Began

Denver-based Kodiak Oil & Gas Corp., which is focused on the Bakken Shale in North Dakota’s Williston Basin, grew oil and gas sales volumes by 83% during the second quarter compared to a year ago; crude oil accounted for 87% of second quarter sales. The company has raised capital spending and production guidance for the remainder of the year.

The across-the-board budget sequestration cuts, which began in March, will result in a considerable reduction in the number of oil and natural gas permits processed and leases issued annually, according to a new report by Democrats on the House Appropriations Committee Wednesday.

The Bakken Shale and Three Forks formation in the Williston Basin in Montana, North Dakota and South Dakota contain a combined estimated 7.4 billion bbl of undiscovered, technically recoverable oil, 6.7 Tcf of undiscovered, technically recoverable natural gas and 530 million bbl of undiscovered, technically recoverable natural gas liquids (NGL), according to an assessment released Tuesday by the United States Geological Survey (USGS).

McMoRan Exploration Co. Wednesday began crowing about a Lineham Creek ultra-deep exploratory well located onshore in South Louisiana in which it has a minority stake. The well is not yet at total depth, but McMoRan said estimated proved, probable and possible oil and gas reserves are 546.7 Bcfe gross.

Maryland’s fledgling Marcellus Shale industry — which would be based solely in two of the state’s westernmost counties — has ended even before it began, according to Robert Summers, secretary of the Maryland Department of the Environment (MDE).

Maryland’s fledgling Marcellus Shale industry — which would be based solely in two of the state’s westernmost counties — has ended even before it began, according to Robert Summers, secretary of the Maryland Department of the Environment (MDE).

Dow Chemical Co. began producing on-spec ethylene in late December at its St. Charles Olefins 2 Plant near Hahnville, LA, the company said. “The start-up of our St. Charles ethylene plant represents the first major milestone within our U.S. Gulf Coast investment strategy,” said Brian Ames, president, of Dow’s olefins, aromatics and alternatives business. “This action further reduces the company’s purchased ethylene, lowering costs and strengthening the competitiveness of our high-margin, high-growth derivatives businesses.” Restart of the plant had been previously announced and is part of the company’s plan to further connect its U.S. operations with cost-advantaged feedstocks from U.S. shale gas (see Shale Daily, Dec. 13, 2012). “Plans to increase ethylene and propylene supply and ethane cracking capabilities at existing U.S. Gulf Coast facilities strengthen the competitiveness of Dow’s performance plastics, performance products and advanced materials businesses and enable profitable growth in the Americas,” the company said. The St. Charles plant was idled in January 2009 and is now expected to deliver a $150 million increase in earnings before interest, taxes, depreciation and amortization this year.

Two major Dodd-Frank Wall Street regulatory reforms — real-time reporting of swap transactions and swap dealer (SD) registration — began last week, the Commodity Futures Trading Commission (CFTC) said.

Two major Dodd-Frank Wall Street regulatory reforms — real-time reporting of swap transactions and swap dealer (SD) registration — began earlier this week, the Commodity Futures Trading Commission (CFTC) said.