regulate shale oil and gas production, fuel taxes, and other issues; many areas also deal with protests from residents who don’t want fuel extraction in their backyard. This type of bureaucracy has the potential to slow the pace of innovation.

What’s your take on the promise of shale oil and gas? Has it peaked or is the real boom just beginning?

-Mark