The Council of Canadians is looking to help Stephen Harper with Ottawa's budget deficit.

It's surprising - someone should check to see if pigs can actually fly - given the long-standing animosity between the left-wing citizens' group and Harpers' right-wing Conservative government, but it is tough to determine exactly what the council hopes to achieve with a letter to an oil and gas producer.

I'm not even sure Lone Pine Resources is the real audience for the letter and petition launched Tuesday by the council and environmental groups, which urges the Calgary company to drop a lawsuit filed under NAFTA over a moratorium on shale gas development in Quebec.

For starters, its letter urging Lone Pine to "do the right thing" was addressed to Tim Grange. The company's chief executive is actually Tim Granger. Admittedly, Granger was only appointed last month so he's new to the job and name recognition takes time. MORE

Miguel Galuccio, chief executive officer of YPF, and Ali Moshiri, Chevron's head of Latin America, Middle East and Africa , visited the Patagonia shale formation today and met with Neuquen's governor Jorge Sapag, according to an e-mailed statement today from the Buenos Aires-based company.

Jim Craig, a spokesman for San Ramon, California-based Chevron, didn't immediately replied to a call and an e-mail seeking comment.

Moshiri, who in December signed with Galuccio an exclusive right to negotiate final terms for YPF to transfer a 50 percent interest in Loma de la Lata Norte and Loma Campana, was “surprised” with the advanced state of YPF exploration projects, according to the statement. The fields for the $1.5 billion joint venture comprise an area of 290 square kilometers (180 miles) in southwestern Argentina. MORE

On May 9, the U.S. Environmental Protection Agency (EPA) issued a Direct Final Rule identifying 15 chemical substances that will require notice prior to manufacturing, importing, or processing for an activity designated as a significant new use. These chemicals were flagged pursuant to the Toxic Substances Control Act (TSCA) significant new use rules (SNURs). The notices, referred to as Significant New Use Notices (SNUNs), must be submitted to EPA 90 days before a listed chemical is manufactured, imported, or processed for an activity designated as a significant new use. EPA states that this will provide the agency with an opportunity to evaluate the intended use and determine whether it is necessary under TSCA to prohibit or limit the activity before it occurs. MORE

On Thursday, the government released a shale gas blueprint highlighting six main objectives, but Dr. Eilish Cleary says health isn't one of them.

“Health wasn't identified specifically as an objective or priority. That does leave me some cause for concern,” says Cleary.

She says concerns she highlighted in her own report about fracking and human health have largely been ignored, including a concern that environmental impact assessments would double as an assessment of health effects.

“Out of the 30 recommendations I feel, there are still many that need to be addressed,” says Cleary.

New Brunswick's minister of health admits he hasn't read the complete oil and gas blueprint. MORE

Barack Obama said at the weekend the US was likely to be a net gas exporter by 2020, the strongest sign yet that the president is swinging his support behind higher energy sales overseas. MORE

The "are we running out?" framing distracts from two important points in Charles Mann's article . First, unconventional fossil fuels--fracking, tar sands, methane hydrates and several others--are growing in importance. Unconventionals comprise truly massive resources, but what makes them "unconventional" is that they are more dispersed than traditional fossil fuels. They are scattered around the world, they are difficult to reach, are mixed with other materials, and require much more processing to be useful. As a result they are almost invariably more expensive, more energy intensive, and more polluting than conventional fossil fuels. Adam Brandt at Stanford has probably done more than anyone in characterizing these resources.

Second, Mann's conclusion correctly focuses on the central policy challenge we confront. But let's be clear that this is not because environmentalists have banked on using resource depletion as the reason to address climate change. Energy security has at times been used as side effect of addressing climate change, but not as a central motivation. The more important policy issue that plentiful unconventionals bring up is the risk of myopia and over-reliance over the longer term. The policy challenge is about dealing with an array of persistent energy challenges--including access, air pollution, climate, and security--in a policy environment in which energy could become much less publicly salient than it has been in recent years.

These are important points in Mann's article. But in two ways--on climate and on energy security--the rise of unconventional changes things less. MORE

Petrel currently holds a 25% interest in Schuepbach, a private U.S. company that holds a 100% working interest in the Piedra Sola and Salto production contracts, which are virtually unexplored.

Proactive Investors

The company was forced to abandon its seismic testing plans last summer because of delays in obtaining the necessary permits from the provincial government.

When SWN Resources announced it would not conduct any testing last year, a company official indicated a decision on whether there was a viable shale gas industry would be delayed until 2016.

Nicki Atkinson, the exploration manager for SWN Resources Canada, said the company still feels it will have to wait a few years before knowing if it will be able to develop a shale gas industry.

"What we will do in the upcoming years is follow that up with a drilling program and that will be, like I said, in the next couple of years. And then I'll be in a much better position to answer that question," she said.

Atkinson said the company estimates there is a 10 per cent chance of SWN Resources being able to establish shale gas production in New Brunswick. MORE

“In Mexico there isn't enough water. Where are they going to get it to extract shale gas?” Professor Miriam Grunstein at the Centre for Research and Teaching in Economics (CIDE) remarked in an interview with IPS.

She is opposed to the involvement of PEMEX, Mexico's state-run oil company, in fracking, and recommends that it instead focus on higher priority sectors.

In 2012, a lengthy drought especially affected a large part of central and northern Mexico, with a heavy impact on agriculture and livestock, and on living conditions in dozens of rural villages.

And the forecast for this year is not much different. MORE

Daniel Yergin, chairman of energy consultancy IHS Cambridge, said it was the single most important factor which would determine whether projects went ahead and was a great concern for the industry.

'LNG costs may deter investors long before Henry Hub prices are pushed up,' Yergin said.

Floating LNG technology could be the answer, according to Kathleen Eisbrenner, chief executive of Next Decade. Eisbrenner said using floating technology could reduce development costs by as much as 50pc.

The cost of building a floating regasification terminal is around $400 million, Eisbrenner said, compared to around $1.2 billion for the land-based equivalent.

'There are only a handful of projects which can sustain that,' Eisbrenner said.

Next Decade uses South Korean shipyards to build the specialist vessels needed for its floating LNG projects. Eisbrenner said this has also helped to kept costs low.

The price for several high- profile projects has escalated recently, in places such as Australia, as labour costs and capacity scale-ups have pushed up construction costs. This has caused some projects to be delayed.

Analysts say global LNG supply will remain tight in the next few years until some of Australia's mega projects, such as Chevron's 15.6 million tonnes per year Gorgon project, come online.

Soaring LNG demand from Asia could provide the financial incentives needed to expand the use of this specialist technology.

Qatargas' chief operating officer, Alaa Abujbara, said around 80pc of its LNG output now flows to Asia, up from around 30pc in 2010, because of the region's sustained high demand for the fuel. Japan in particular has bolstered the region's LNG demand since idling its nuclear power capacity following the Fukushima disaster in 2011.

Despite soaring gas demand in Asia Europe's consumption has plummeted since the financial crisis began to grip the region in 2007.

Denis Bonhomme, executive vice president at GDF Suez LNG, said Europe's LNG imports fell by almost 30pc last year, compared to 2011. This is mainly because the region has been consuming more cheap US- imported coal at the expense of gas.

The International Energy Agency doesn't expect European gas demand to recover to pre 2010 levels before the end of the decade.

But despite this poor demand outlook for natural gas in Europe the region's production has fallen too. GDF Suez's Bonhomme said Europe will likely face a natural gas supply shortage of around 60 billion cm by 2035 as indigenous output continues to decline.

There could also be hope for a demand demand boost from the transport sector.

Maarten Wetselaar, head of Shell's integrated Gas department, said that in the next decade alone around 20pc of global LNG demand will be used in the transport sector.

'I think the LNG business has huge potential in its traditional markets but we need to search for new markets,' Wetselaar said. 'Apart from the cost savings the reduction in noise and emissions will be dramatic and something regulators will look forward to.'

Shell has been investing in using LNG as a transport fuel for its own fleet of vessels and road trucks.

Related Reading: Shell: LNG is Huge

Until now the automotive industry has focused primarily on the gradual transition from petrol or diesel-fuelled cars to hybrid and fully electric vehicles.

But new, bountiful supplies of cheap natural gas in the US raise a tantalising third possibility – that cars and trucks could one day criss-cross the US using natural gas instead of petrol. MORE

Several of the country's large energy groups have taken stakes in shale gas companies, including Sinopec, which earlier this year announced it would pay $1bn to buy a 50 per cent stake in gas and oilfields in Oklahoma and Kansas owned by Chesapeake Energy.

Yet, another company, ENN, China's largest non-state owned gas distributor, has been quietly making progress on another front of the shale revolution: establishing a network of natural gas filling stations for trucks. The group, with CH4 Energy, a small Utah-based company, has formed Transfuels, which operates as Blu LNG. MORE

From his remarks, it looks certain that Shell recognizes how important LNG is to its business. The global demand for natural gas was set to grow dramatically in most parts of the world, he showed. To cover the mismatch from supply meeting demand (as depicted in a chart) in each region, it would need to be met by gas from pipelines or LNG.

LNG, said Mr. Brown, would supply about 250 million tons/annum. He commented: "By 2025, we see that going to 500 million tons, assuming we have a doubling of energy demand over the next 12-13 years - a significant growth rate in that part of the business."

What was Shell's position in the global LNG market?

"Today, we are the leading international oil company in LNG. We have something like 22 million tons of what we call 'LNG equity' - LNG where we have an ownership share."

He added that Shell provided technical support to about 30% of the LNG around the globe, as the company typically provided the know-how where it bore a fairly substantial share of joint operations.

Of Shell's 22 million tons, he said the portfolio had been built up over four decades, with LNG positions in Nigeria, Qatar, Oman, Russia (Sakkhalin), Australia, Brunei, and Malaysia.

Brown reported, "Quite recently, we've come to a deal with Repsol S.A. on acquiring their midstream LNG assets in Peru and Trinidad. When that deal is concluded, then we expect another 4 million tons of equity LNG coming to Shell, but also quite relevant in that field we have 7 million tons of uptake from that, reinforcing our position as a leading LNG trader across the world."

He said that the $4.4 billion deal with Repsol involved $1.8 billion of debt. The acquisition, according to him, underpinned Shell's position and supplied the company with robust cashflow moving forward.

Additionally, he reported that Shell was building an LNG facility at Gorgon, where it held 25% and for which Chevron was the operator. The Gorgon Project, he reported, on an island off Australia, was nearly 50% complete.

Meanwhile, Shell was operating its Prelude floating LNG facility, which, he explained, was under construction in South Korea, would deliver 3.6 million tons of LNG and 1.7 million tons of condensate and LPG.

"It's almost 500 meters long, he said, "a par 5 golf course. Fully laden, it will weigh some 600,000 tons - the heaviest thing that man has ever built, and it's a real achievement to be constructing it."

He added that FLNG could also be employed in a potential project in Australia.

"Beyond this, we have a lot of projects that we are studying," he said, offering examples like expansion opportunities at Gorgon or Sakkhalin.

Mr. Brown said that in North America Shell was working with Kinder Morgan on a 2.5 million ton export scheme at the Elba Express Pipeline unit and the Elba Island LNG Terminal.

He added, "We have Canada LNG, where we have a 40% share of a 12 million ton scheme under study there. So we have a growing LNG position in North America, but also I think we have a quite strongly growing gas transport network in North America, providing LNG into vehicles, barges and coastal craft."

Last year, he said that LNG had delivered Shell over $9 billion in revenues in earnings. Gas-to-liquids, he added, would make up a significant part of Shell's future growth.

He commented: "Actually, if you look at Shell today, we produce about as much gas as we do oil, but of all the majors we probably have the largest proportion of gas, and it really is our commitment to this industry and the environmental benefits that we see behind gas that underpin that positioning."

Mr. Brown showed a slide featuring a mosaic of Shell projects, offering an example of a "mini LNG" scheme in Canada.

"There," he said, "we're making about .25 million tons of LNG which we will supply to trucks that will travel on what we call the 'Canadian green corridor.'"

He mentioned Shell's 2.5 million tons of LNG on the Great Lakes and in the Gulf of Mexico. On Elba Island, he said, mini LNG schemes designed for transport would be combined for a 2.5 million ton export scheme.

Tight/shale gas, he noted, had transformed the natural gas industry.

"It's doubled the amount of recoverable gas in the world, transforming the energy outlook of the US."

Shell, he said, had a significant position in both gas and liquid rich shale plays in North America. "We're actually operating in 14 different countries around the world, looking to develop unconventional resources."

Mr. Brown noted the great debate in America as to how much of its domestically produced gas would be used at home and whether any would be available for export.

"This is a big transformation in tight and shale gas, providing more resources for LNG, actually allowing countries around the world to plan on gas in their energy mixes, and providing a richness of opportunity for us," he said of Shell.

Mr. Brown reiterated that Shell had many planned export LNG schemes, and pondered what the impact of LNG would be on supply and demand, and on pricing, moving forward.

He explained, "If you actually add up all the LNG schemes that are being promoted at the moment, you come to something like 200 million tons; today's market is 250. So that's a lot of LNG."

Shell, however, predicted on 60-70 tons actually being developed, because of the sheer cost.

As to whether these new sources of unconventional LNG would create new paradigms in the Far East, Mr. Brown said: "We've seen Henry Hub above $4 now. When you add liquefaction and transport costs - going through the Panama Canal - landed LNG in Tokyo Bay is going to be in the $10-12 range, which fits within the range of conventional supply, so we don't see a major shift in LNG pricing.

"If you look at North America, just 5 years ago there was over 100 million tons that were going to be imported as we thought America was going to be gas short. The tight/shale gas revolution has transformed the picture to this kind of export scenario," he explained.

He said that because the natural gas industry was such a robust one, it had been able to cope with such a major swing of demand to supply, "Because there are many countries around the world that look to LNG for import, whether it be Kuwait, Dubai or Thailand; there are many other new LNG buyers supplementing the traditional core buyers, providing some robustness to the demand picture for LNG."

Of the 17th international "LNG 17" conference, set to take place in Houston on 16-19 April, Andy Brown said, "It's the biggest LNG conference we've ever had, now that the US is the biggest natural gas producer."

Both companies are involved in LNG projects in Qatar, the world's biggest LNG exporter. They also have shared interests in LNG terminals in the United Kingdom, Italy and the US.

In a joint statement Qatar Petroleum International (QPI) and US oil and gas company ExxonMobil said the agreement sought to give QPI opportunities to explore various unconventional natural gas resources and associated liquids.

“(It) signifies our joint interest in expanding our partnership both domestically and internationally in order to address the growing and evolving role of natural gas, which continues to play a larger role in meeting the needs of an increasing population,” said Nasser Al-Jaidah, chief executive officer of QPI, Reuters reported.

At first glance, it's hard to fathom all the angst over the Pittsburgh-based Center for Sustainable Shale Development. Environmental groups, foundations, and major oil and gas companies came together to support stringent measures to protect air and water from pollution in the Appalachian region, and they invited other groups to join in and help limit pollution from fracking.

Not everyone was flattered by the invitation.

“WHOOO-HOOO, Frackers and Environmentalists collaborate!” noted the anti-drilling website No Fracking Way, in a post titled “Fracking Center and Fluffy Kittens.”

The Sierra Club called the new plan “akin to slapping a Band-Aid on a gaping wound,” and a coalition of grass-roots groups called No Frack Ohio claimed that the plan “simply puts green lipstick on a pig.” MORE

But the biggest key to the tremendous popularity of the NCAA tournament is the March Madness Bracket – the grid of all the teams in the tournament and the path they have to follow to the Final Four and the Championship game. Almost every office, school or other workplace has some sort of pool where people fill out a bracket and throw in a few dollars for a chance to win the big pot.

In the spirit of March Madness, and perhaps to capture the attention of the Obama Whitehouse which reportedly is full of basketball fans, including President Obama himself, the first ever US LNG Export Bracket has been created. Whether it was foresight, luck or chance, the US DOE established an order of review procedure that resulted in 16 projects being up for review first – the Sweet 16.

The bracket shows the path I've picked for the projects based on a number of factors. As with the real March Madness NCAA tournament, there are bound to be upsets and surprises. One of those surprises could well be the initiation of a “Rulemaking” which is a procedure that would require the DOE to develop specific policies and procedures regarding the approval of additional export projects. Whether this happens before the DOE approves any additional projects remains to be seen. In the meantime, here are my picks for the Final Four export projects as well as the two final winners (along with a wildcard pick)!

Click here to download a PDF of Susan Sakmar's US LNG Export Bracket

Susan L. Sakmar is a Visiting Assistant Professor, Energy Law Scholar at the University of Houston Law Center where she teaches a course on global gas markets, including shale gas and LNG. She is also the author of the forthcoming book “Energy for the 21^st Century: Opportunities and Challenges for LNG,” available at http://www.e-elgar.co.uk/bookentry_main.lasso?id=14131.

The facility will hire as many as 125 engineers and scientists in the coming months and will eventually expand its research to more conventional drilling techniques, Chief Technology Officer Mark Little said in a telephone interview.

Oil and gas is GE's fastest-growing segment, with revenue up 57 percent to $15.2 billion since 2009, and Chief Executive Officer Jeffrey Immelt is betting that other divisions can profit as drillers tap more shale formations. The center will join labs from Shanghai to Rio de Janeiro and be the only one focused on a single GE business, Little said. MORE

The two companies now enter an exclusivity period expected to lead to a joint venture. YPF would cede 50 per cent of its El Orejano block in the western Argentine province of Neuquén, but there was no immediate word of how much Dow could invest. MORE

“There is risk that society won't see the shale revolution through to its full potential due to misinformation and fear,” said CEO Ryan Lance at a major energy conference here.

He called for more efforts to engage with governments and local communities. “We are taking some steps, but we need to do more,” Lance said at the big annual IHS CERAWeek energy conference.

Production of oil and natural gas from shale rock formations has sparked a boom in U.S. energy production, helping to drive natural gas production to record levels and oil production to a 20-year high.

But use of the controversial development method, dubbed “fracking,” has prompted concerns about air pollution and water contamination where development is booming.

Industry groups contend that concerns about fracking have been badly overstated and say the method is safe. MORE

Shell on Monday unveiled plans to build a small liquefied natural gas plant in Sarnia, Ont., to provide fuel to marine traffic, as well as trucks and trains. Another new plant is planned for Geismar, La., which will serve ships sailing the Gulf of Mexico and the Intracoastal Waterway, along the Gulf and Atlantic coasts of the United States.

The new plants are part of a growing energy industry push to make natural gas into a transportation fuel. Construction is already under way at a similar small Shell liquefaction plant west of Calgary, while a Flying J truck stop in the city opened for LNG refuelling on Friday. The Alberta LNG plant will be complete early next year; the two marine-focused facilities will take three years. MORE