Industry Briefs

Although it recently dropped out of a Western Canada gas-to-liquids (GTL) project with Sasol Canada (see Shale Daily, June 29), Talisman Energy Inc. still foresees monetizing its Montney Shale reserves through “some form of conversion process,” CEO John Manzoni told financial analysts during an earnings conference call. Manzoni said the Montney resource is “big enough, it’s strategic enough, it’s material enough to be in some form of conversion process, which naturally now is more likely to be LNG [liquefied natural gas] then GTL, if that’s the case.” Multiple projects have been proposed to liquefy western Canadian gas and ship it to overseas markets (see Shale Daily, July 31). Manzoni alluded to the LNG projects and said, “…in the context of all of that, we are considering all options and continue to do so…for our Montney resource, how best to create the maximum value for Talisman at the right time for our Montney resource, which is very big and very strategic.”

August 7, 2012

PG&E’s Past Pipeline Work Questioned

Although there is no direct link to the catastrophic San Bruno pipeline rupture and explosion nearly two years ago, Pacific Gas and Electric Co. again was placed on the defensive by local news reports Tuesday suggesting that as recently as four years ago the combination utility was encouraging workers to defer a lot of distribution pipeline leak repairs.

July 18, 2012

Eastern, Midwest Points Steady To Lower; Futures Slip

The cash market on average was unchanged Wednesday as weather forecasts for major metropolitan areas showed little in the way of near-term heat, although warmth was forecast for the Midwest and Ohio Valley into the Father’s Day weekend. Physical prices were within a few pennies of unchanged at most points and at the close of futures trading July had eased 4.7 cents to $2.185 and August had slipped 5.1 cents to $2.236. July crude oil shed 70 cents to $82.62/bbl.

June 14, 2012

Rex Expands Ohio Utica Operations

Although keeping a lid on the details of the deal for now, Rex Energy Corp. said the Utica Shale joint venture it recently entered into with MFC Drilling Inc. and Abarta Oil & Gas Co. Inc. requires it to drill and complete one well and begin drilling two others by Nov. 15, and requires three additional wells each year until the company satisfies the carry obligation. The JV covers a three county region of eastern Ohio.

May 3, 2012

Northeast Points Strongest As Overall Market Firms; Futures Advance

Both cash and financial gas advanced Monday, although marketers were trying to digest mixed weather outlooks and financial traders saw nothing on the horizon to indicate market fundamentals had changed. Nationwide cash prices rose by about a nickel with strong gains reported at Northeast points and more modest advances along the Gulf. At the close of futures trading May had risen 3.5 cents to $2.016 and June gained 2.4 cents to $2.108. May crude oil was up 10 cents to $102.93/bbl.

April 17, 2012

Utah on Verge of Big Oil Shale Development

Although already under environmental appeal, Utah state officials issued a permit the last week in March to a Delaware-based company to a begin a large oil shale extraction project that eventually could cover up to 1,500 acres in the Uintah Basin. It could end up being one of the largest oil shale mining operations in the state.

April 3, 2012

Analysts: Demand, Competition to Hamper U.S. LNG Exports

Although several companies hope one day to export liquefied natural gas (LNG) from export facilities in North America, analysts at Scotland’s energy analyst group Wood Mackenzie warn that the prospects for many domestic exports are far from certain.

March 29, 2012

Shell Chooses Pennsylvania for Marcellus Cracker

Although the announcement does not mean the company is committed to its plans for a “world-scale” facility just yet, it ends months of speculation about where Shell would locate the facility and the competition among the three states in the running (see Shale Daily, Dec. 5, 2011; Sept. 7, 2011; June 7, 2011).

March 16, 2012

Shell Chooses Pennsylvania for Marcellus Cracker

Although still far from committing to a project, Shell Chemical LP delighted Pennsylvanians Thursday by choosing a rural area outside of Pittsburgh as the potential location for a major petrochemical complex that could include an ethane cracker in the heart of the Appalachian Basin.

March 16, 2012

More Pennsylvania Forest Leasing Unlikely For Now

Although Pennsylvania could eventually lease additional state forest land for natural gas drilling, it will likely be in small doses, according to the state’s top land manager.

March 7, 2012