Contemplating

A wide variety of outcomes are possible when contemplating the likelihood that an oil or natural gas injection well could increase the chance of seismic activity, including the possibility of not operating the well at all, according to a draft report by a U.S. Environmental Protection Agency’s (EPA) workgroup.

Mexico’s Petroleos Mexicanos (Pemex) was reported Thursday on both sides of the U.S.-Mexico border to be contemplating layoffs of up to 15,000 workers as apart of an overhaul of the government’s energy supply operations. However, NGI sources in California and Mexico City said it may be premature to talk about the possible downsizing of a workforce that is 72% union represented. “Given new appointments [to senior positions], there is a plan to reorganize the company into upstream and downstream segments,” said a Mexico City source who follows Pemex. A total restructuring is “still in process, so nothing has happened so far,” the source said. In California, an energy attorney specializing in Latin America said he had not heard of any layoffs, but any such move would be part of Pemex’s upcoming “modernization and streamlining efforts.” A spokesperson for Sempra Energy, which has extensive holdings in Mexico, said the company’s Mexico City office was unaware of any Pemex plans for layoffs.

Chesapeake Energy Corp. is contemplating the sale of its entire Permian Basin portfolio, which represented about 5% of 2011 net proved reserves and current production. Together with other sales and partnerships being considered in the U.S. onshore, the producer said it could pump up its balance sheet to the tune of $10-12 billion in 2012.

Big rig truckers and fleet operators contemplating the purchase of a natural gas-fueled rig have several things to consider. One is the availability of fuel. Compressed natural gas (CNG) and liquefied natural gas (LNG) don’t share the same availability characteristics, according to Kenworth Truck Co.’s Andy Douglas, national sales manager for specialty markets.

Quicksilver Resources Inc.’s share price jumped Monday on reports that India’s Reliance Industries Ltd. is contemplating a joint venture or even a takeover.

Chesapeake Energy Corp. is contemplating how to structure a possible partnership for its South Texas conventional natural gas leasehold, which, instead of selling an outright stake in the assets, as has been the company’s recent modus operandi, it instead may use a volumetric production payment (VPP) transaction, giving the buyer some oil and natural gas output in exchange for cash.

Chesapeake Energy Corp. is contemplating how to structure a possible partnership for its South Texas conventional natural gas leasehold, the company’s CFO said Friday. Instead of selling an outright stake in the assets, as has been Chesapeake’s recent modus operandi, it instead may use a volumetric production payment (VPP) transaction, which would give the buyer some oil and natural gas output in exchange for cash.

Add another company to the growing roster of pipelines that are contemplating projects to take Rocky Mountain natural gas eastward. National Fuel Gas Co. says it is seriously exploring the prospect of building a 324-mile pipeline to deliver Rockies gas from Ohio, where the Rockies Express Pipeline (REX) will terminate, to the Corning, NY, market.

Southern Star Central Gas Pipeline Inc. is contemplating a new interstate natural gas pipeline to connect the developing Fayetteville Shale basin in Central Arkansas to Kinder Morgan’s Rockies Express Pipeline LLC (REX) in Audrain County, MO, the company said Friday.