While lower profits in its merchant generation business and a decrease in weather-related energy sales hampered Dominion Resources Inc.’s full-year and 4Q2011 earnings, the Richmond, VA-based company said it has made “significant progress” in developing infrastructure projects to serve the robust shale gas production from the Marcellus and surrounding plays.
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Industry Brief
Idaho regulators have scheduled a hearing for Sept. 13 to take public comments on a settlement that would result in a net rate decrease for Spokane, WA-based Avista Utilities’ natural gas and electric retail utility customers in northern Idaho. In July Avista applied for gas and power rate increases averaging 2.7% and 3.7%, respectively, but the proposed settlement would allow much smaller average increases of 1.6% and 1.1%, effective Oct. 1. With several other rate adjustments for the combination utility, customers face the prospect of overall decreases of about 1% for gas and 2.4% for electricity. In addition, as part of the deal Avista would not seek another increase in base rates from the Idaho Public Utilities Commission (PUC) before April 1, 2013. The three PUC commissioners will conduct a combination public and technical hearing Sept. 13 in Coeur d’Alene, ID.
Transportation Notes
Effective Friday Southern California Gas will voluntarily decrease the maximum operating pressure on its Line 2000 in the Southern Transmission Zone by approximately 20%. “This change is being made to further improve and maintain the safety of SoCalGas’ pipeline network,” the giant LDC said. Affected pipeline runs from Blythe in Riverside County to Brea Station in Orange County, SoCalGas said. Customers served from Line 2000 may experience lower delivery pressures, and total receipt point capacity at El Paso-Ehrenberg and North Baja-Blythe will be limited to 1,010 MMcf/d, it added. See the bulletin board for further details.
Lower 48 Gas Output Bounces Back from February Lows
Natural gas production in the Lower 48 states recovered in March from the weather-induced decrease seen in the previous month (see NGI, May 9), increasing 3.8% (2.49 Bcf/d) to 68 Bcf/d from 65.51 Bcf/d in February, according to the Energy Information Administration’s (EIA) monthly natural gas report.
Lower 48 Production Bounces Back from February Lows
Production in the Lower 48 states recovered in March from the weather-induced decrease seen in the previous month (see Daily GPI, May 4), increasing 3.8% (2.49 Bcf/d) to 68 Bcf/d from 65.51 Bcf/d in February, according to the Energy Information Administration’s (EIA) monthly natural gas report.
Devon Discloses Leasehold in Tuscaloosa Shale
Devon Energy Corp., which took the prospective Barnett Shale and turned it into one for the ages, disclosed Wednesday that it has leased 250,000 net acres in the emerging Tuscaloosa Marine Shale of southwestern Mississippi/central Louisiana for a cost of around $180/acre.
Southwestern Finds Shales More Pliable Than Utilities
Southwestern Energy Co. has proven itself in the Fayetteville Shale and is now successfully poking holes in the Marcellus. However, it hasn’t been as adept at getting utility gas buyers to put pen to long-term supply contracts.
Shale Rigs Gain on the Week, Remain Lower than Last Month
Shale gas plays gained 14 active rigs to 964 rigs in the week ended April 29 over the previous week’s 950 rigs for a 1% increase, but the total was a 2% decrease from the 981 rigs active a month ago for the week ending April 1, according to NGI’s Shale Daily Unconventional Rig Count.
Analysts: Canadian Gas Industry Must Look Beyond U.S.
Faced with pricing uncertainty, anticipated decrease in U.S. demand and a shifting regulatory landscape, Canadian gas companies will need to look beyond the United States if they are to retain market share and remain competitive, according to Ernst & Young.
Analysts: Canadian Gas Industry Must Look Beyond U.S.
Faced with pricing uncertainty, anticipated decrease in U.S. demand and a shifting regulatory landscape, Canadian gas companies will need to look beyond the United States if they are to retain market share and remain competitive, according to Ernst & Young.