Differential

Price differentials are becoming increasingly favorable for Bakken Shale crude oil versus other major U.S. basins, Whiting Petroleum Corp. CEO Brad Holly said last week.

The current slate of Marcellus and Utica shale takeaway expansions exceeds expected supply growth, a dynamic that points to shrinking Appalachian basis differentials and major upside for regional production over the next few years, according to analysts with Raymond James & Associates Inc.

The Energy Information Administration (EIA) said on Tuesday that new natural gas pipelines have narrowed Appalachian differentials since January 2014, with some of the best gains coming this year.

Production in North Dakota’s Bakken Shale remained unchanged in May from April, but that doesn’t mean the prolific sweet crude oil and natural gas area has peaked, the state’s chief oil and gas regulator said last week.

A multi-year low may be in the offing for natural gas prices this year, as strong Northeast production compresses Henry Hub pricing and supply continues to overrun demand, analysts said Tuesday.

The future of continued robust growth in railing domestic crude oil supplies has come into question following the Quebec oil tanker car derailment in July, but the transporters don’t see a slowing trend longer term.

Newfield Exploration Co. has signed a 10-year supply agreement with HollyFrontier Corp. to provide 20,000 b/d of supply capacity at HollyFrontier’s Woods Cross, UT, refinery.

The boom in natural gas shale exploration and production (E&P) is fueling “significant cost advantages” for North America’s commodity chemicals producers because the costs of gas and oil-based feedstocks remain far apart, according to a report by Fitch Ratings.

Texas Eastern restricted all deliveries Friday to the Transco Ragley interconnect in its West Louisiana pool, saying the pressure differential between the two pipelines did not “accommodate deliveries to Transco’s system.” The condition was expected to continue through Monday (Nov. 18).