1990S

Following precedent set by a hotly contested case that dragged on through the late 1990s and the first half of this decade, three Alberta natural gas producers were ordered Thursday to shut in 158 wells deemed to jeopardize future oilsands production.

Following precedent set by a hotly contested case that dragged on through the late 1990s and the first half of this decade, three Alberta natural gas producers were ordered last Thursday to shut in 158 wells deemed to jeopardize future oilsands production.

The number of natural gas market centers in the United States and Canada has remained essentially constant since the late 1990s, but that’s about to change as evolving supply basins and pipeline infrastructure dictate gas shipper needs, the Energy Information Administration (EIA) has found. EIA said six new market centers could be placed in service in the next four to five years.

The number of natural gas market centers in the United States and Canada has remained essentially constant since the late 1990s, but that’s about to change as evolving supply basins and pipeline infrastructure dictate gas shipper needs, the Energy Information Administration (EIA) has found. EIA said six new market centers could be placed in service in the next four to five years.

Kenneth Lay, praised in the 1990s for his brilliance in building Enron Corp. only to be despised by many following his conviction six weeks ago on 10 fraud and conspiracy charges, died early Wednesday of what appeared to be a massive heart attack at his vacation home in Aspen, CO. He was 64.

Domestic drilling activity in the second quarter was twice the level of second quarter drilling recorded during the 1990s, with natural gas leading the way at a record-setting pace, the American Petroleum Institute (API) reported in its well completion report for the period. Second-quarter activity, which was at a 21-year high, saw a total of 13,009 oil wells, natural gas wells and dry holes completed, up 3% from the comparable period in 2006. It was preceded by strong drilling activity in the first quarter during which 11,771 wells and dry holes were completed. Natural gas continues to be the primary target for domestic drilling, the oil and gas producer group said. It estimated that 7,209 natural gas wells were completed in the second quarter, setting a record for gas activity for the period. It comes on the heels of record gas activity in the first quarter during which 7,085 gas wells were completed. Total estimated exploratory completions, accounting for almost 11% of total estimated completions, increased 39% in the second quarter compared to the same period a year ago, the API said. It noted that total development completions remained unchanged.

Domestic drilling activity in the second quarter was twice the level of second quarter drilling recorded during the 1990s, with natural gas leading the way at a record-setting pace, the American Petroleum Institute (API) reported in its well completion report for the period.

With annual production growth rates plummeting from 50% in the late 1990s to flat in 2004, there are clear signs that the Gulf of Mexico has matured. While the recent extended well test of the Jack field in the Lower Tertiary play in the deepwater Gulf holds promise for a production resurgence, significant challenges and enormous risks still cloud the region’s future, according to Gero Farruggio, U.S. Gulf research manager for consulting firm Wood Mackenzie.

With annual production growth rates plummeting from 50% in the late 1990s to flat in 2004, there are clear signs that the Gulf of Mexico has matured. While the recent extended well test of the Jack field in the Lower Tertiary play in the deepwater Gulf holds promise for a production resurgence, significant challenges and enormous risks still cloud the region’s future, according to Gero Farruggio, U.S. Gulf research manager for consulting firm Wood Mackenzie.