FERC has set an expedited hearing to explore charges of anti-competitive behavior in the gathering activities of affiliated pipelines operating off the coast of Texas.
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FERC Hearing to Explore Charges of Illegal Gathering Activity
FERC has set an expedited hearing to explore charges of anti-competitive behavior in the gathering activities of affiliated pipelines operating off the coast of Texas.
Drilling Consolidation Holds Costs Higher in Current Slump
Despite the 35% reduction in domestic drilling activity, drilling service costs have fallen only 15-20% so far because of consolidation in the industry. Today’s drilling and oil field service prices are 20-200% higher than during the same rig utilization in the last industry downturn, analysts at Raymond James & Associates said in an equity research note.
Drilling Consolidation Holds Costs Higher in Current Slump
Despite the 35% reduction in domestic drilling activity, drilling service costs have fallen only 15-20% so far because of consolidation in the industry. Today’s drilling and oil field service prices are 20-200% higher than during the same rig utilization in the last industry downturn, analysts at Raymond James & Associates said in an equity research note.
Gulf Activity Continues Decline, Other Areas Show Rise
As futures prices continue to reside south of $3, the U.S. Gulf of Mexico offshore rig market continues to worsen in terms of both rig utilization and day rates, according to the latest ODS-Petrodata Group Offshore Rig Day Rate Indices. However, even while the Gulf remains in decline, other rig market segments remain strong, the company’s data shows.
Gulf Activity Continues Decline, Other Areas Show Rise
As futures prices continue to reside south of $3, the U.S. Gulf of Mexico offshore rig market continues to worsen in terms of both rig utilization and day rates, according to the latest ODS-Petrodata Group Offshore Rig Day Rate Indices. However, even while the Gulf remains in decline, other rig market segments remain strong, the company’s data shows.
El Paso’s Offshore Pipe From Nova Scotia To NY On Track
El Paso Corp. said Tuesday that because of increased drilling activity near Sable Island, it is on track to develop a $1.6 billion pipeline to transport natural gas supplies off the coast of Nova Scotia to markets in Canada and the northeastern part of the United States. The proposed Blue Atlantic Transmission System, anticipated to be in service by the fourth quarter of 2005, would be 750 miles long, and its 36-inch pipe would carry up to 1 Bcf/d along a subsea route from the southern coast of Nova Scotia to landing points in New York and New Jersey.
Cash Expected to Follow Screen’s Plunging Lead
Wednesday’s cash market was almost a repeat of activity the day before, with flat to mildly higher numbers dominating across the board. Bet on a radical change from that staidness today, though. After AGA announced both a large upward revision of last week’s widely derided 3 Bcf storage injection figure plus a new increase that exceeded nearly all expectations, the screen responded with a dive of more than 30 cents.
MMS: Lease Sale 180 is Fourth Largest in 10 Years
Despite declining gas prices, drilling economics and drilling activity in the Gulf of Mexico, the Interior Department’s Minerals Management Service said western Gulf lease sale 180 is the fourth largest in the last 10 years in terms of the number of tracts receiving bids. The lease sale, which will take place on Wednesday, received 386 bids on 320 tracts from 44 producers. The last western Gulf lease sale last August received 226 bids on 266 tracts, totaling $167.4 million from 60 producers, said MMS spokeswoman Caryl Fagot.
Lehman Analyst Says $2-3 Gas Possible
With the record levels of rig activity finally realizing an increase in natural gas supply, it is possible if the trend continues to see “a prolonged period of ‘weak’ natural gas prices” in the $2-3 range, according to Thomas Driscoll of Lehman Brothers. Supply growth, the current natural gas storage overhang, and weak demand could also lead to “lackluster” exploration and production share-price performance, the analyst warned.