Caused

Another sign of the shifting world energy market caused by the shale gas revolution is a $7 billion contract announced this week that directs the export of coal — no longer needed in the United States — to India from Kentucky and West Virginia. The 25-year agreement was lauded by Kentucky Gov. Steve Beshear, who called it “an example of a great new market for Kentucky resources.” Kentucky coal companies will export about 9 million tons of coal per year to India’s Abhijeet Group. The coal is being purchased from Kentucky-based affiliates of FJS Energy LLC. A supply glut of natural gas, much of it from shale, has driven gas prices lower than coal this year and intensified the environmental push toward coal-to-gas fuel switching for power generation (see Daily GPI, Aug. 16; Aug. 6). The 25-year contract is an indication that coal producers see stiff competition from natural gas continuing for their product in the United States.

Global LNG prices will be in a summertime lull until wintertime following a price run-up caused by a pre-summer supply buying spree, according to analysts at Bank of America Merrill Lynch. Still, LNG markets will remain tight in the coming years as import capacity additions continue while liquefaction growth takes a breather.

Global LNG prices will be in a summertime lull until wintertime following a price run-up caused by a pre-summer supply buying spree, according to analysts at Bank of America Merrill Lynch. Still, LNG markets will remain tight in the coming years as import capacity additions continue while liquefaction growth takes a breather.

Lower prices for oil and natural gas liquids have led to softening in drilling services markets and caused Pioneer Drilling Co. to dial down its operations guidance for the second quarter, the company said Monday. However, the Permian Basin of West Texas and the Bakken Shale offer some bright spots.

Antero Resources disturbed an aquifer while attempting to dislodge a stuck drillbit at a new Marcellus Shale natural gas well in West Virginia’s Harrison County on Wednesday morning, causing blowouts at four abandoned private water wells.

Two earthquakes that recently shook the area around the East Texas town of Timpson were unlikely to have been caused by natural gas drilling or drilling waste disposal activities, according to the Railroad Commission of Texas (RRC).

In response to major pipeline accidents in California and Pennsylvania that caused 22 deaths, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) last week issued recommendations for natural gas pipelines to preserve and verify records related to maximum allowable operating pressure (MAOP) and advised hazardous liquid pipeline operators to adhere to the same standards for maximum operating pressure (MOP).

Responding to major pipeline accidents in California and Pennsylvania over the last few years that caused 22 deaths, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) Monday issued recommendations for natural gas pipelines to preserve and verify records related to maximum allowable operating pressure (MAOP) and advised hazardous liquid pipeline operators to adhere to the same standards for maximum operating pressure (MOP).

A geophysicist with the U.S. Geological Survey (USGS) believes at least two minor earthquakes in South Texas, including a 3.0-magnitude temblor on Feb. 4, were caused by oil and natural gas drilling.