Calgary’s Pembina Pipeline Corp. and Provident Energy Ltd. agreed Monday to merge in a C$3.2 billion ($3.1 billion) transaction that would create a Canadian giant with oil and natural gas pipelines to transport crude and natural gas liquids (NGL), midstream gas processing and an energy marketing arm.
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North Dakota Passes Production Milestone
North Dakota passed another oil production milestone in November, averaging more than a half-million b/d, according to preliminary data released Tuesday by the state Industrial Commission.
No Sure Thing in 2012 Gas Price Forecasts
How low can you go? Both government and private energy analysts in the business of making natural gas price forecasts haven’t quite determined how low natural gas prices will go in 2012 — but the consensus doesn’t indicate a bullish run.
Industry Briefs
Magnum Hunter Resources Corp. is raising its production guidance for this year and next year based upon better-than-expected well results, according to the Houston-based company. Magnum Hunter is currently producing 12,500 boe/d, compared to its 10,000 boe/d guidance for the year. The company expects to close out 2012 producing 14,500 boe/d, up from its previous projection of 13,000 boe/d. Magnum Hunter operates in the Marcellus, Eagle Ford and Bakken shales. “We are very fortunate to have three resource plays within our portfolio that are now ‘hitting on all cylinders’ and providing an increase in our overall production levels well above expectations,” said CEO Gary C. Evans. “This is especially rewarding when our management team has been able to achieve these milestones while also staying within our original capital budget plan.”
Transportation Notes
Transwestern issued a systemwide Alert Day notice due to low linepack for Monday, prompting Southwest Gas to follow up with a Hold Burn to Scheduled Quantities notice. Both actions were canceled Tuesday as a result of Transwestern linepack returning to normal.
‘Relatively Tame’ Hurricane Season Next Year, WSI Says
Changing water temperatures in both the South Pacific and North Atlantic oceans could produce a relatively tame 2012 Atlantic hurricane season, according to forecasters at Andover, MA-based WSI. Corp.
Fund Selling, Weak Technicals Pressure Futures; January Falls
January natural gas swan-dived lower Friday as traders noted a continuing deterioration in both the fundamental and technical dimensions to the market. At the close January had fallen 14.0 cents to $3.317 and February had given up 13.3 cents to $3.353. January crude oil added $1.07 to $99.41/bbl.
Group Lauds Colorado’s Fracking Rules, Suggests Minor Tweaks
A nonprofit organization that conducts voluntary reviews of state oil and natural gas regulations has made a few minor recommendations for Colorado’s hydraulic fracturing (fracking) regulations, but concluded that the program is well managed and contains some strengths the shale gas industry would find noteworthy.
FERC Clears the Way for Marcellus Pipeline Projects
Pipeline applications to transport Marcellus Shale gas appear to dominate at FERC, which last week issued orders clearing the way for both the construction of the MARC I Hub Line project in northeastern Pennsylvania and the expansion of Texas Eastern Transmission’s (Tetco) mainline system in southwestern Pennsylvania.
PA House, Senate Face Drilling Bill Negotiations
Legislators from both chambers of the Pennsylvania General Assembly face tough negotiations into December as they try to reconcile the differences between their two Marcellus Shale regulatory reform bills, which include an impact fee on oil and natural gas drilling.