Gathering

Russia Says Shale Will Affect Oil Prices More Than Irans Return

While many observers believe the deal Iran struck with six world powers over its nuclear program may depress oil prices even further, Russia’s energy minister says the cost of producing shale oil is likely to have an even bigger impact on the world market. Iran’s deputy oil minister, Mansour Moazami, said his country’s crude exports would nearly double eventually from 1.2 MMbpd to 2.3 MMbpd once the sanctions are lifted, and Tehran has urged fellow OPEC members to adjust their output accordingly in order to keep prices stable.

Cuadrilla to Appeal UK Council's Anti-Fracking Decision

LONDON (AP) — Cuadrilla Resources Ltd. said it will appeal a local authority decision to block the oil and gas exploration company's bid to frack shale gas in northwest England — a setback for plans to establish a fracking industry in Britain. Lancashire County Councilors last month rejected plans for exploratory drilling at two sites about 240 miles northwest of London, citing effects on traffic and the landscape. Britain's government hopes fracking will reduce the country's reliance on gas imports.

Novel Solution to Fracking Wastewater Could Keep Everyone Happy

Water used for fracking has always been a headache for the oil industry but now, thanks to new technology being developed in the United States, produced water – H2O used in the process of oil and gas extraction – could soon be recovered and used to power the operation or be put back into the grid, saving operators a bundle. Critics of fracking have long pointed to the prodigious use of water in the fracking process as one of the reasons to be against the controversial procedure, which props open layers of shale rock in order to let the oil or gas hydrocarbons flow into the well bore.

World News: Report Outlines Climate Framework, Spending

Development of a clear climate framework and a global emissions target is essential if $48-53 trillion for a new sustainable energy infrastructure is to be delivered, according to a new report from the World Energy Council. The findings are discussed in the fifth edition of the energy leaders’ dialogue series, the World Energy Trilemma Report, ‘Priority actions on climate change and how to balance the energy trilemma,’ released by the World Energy Council and project partner Oliver Wyman, along with the Global Risk Centre of its parent Marsh & McLennan Companies.

SGA Chairman Says Bring on the Challenges

For every opportunity in the natural gas business there is an equal challenge, and conversely, every challenge can be turned into an opportunity. That’s the nature of the gas business today, but as any industry observer will tell you, that’s been the nature of the beast for the last 15 years.

Not Deterred By Huge Risks, Shell Opts For Megaprojects

U.S. shale has offered the oil industry a business model that is different from conventional drilling of the past. High initial decline rates, especially compared to conventional wells, requires companies to continuously drill to keep up production. But with lower upfront costs and shorter ramp up times, shale drilling is arguably less risky than a multibillion-dollar megaproject that the oil majors had become accustomed to over the past decade.

NY Farmers' Group Proposes Gas Well Fracking Using Propane

ALBANY, N.Y. (AP) — A group of five farm families is seeking a state permit for a natural gas well using gelled propane instead of water for fracking, thus avoiding New York's ban on high-volume hydraulic fracturing. The Snyder Farm Group is seeking to develop a 53-acre natural gas well in the Tioga County town of Barton, near the Pennsylvania border. A permit application is in the preliminary stage before the Department of Environmental Conservation, a lawyer who represents the company seeking the permit said Thursday.

Declining Rig Count in U.S. Tight Formations

The count for both horizontal and vertical rigs in U.S tight formations has declining drastically from October 2014. This article discuss the declining rig count in the seven major Energy Information Administration (EIA) U.S. oil and natural gas regions.

Summer Gas Prices in the Northeast: Why So Low? Why So Unpredictable?

As summer approaches, there are two things to know about natural gas prices in the New York/New England area. First, it is a difficult time to predict gas price movements in the Northeast. But in general, prices are down – and are likely to stay that way for this summer. It’s hard to predict prices because there are a lot of new and unpredictable supply-and-demand dynamics across the country that are particularly pronounced in the Northeast. For instance, the explosion of shale gas production in the Marcellus and Utica shale regions.

Environmentalists Want California to Stop Offshore Fracking

LOS ANGELES (AP) — Environmentalists called on California Gov. Jerry Brown to halt plans for months of hydraulic fracturing in the waters off Southern California, warning that it could lead to chemical pollution or an oil spill. State regulators this month approved nine permits for operator Thums Long Beach Co. for so-called fracking operations between August and December in Long Beach Harbor.

Argentina, China lead shale development outside North America in first-half 2015

As recently as last year, only four countries in the world were producing commercial volumes of either natural gas from shale formations (shale gas) or crude oil from tight formations (tight oil): the United States and Canada, and more recently, Argentina and China. Beyond these four countries, other countries have started exploring hydrocarbons from shale and other tight resources, but they are still short of reaching commercial production.

Presidents Report Finds Energy Infrastructure Needs Major Investments

The need for major changes to the nation’s energy infrastructure is why President Obama initiated a quadrennial cycle of energy reviews to provide a multiyear roadmap for U.S. energy policy. The result is the recent release of the initial installment of the first-ever Quadrennial Energy Review 2015 (QER) prepared by the White House task force.

Crude by Rail Boosts West Coast Supply as Regional Production Falls

While U.S. crude oil production increased by nearly 3.2 MMbpd from 2010 to 2014, production in the West Coast region decreased by 100,000 bpd, continuing a long-term decline, EIA data showed. With no major crude oil pipelines connecting the West Coast to other parts of the country, refineries on the West Coast adjusted by increasing imports of foreign crude oil, reaching an average of 1.1 MMbpd over the past five years.

Gulfport Energy Increases Utica Shale Holdings

OKLAHOMA CITY – Gulfport Energy Corporation announced it will acquire additional acreage in the Utica Shale, associated assets and incremental firm transportation commitments from from Aubrey McClendon-backed American Energy for about $406 million. Among the properties involved: • Contiguous bolt-on acreage acquisitions totaling 35,325 net acres in Monroe, Belmont and Jefferson counties in Ohio • An 11-mile gas-gathering system that is operational in Monroe County to support near-term development

PGC Report Shows Record-High Resource Evaluation of US Natural Gas

The United States possesses a large and growing domestic abundance of natural gas. The biennial report,<em> Potential Supply of Natural Gas in the United States,</em> developed by the Potential Gas Committee (PGC), details the nation's total technically recoverable resource base of natural gas, which provides the foundation for stable prices, customer savings, energy security and more.

EPA: No widespread Harm to Drinking Water from Fracking

WASHINGTON (AP) — Hydraulic fracturing to drill for oil and natural gas has not caused widespread harm to drinking water in the United States, the Environmental Protection Agency (EPA) said Thursday in a report that also warned of potential contamination of water supplies if safeguards are not maintained.

Enterprise Announces Acquisition of Eagle Ford Midstream Assets

HOUSTON – Enterprise Products Partners announced today it executed definitive agreements to purchase all member interests in Eagle Ford Shale gas-gathering company EFS Midstream from affiliates of Pioneer Natural Resources Company and Reliance Industries Limited for $2.15 billion.

Opportunities Burning Bright for Natural Gas, AGA Chairman Says

At least for his new role as 2015 chairman of the American Gas Association Terry D. McCallister doesn’t have far to travel. The 59-year-old natural gas executive who is chairman and CEO of WGL Holdings and Washington Gas Light Co., the 165-year-old utility company that services the Potomac region, has plenty on his plate these days, as this interview found, so time is at a premium.

In The News: Obama Gives Final Approval to Cove Point LNG Terminal

The Obama administration on May 7 granted final approval to a $3.8 billion natural gas export facility in Calvert County, MD – the first gas export site on the East Coast. Environmentalists sued within hours to stop the project.

The Shale Gas Revolution and Effects on the Northeast Gas Market

Without a doubt, the biggest factor impacting the U.S. gas market is the development of shale gas in the Marcellus Shale play, located in northern Appalachia and the Alleghenies. The shale gas revolution in the U.S. – specifically in Pennsylvania and West Virginia – is nothing short of a revolution for the entire country.

Making the Best of Evolving Midstream Infrastructure

The changing oil production and consumption landscape in North America has led to new developments in the infrastructure that brings oil to market – the pipelines, gathering systems, storage facilities, rail networks and marine-based transport networks that comprise the industry’s midstream oil infrastructure.

Notebook: Hey, Gov. Cuomo, Fracking Ban Not Working For Rest of State

Gov. Andrew Cuomo: Get your butt out of Albany and go see how the rest of your state lives. Or you might not have much of a state left. One memory that stands out from my 1970s tenure as a reporter in New York’s Southern Tier is that of an economy stuck in reverse. Broome County centers around Binghamton, a city of 47,000 that has lost nearly half its population since the 1950s.

Can Shale Formations Enable U.S. to Become Oil Exporter?

In recent years, the technological advances in recovering hydrocarbons trapped in tight formations, like shale, using unconventional drilling methods (horizontal drilling in conjunction with multi-stage hydraulic fracturing) have made U.S. oil production grow dramatically.

Wood Mackenzie: Oil Market Concerns Inescapable in 2015

Global consulting company Wood Mackenzie has drawn on the knowledge and expertise of senior analysts in compiling a new report, Horizons: What To Look For In 2015. In discussing the report, Paul McConnell, principal analyst for Global Trends at Wood Mackenzie, pointed out that oil market concerns will be inescapable in 2015. “With no sign that OPEC is reconsidering its decision to leave production targets unchanged, the impetus falls on non-OPEC producers to limit supply growth and bring the market back into balance,” he said.

Ohio River Valley Plans Condensate Pipeline In Ohio

Ohio River Valley Pipeline, LLC, an affiliate of the EnLink Midstream companies, EnLink Midstream Partners, LP and EnLink Midstream, LLC (the general partner), held a binding open season for volume commitments for interstate common carrier transportation service on the ORV Condensate Pipeline.

Editor's Notebook: Local Updates

I hope the industry is paying attention to some regionalized developments that could hamper activity, at least in the short term.

Gas Gathering/Processing System For Oklahomas STACK Play

Tall Oak Midstream, LLC has early natural gas gathering operations underway on the Tall Oak STACK System. The gathering and processing system will serve producers in Oklahoma’s STACK play. STACK is an acronym for the Sooner Trend, Anadarko Basin and Oklahoma’s Canadian and Kingfisher counties. It is northwest of Oklahoma City and targets the Woodford and Mississippian-age shales.

U.S.-China Carbon Pact: Promising Start Or Path To Nowhere?

In November, President Obama and Chinese President Xi Jinping surprised the world by agreeing in principle to targets for carbon dioxide emissions in a symbolic effort to address climate change. This is a pact of historic magnitude that recognizes a need for the world’s two largest emitters – both longstanding antagonists – to reduce future release of greenhouse gas. But aside from a handshake and a promise, what will actually come from this mutual recognition?

Constitution Gains Key Permit; Northeast Braces For Cold

A federal approval for construction of a major natural gas pipeline that will ship supplies from the Marcellus to underserved New England and the Northeast markets closed out 2014 with a reminder to the industry of good things to come.

Sacagawea Pipeline Plans North Dakota Crude Line

Sacagawea Pipeline Company, an affiliate of Paradigm Energy Partners, completed an extended open season on Dec. 15. As planned, the pipeline will deliver crude oil from various points south of Lake Sacagawea in and around Johnson’s Corner and Keene, in McKenzie County, ND to destinations with takeaway options for both rail and pipe in Palermo and Stanley, ND.