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EIA: Marcellus gas production continues to outpace takeaway capacity

Rising production of natural gas in the Marcellus shale play in the Appalachian basin continues to outpace the growth in the region’s pipeline takeaway capacity, which has led to supply backups in the region, the US Energy Information Administration reported in a weekly gas report. Because of this fact, EIA observed, new gas production is unable to flow to areas of high demand, “placing downward pressure on prices in the region.” EIA noted that this phenomenon has also “contributed to a number of natural gas wells in Marcellus remaining backlogged, with a Feb. 28 report from Barclay’s estimating that more than 1,300 wells there are drilled but not completed.” EIA noted that several proposed and recently completed projects will provide additional pipeline infrastructure to relieve some of the Marcellus supply glut. “Projects that have recently come online, such as Transcontinental Pipeline Co.’s (Transco) Northeast Supply Link, have expanded the […]

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Very Little Cheap Natural Gas in New York Marcellus Shale, New Report Concludes

For years, the shale industry has touted the economic benefits it can provide. An overflowing supply of domestic natural gas will help keep heating and electric bills low for American consumers, they argue, while drilling jobs and astounding royalty windfalls for landowners will reinvigorate local economies. These tantalizing promises have caught the attention of politicians in Washington, D.C. who argue that the rewards of relying on shale gas outweigh the risks, especially because harm can be minimized by the industry or by regulators. But across the U.S., communities where drilling has taken place have found that the process brings along higher costs than advertised. Even when properly done, drilling carries with it major impacts — including  air pollution , truck traffic , and plunging property values  — and when drillers make mistakes, water contamination has left residents without drinking water or cleaning up from disastrous well blow-outs . And as […]

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EPA drastically underestimates methane released at drilling sites

Drilling operations at several natural gas wells in southwestern Pennsylvania released methane into the atmosphere at rates that were 100 to 1,000 times greater than federal regulators had estimated, new research shows. Using a plane that was specially equipped to measure greenhouse gas emissions in the air, scientists found that drilling activities at seven well pads in the booming Marcellus shale formation emitted 34 grams of methane per second, on average. The Environmental Protection Agency has estimated that such drilling releases between 0.04 grams and 0.30 grams of methane per second. The study , published Monday in the Proceedings of the National Academy of Sciences, adds to a growing body of research that suggests the EPA is gravely underestimating methane emissions from oil and gas operations. The agency is expected to issue its own analysis of methane emissions from the oil and gas sector as early as Tuesday, which […]

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Fracking to thank for lower emissions, API says

The American Petroleum Institute said hydraulic fracturing of shale reserves helped lead to the gas production increase credited with lowering U.S. emissions. The Environmental Protection Agency said the amount for greenhouse gasses emitted in 2012 — the last full year for which data are available — decreased 3.4 percent from the previous year. API spokesman Zachary Cikanek said an increase in the production of cleaner-burning natural gas was in part responsible for lower reported greenhouse gas emissions. "Innovations in hydraulic fracturing and horizontal drilling have helped make the U.S. the largest producer of natural gas in the world," he said in a statement Tuesday. "America is leading the world in reducing greenhouse gasses thanks, in part, to the revolution in natural gas production." Hydraulic fracturing, known also as fracking, is highly controversial because some of the chemicals used in the process are viewed as […]

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Natural gas output from US’ Marcellus edges closer to 15 Bcf/d: EIA

Natural gas production from the Marcellus Shale in May is expected to rise 253,000 Mcf/d above April levels and move closer to the 15 Bcf/d mark, the US Energy Information Administration said Monday in its monthly report on drilling productivity. The report said gas output from the Marcellus will rise to 14.77 Bcf/d in May from 14.52 Bcf/d in April, thanks in part to a projected increase in new well production/rig to 6,501 Mcf/d in May from 6,455 Mcf/d this month. Louisiana’s Haynesville Shale has begun to show new life after drillers left the play three years ago. The agency is projecting gas production will rise to 6.615 Bcf/d in May, 11,000 Mcf/d, above April’s 6.604 Bcf/d. Production in the play peaked at about 10 Bcf/d in 2012. Article continues below… Request a free trial of: Gas Daily Gas Daily offers the most detailed […]

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Natural gas output from US' Marcellus edges closer to 15 Bcf/d: EIA

Natural gas production from the Marcellus Shale in May is expected to rise 253,000 Mcf/d above April levels and move closer to the 15 Bcf/d mark, the US Energy Information Administration said Monday in its monthly report on drilling productivity. The report said gas output from the Marcellus will rise to 14.77 Bcf/d in May from 14.52 Bcf/d in April, thanks in part to a projected increase in new well production/rig to 6,501 Mcf/d in May from 6,455 Mcf/d this month. Louisiana’s Haynesville Shale has begun to show new life after drillers left the play three years ago. The agency is projecting gas production will rise to 6.615 Bcf/d in May, 11,000 Mcf/d, above April’s 6.604 Bcf/d. Production in the play peaked at about 10 Bcf/d in 2012. Article continues below… Request a free trial of: Gas Daily Gas Daily offers the most detailed […]

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Alaska adopts strict new rules on hydraulic fracturing

Alaska’s oil and gas regulatory commission has adopted new, more stringent rules governing hydraulic fracturing that include increased testing of water wells for contamination, its chairman said Wednesday in an interview. Final regulations are now being reviewed by state attorneys and still must be signed by Lieutenant Governor Mead Treadwell. The rules will require testing of all water wells within a half-mile radius of a well to be fractured, and will mandate testing of the water wells for contamination after the fracture job is completed, said Cathy Foerster, chair of the Alaska Oil and Gas Conservation Commission, or AOGCC. In some cases, testing of water wells prior to the fracturing may be required at the discretion of the commission, Foerster said. Article continues below… Request a free trial of: Gas Daily Gas Daily offers the most detailed coverage of natural gas prices at interstate […]

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On Fracking Front, A Push To Reduce Leaks of Methane

Scientists, engineers, and government regulators are increasingly turning their attention to solving one of the chief environmental problems associated with fracking for natural gas and oil – significant leaks of methane, a potent greenhouse gas. Loose pipe flanges. Leaky storage tanks. Condenser valves stuck open. Outdated compressors. Inefficient pneumatic systems. Corroded pipes. Forty separate types of equipment are known to be potential sources of methane emissions during the production and processing of natural gas and oil by hydraulic fracturing, or fracking, of underground shale formations. As the fracking boom continues unabated across the U.S., scientists, engineers, and government experts are increasingly focusing on the complex task of identifying the sources of these methane leaks and devising methods to stop them.   Photo credit: Tim Evanson/Flickr. "Fugitive" methane escapes from natural gas production sites, such as this one in North Dakota. "There are many, many, many possible leaking sources," said […]

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Amid showdown with energy-rich Russia, calls rise in Europe to start fracking

Europe’s newest weapon in the battle of wills with Russian President Vladimir Putin lies buried deep beneath the ancient oaks and rolling green pastures of this quintessentially English village. There, wedged in the bedrock, lie vast quantities of oil and natural gas — enough, when combined with the spoils of hundreds of other sites like it, to help kick Europe’s addiction to Russian energy. Or so says David Cameron. Ever since Russian forces took hold of Crimea last month, the British prime minister has been leading a chorus of conservative politicians and energy executives in a refrain they believe will spark a shale gas revolution in Europe: Frack, baby, frack. The push for a European boom in fracking — shorthand for hydraulic fracturing — has been underway for years, but it has taken on new urgency in recent weeks as fears grow […]

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Pa. Shale Impact Fees Reach Record Levels in 2013

As Pennsylvania shale production continues to soar, the state Public Utility Commission (PUC) announced Friday that impact fee revenue for 2013 hit record levels. With a total of 6,489 unconventional wells under development or in production as of December 31, 2013, shale producers contributed a total of $224.5 million in impact fees for the calendar year. This brings total impact fee revenue to more than $630 million over the past three years, in addition to the more than $2.1 billion in state tax revenue generated by the industry since 2008.    Marcellus Shale Coalition president Dave Spigelmyer issued this statement following the release of this data:   “This new stream of revenue is having a positive and real impact in communities with shale development as well as those without active Marcellus production. Whether these funds are invested in bridge and road projects, the purchase of new firefighting equipment, key environmental programs, […]

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