Blue

Republicans and fiscally conservative Blue Dog Democrats could very well kill the plans of Pennsylvania Gov. Ed Rendell to levy a severance tax on gas produced from the state’s portion of the prolific Marcellus Shale play.

The Antitrust Division of the Department of Justice has approved Baker Hughes Inc.’s (BHI) plan to sell Superior Energy Services two stimulation vessels (the HR Hughes and the Blue Ray) and some other assets used to perform sand control services in the U.S. Gulf of Mexico (see Daily GPI, July 7). The asset sale, expected to close by the end of August, is being conducted in connection with BHI’s acquisition of BJ Services Co. (see Daily GPI, April 29). Once the Superior sale is closed BHI would be free to fully integrate BJ Services into its operations.

Chesapeake Energy Corp. — whose logo is a blue gas flame — is continuing the stampede to oil and liquids-rich gas plays along with other U.S. independent producers (see related story), reallocating $700 million of spending from gas to oil over this year and next and pulling some rigs from shale plays (see NGI, Feb. 22).

Chesapeake Energy Corp. — whose logo is a blue gas flame — is continuing the stampede to oil and liquids-rich gas plays along with other U.S. independent producers (see related story), reallocating $700 million of spending from gas to oil over this year and next and pulling some rigs from shale plays (see Daily GPI, Feb. 19).

A blue-chip faction of Albertans believes lasers and fusion power might be the successor to natural gas-fired power generation. Edmonton’s mothballed Rossdale powerhouse could be turned into a home for pioneers of a future power generation technology under a plan developing in academic, industry and government circles.

Looking to find a technology that could become the successor to natural gas-fired power generation, a blue-chip faction of Albertans believes that lasers and fusion power might be the answer. Edmonton’s mothballed Rossdale powerhouse could be turned into a home for pioneers of a future generation of electricity technology under a plan developing in senior academic, industry and government circles.

The Missouri Energy Task Force, a blue-ribbon panel appointed last December by Gov. Matt Blunt, on Thursday recommended the state adopt a “common-sense approach” to meeting the increasing energy demands within the state. Among other things, the panel recommended diversifying energy sources to include wind-and ethanol-based fuels, as well as increasing conservation efforts to keep energy costs affordable.

Rainfall running almost 165% above normal so far in 2006 has triggered land movement between Washougal and Willard in the Blue Lake area of Washington state at approximately Mile Post 1192, Northwest said Friday. “Strain gauges installed in this segment have registered steady increases in stress on the pipeline in this area,” the pipeline added. “Although the stress levels require remediation soon, they are not such that immediate action is needed.” In order to ensure safety and reliability in this segment, Northwest plans to blow down and excavate the affected area to reduce line stress. It anticipates there will be no physical flow through the area for Wednesday’s gas day. “Based upon current weather forecasts and operating conditions, Northwest does not anticipate primary impacts to customers. Northwest will work with its interconnects and use its Jackson Prairie inventory in an attempt to eliminate customer impacts. However, if net nominations north through the Washougal Compressor [Station] increase significantly over the currently scheduled volume of 386,000 Dth/d, Northwest may be forced to declare a Deficiency Period. Customers can help mitigate market impacts by buying gas at Sumas,” the pipeline said. For the Feb. 22-24 gas days Northwest will only schedule primary nominations north through either the Roosevelt or Washougal Compressor Stations. If the stress on the line accelerates, remediation work may begin earlier than currently planned, it said. A Stage II entitlement remained in place until further notice.

Tennessee has scheduled about 12 hours of pigging activity March 8 on part of its Blue Water System offshore Louisiana. Specifically, Line #523M-100 will be pigged from Vermilion 245 to Ship Shoal 198. Only a Shell Oil meter (#012435) will be shut in during the work, but other meters in the area likely will experience higher than normal pressures, Tennessee said.