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Marcellus Region production continues growth

Natural gas production in the Marcellus Region exceeded 15 billion cubic feet per day (Bcf/d) through July, the first time ever recorded, according to EIA’s latest Drilling Productivity Report . The Marcellus Region, mostly located in West Virginia and Pennsylvania, is the largest producing shale gas basin in the United States, accounting for almost 40% of U.S. shale gas production. Marcellus Region production has increased dramatically over the past four years, increasing from 2 Bcf/d in 2010 to its current level. The rig count in the Marcellus Region has remained steady at around 100 rigs over the past 10 months. Given the continued improvement in drilling productivity , which EIA measures as new-well production per rig, EIA expects natural gas production in the Marcellus Region to continue to grow. With 100 rigs in operation and with each […]

Posted On : Published By : Tom Whipple
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EIA: Marcellus accounts for 40% of US shale gas production

Natural gas production from the Marcellus shale has surpassed 15 bcfd through July and now represents 40% of US shale gas production, making it the largest producing shale gas basin in the country, according to the US Energy Information Administration’s Drilling Productivity Report . While the region’s rig count has leveled off at around 100 rigs over the past 10 months, improvements in drilling productivity have enabled operators to more efficiently support new wells. EIA expects wells coming online in August to add more than 600 MMcfd to existing production, more than offsetting a drop in production due to existing well decline rates, thus increasing the production rate by 247 MMcfd. Marcellus production in recent years has shot up to record levels after accounting for just 2 bcfd in 2010, resulting in record gas storage injections, multiple pipeline expansion projects to remedy bottlenecks, and stabilized or decreased prices ( […]

Posted On : Published By : Tom Whipple
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Shale gas: ‘The dotcom bubble of our times’

Public opinion has been divided very starkly indeed by the government’s invitation to energy companies to apply for licences to develop shale gas across a broad swathe of the United Kingdom. On the one hand, many environmental and conservation groups are bitterly opposed to shale development. Ranged against them are those within and beyond the energy industry who believe that the exploitation of shale gas can prove not only vital but hugely positive for the British economy. Rather oddly, hardly anyone seems to have asked the one question which is surely fundamental: does shale development make economic sense? My conclusion is that it does not. That Britain needs new energy sources is surely beyond dispute. Between 2003 and 2013, domestic production of oil and gas slumped by 62pc and 65pc respectively, while coal output decreased by 55pc. Despite sharp increases in […]

Posted On : Published By : Tom Whipple
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Bakken Shale Gas Flaring Highlights Global Problem

High rates of natural gas flaring in the Bakken shale formation are symptomatic of infrastructure limitations that prevent this gas from reaching a market. Although various technical options could reduce flaring from high-output well sites, none matches the benefits of developing large-scale outlets for the gas. The Wall St. Journal recently reported on the high rate at which excess natural gas from wells in North Dakota’s Bakken shale formation is burned off, or “flared.”  The Journal cited state data indicating 10.3 billion cubic feet (BCF) of gas were flared there during April 2014. That represented 30% of total gas production in the state for the month. North Dakota’s governor attributed the high volume of gas flared in his state to the great speed at which the Bakken shale has been developed, outpacing gas recovery efforts. Oil output ramped up from 200,000 barrels per day five years ago to just over […]

Posted On : Published By : Tom Whipple
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Dispute Flares Over Burned-Off Natural Gas

It isn’t every day that an energy company tries to give away cash, but one of the biggest oil producers in North Dakota is trying to do just that. Continental Resources Ltd. says it wants to pay state taxes and make royalty payments on natural gas it improperly burned off at dozens of wells in recent years. The company is asking state regulators to approve its plans, including the value it is assigning to the gas that was burned in the controversial practice known as flaring. "We believe we’re the first operator out there asking to be allowed to pay royalties and taxes," said Brooks Richardson, Continental’s director of risk enterprise management. Continental and other North Dakota drillers say they were forced to burn off gas they would have rather […]

Posted On : Published By : Tom Whipple
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Two LNG export deals get U.S. nod

A facility along the Texas coast was cleared for exports of liquefied natural gas sourced from domestic supplies, the Federal Energy Regulatory Commission said. Freeport LNG Development is to build a plant capable of processing 1.8 billion cubic feet of natural gas per day for exports to countries with and without free-trade agreements with the United States. The federal government must weigh trade to non-FTA countries against the public’s interest. FERC in a statement Thursday said the Freeport LNG is required to adhere to more than 80 conditions to mitigate potential environmental impacts. Supporters of LNG exports say it will be a source of domestic economic stimulus while enhancing U.S. leverage overseas. Opponents say it could lead to higher natural gas prices at home and lead to more hydraulic fracturing, a controversial drilling practice seen as harmful to the environment. Conditional approval was given Thursday by the U.S. Energy […]

Posted On : Published By : Tom Whipple
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Robert Rapier: The US and Russia are Gas Giants

This is the 2nd installment in a series that examines data from the recently released  Statistical Review of World Energy 2014 . The previous post –  World Sets New Oil Production and Consumption Records  – delved into world oil production and consumption figures. Today’s post looks at the global natural gas picture. In 2013 global natural gas production advanced 1.1% to a new all-time high of 328 billion cubic feet per day (Bcfd). Except for a one-year decline in 2008-2009, global gas production has risen fairly steadily for about three decades, and production has more than doubled during that time span: Global Gas Production 1970 through 2013 The US is Still Gas King The US continues to dominate both natural gas production (and consumption). In 2013, the US set a new all-time high production record for the third straight year, with gas production rising to 66.5 Bcfd to lead all countries. […]

Posted On : Published By : Tom Whipple
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California Halts Injection of Fracking Waste

California officials have ordered an emergency shut-down of 11 oil and gas waste injection sites and a review more than 100 others in the state’s drought-wracked Central Valley out of fear that companies may have been pumping fracking fluids and other toxic waste into drinking water aquifers there. The state’s Division of Oil and Gas and Geothermal Resources on July 7 issued cease and desist orders to seven energy companies warning that they may be injecting their waste into aquifers that could be a source of drinking water, and stating that their waste disposal "poses danger to life, health, property, and natural resources." The orders were first reported by the Bakersfield Californian, and the state has confirmed with ProPublica that its investigation is expanding to look at additional wells. The action comes as California’s agriculture industry copes with a drought crisis that has emptied reservoirs and cost the state […]

Posted On : Published By : Tom Whipple
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Natural Gas Weekly Update

Tight oil drilling lifts associated natural gas production While the number of natural gas-directed drilling rigs is particularly low right now, gas production continues rising, and is currently up 5% year-over-year. One key reason for the gas production boost is the significant increase in natural gas reserves and production associated with tight oil drilling and production. As noted in the Natural Gas Weekly Update of June 25, production of associated gas has been growing in those areas of the country where tight oil production has also been growing because tight oil production requires the presence of natural gas to drive liquids to the wellbore. The importance of tight oil drilling and production on natural gas supply is further illustrated by the 103% increase in Lower 48 natural gas reserves associated with oil, which increased from 21.9 trillion cubic feet (Tcf) at year-end 2007 to 44.5 Tcf at year-end 2012. […]

Posted On : Published By : Tom Whipple
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North Texas city rejects partial fracking ban

DENTON, Texas (AP) — The council governing a North Texas city that sits atop a large natural gas reserve rejected a bid early Wednesday morning to ban further permitting of hydraulic fracturing in the community after eight hours of public testimony. Denton City Council members voted down the petition 5-2, sending the proposal to a public ballot in November. Fracking involves blasting a mix of water, sand and chemicals deep into underground rock formations to release trapped oil and gas. While the method has long stirred concerns about its effects on the environment and human health, proponents argue that fracking can be done safely and is cleaner than other forms of energy extraction. And industry groups and state regulators had warned such a ban could be followed by litigation and a severe hit to Denton’s economy. Barry Smitherman, chairman of the Railroad Commission, the Texas oil and gas regulator, […]

Posted On : Published By : Tom Whipple