Declining

To protect the declining sage grouse population and avoid seeing it listed as a protected species under the U.S. Endangered Species Act (ESA), Wyoming has to reduce the effects of energy development and impose tighter restrictions on residential development, a state panel recommended this week.

With the sage grouse population apparently declining as quickly as coalbed methane (CBM) development expands in the Powder River Basin, the Bureau of Land Management (BLM) office in Wyoming is attempting a friendly chicken dance with the region’s oil and natural gas operators, indicating that applications for permits to drill outside the delicate habitat will be given priority.

With the sage grouse population apparently declining as quickly as coalbed methane (CBM) development expands in the Powder River Basin, the Bureau of Land Management (BLM) office in Wyoming is attempting a friendly chicken dance with the region’s oil and natural gas operators, indicating that applications for permits to drill outside the delicate habitat will be given priority.

As expected, declining cooling load, a bearish storage report, the previous day’s drop of a little more than a quarter by July futures and the reduced industrial demand associated with a weekend ganged up on the cash market Friday to push prices lower by sizeable amounts at all points. Several OFOs or similar actions and excess supply constraints exacerbated the situation in the West, resulting in plunges of about a dollar or slightly more at some locations in the region.

While it is no secret that North American natural gas production is on the decline due to declining reserves, newer production fields in Canada and the United States continue to stem the tide. Last week, Halifax, NS-based Corridor Resources reported that its McCully Gas Field in New Brunswick has begun pumping 35 MMcf/d of natural gas into the Maritimes & Northeast Pipeline (M&NP) for delivery in Canada and the northeastern United States. The action marks the first export of gas from an onshore site in Atlantic Canada to New England.

While it is no secret that North American natural gas production is on the decline due to declining reserves, newer production fields in Canada and the United States continue to stem the tide. On Wednesday, Halifax, NS-based Corridor Resources reported that its McCully Gas Field in New Brunswick has begun pumping 35 MMcf/d of natural gas into the Maritimes & Northeast Pipeline (M&NP) for delivery in Canada and the northeastern United States. The action marks the first export of gas from an onshore site in Atlantic Canada to New England.

With production from conventional gas fields declining across North America, gas shales are poised to increase their contribution to the nation’s gas supply. There are approximately 40,000 producing wells and fewer than two-dozen significant gas shale plays in the United States today, but the one that could potentially provide the biggest payoff –the Conasauga play — is still a largely unknown quantity.

With production from conventional gas fields declining across North America, gas shales are poised to increase their contribution to the nation’s gas supply. There are approximately 40,000 producing wells and fewer than two-dozen significant gas shale plays in the United States today, but the one that could potentially provide the biggest payoff –the Conasauga play — is still a largely unknown quantity.

The cash market returned to mixed price movement Thursday, but unlike the mixed quotes of Monday and Tuesday, there were more declining points than rising ones this time. Modest warming trends in the Midwest and Northeast (before the return of colder weather in both regions next week) were the chief factor in the majority softness.