U.S. producers are planning to direct their capital spending toward more drilling on the Outer Continental Shelf (OCS) and in onshore natural gas basins, but they are not averse to investing in alternative energy to help the country transition away from fossil fuels, according to Deloitte LLP’s annual oil and natural gas industry survey.
Basins
Articles from Basins
Gas Inventories Seen Pressuring Prices into 2010
Producers are laying down natural gas rigs in some of the most prolific basins in the United States, but it’s not coming fast enough to eliminate reserves growth, which could lead to an all-time inventory high by this time next year and pressure gas prices for at least another year, energy analysts said last week.
Gas Inventories Seen Pressuring Prices into 2010
Producers are laying down natural gas rigs in some of the most prolific basins in the United States, but it’s not coming fast enough to eliminate reserves growth, which could lead to an all-time inventory high by this time next year, according to Barclays Capital.
Industry Briefs
Houston-based Plains Exploration & Production Co. (PXP) has completed the sale of its remaining interests in some properties located in the Permian and Piceance basins to Occidental Petroleum Corp. (Oxy) and to some undisclosed companies with contractual preferential purchase rights for a total of $1.25 billion in cash. Oxy in September agreed to acquire the stakes (see Daily GPI, Sept. 26). In late 2007 Oxy paid PXP a total of $1.55 billion for a 50% stake in PXP’s Permian and Piceance leaseholds (see Daily GPI, Dec. 18, 2007). The Permian and Piceance basin assets have net production of around 52 MMcf/d of gas and 4,300 b/d of liquids, or 13,000 boe/d. The properties also have about 92 million boe of proved reserves, 45% developed and 69% weighted to gas. PXP is expected to use the proceeds to develop a joint venture with Chesapeake Energy Corp. in the Haynesville Shale (see Daily GPI, July 2).
Gas-Directed Producers Anticipate Bumpy Ride in 2009 and Beyond
Natural gas producers, especially those active in shale basins, could be in for a rough ride in 2009 and beyond if the current turmoil in the financial markets and the downturn in commodity prices continue unabated, producers told FERC Friday. And while industrial customers see lower gas prices as good news, they say now is not the time to relax.
Circumstances Force Producers to be Pickier about New Pipes
Record natural gas pipeline capacity additions in 2007 haven’t been enough to prevent infrastructure constraints in several key U.S. basins, but producers likely will be more selective about what pipes they back in the coming year, Barclays Capital analysts said in a report.
Gas-Directed Producers Anticipate Bumpy Ride in 2009 and Beyond
Natural gas producers, especially those active in shale basins, could be in for a rough ride in 2009 and beyond if the current turmoil in the financial markets and the downturn in commodity prices continue unabated, producers told FERC Friday. And while industrial customers see lower gas prices as good news, they say now is not the time to relax.
Circumstances Force Producers to be Pickier about New Pipes
Record natural gas pipeline capacity additions in 2007 haven’t been enough to prevent infrastructure constraints in several key U.S. basins, but producers likely will be more selective about what pipes they back in the coming year, Barclays Capital analysts said in a report.
Softness Continues to Dominate Cash Market
Although flat to nearly 30 cents higher numbers continued in parts of the cash market Tuesday — primarily in the Midcontinent/Midwest, Southwest basins, California and the Pacific Northwest/Western Canada areas — most points were still in softening mode as cooling load remains fairly meager for what is often the hottest month of the year and prior-day screen guidance was negative again.
With Shale Backbone, XTO on Pace to Double Gas Output in 4 Yrs.
XTO Energy Inc.’s massive accumulation of natural gas properties in producing shale basins across the United States should allow it to double its gas production by the end of 2011 and could lift the independent to the top of the heap among domestic gas producers, CEO Bob Simpson said last week.