The Railroad Commission of Texas (RRC) has a new $6 million grant program to help companies replace their older forklifts and medium- and heavy-duty diesel vehicles with ultra low-emission natural gas- and propane-fueled equipment. The grant program is funded by the Texas Emissions Reduction Plan through the Texas Commission on Environmental Quality (TCEQ). Since 2005, the RRC has awarded $39.5 million in grants to Texas companies and school districts, and has reduced emissions of smog-forming nitrogen oxides by nearly 5,000 tons. To be eligible for the grants, new equipment must meet the latest emissions standards and operate in one of the 43 counties designated by the TCEQ as having substandard air quality. The grant amount averages $9,500. For more information, visit www.altenergy.rrc.state.tx.us.
Recent data from the Railroad Commission of Texas suggests that Eagle Ford Shale natural gas production has stabilized and could be entering decline; however, “…data are incomplete for the most recent past, and we would not give too much weight to what the last six months indicate,” Barclays Commodities Research said in a note. While the data are not quite timely, they do show that gas-well gas production has been declining since December 2011 and was down 322 MMcf/d from that peak to August 2012, Barclays said. However, gas output from oil wells increased 317 MMcf/d in the same period, leaving aggregate Eagle Ford production essentially unchanged, the firm said. “Gas-well gas output has closely followed gas-directed drilling activity, with a two-month lag,” Barclays said. “So far, the upward march of oil-well gas output has largely offset the gas-well gas declines. But the pace of growth of oil and the associated gas production appears to be slowing. Associated gas output grew just 20 MMcf/d from August to December 2012. While incomplete data could be a culprit, this trajectory is consistent with oil-directed drilling trends.”
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