Developing

An interior oil and natural gas supply glut, the result of strong output from shales and tight oil and gas plays, is developing because infrastructure can’t keep up, and that in turn is pressuring prices, according to energy analysts.

An interior oil and natural gas supply glut, the result of strong output from shales and tight oil and gas plays, is developing because infrastructure can’t keep up, and that in turn is pressuring prices, according to Canaccord Genuity.

November natural gas advanced Tuesday as players sensed some angst developing in traders who last week sold short and are now being forced to cover since their market objectives are not being realized. At the close November had risen 7.5 cents to $3.616 and December added 2.3 cents to $3.859. November crude oil added 40 cents to $85.81/bbl.

Carrizo Oil & Gas Inc. and a unit of India’s Gail (India) Ltd. have closed on a joint venture (JV) that gives Gail 20% of Carrizo’s interest in about 20,200 net acres in the condensate zone of the Eagle Ford Shale for $95 million.

Producers in northeastern Pennsylvania will get a respite from the region’s pipeline capacity pinch — but not for long — according to Bentek Energy LLC.

Ceramic products company Saint-Gobain is developing a ceramic proppant manufacturing plant in Saline County, AR. The company said its proppants division will build a 100,000-square-foot facility on 68 acres at a cost of $100 million.

The Secretary of Energy Advisory Board (SEAB) Natural Gas Subcommittee should defer to state regulators — and may find that many of its objectives are already being addressed by existing programs — according to comments filed at the Department of Energy (DOE) by industry groups.

The American Petroleum Institute (API) said many existing regulatory and industry efforts on hydraulic fracturing (fracking) were overlooked by the Secretary of Energy Advisory Board (SEAB) Natural Gas Subcommittee’s initial report on the practice, which was released last week.

Royal Dutch Shell plc unit Shell Canada has signed on with a trio of Asian partners to explore developing a liquefied natural gas (LNG) export facility on the western coast of Canada, according to press reports. The group would be the fourth to target the region for LNG exports.