Story of the Week

U.S. E&Ps Shifting from Thrift to 'Massive' Capex Surge, Says Raymond James
NGI Weekly Intel
The domestic oil and natural gas industry likely will see "massive" cash flow increases over the coming years, as the two-year mentality to... Read More
Monthly-us-field-production-of-crude-oil-vs-wti-price-20170109

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NGI Weekly Newsletter

January 16, 2017

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New ISO-NE Algonquin Tariff Fails to Reflect Scarcity Market, Dominion Says

A tariff change that was approved by FERC on Jan. 9 and went into effect on Jan. 10 granting ISO-New England permission to base certain price thresholds on Intercontinental Exchange’s Algonquin Gas Transmission Citygates Non-G pricing hub, rather than on the ICE AGT Citygates pricing hub, brought to light the issue of non-liquidity and its impact on daily business.

ExxonMobil Ordered by Massachusetts Court to Turn Over Internal Research

ExxonMobil Corp. has been ordered to hand over more than 40 years of internal research concerning the impact of fossil fuels on the environment for an investigation being conducted by Massachusetts Attorney General (AG) Maura Healey.

Global E&Ps, Led by U.S. Brethren, Locked And Loaded For New Investments

The global oil and gas industry, already expected to boost exploration spend during 2017, is poised to more than double final project approvals as optimism spreads across the energy sector.

Former MarkWest CEO Chastises Marathon Petroleum Plans For Midstream Business

MarkWest Energy Partners LP co-founder and former CEO John Fox has sent a letter to Marathon Petroleum Corp. (MPC) urging against its plans for the accelerated dropdown of refining assets to its midstream partnership, MPLX LP.

Hess Plans 2017 Ramp-Up in Bakken, to Add 4 Rigs

New York-based Hess Corp. detailed its 2017 capital expenditure (capex) budget Thursday, including plans to ramp up activity in the Bakken Shale.
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Global LNG: A Long And Then Short Story, Bernstein Says

A wave of liquefied natural gas supply will hit the market over the next three years, but rising demand and a dearth of new project advances...
Weekly-US-Vertical-Oil-and-Gas-Drilling-Rig-Count-20170112

PE-Backed Avad Energy Sets Cap For U.S. Conventionals

Newly formed oil and gas explorer Avad Energy Partners LLC has raised $77.5 million in equity commitments to acquire and develop...

Industrial Energy Group Urges FERC to OK Gas Projects

A national industrial energy users' organization went to bat for eight stalled natural gas projects and came out swinging at FERC earlier this week. It is part of an increasingly aggressive lobbying approach by Washington, DC-based Industrial Energy Consumers of America (IECA).

PG&E Downsizing, Slashing Executive Ranks by 15%

PG&E Corp., the holding company for the San Francisco-based combination utility, on Wednesday announced senior executive changes in anticipation of CEO Tony Earley's retirement March 1. The company is downsizing its workforce, resulting in executive and staff layoffs.

Parsley Bolts On More Permian Running Room; 2017 Capex to Nearly Double

Parsley Energy Inc. agreed late Tuesday to pay $607 million to bolt on 23,000 net leasehold acres in West Texas, within the Permian’s Midland and southern Delaware sub-basins.

ExxonMobil Business Off the Table, Tillerson Tells Senate Committee

Former ExxonMobil Corp. CEO Rex W. Tillerson said he would recuse himself for one year from matters directly related to his 41-year employer if he is confirmed as President-elect Trump’s Secretary of State.
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Cheap NatGas Reduces 2016 Power Prices, Accounts for More Generation

Low-cost natural gas pushed year/year average wholesale electricity prices down at major trading hubs across the United States in 2016...

Energy Department Urges NatGas Pipeline Cybersecurity Review

With natural gas playing an increasing role in power generation, the Department of Energy is recommending that it coordinate with other government agencies to determine whether additional cybersecurity protections for the nation's natural gas pipeline network are warranted.

Comstock Partnering With USG Properties on Haynesville Acreage

Comstock Resources Inc. said it and USG Properties Haynesville LLC have struck a joint development agreement for acreage prospective for the Haynesville Shale in Louisiana and Texas. The acreage was recently acquired by USG.
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BLM Seeks Comments on Another Utah Master Leasing Plan

Preliminary alternatives in one of three master leasing plans (MLP) to guide oil/natural gas development on public lands in Utah...

'Second Wave' Texas LNG Project Drawing Asian Buyer Interest

Texas LNG Brownsville LLC said it has signed non-binding term sheets with four independent liquefied natural gas (LNG) buyers in Southeast Asia and China for a combined volume of 3.1 million tonnes per annum (mtpa), which oversubscribes the single-train first phase of its liquefaction project.

House GOP to Try Blocking Methane Rules With 'Larger Bill'

House Republicans are working on "a larger bill" to block final rules on methane emissions -- and possibly others -- from taking effect after one GOP lawmaker's plan to invoke a rare parliamentary procedure to block the rules failed because too much time elapsed since their introduction.

PA Sen. Wants Lawmakers to Oversee Oil/Gas Violation Fees Collected by Regulators

Adding to a list of actions he's taken or plans to take, Pennsylvania Republican state Sen. Scott Hutchinson intends to introduce legislation that would essentially wrest control of oil and gas violation fees from the Department of Environmental Protection to the General Assembly.
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Henry Hub Spot NatGas Prices Seen Heading Higher in 2017 Than December Forecast, EIA Says

U.S. natural gas prices are looking stronger today than they did in early December, with Henry Hub now expected to average $3.55/MMBtu in 2017...

Ring Touts Results of First Horizontal Wells in Permian’s Central Basin Platform

In a fourth quarter operations update Monday, Ring Energy Inc. released new well results from its development of the Permian Basin's Central Basin Platform (CBP).
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U.S. Onshore Drilling Permit Activity 'Unprecedented' in December

U.S. land permits for oil and gas development jumped 6% from November to December, the second highest monthly permit total in 2016 and...

U.S. Energy Sector Market Improving, But Labor Shortage Taking A Toll

U.S. oil and natural gas extraction jobs began inching up in parts of the country in late 2016, and it can't come quickly enough as the tight labor market apparently already is affecting onshore drilling efficiencies as operators raise more rigs.
Monthly-US-Field-Production-of-Crude-Oil-vs-WTI-Price-20170109.png

U.S. E&Ps Shifting from Thrift to 'Massive' Capex Surge, Says Raymond James

The domestic oil and natural gas industry likely will see "massive" cash flow increases over the coming years, as the two-year mentality to...

BOEM's Risk Management Rules Again Delayed; Hopper Moves to Solar Industry

Following oil and gas industry pushback, the Bureau of Ocean Energy Management (BOEM) has extended a deadline to implement more stringent financial assurance and risk management requirements to ensure operators are able to pay for decommissioning and removing offshore production facilities.
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Haynesville Gains Again Amid Modest U.S. Rig Return

A modest six land-based rigs returned to service in the United States during the week ending Friday, according to Baker Hughes Inc. Two of those returning were in the Haynesville, which has surpassed its year-ago activity level.

Tide Rolling Out on LNG Price Support, BofA Merrill Lynch Says

The tide of factors that lifted prices for spot liquefied natural gas (LNG) last year is rolling out, and analysts at Bank of America Merrill Lynch (BofAML) say they are "bearish" on LNG prices relative to crude oil.
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Marcellus, Utica Main Drivers of U.S. NatGas Production Growth Through 2040, EIA Says

Estimated U.S. energy consumption in coming decades doesn't vary much among a series of long-term projections released Thursday by the Energy Information Administration (EIA), but the fuel mix indicated in those cases would differ, and two prolific eastern shale plays will continue to bolster U.S. gas production, the agency said.
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Pacific Northwest LDCs Fight Eastbound Diversion of Canadian Supply

Natural gas local distribution companies in Oregon and Washington, backed by their import pipeline, have set out to prevent eastbound diversion of their British Columbia supplies to Alberta and the rest of Canada and the United States.

ExxonMobil Develops In-Line NatGas Dehydrator For Offshore, Onshore Operations

In what researchers claim is a "step-change in efficiency," ExxonMobil Corp. has unveiled an in-line technology to dehydrate natural gas, which could reduce costs for pipeline transport in land-based and offshore operations.
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Abraxas Petroleum Closes Sale of Powder River Basin Stake

With a focus on the Bakken in North Dakota and Texas properties, San Antonio-based Abraxas Petroleum Corp. is starting its exit from...

People -- Wayne Christian | Randall Crawford, EQT Corp.

McCarthy Expects 'Swift Action' on Repealing Methane Rules

House Majority Leader Kevin McCarthy (R-CA) said Republican lawmakers have yet to decide which regulations from the Obama administration they want to repeal first, but he disclosed that he expected "swift action" on rules governing methane emissions from the oil and gas industry.
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NatGas Prospects Burn Bright in EIA's Annual Energy Outlook 2017

Estimated U.S. energy consumption in coming decades doesn't vary much among a series of long-term projections released Thursday...

Antero Resources Targeting Double-Digit Production Growth Through 2020

Antero Resources Corp. late Wednesday unveiled an ambitious plan for the next four years, guiding for double-digit production growth driven by robust cash flow, a strong firm transportation portfolio and an Appalachian asset base that continues to expand.

3D"Sign

NGI's Bidweek Alert Day 5 - Dec 30 for January 2017
For more detailed information please download the Excel data file
FIXED RANGE BASIS RANGE
South Texas
Agua Dulce 3.62 to 3.63 --
Florida Gas Zone 1 -- -0.055 to 0.01
NGPL S. TX -- -0.11 to -0.09
Tennessee Zone 0 South -- -0.1225 to -0.115
Texas Eastern S. TX -- --
Transco Zone 1 -- -0.08 to -0.0725
East Texas
Carthage -- -0.09 to -0.09
Houston Ship Channel 3.59 to 3.72 --
Katy 3.62 to 3.67 -0.1275 to -0.1125
NGPL TexOk 3.59 to 3.63 -0.1325 to -0.12
Tennessee Zone 0 North -- --
Texas Eastern E. TX -- -0.135 to -0.135
Transco Zone 2 -- --
West Texas/SE New Mexico
El Paso Permian 3.40 to 3.65 --
Transwestern 3.51 to 3.51 --
Waha 3.60 to 3.62 --
Midwest
Alliance -- --
ANR ML7 -- 0.58 to 0.58
Chicago Citygate 3.89 to 4.39 0.34 to 0.475
Chicago - Nicor Gas 3.89 to 4.30 0.34 to 0.37
Chicago - NIPSCO 3.98 to 4.39 0.475 to 0.475
Chicago - North Shore -- --
Chicago - Peoples 4.11 to 4.22 --
Consumers Energy -- 0.145 to 0.185
Dawn 4.49 to 4.63 0.68 to 0.83
Emerson -- 0.03 to 0.09
Joliet 4.11 to 4.11 --
Lebanon -- 0.045 to 0.045
Michigan Consolidated 3.85 to 3.95 0.085 to 0.15
Parkway/Union -- 0.8425 to 0.9025
Midcontinent
ANR SW 3.66 to 3.67 -0.09 to -0.075
Enable East 3.50 to 3.50 -0.125 to -0.10
Enable West -- --
NGPL Amarillo Mainline -- --
NGPL Midcontinent 3.60 to 3.79 --
Northern Border Ventura -- --
Northern Natural Demarc 3.82 to 4.13 0.30 to 0.30
Northern Natural Ventura 3.97 to 4.25 --
OGT 3.42 to 3.78 -0.17 to -0.17
Panhandle Eastern 3.49 to 3.82 -0.0875 to -0.05
Southern Star 3.62 to 3.80 -0.10 to -0.10
North Louisiana/Arkansas
Perryville 3.74 to 3.74 --
Texas Eastern, M1, 24 -- --
Texas Gas Zone 1 -- -0.075 to -0.055
Trunkline Zone 1A -- -0.07 to -0.04
South Louisiana
ANR SE -- -0.05 to -0.04
Columbia Gulf Mainline -- -0.12 to -0.0725
Columbia Gulf onshore -- -0.0825 to -0.065
Florida Gas Zone 2 -- -0.045 to 0.005
Henry Hub -- 0.005 to 0.015
Southern Natural -- -0.0575 to -0.035
Tennessee Line 500 -- -0.0625 to -0.03
Tennessee Line 800 -- -0.07 to -0.06
Texas Eastern E. LA -- --
Texas Eastern W. LA -- -0.10 to -0.10
Texas Gas Zone SL 2.95 to 2.95 --
Transco Zone 3 3.87 to 3.87 -0.05 to -0.0225
Trunkline E. LA -- -0.06 to -0.03
Trunkline W. LA -- --
Southeast
FGT Citygate -- --
Florida Gas Zone 3 -- -0.045 to 0.015
Texas Eastern M-1, 30 -- -0.0775 to -0.0775
Transco Zone 4 3.71 to 3.71 -0.04 to -0.0175
Transco Zone 5 -- 1.825 to 1.96
Transco Zone 5 North -- --
Transco Zone 5 South -- 1.825 to 1.96
Appalachia
Clarington (non-Tenn) -- --
Columbia Gas -- -0.23 to -0.18
Dominion North 3.29 to 3.29 -0.68 to -0.53
Dominion South 3.14 to 3.29 -0.685 to -0.54
Leidy Hub -- --
Millennium East Pool -- -0.825 to -0.60
Tenn Zone 4 200L -- -0.45 to -0.27
Tennessee Zn 4 313 Pool -- -0.65 to -0.575
Tennessee Zn 4 Marcellus -- -0.85 to -0.65
Texas Eastern M-2, 30 Delivery -- -0.455 to -0.43
Texas Eastern M-2, 30 Receipt 3.24 to 3.46 -0.615 to -0.44
Texas Eastern M-3, Delivery -- 1.50 to 1.93
Texas Eastern M-3, Receipt -- --
Transco-Leidy Line 3.09 to 3.41 -0.82 to -0.57
Northeast
Algonquin Citygate -- 7.35 to 8.75
Algonquin Receipts -- 1.54 to 1.54
Dracut -- --
Iroquois Zone 2 -- 5.00 to 5.85
Iroquois, Waddington 8.52 to 8.52 4.00 to 4.65
Niagara -- --
Tenn Zone 5 200L -- 0.30 to 0.30
Tenn Zone 5 300L -- --
Tenn Zone 6 200L 12.56 to 12.56 8.50 to 8.80
Tenn Zone 6 300L -- --
Transco Zone 6 non-NY 5.92 to 5.93 1.79 to 2.45
Transco Zone 6 non-NY North 5.92 to 5.93 1.79 to 2.45
Transco Zone 6 non-NY South -- 1.80 to 1.80
Transco Zone 6 NY 8.50 to 9.52 4.75 to 5.65
Rocky Mountains
Cheyenne Hub 3.70 to 3.85 --
CIG 3.45 to 3.85 --
CIG DJ Basin 3.51 to 3.51 --
El Paso Bondad 3.85 to 3.85 --
El Paso non-Bondad 3.46 to 3.71 --
Kern River 3.54 to 3.97 --
Kingsgate -- --
Northwest S. of Green River 3.50 to 3.66 --
Northwest Sumas 4.13 to 5.40 --
Northwest Wyoming Pool 3.88 to 3.89 --
Opal 3.52 to 3.97 --
Questar 3.50 to 3.50 --
Stanfield 3.60 to 3.85 --
Transwestern San Juan 3.49 to 3.82 --
White River Hub 3.67 to 3.77 --
Arizona/Nevada
El Paso S. Mainline/N. Baja -- --
Kern Delivery -- --
California
Malin 3.54 to 3.95 --
PG&E Citygate 3.92 to 4.08 --
SoCal Citygate 3.85 to 4.25 --
Southern Border, PG&E -- --
Southern Border, SoCal 3.62 to 4.03 --
SoCal Border Avg. 3.62 to 4.03 --
Canada
Empress 3.55 to 3.86 --
NOVA/AECO C 3.25 to 3.65 --
Westcoast Station 2 2.94 to 3.40 --