Depth

For the second consecutive quarter three of the top five natural gas marketers reported sales volume declines compared with the year-ago period, and 24 leading companies had total sales transactions of 127.06 Bcf/d in 3Q2011, an 8.54 Bcf/d (6%) decrease from the 135.60 Bcf/d they transacted in 3Q2010, according to NGI’s 3Q2011 Top North American Gas Marketers Ranking.

For the second consecutive quarter three of the top five natural gas marketers reported sales volume declines compared with the year-ago period, and 24 leading companies had total sales transactions of 127.06 Bcf/d in 3Q2011, an 8.54 Bcf/d (6%) decrease from the 135.60 Bcf/d they transacted in 3Q2010, according to NGI’s 3Q2011 Top North American Gas Marketers Ranking.

Thanks to the Montney and Horn River shale plays, Western Canada can hold its own in the natural gas renaissance; however, production from these developing plays will not offset declines in the region’s conventional gas production, according to Ziff Energy Group’s Edward Kallio, director of gas consulting.

Chesapeake Energy Corp. is underwriting www.Shale.tv, an on-line video channel that will “provide a platform for in-depth information, discussion and analyses about the Barnett Shale and other shale natural gas plays in the U.S.,” according to the website. Despite Chesapeake’s role, the site’s creators “hope to provide thorough, accurate and independent information about the complex issues and opportunities of developing natural gas domestically.” The television-style programming on Shale.tv will be led by managing editor Tracy Rowlett, who was previously a news anchor at KTVT-TV in Dallas. Chesapeake has promised not to meddle in the project, and journalists set to work on the site’s three hours of new programming each day have been promised editorial independence, according to a story in The Wall Street Journal. Last year Chesapeake CEO Aubrey McClendon and Chesapeake founded the American Clean Skies Foundation and put former Oklahoma Corporation Commission Chair Denise Bode in charge (see Daily GPI, July 19, 2007). Earlier this year the organization published the first issue of its magazine and unveiled Clean Skies TV, an Internet-based television channel (see Daily GPI, April 11). Earlier this month Chesapeake sold its interests in 90,000 net acres of leasehold and natural gas properties in the Arkoma Basin of the Woodford Shale to BP America Inc. for $1.75 billion, enabling it to redeploy capital to its Barnett, Haynesville and Marcellus shale plays and improve its capital structure (see Daily GPI, July 18).

The Massachusetts Department of Environmental Protection (DEP) has denied a request by Weaver’s Cove Energy to dredge the Taunton River to a depth to accommodate liquefied natural gas (LNG) tankers. Two rulings, one from the DEP’s Bureau of Resources Protection and another from the Wetlands and Waterways Program, reported that Weaver’s Cove submitted information and statements that were inconsistent with the U.S. Coast Guard’s findings that the Taunton River would not be suitable for LNG tanker traffic, according to the Providence (RI) Journal (see NGI, Dec. 17, 2007). Despite the rejection, Weaver’s Cove spokesman Jim Grasso last week said the company remains “fully committed” to building the LNG terminal that is proposed for Fall River, MA. He noted Weaver’s Cove, which is sponsored by Amerada Hess Corp. and an affiliate of Poten & Partners, will appeal the DEP decision. The Weaver’s Cove project, which FERC approved in mid-2005, has been the target of fierce opposition by local, state and federal officials, who are adamant against building LNG infrastructure in their backyard, although they admit more natural gas supply is needed for the region (see NGI, July 4, 2005). If built, ithe proposed terminal ould provide 800 MMcf/d of peak sendout capacity, 400 MMcf/d of baseload supply and 200,000 metric tons of LNG storage.

The Massachusetts Department of Environmental Protection (DEP) last week denied a request by Weaver’s Cove Energy to dredge the Taunton River to a depth to accommodate liquefied natural gas (LNG) tankers.

Kerr-McGee Corp. last week pumped up its 2006 capital program by $170 million to accelerate drilling onshore in the United States, which in turn is expected to boost estimated oil and natural gas production by 7-12% through 2008. About $50 million will be used to expand infrastructure in the Uinta Basin, including construction of a 250 MMcf/d gas processing plant, which could be expanded to 500 MMcf/d.

With conventional natural gas supply from the Gulf of Mexico (GOM) and other traditional U.S. basins drying up and widespread liquefied natural gas (LNG) access still a question mark, the GOM ultra-deep shelf play is the wild card that could help to pick up some of the slack in domestic supplies, according to Matthew Anstead, an analyst with Wood Mackenzie.

With conventional natural gas supply from the Gulf of Mexico (GOM) and other traditional U.S. basins drying up and widespread liquefied natural gas (LNG) access still a question mark, the GOM ultra-deep shelf play is the wild card that could help to pick up some of the slack in domestic supplies, according to Matthew Anstead, an analyst with Wood Mackenzie.