Category:

Natural gas output rising in five of six biggest US shale plays in April: EIA

Production in the Permian Basin is expected to increase by 39,000 Mcf/d to 5.369 Bcf/d in April from projected March output of 5.330 Bcf/d. Month-over-month gas output is projected to fall in one of the basins studied. In the Haynesville Shale play, gas production is expected to fall by 76 Mcf/d to 6.390 Bcf/d in April from 6.466 Bcf/d in March. The EIA report also shows that average per-rig gas production will increase in five of the six basins studied. The report projects that per-rig gas output in the Bakken Shale will increase by 9 Mcf/d to 497 Mcf/d in April from 488 Mcf/d in March. Per-rig production in the Eagle Ford Shale is expected to increase 8 Mcf/d to 1,280 Mcf/d in April from March gas output of 1,272 Mcf/d. In the Haynesville Shale, production from an average rig is expected to increase by 25 Mcf/d in April […]

Posted On :
Category:

Chesapeake Accused of Underpaying Gas Royalties

Pennsylvanians who embraced the natural-gas drilling boom that has swept the state are starting to sour on one of the biggest names in the business: Chesapeake Energy Corp. Some property owners are accusing Chesapeake of shortchanging them on royalty payments for pumping oil and gas from their land. The public outcry has grown so loud that Republican Gov. Tom Corbett, a longtime industry supporter who has received campaign contributions from the company, wrote an open letter last month asking the state attorney general to investigate. Chesapeake declined to comment on the royalty disputes, but said in a recent letter to the governor that it is abiding by the terms of its contracts with landowners. In Bradford County, a rural area in northern Pennsylvania where a lot of the drilling has taken place, anti-Chesapeake sentiment is running high, said Doug McLinko, a county commissioner. "Bradford County is a pro-gas part […]

Posted On :
Category:

ANR Pipeline joins other operators with plans to flow gas away from Marcellus, Utica

ANR Pipeline is taking bids through Friday on another binding open season to modify its Southeast Mainline System, this time specifically reversing flows on the line for up to 600,000 Dt/d of firm transportation capacity. In a open season notice issued March 7, ANR said it is seeking commitments for a more specific project: the reversal of 600,000 Dt/d from Zone ML3 to the ANR Southeast area Headstation Central Delivery Point, located in ML1 Tariff Rate Zone near Eunice, Louisiana. For the reversal, ANR expects to modify existing mainline facilities at compressor stations, including valves and yard piping, to enable bi-directional flow on ANR’s Southeast Mainline. The reversal project has an in-service date of March 1, 2015, earlier than the November 2015 service date for the pipeline’s prior binding open season, which was issued in late February. Article continues below… Request a free trial […]

Posted On :
Category:

API says LNG answer to European energy woes

WASHINGTON, March 6 (UPI) — Ukraine and Eastern European allies could benefit for the U.S. shale gas revolution, but bureaucracy is in the way, the American Petroleum Institute said. API Upstream Director Erik Milito said exporting more liquefied natural gas from the United States could help allies in Europe who are dependent on Russia for their natural gas supplies. An "energy revolution" in the United States means the country is now one of the world’s leading natural gas producers. More exports in the form of liquefied natural gas could add a layer of security to the European energy market, he said. "Unfortunately, the slow pace of federal approval for U.S. LNG export facilities has stalled the construction of infrastructure, weakening our competitive position," he said in a statement Wednesday. The majority of Russian natural gas sent to European markets passes through the Soviet-era transit network in Ukraine. Russian energy […]

Posted On :
Category:

Chesapeake, Encana face criminal antitrust charges in Michigan

Oil and gas giants Chesapeake Energy and Encana Corp. were charged on Wednesday with colluding to keep oil and gas lease prices artificially low in the state of Michigan, the state Attorney General Bill Schuette said. The announcement follows a lengthy investigation by Schuette’s office into whether the firms — the biggest land leasers during a speculative oil and gas leasing boom in Michigan’s Collingwood Shale region during 2010 — colluded to avoid prices from rising as they acquired land leases from landowners. Michigan began looking into the companies’ activities in 2012 after a Reuters investigation found that executives from the two firms discussed proposals to divide bidding responsibilities in the state for nine private landowners and counties in Michigan. "I will aggressively prosecute any company who conspires to break the law," Schuette said in a statement. The companies were charged with one count each of antitrust […]

Posted On :
Category:

IHS CERAWeek: Shale gas gives US competitive advantages

The US holds ample reserves of natural gas to help supply rising world gas demand, particularly for gas-fired electric power generation in Asia, speakers told the IHS CERAWeek energy conference during the Mar. 5 opening gas keynote speech and the global gas plenary. “It’s clear that no country has found greater opportunity in recent years than the United States,” said Joe Kaeser, Siemans AG president and chief executive officer. “The US will most likely become the world’s largest oil and gas producer this year. That’s affordability, availability, and sustainability all in one.” An abundance of shale gas has reshaped advantages that the US can offer the global economy, he said. “I believe we are witnessing, and participating in, the reindustrialization of the United States,” Kaeser said during the opening keynote speech. “And I think it’s fair to say that the development of horizontal drilling may have been the biggest […]

Posted On :
Category:

China could meet 2015 shale gas target on Sinopec, CNPC efforts: analysts

Recent progress at shale gas projects operated by China’s state-owned giants Sinopec and China National Petroleum Corp. suggest the country is on track to meet the 2015 production target set by the central government, analysts said Monday. China is targeting shale gas output of 6.5 billion cubic meters/year by 2015 and 60 billion-100 billion cu m/year (5.8-9.7 Bcf/day) by 2020 under its official plans. Analysts had earlier criticized these targets as unrealistic given the huge challenges facing operators in China’s nascent shale gas sector. The country’s total shale gas output in 2013 was just 200 million cu m, the Ministry of Land and Resources said in January. Article continues below… Request a free trial of: International Gas Report International Gas Report International Gas Report is a biweekly report that intelligently analyzes what is happening in the natural gas industry, improving your vision and sharpening […]

Posted On :
Category:

Pennsylvania fracking-related jobs numbers questioned

Facing a daunting re-election year, Pennsylvania Gov. Tom Corbett has been touting his all-out support for natural gas drilling as a job creator in his state. But economists and environmentalists are questioning his claim that the industry props up more than 200,000 Pennsylvania jobs. They say that the governor’s administration has greatly inflated the number and that it may be getting lower every day. A new analysis by The Allentown Morning Call  newspaper and published Monday indicates that growth in the industries associated with drilling in the Marcellus Shale — one of the country’s main areas for hydraulic fracturing, or fracking — fell by 29 percent from 2010 to 2013. There are now just under 30,000 that can directly be linked to the Marcellus. Industry supporters say that the decline is a temporary fluctuation and that ancillary jobs created and supported by shale gas development — including ones in […]

Posted On :
Category:

Asian Tigers Stalk U.S. Gas as Louisiana Shale Profits Taper

DeSoto Parish, Louisiana, has a problem. The solution may lie 10,000 miles away in Jakarta. A rustic stretch of bayous and timberland, DeSoto and other communities in the Haynesville shale formation have become victims of the energy industry’s success in extracting natural gas from deeply buried rock. Even as U.S. gas production surges to a record, outpacing domestic demand, Haynesville output has slumped 40 percent since 2011 amid falling prices as companies shift rigs to reservoirs richer in lucrative oil and gas liquids. Tax revenue has tumbled by the same percentage over the past two years from a record $50 million in the parish, home to Civil War battlefields and Billy B’s Cajun Grill. In Jakarta, a city of 10 million, high-rise buildings crowd the skyline and auto-rickshaws, motorcycles and taxis vie for space on gridlocked roads. Indonesia’s energy use may more than […]

Posted On :

Cuadrilla gearing up for new fracking campaign in England

British energy company Cuadrilla Resources said it was reaching out to the public to discuss new hydraulic operations planned near Lancashire, England. The company said its officials started speaking with local residents to discuss proposed exploration work in The Flyde, in western Lancashire. Cuadrilla said it plans to apply for a permit to conduct a hydraulic fracturing, or fracking, campaign and test for the flow of gas at two wells from two separate sites. Cuadrilla Chief Executive Officer Francis Egan said public engagement was part of a responsible business model. "There will be many more chances for people to contribute to the process and I hope that people will take those chances and get involved," he said in a statement. The company was the target of major demonstrations last summer when its work in the southern village of Balcombe was viewed as a prelude […]

Posted On :