Associated

In the rush to get more gathering and processing infrastructure in place to handle currently flared Bakken Shale associated gas, some hurdles are being met by wells with heavy concentrations of sour gas, or high hydrogen sulfide (H2S) levels, according to North Dakota energy officials.

North Dakota lawmakers continue holding hearings and debating the merits of energy bills to create incentives for less associated gas flaring at the wellhead and to provide tax relief for oil and gas producers, a spokesperson for the state Department of Mineral Resources (DMR) told NGI’s Shale Daily Monday.

North Dakota lawmakers continue holding hearings and debating the merits of energy bills to create incentives for less associated gas flaring at the wellhead and to provide tax relief for oil and gas producers, a spokesperson for the state Department of Mineral Resources (DMR) told NGI Monday.

Living up to preliminary estimates earlier in the year calling for a 50-year high (see Shale Daily, Jan. 25), Colorado oil/natural gas officials released statistics showing oil production was up 22% last year, soaring past the 40 million bbl mark for the first time in a half-century at 47.9 million bbl.

Japan Petroleum Exploration (Japex) has agreed to take a 10% stake in the Western Canada natural gas development and production project and associated pipeline and liquefied natural gas (LNG) export projects of Progress Energy Canada Ltd.

Japan Petroleum Exploration (Japex) has agreed to take a 10% stake in the Western Canada natural gas development and production project and associated pipeline and liquefied natural gas (LNG) export projects of Progress Energy Canada Ltd.

A proposal to cut down on flared associated natural gas supplies in the Bakken was rejected by the North Dakota Senate Wednesday on a 34-13 vote. The measure (SB 2315) by Sen. Tim Mathern would have eliminated any hardship exemptions to the state’s ban after a year. Viewed as one of the toughest proposals to combat flaring yet, SB 2315 was strongly opposed by the industry, led by the North Dakota Petroleum Council (see Shale Daily, Feb. 12). State officials increasingly have worried about flaring, which has stayed above 30%, but below a September 2011 record of 36%. Senators opposing the measure urged patience in letting the industry address the problem. Even with the ability to flare gas for a year without paying taxes or royalties, and beyond that to seek hardship status for extending the practice, some operators are trying to find uses for the gas, including using it to produce electricity to run hydraulic fracturing equipment, and to produce fertilizer (see Shale Daily, Dec. 26, 2012).

For the fourth year in a row, investor groups are calling on leading U.S. natural gas producers to disclose information about how they manage and measure the risks associated with unconventional drilling operations. Some explorers also were urged to disclose fugitive emissions from gas transmission.

Nebraska Gov. Dave Heineman on Tuesday approved a revised route for the northern portion of TransCanada Corp.’s proposed Keystone XL oil pipeline that would run through his state. He notified both President Barack Obama and Secretary of State Hillary Clinton of his decision in a joint letter.