Cost

Halliburton, Apache Corp. and Caterpillar have developed a dual-fuel technology for using natural gas and diesel to operate pumping equipment used in hydraulic fracturing (fracking) at oil and gas well sites.

Economic contributions from unconventional development mostly are driven by the 16 states with oil and natural gas production, but a “significant portion” comes from states with no production, according to a state-by-state analysis by IHS Inc.

New Mexico state authorities on Thursday reopened a case on proposed industry-prompted modifications to the state’s “pit rule” for handling natural gas and oil drilling and production waste.

BP plc last week reported better-than-expected profits in 3Q2012, a big turnaround from the previous quarter’s losses.

BP plc on Tuesday reported better-than-expected profits in 3Q2012, a big turnaround from the previous quarter’s losses.

Rep. Bill Flores (R-TX) has introduced a bill that would further delay action on the Interior Department’s Bureau of Land Management (BLM) proposed rule governing hydraulic fracturing (fracking) activities on public and Indian lands until Interior Secretary Ken Salazar submits a report examining the effects of the rule.

The four top natural gas producing states in the Lower 48 states — Texas, Oklahoma, Louisiana and Wyoming — are collecting severance taxes on their dry gas of between 14.7 and 18.5 cents/Mcf based on recent gas prices, according to a review of regulations and taxes by Washington, DC-based Resources for the Future’s Center for Energy Economics and Policy (CEEP).

The Environmental Protection Agency (EPA) has extended by 45 days the comment period for its proposed guidance to oil and natural gas producers on using diesel fuel in hydraulic fracturing (fracking) “in response to requests from several stakeholders.” The Bureau of Land Management (BLM) on Wednesday also extended the comment period for its proposed fracking rule, setting the new date of Sept. 10.

Hearings continue Wednesday in New Mexico on proposed changes to make the state’s “pit rule” for oil/natural gas drilling more cost effective. Additional hearings are expected to last through Aug. 17 and the Oil Conservation Commission (OCC) has set closing arguments and final deliberation for September, according to staff in the New Mexico Environment Department. An eighth day of hearings was concluded last Thursday with direct testimony from two Oil Conservation Division supervisors who supported modifications in the rule for handling gas and oil drilling production waste (see Daily GPI, May 22) that will result in “clear and unambiguous” requirements. Industry representatives earlier in the hearings said drilling costs are rising to comply with the state rule, while local ranchers and environmental group representatives expressed their concerns about adverse impacts on the environment.