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OIL AND GAS
Denmark halts fracking at Total site
by Staff Writers
Copenhagen (AFP) May 6, 2015


Oxy output boosted by Permian shale
Houston (UPI) May 6, 2015 - Occidental Petroleum said Wednesday first quarter production was up 13 percent year-on-year in part because of output from the Permian shale in Texas.

Occidental, known by its ticker symbol Oxy, said first quarter production rose year-on-year by 72,000 barrels of oil equivalent.

"The increase was led by Permian resources which delivered a 46-percent increase to 98,000 boe per day, of which oil production grew by 25,000 barrels a day," President and Chief Executive Officer Stephen Chazen said in a statement

Texas is the No. 1 oil producer in the nation. The Railroad Commission of Texas, the state's energy regulator, said preliminary data from February show crude oil production averaged 2.34 million barrels per day. That's an increase of 5.2 percent, or 117,550 barrels, from January and 17 percent higher than February 2014.

Chazen said the company was using first quarter production results as a springboard for expectations of future growth. The full-year production guidance for 2015 should increase by an average 70,000 boe per day.

"This is 20,000 boe per day higher than our previous outlook," he said.

The board of directors at Oxy said Tuesday they approved a CEO succession plan with Vicki Hollub slated to take over for Chazen "after a thorough transition period." Chazen said he'd step aside when Hollub "is ready" to take the helm.

Denmark said Wednesday that it had stopped the first exploratory drilling for shale gas in the country a day after it began, accusing French company Total of using an unauthorised chemical.

"They used a product that was not part of those authorised" for the procedure, Ture Falbe-Hansen, a Danish Energy Agency spokesman told AFP.

According to Danish public broadcaster DR, the product known as Null Foam -- used in the so-called fracking process to extract shale gas -- was considered to be an environmental hazard.

"We have emphasised that the conditions stated in the drilling permit must be respected," said a director of the Danish Energy Agency, Martin Hansen, in a statement after a meeting with Total.

"We have also asked for an account of the sequence of events that occurred," he added.

Henrik Nicolaisen, who leads the drilling project for Total, said the chemical was not illegal and was left off the initial list of products used at the site "because we did not expect it would be a problem".

"We have been in dialogue with both the municipality and the Danish Energy Agency since February and we felt that we had a common understanding that the substance could be used," he told public broadcaster DR.

Total was given the go-ahead to start test drilling for shale gas in Vendsyssel in the far north of Denmark in July.

Fracking or hydraulic fracturing is a process used to extract gas or oil from shale rock by blasting a high-pressure mixture of water, sand and chemicals deep underground to release hydrocarbons trapped between layers of the rock.

Environmentalists argue that the process may contaminate ground water and even cause small earthquakes.

Denmark is one of the few European countries alongside Britain, Poland and Romania that allows fracking, which is widely used in the United States, contributing to the country's burgeoning oil and natural gas production.

Last month the German government proposed new rules to restrict fracking, citing environmental and public health concerns.


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