2008

The high cost of controlling greenhouse gas (GHG) emissions under climate change legislation pending in Congress would add an estimated 50% to natural gas well operating costs in 2012 and 100% by 2030, contributing to a production decline of 3-12%, according to a study released last Monday by the American Petroleum Institute (API).

The high cost of controlling greenhouse gas (GHG) emissions under climate change legislation pending in Congress would add an estimated 50% to natural gas well operating costs in 2012 and 100% by 2030, contributing to a production decline of 3-12%, according to a study released Monday by the American Petroleum Institute (API).

Just two weeks after receiving bad news from the state of New York on the siting of its proposed liquefied natural gas (LNG) terminal and associated pipeline in the middle of Long Island Sound, Broadwater Energy early last week fired back in announcing that it has taken the first step in preparation for an appeal to the U.S. Department of Commerce.

The Bush administration has until May 15 to decide whether polar bears should be listed under the Endangered Species Act (ESA), a federal judge has ruled. The listing could impact emerging oil and natural gas development in U.S. Arctic waters. U.S. District Judge Claudia Wilken of the Northern District of California issued the order in Case No. C 08-1339 (Center for Biological Diversity, et al., v. Dirk Kempthorne, U.S. Secretary of the Interior; and U.S. Fish and Wildlife Service). Noting that “timeliness is essential,” the order was issued without oral argument. The lawsuit was filed after the Bush administration missed several deadlines this year to make a decision about the possible ESA listing (see Daily GPI, March 11). The Department of Interior (DOI) had requested a delay until June 30, which Wilken rejected. Environmental groups petitioned to have polar bears listed as an endangered species under the ESA in 2005. In early 2007 the DOI proposed a rule, published in the Federal Register, to list the polar bear as a “threatened” species, and public hearings followed in Alaska and Washington, DC. At DOI’s request, the U.S. Geological Survey completed a report on polar bear habitat in the United States, which included data on arctic climate and sea ice trends. Following additional public hearings on the report, DOI announced on Jan. 7 that final listing would occur within 30 days. The government contends that waiting longer to consider the ESA listing would not pose a threat to the bears because the species is already protected under the U.S. Marine Mammal Protection Act (MMPA). However, Wilken noted that the ESA protections “far surpass” those under the MMPA because the ESA also protects a species habitat. A DOI official said the agency is reviewing Wilken’s decision.

Just two weeks after receiving bad new from the state of New York on the siting of its proposed liquefied natural gas (LNG) terminal and associated pipeline in the middle of Long Island Sound, Broadwater Energy on Monday fired back in announcing that it has taken the first step in preparation for an appeal to the U.S. Department of Commerce.

Blasting Alaska North Slope producers for their repeated failure to develop long-held leases on the Point Thomson Unit, Alaska’s Department of Natural Resources (DNR) Commissioner Tom Irwin last week rejected the 23rd Plan of Development and Operations (POD 23) for the oil and gas field and terminated the Point Thomson Unit.

Following Thursday’s 24 Bcf natural gas storage injection report, which was slightly bullish when compared to the industry’s expectations, the May natural gas futures contract rode a roller-coaster of price peaks and valleys before finishing the day almost unchanged. After trading a 35.2-cent range between $10.593 and $10.945, the prompt-month contract ended up finishing Thursday’s regular session at $10.790, up less than a penny from Wednesday’s close.

Natural gas and oil prices will reconnect again in the United States, according to Wood Mackenzie’s Ed Kelly, vice president of North American gas and power. When the relinkage occurs will depend upon the long-term race between U.S. domestic supply growth and the growing reliance on gas for power generation.

New York Gov. David Paterson said Thursday that he opposes construction of Broadwater Energy LLC’s controversial floating liquefied natural gas (LNG) project and associated pipeline in the middle of Long Island Sound, saying “privatizing open water would be fundamentally wrong,” and issuing an executive order to establish a planning board to find alternatives.