Align

Exploration in North America’s onshore remains in its earliest stages because producers are eyeing “tens of thousands” of locations for future drilling, Baker Hughes Inc. CEO Martin Craighead said Tuesday.

Enterprise Products Partners LP, Enbridge Energy Partners LP and Anadarko Petroleum Corp. are partnering on a new natural gas liquids (NGL) pipeline from Skellytown, TX in Carson County to NGL fractionation and storage facilities in Mont Belvieu, TX. The new system would benefit takeaway capacity from the Barnett Shale as well as from other plays.

September natural gas slipped lower Monday in lackluster trading as natural gas failed to hitch its wagon to surging equity and oil prices and managed funds align on the short side of the market. At the close September had fallen 3.6 cents to $4.024 and October had eased 3.2 cents to $4.039. September crude oil jumped $2.50 to $87.88/bbl. and the Dow Jones Industrial Average gained 214 points to 11,483.

Oregon Gov. John Kitzhaber signed a bill (SB 967) that repealed a controversial law (SB 408) passed six years ago requiring annual state regulatory adjustments to align retail utility rates with the actual amounts of taxes paid by the state’s four major investor-owned utilities. NW Natural, the gas-only utility distribution company based in Portland, said it has had a surcharge in place every year that the tax true-up law has been in existence. As a result of the new law being effective immediately, NW Natural said it will be denied recovery of its surcharge for the 2010 tax year. The gas utility said it is now required to record a one-time pre-tax charge to earnings in the second quarter this year of approximately $7.4 million ($4.4 million, or 17 cents/share, after tax) related to amounts earned from the surcharge last year. The original law grew out of a concern that utilities were collecting more in taxes as part of customer rates than they were paying out to governments (see Daily GPI, April 15, 2008).

SandRidge Energy Inc. is pushing ahead on plans to become a niche natural gas player after throwing down a bid close to midnight Tuesday to buy bankrupt Crusader Energy Group Inc. in a cash and stock transaction worth an estimated $230 million.

Tenaska Marketing Ventures (TMV)/Tenaska Marketing Canada, one of the top natural gas marketers in North America, has promoted several personnel to align its geographic and functional activities and consolidate decision-making authority into each area’s management structure. Terry Cameron was promoted to senior vice president, north, where he will oversee the midwestern and eastern market areas. Mark Whitt takes over as senior vice president, west, where he will oversee western activities. David Schettler is the new senior vice president, south, where he will oversee the Midcontinent and southern U.S. region. Marty Titus was promoted to senior vice president, risk and structured products, which includes risk management, project marketing, deal structuring and valuation functions. John Obermiller, as senior vice president, finance, will manage TMV’s mid- and back-office activities. The five new senior vice presidents will report to President Fred Hunzeker. Tenaska also promoted Janet Corritore to vice president, gas scheduling; Kristen Gould, to vice president, Tenaska Marketing Canada; and Chris Forsman to regional director, Midcontinent.

A roughly 20% drop in domestic drilling activity seems necessary to align exploration and production (E&P) industry cash generation and capital spending, according to an analysis by SunTrust Robinson Humphrey/the Gerdes Group (STRH).

A roughly 20% drop in domestic drilling activity seems necessary to align exploration and production (E&P) industry cash generation and capital spending, according to an analysis by SunTrust Robinson Humphrey/the Gerdes Group (STRH).

Maintaining the status quo in natural gas utility rate design may be costly to consumers, utilities and society, but innovative rate designs and true-up mechanisms could align the interests of all stakeholders, according to a white paper by the American Gas Foundation (AGF).