Story of the Week

OFS In-Depth Part 1: Rising Costs May Lead to Volatile Oil, Natural Gas Production Growth
NGI Weekly Intel
While many producers have been expecting a rise in oilfield service costs (including, but not limited to the cost of rigs, pressure pumping and transportation) of around 10-15% from 2016... Read More
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NGI Weekly Newsletter

May 22, 2017

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Eclipse Resources CEO Talks Super Laterals, Recovery

As it weathered the commodities downturn and grappled with the problems it created, Ohio pure-play Eclipse Resources Corp. again went back to the drawing board to determine how...

Senate Committee Welcomes Trump's FERC, DOE Nominees

There was little controversy and plenty of goodwill for a trio of Trump administration nominees to FERC and the Department of Energy (DOE) Thursday when they appeared at a hearing of the Senate Committee on Energy and Natural Resources.

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Rover’s Request Denied By FERC, HDDs Still On Pause

FERC has denied Rover Pipeline LLC permission to finish horizontal directional drilling (HDD) at two sites critical to laterals in Ohio and West Virginia -- at least for now.

proposed_transco_atlantic_sunrise_project-20130812

Pennsylvania Regulators Taking Final Steps on Key Atlantic Sunrise Permits

The Pennsylvania Department of Environmental Protection is launching a public comment period on Saturday and will hold four public hearings next month on the earth disturbance and water-crossing permit applications submitted by Transcontinental Gas Pipe Line Co. LLC for the Atlantic Sunrise natural gas pipeline project.

NOAA Expects Above-Normal Atlantic Hurricane Season

The 2017 Atlantic hurricane season, which officially begins June 1, is likely to have above-normal activity, according to forecasters at the National Oceanic and Atmospheric Administration's Climate Prediction Center.
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OPEC to Extend Production Pullback as U.S. Shale Output Soars

The global oil glut, created in part by surging U.S. unconventional production, has again forced the hand of the Organization of the Petroleum Exporting Countries (OPEC), which on Thursday agreed to extend supply reductions for another nine months beginning July 1.
Fred-L-Callon-20170525

Fred Callon Dies Unexpectedly

Fred Callon, chairman and CEO of Callon Petroleum Co., who helped propel the namesake independent into a leading Permian Basin operator, died on Wednesday.

Mexico Poised to Draw Deeply From Dry Gas Eagle Ford Shale

Production from the dry gas Eagle Ford Shale, particularly in Webb County, TX, has skyrocketed, and so has Mexico's gas demand. That would sound like an opportunity to anyone.

BLM Offering 398,000 Acres for Lease in Eight States

The U.S. Bureau of Land Management (BLM) in June plans to offer more than 398,000 acres is eight separate state oil and natural gas lease sales, according to its online leasing service.

Monthly-US-DUC-Count-at-Key-Production-Regions-20170522-v2

OFS In-Depth Part 1: Rising Costs May Lead to Volatile Oil, Natural Gas Production Growth

While many producers have been expecting a rise in oilfield service costs (including, but not limited to the cost of rigs, pressure pumping and transportation) of around 10-15% from 2016...

Linn Taking $263M for San Joaquin Oil, Gas Assets

Linn Energy Inc. has agreed to sell a portion of its assets in California's San Joaquin Basin to an undisclosed buyer for $263 million as it continues to reduce its debt.

State Supreme Court Rules Against Texas Town Over Barnett Midstream Emissions

The Supreme Court of Texas has reversed a court of appeals' judgment, finding that the town of DISH, TX, and its residents waited too long to file their lawsuit against several midstream energy companies, and reinstated a trial court's previous take-nothing judgment.

Some Energy Producing State Officials, Industry Alarmed by Trump’s Proposed Budget

One day after President Trump sent a $4.1 trillion budget proposal to Congress, opposition to all or parts of the budget plan was beginning to form among elected officials both in Washington, DC, and in several energy producing states.
Monthly-US-Natural-Gas-Export-to-Mexico-via-Pipeline-and-LNG-20170524

Mexico Streamlining Upstream Auctions, Pursuing Natural Gas Storage

As Mexico proceeds with upstream and midstream natural gas reform, demand for gas continues growing and domestic supply...
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Permian Partners Crestwood, First Reserve Eye More Delaware Natural Gas Capacity

More natural gas processing capacity and pipeline takeaway are underway in the Permian Basin under...
PJM-Capacity-Prices-20170524

PJM Capacity Auction Reflecting Impact of Cheap Marcellus/Utica Natural Gas

PJM Interconnection released the results Tuesday of its capacity auction for the 2020-2021 period, with natural gas combined-cycle plants accounting for most of the new generation cleared at 2,350 MW.
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‘Persistent’ Growth Seen in U.S. Onshore Oil, NatGas as Completions Catch Up, Says Rystad

U.S. onshore unconventional growth began to exhibit "material and persistent" monthly output growth in the first quarter after bottoming out in mid-2016, a trend likely to continue through 2017, according to an analysis by Rystad Energy.

DOE Urges Reopening Aliso Canyon While Opponents Question SoCal Summer Assessment

A U.S. Department of Energy (DOE) official pressed last week for California regulators to reopen the Aliso Canyon natural gas storage facility while opponents on Monday continued to push for the 3,600-acre facility to be permanently closed.

Trump Cuts 'Crazy' Obama Spending on Climate Change, Sends $4.1T Budget to Congress

President Trump on Tuesday sent a $4.1 trillion budget proposal to Congress that mirrors earlier plans to cleave nearly one-third of funding to the U.S. Environmental Protection Agency, as his budget director derided the previous administration's "crazy" spending on climate change.

FERC Seeks 15.2% Increase, CFTC 12.6% in Trump's FY2018 Budget; Dodd-Frank Revamped

Two federal regulatory agencies key to the natural gas and oil industry, FERC and the Commodity Futures Trading Commission, are seeking double-digit percentage increases to their appropriations in the Trump administration's $4.1 trillion budget proposal.
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OFS In-Depth Part 2: Pressure Pumping, Sand Demand Growth Tempered by Uncertain NatGas Price Forecast

As drilling activity runs rampant in lucrative plays such as the Permian Basin, oilfield service costs are expected to rise...

Carlyle, EOG Resources Form $400M Drilling Partnership in Oklahoma

The Carlyle Group LP, a global private equity firm, announced Monday that it has entered into an agreement to form a joint venture (JV) with EOG Resources Inc., and will invest up to $400 million to help the company develop its oil and natural gas assets in Oklahoma.

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Dramatic Declines Hit NatGas Forwards as May Expected to Close Out on Cool Side

Natural gas forward prices for June plunged by an average 24 cents between May 12 and 18 as forecasts for cooler weather...
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Pennsylvania NatGas Production Posts First Quarter Increase

Unconventional natural gas production in Pennsylvania continued to increase during the first quarter...

Former Louisiana Regulator Scott Angelle to Lead BSEE

The Trump administration has appointed a former Louisiana regulator and political veteran to head the Department of Interior's Bureau of Safety and Environmental Enforcement.
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Pennsylvania Shale Permits Hit Historic Lows in 2016; Expected to Bounce Back This Year

Unconventional natural gas well drilling permits in Pennsylvania hit an eight year-low...
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Natural Gas Doesn’t Just Come From Northeast; Land Rigs Climb

Much is made of natural gas production growth from the Marcellus and Utica shales, but in a recent note, Societe Generale’s Breanne Dougherty reminded the industry that other basins are also important supply sources.

Appellate Court Grants Trump Administration Request to Delay Cases Over Methane Rules

An appellate court granted the Trump administration's request to delay a series of lawsuits over proposed rules governing new sources of methane emissions from the oil and natural gas industry, giving the U.S. Environmental Protection Agency (EPA) more time to review the rules.

Topolobampo-Pipeline-20170519

TransCanada Northwestern Mexico Pipeline to Be Finished This Year

TransCanada Corp.’s El Encino-Topolobampo Pipeline project in northwestern Mexico is nearly complete with the exception of a “small portion” that was delayed by negotiations with indigenous people.

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Alaska's Cook Inlet Set For First Oil, Natural Gas Auction Since 2008

Oil and natural gas producers will have their first opportunity in nine years to bid for blocks offshore Alaska's southcentral coast...

People -- Pennsylvania DEP Secretary McDonnell

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Mexico, United States Increasingly Linked by Natural Gas Trade

During the fourth quarter, pipeline exports to Mexico and Canada were up about 22% each from the year-ago quarter...
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ACC, Lawmakers Say Appalachian NGL Storage Hub Key to Petchem Buildout

Momentum continues building for efforts to attract a substantial natural gas liquids (NGL) storage hub in the Appalachian Basin...
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Colorado Governor Urges No Appeal of Oil, Gas Ruling; AG Disagrees

Colorado Gov. John Hickenlooper has ordered the state not to fight a court ruling that would require public safety, health and the environment to be protected as a precondition before allowing new oil and natural gas drilling. However, Attorney General Cynthia Coffman said she would defy the governor, appealing the case to the Colorado Supreme Court.

3D"Sign

NGI's Bidweek Alert Day 3 - May 26 for June 2017
For more detailed information please download the Excel data file
FIXED RANGE BASIS RANGE
South Texas
Agua Dulce -- --
Florida Gas Zone 1 -- --
NGPL S. TX -- -0.08 to -0.08
Tennessee Zone 0 South -- -0.17 to -0.16
Texas Eastern S. TX -- -0.015 to -0.015
Transco Zone 1 -- -0.075 to -0.0725
East Texas
Carthage -- -0.13 to -0.13
Houston Ship Channel 3.31 to 3.34 --
Katy -- 0.095 to 0.095
NGPL TexOk 3.09 to 3.09 -0.1525 to -0.145
Tennessee Zone 0 North -- --
Texas Eastern E. TX -- --
Transco Zone 2 -- --
West Texas/SE New Mexico
El Paso Permian 2.74 to 2.83 --
Transwestern 2.78 to 2.78 --
Waha 2.79 to 2.83 --
Midwest
Alliance -- --
ANR ML7 -- --
Chicago Citygate 3.07 to 3.11 --
Chicago - Nicor Gas 3.07 to 3.11 --
Chicago - NIPSCO 3.07 to 3.10 --
Chicago - North Shore -- --
Chicago - Peoples 3.07 to 3.08 --
Consumers Energy -- -0.045 to -0.0225
Dawn -- -0.02 to 0.01
Emerson -- -0.385 to -0.25
Joliet -- --
Lebanon -- --
Michigan Consolidated -- -0.08 to -0.055
NGPL Amarillo Mainline 2.94 to 2.94 --
Parkway/Union -- -0.01 to 0.0025
REX into ANR - Shelby -- --
REX into MGT - Edgar -- -0.18 to -0.15
REX into NGPL - Moultrie -- -0.15 to -0.15
REX into PEPL - Putnam -- -0.18 to -0.18
REX into Trunk - Douglas -- --
Midcontinent
ANR SW 2.84 to 2.86 -0.35 to -0.35
Enable East 2.96 to 2.96 --
Enable West -- --
NGPL Midcontinent 2.90 to 2.94 -0.285 to -0.285
Northern Border Ventura -- --
Northern Natural Demarc 2.93 to 3.00 --
Northern Natural Ventura 2.92 to 3.00 --
OGT 2.81 to 2.81 -0.405 to -0.38
Panhandle Eastern 2.79 to 2.82 -0.40 to -0.37
Southern Star 2.82 to 2.82 -0.39 to -0.39
North Louisiana/Arkansas
Perryville -- -0.10 to -0.10
Texas Eastern, M1, 24 -- --
Texas Gas Zone 1 -- -0.115 to -0.115
Trunkline Zone 1A -- -0.1275 to -0.115
South Louisiana
ANR SE -- -0.085 to -0.08
Columbia Gulf Mainline -- -0.1225 to -0.1225
Columbia Gulf onshore -- -0.08 to -0.08
Florida Gas Zone 2 -- --
Henry Hub -- 0.00 to 0.00
Southern Natural -- --
Tennessee Line 500 -- -0.0925 to -0.09
Tennessee Line 800 -- -0.09 to -0.09
Texas Eastern E. LA -- -0.08 to -0.08
Texas Eastern W. LA -- --
Texas Gas Zone SL -- --
Transco Zone 3 -- -0.06 to -0.05
Trunkline E. LA -- --
Trunkline W. LA -- --
Southeast
FGT Citygate -- --
Florida Gas Zone 3 -- -0.03 to -0.025
Texas Eastern M-1, 30 -- -0.08 to -0.08
Transco Zone 4 -- -0.0625 to -0.06
Transco Zone 5 -- -0.20 to 0.01
Transco Zone 5 North -- -0.20 to -0.15
Transco Zone 5 South -- 0.01 to 0.01
Appalachia
Columbia Gas -- -0.1875 to -0.1725
Dominion North -- -0.565 to -0.54
Dominion South -- -0.57 to -0.525
Leidy Hub -- --
Millennium East Pool -- --
Tenn Zone 4 200L -- -0.405 to -0.38
Tennessee Zn 4 313 Pool -- -0.46 to -0.41
Tennessee Zn 4 Marcellus -- -0.68 to -0.55
Texas Eastern M-2, 30 Delivery -- --
Texas Eastern M-2, 30 Receipt -- -0.60 to -0.555
Texas Eastern M-3, Delivery -- -0.50 to -0.47
Texas Eastern M-3, Receipt -- --
Transco-Leidy Line -- -0.615 to -0.59
Northeast
Algonquin Citygate -- -0.17 to -0.105
Algonquin Citygate (non-G) -- -0.17 to -0.105
Algonquin Receipts -- --
Iroquois Zone 2 -- -0.24 to -0.08
Iroquois, Waddington -- -0.12 to -0.10
Niagara -- --
Tenn Zone 5 200L -- --
Tenn Zone 5 300L -- --
Tenn Zone 6 200L -- -0.18 to -0.15
Tenn Zone 6 300L -- --
Transco Zone 6 non-NY -- -0.40 to -0.315
Transco Zone 6 non-NY North -- -0.40 to -0.315
Transco Zone 6 non-NY South -- --
Transco Zone 6 NY -- -0.37 to -0.32
Rocky Mountains
Cheyenne Hub 2.77 to 2.83 --
CIG 2.80 to 2.85 --
CIG DJ Basin 2.75 to 2.77 --
El Paso Bondad -- --
El Paso non-Bondad 2.75 to 2.76 --
Kern River 2.86 to 2.86 --
Kingsgate 2.57 to 2.62 --
Northwest S. of Green River 2.82 to 2.82 --
Northwest Sumas 2.68 to 2.70 --
Northwest Wyoming Pool -- --
Opal 2.82 to 2.88 --
Questar -- --
Stanfield -- --
Transwestern San Juan 2.81 to 2.85 --
White River Hub 2.80 to 2.80 --
Arizona/Nevada
El Paso S. Mainline/N. Baja -- --
Kern Delivery -- --
California
Malin 2.88 to 2.93 --
PG&E Citygate 3.39 to 3.46 --
SoCal Citygate 3.26 to 3.32 --
Southern Border, PG&E 2.95 to 2.96 --
Southern Border, SoCal 2.92 to 3.04 --
SoCal Border Avg. 2.92 to 3.04 --
Canada
Empress 2.88 to 3.01 --
NOVA/AECO C 2.80 to 2.88 --
Westcoast Station 2 -- --