Blowouts

The oil and gas industry long has had an image problem, but the consequences from the Macondo well blowout — as well as recent onshore gas pipeline explosions and well blowouts — may take years to repair, executives said at the Offshore Technology Conference earlier this month.

While many a Rocky Mountain region producer has bemoaned the basis blowouts of 2007, Williams has been able to turn the pipeline capacity constraint situation there to its advantage.

Basis blowouts are getting to be an unwelcome habit for Rockies producers. The previous week had begun with triple-digit plunges that took most Rockies points to sub-$2 averages and then to less than a dollar the next day. On Tuesday the regional market wasted no time in getting off to sub-dollar pricing in post-holiday trading. Elsewhere, quotes were mostly softer but mixed with occasional gains of up to about half a dollar.

Williams has no intention to delay any of its natural gas exploration and production (E&P) operations in the Rocky Mountains — even with the basis blowouts that have decimated gas prices in the region over the past few months.

Williams has no intention to delay any of its natural gas exploration and production (E&P) operations in the Rocky Mountains — even with the basis blowouts that have decimated gas prices in the region over the past few months.