Category:

Gas and coal supply challenges raise summer reliability concerns: NERC

The electricity sector’s increasing reliance on natural gas is raising reliability concerns for the coming summer, while at the same time there may be coal supply constraints, the North American Electric Reliability Corp. said Wednesday. NERC, in its annual summer assessment, said that the ongoing and speedy growth of natural gas-fired generation highlights the need "for increased coordination between the gas and electric industries." John Moura, director of reliability assessment at NERC, said that while NERC has been examining gas-electric interdependency issues for quite some time, the resource’s increasing role is raising issues specific to the summer time. Article continues below… Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline and pooling points in major U.S. markets. Gas Daily keeps you informed about complex state and federal regulations that affect competition in the gas industry. You will also learn about business-critical issues […]

Posted On : Published By : Tom Whipple
Category:

Water concerns could limit US oil, gas development, speakers say

The oil and gas industry needs to respond more effectively to public concerns about safe water supplies if it expects to realize US unconventional resources’ full potential, speakers at Deloitte LLP’s 2014 Washington Energy Conference warned. Hydraulic fracturing and horizontal drilling successfully changed the US from a net natural gas importer to exporter, noted Karen A. Harbert, president of the US Chamber of Commerce’s Institute for 21st Century Energy, in her May 13 remarks. “But this is not a given,” she continued. “Emotions are running high. Opponents with scare stories want those resources to stay in the ground. Colorado is at ‘Ground Zero’ with a ballot initiative that would ban all fracing and place setbacks so far that production would be uneconomic.” Following his speech about water’s growing importance in any manufacturer’s plans, Gregory J. Koch, Coca Cola Co.’s global water stewardship director, said, “Your data and government permit […]

Posted On : Published By : Tom Whipple
Category:

North Dakota breaks state record for oil production

BISMARCK, N.D., May 14 (UPI) –Preliminary data from March show oil production in North Dakota has reached a new all-time high, the state’s Department of Natural Resources said. The North Dakota Industrial Commission, a division within state’s DNR, said March average oil production of 977,051 barrels per day was 2.6 percent higher than for February and an all-time high for the state. The commission said 94 percent of the production came from the Bakken and Three Forks area of the state. NDIC Director Lynn Helms said the number of wells completed from February to March was "up sharply," though the weather in the state was still having an impact on production. March, he said, began with a few days with temperatures below zero degrees Fahrenheit and there was at least a week when wind speeds were too high for work. At the end of the month, he added, 8 […]

Posted On : Published By : Tom Whipple
Category:

Texas mayor appeals for fracking data after earthquakes jolt town

The state agency responsible for regulating the oil and gas industry in Texas has requested that fracking companies report data related to wastewater disposal wells daily — instead of yearly — after hundreds of earthquakes hit an area with no history of seismic activity, said the mayor of a small Texas town on Tuesday. At least 300 small earthquakes have hit north Texas — home to the heavily-drilled Barnett Shale region — since January, according to United States Geological Survey (USGS) data. Critics say the state has acted too slowly in investigating the unusual seismic activity and its possible links to fracking activities. “The Texas Railroad Commission has sent a letter requesting that companies voluntarily give that information,” said Alan Brundrett, mayor of Azle, a small town of about 11,000 in north Texas that has experienced unusual earthquakes. “That’s the biggest issue, that the data is not available," Brundrett […]

Posted On : Published By : Tom Whipple
Category:

Parnell signs off on gas infrastructure bill

Alaska Gov. Sean Parnell signed a bill that aims to facilitate the construction of a natural gas pipeline and put that state in co-ownership of the project. Parnell signed Senate Bill 138, which moves plans for a large-diameter natural gas pipeline forward. Under the legislation, the state would become an owner in the Alaska Liquefied Natural Gas Project and put local Alaskans to work. "Alaskans’ dream of a natural gas pipeline is now closer to becoming reality," he said in a statement Thursday. "For the first time, we have alignment among the necessary parties, authorization from the Legislature, and the beginning of engineering and design work on a project that will create thousands of Alaska jobs, and fuel Alaska homes and businesses for decades to come." Parnell’s signature moves the project to the preliminary engineering and design phase. Construction of the project could begin […]

Posted On : Published By : Tom Whipple
Category:

North Dakota plans LNG processing facility

North Dakota Gov. Jack Dalrymple announced startup company North Dakota LNG will build a gas processing plant in Tioga, the first of its kind for the state. North Dakota LNG said they’d start construction at the Tioga liquefied natural gas processing plant this summer. First phase operations will produce 10,000 gallons of LNG per day. Phase two operations, scheduled for 2015, will bring production levels to more than 76,000 gallons per day. The company has a contract with Hess. Corp. to receive residual gas for the Tioga feedstock. Dalrymple said LNG from the facility will be used for commercial fuel. "This is an exciting day for North Dakota," he said in a statement Wednesday. The company’s chief executive officer, Patrick Hughes, said the facility will give oil and gas operators in the Bakken oil region of the state access to a reliable alternative […]

Posted On : Published By : Tom Whipple
Category:

Shale Gas Plagued By Unusual Methane Leaks

A Feb. 2013 scientific study found an unexpectedly high methane leakage rate in the well-fractured Utah basin. Photo of Utah gas field   credit According to a spate of recent scientific studies from the United States and Australia, the shale gas industry has generated another formidable challenge: methane and radon leakage three times greater than expected. In some cases the volume of seeping methane, a greenhouse gas that traps heat 25 times more effectively than carbon dioxide, is so high it challenges the notion that shale gas can be a bridge to a cleaner energy future, as promoted by the government of British Columbia and other shale gas jurisdictions. "If natural gas is to be a ‘bridge’ to a more sustainable energy future, it is a bridge that must be traversed carefully," warned one 2014 study published in Science. "Diligence will be required to ensure that leakage rates are […]

Posted On : Published By : Tom Whipple
Category:

EIA: High value of liquids boosts wet gas production

Spurred by relatively high values of natural gas liquids (NGL), company interests have shifted from dry gas production to wet gas production, according to the US Energy Information Administration’s monthly gas liquids report. Gas prices have stayed low in recent years due to increased supply. The Henry Hub spot price averaged $3.73/MMbtu in 2013 and $2.75/MMbtu in 2012, reducing profit margins for many gas producers . NGL prices, as being traditionally linked to crude oil, are set at a significant price premium over pipeline-quality dry gas. According to EIA data, more recently, the gas plant liquids composite spot price —which approximates a value of NGL produced at processing plants—has hovered roughly halfway between WTI crude oil and gas spot prices. This liquids price premium has resulted in a faster growth rate of wet gas production compared with that of dry gas. Liquids extracted from wet gas at processing plants […]

Posted On : Published By : Tom Whipple
Category:

Natural Gas Weekly Update

Alaskan LNG export project resumes operations The existing liquefied natural gas (LNG) plant at Nikiski on the Kenai Peninsula in Alaska and a project to build a new liquefaction plant, also at Nikiski, both achieved major milestones recently. , the first tanker since late 2012 arrived at ConocoPhillips’s existing Kenai LNG plant, which is on Cook Inlet. Also, late last month, the Alaska Legislature passed a bill that paved the way for the state to take an equity interest in the new Alaska LNG project, which includes pipelines, alongside other partners, including ConocoPhillips, ExxonMobil, BP, and TransCanada. The project is expected to cost $45-$65 billion and is slated to begin operations in the mid-2020s. Kenai LNG originally opened in 1969 and was the largest LNG export facility in the world at the time, and the first facility to serve the Asia-Pacific market. Annual exports from the plant peaked in […]

Posted On : Published By : Tom Whipple
Category:

High value of liquids drives U.S. producers to target wet natural gas resources

In recent years, high levels of natural gas production have pushed prices down. The Henry Hub spot price averaged $3.73 per million British thermal units (MMBtu) in 2013. In 2012, the average annual Henry Hub price was $2.75/MMBtu, which reduced profit margins for many natural gas producers . The relatively high value of natural gas liquids (NGL) has led producers to target wet gas. NGL prices have traditionally been linked to crude oil, resulting in a significant price premium over pipeline-quality dry natural gas. More recently, the natural gas plant liquids composite spot price (which approximates a value of NGL produced at natural gas processing plants) has hovered roughly halfway between West Texas Intermediate (WTI) crude oil and natural gas spot prices. The result of this liquids price premium is that wet natural gas production is increasing at a faster rate than dry natural gas production. Liquids extracted from […]

Posted On : Published By : Tom Whipple