Declining

The horizontal natural gas drilling boom drove a long production growth period, but that boom topped out in September 2011, and overall monthly production has remained basically flat since then, analysts at Stephen Smith Energy Associates said in their most recent Monthly Energy Outlook. And while the number of horizontal gas rigs has fallen about 70% from its peak, several effects have worked to maintain the 18-month production plateau, they said.

Pioneer Natural Resources Co.’s Eagle Ford Shale play is “hitting on all cylinders,” and in the liquids-rich Barnett Shale combo play, well costs are declining, COO Timothy Dove said during an earnings conference call.

Texas oil and gas activity is looking up after months of declining rig counts and stagnant natural gas prices, nudging an industry barometer, the Texas Petro Index (TPI), up in March.

Pioneer Natural Resources Co.’s Eagle Ford Shale play is “hitting on all cylinders,” and in the liquids-rich Barnett Shale combo play, well costs are declining, COO Timothy Dove said during an earnings conference call.

Texas oil and gas activity is looking up after months of declining rig counts and stagnant natural gas prices, nudging an industry barometer, the Texas Petro Index (TPI), up in March.

Crude oil production from the Eagle Ford Shale of South Texas was up by 74% in February compared with a year ago, reaching an all-time high of 471,258 b/d from the nine fields that comprise the majority of the play, according preliminary data from the Railroad Commission of Texas (RRC).

During the last days of the legislative session, Alaska lawmakers passed one bill intended to revive the state’s declining oil production by cutting taxes, and another to advance development of an in-state pipeline that would commercialize North Slope natural gas reserves for use by Alaskans.

During the last days of the legislative session, Alaska lawmakers passed one bill intended to revive the state’s declining oil production by cutting taxes, and another to advance development of an in-state pipeline that would commercialize North Slope natural gas reserves for use by Alaskans.

The natural gas cash market worked lower by 9 cents on average Tuesday for Wednesday delivery with all market and producing areas declining. Rocky Mountain points were hit hard, but locations in the Midwest were weak as well. Most major trading hubs lost anywhere from a nickel to a dime. At the close of futures trading the May natural gas contract had fallen 6.5 cents to $4.017 and June was off 6.1 cents to $4.057. May crude oil rose 84 cents to $94.20/bbl.