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US market better equipped to handle low gas inventories: Goldman Sachs

Less coal-to-gas switching, pipeline debottlenecking in key regions and strong production will allow the US natural gas market to cope with historically low inventory levels, Goldman Sachs analysts said. While the market will likely fall 400 Bcf short of the traditional end-October inventory level of 3.8 Tcf, the better supplied environment due to shale plays mean "fewer inventories than normal will be needed to serve the market as production can take up the slack," Goldman said Thursday in a note to clients. As of May 9, working gas in storage was 1.60 Tcf, 790 Bcf less than last year and 959 Bcf below the five-year average of 2.119 Tcf, according to the US Energy Information Administration. The severe winter took inventories to a 10-year low. Article continues below… Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline and pooling points in major […]

Posted On : Published By : Tom Whipple
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Pa. Dems fight to prove they can milk fracking for all it’s worth

Lycoming County looks like a lot of the rest of Pennsylvania: Pothole-marked roads snake through mountains and farmland, leading to little one-street towns that often contain little more than a coffee shop, a bank, a gas station and a bar. But ever since companies like Anadarko, EXCO Resources, XTO Energy and Range Resources came to town, everyday life has had a little more buzz around here. Eighteen-wheelers zip by day and night, cafes and restaurants in small cities like Williamsport are busy, and the parking lots of the Holiday Inns, Marriotts and many independent motels are packed with pickups from out of state. This is fracking country, and to supporters of the practice, Lycoming represents all the good that can come from it — jobs, economic growth and energy independence. To fracking’s detractors, Lycoming represents everything wrong with Pennsylvania, namely the state’s apparent willingness to embrace […]

Posted On : Published By : Tom Whipple
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Chesapeake Energy to Spin Off Oilfield Services Business

Chesapeake Energy Corp. said Friday that it will proceed with a spinoff of its oil-field services operations to shareholders as it also plans other asset sales. The oil and natural-gas company filed earlier this year for a possible spinoff of Chesapeake Oilfield Operating LLC, a move the company had been considering. Chesapeake plans to change the name of the division to Seventy Seven Energy Inc. upon the spinoff. The division—which offers drilling, hydraulic fracturing and rig relocation, among other services—pulled in about $2.2 billion in revenue last year. This and other planned asset sales will bring the total value of sales and divestitures in 2014 to more than $4 billion, the company said. Chesapeake has already received more than $925 million of asset sale proceeds so far this year. Upon completion of the spinoff—which the company intends to be tax-free to its shareholders—and an expected recapitalization, about $1.1 billion […]

Posted On : Published By : Tom Whipple
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Southern states get gasoline break from EPA

WASHINGTON, May 16 (UPI) –The Environmental Protection Agency said it waived gasoline requirements for parts of North Carolina and Florida because of good air quality standards. EPA said it was responding to requests from state authorities to remove counties from certain gasoline requirements for the summer. EPA said it was taking the action because states or counties have demonstrated they’re in compliance with ozone quality standards. The so-called winter blend of gasoline is cheaper to manufacture than the summer blend because of processes needed to decrease emissions that contribute to heightened ozone and smog levels. Summer blends give drivers better gas mileage, though it’s expensive to produce. Heather McTeer Toney, a regional administration for the EPA, said the waiver is a direct result of collaborative efforts to improve air quality in the respective districts. "This action is especially important during hurricane season when greater adaptability is needed for the […]

Posted On : Published By : Tom Whipple
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Cove Point LNG draws mixed reviews

Environmental advocacy groups said U.S. regulators need to restart their review process for an export license for liquefied natural gas from Cove Point, Md. The Federal Energy Regulatory Commission issued its environmental assessment for the LNG terminal in Maryland. Dominion Energy wants to ship 770,000 cubic feet of LNG per day to countries that don’t have a free-trade agreement with the United States. FERC, in a 241-page filing , said there would be "no significant impact" on the environment provided the company follows the estimated 80 mitigation measures. Diane Leopold, president of Dominion Energy, said the review was " thorough and independent ." FERC’s assessment drew fire from environmental groups concerned about the impacts of the facility. "FERC has failed the public once again with the release of this flimsy and deeply flawed environmental review," Jorge Aguilar, the southern region director for Food & Water […]

Posted On : Published By : Tom Whipple
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Energy Rigs Advance to Match Highest Count Since 2012

Rigs targeting oil and natural gas in the U.S. increased this week, tying a 20-month high, as energy producers used a record number of horizontally drilling ones to reach deposits trapped in shale formations across the middle of the country. The oil and gas rig counts grew by three each, bringing the total to 1,861, matching the high set on April 25, data posted on Baker Hughes Inc. (BHI) ’s website show. Rigs drilling horizontally to bore across formations gained five to reach a record 1,248, the Houston-based field services company said. Energy producers are using more efficient drilling techniques to draw record volumes of oil and gas out of from U.S. shale formations, boosting domestic crude production to the highest level in a quarter-century and bringing the nation closer to energy independence than it has been in 28 years. Horizontal rigs in tight-oil plays surged in the first […]

Posted On : Published By : Tom Whipple
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Canada Unveils New Fines for Rail-Safety Violations

Canada on Friday said railway companies will now face fines of up to 250,000 Canadian dollars ($229,843) for safety violations, the government’s latest move to toughen standards in the sector in the wake of last summer’s deadly derailment in Lac-Mégantic, Quebec. The Canadian government said the new monetary penalties, which will vary based on the severity of the violation, will "provide a faster alternative to prosecution," and are similar to those in place in the marine and aviation sectors. Individuals who violate rail-safety rules will also be subject to fines, but to the lesser maximum amount of C$50,000. "The proposed regulations introduce penalties as an additional enforcement tool to improve railway safety. These monetary penalties will help crack down on rule-breakers and improve the safety of the Canadian railway system," Canadian Transport Minister Lisa Raitt said in a statement. The July 6, 2013, derailment of a crude-carrying train in […]

Posted On : Published By : Tom Whipple
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Norway supplies more than 20% of Europe’s natural gas needs

Norway is the world’s third-largest natural gas exporter, after Russia and Qatar. In 2013, Norway supplied 21% of total European natural gas needs. Norway’s natural gas reaches the Continent mainly via its extensive export pipeline infrastructure (see map below), while a small fraction is exported as liquefied natural gas (LNG) by tanker. The largest recipients of Norway’s natural gas exports in 2013 were the United Kingdom, Germany, France, the Netherlands, and Belgium. Source: U.S. Energy Information Administration, with permission from the Norwegian Petroleum Directorate EIA estimates that Norway produced 3.97 trillion cubic feet (Tcf) of dry natural gas in 2013, a decline of 0.18 Tcf from 2012. EIA also estimates that Norway’s net exports for 2013 were 3.8 Tcf of natural gas, which, because of its modest domestic demand, was 96% of its production. Norway’s single largest natural gas field is […]

Posted On : Published By : Tom Whipple
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UK "needs more home-grown energy"

In just over five years Britain will have run out of oil, coal and gas, researchers have warned. A report by the Global Sustainability Institute said shortages would increase dependency on Norway, Qatar and Russia. There should be a "Europe-wide drive" towards wind, tidal, solar and other sources of renewable power, the institute’s Prof Victor Anderson said. The government says complete energy independence is unnecessary, says BBC environment analyst Roger Harrabin. The report says Russia has more than 50 years of oil, more than 100 years of gas and more than 500 years of coal left, on current consumption. ‘Decisive action’ By contrast, Britain has just 5.2 years of oil, 4.5 years of coal and three years of its own gas remaining. France fares even worse, according to the report, with less than year to go before it runs out of all three fossil fuels. Coal, oil and gas […]

Posted On : Published By : Tom Whipple
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UK “needs more home-grown energy”

In just over five years Britain will have run out of oil, coal and gas, researchers have warned. A report by the Global Sustainability Institute said shortages would increase dependency on Norway, Qatar and Russia. There should be a "Europe-wide drive" towards wind, tidal, solar and other sources of renewable power, the institute’s Prof Victor Anderson said. The government says complete energy independence is unnecessary, says BBC environment analyst Roger Harrabin. The report says Russia has more than 50 years of oil, more than 100 years of gas and more than 500 years of coal left, on current consumption. ‘Decisive action’ By contrast, Britain has just 5.2 years of oil, 4.5 years of coal and three years of its own gas remaining. France fares even worse, according to the report, with less than year to go before it runs out of all three fossil fuels. Coal, oil and gas […]

Posted On : Published By : Tom Whipple