Discovery

A substantial amount of unconventional natural gas reserves await discovery in North America, both in existing basins and new areas, and likely will account for 42% of U.S. gas supply by 2010, according to a report by UK-based energy consulting firm Wood Mackenzie. Unconventional gas, which includes coalbed methane, tight gas sands and shale gas, accounted for 27% of U.S. supply in 2005.

Houston-based Anadarko Petroleum Corp. notched another sale in its ongoing divestiture plan. The company is selling its Genghis Khan discovery in the deepwater Gulf of Mexico (GOM) to the owners of the adjacent Shenzi field for $1.35 billion.

Dallas-based independent Pioneer Natural Resources Co., which is in the process of selling off its deepwater Gulf of Mexico assets, on Thursday announced a discovery on one of the blocks up for sale, the Clipper prospect in the Green Canyon. Pioneer operates the block and holds a 55% working interest.

Chevron Corp. said its Venezuelan affiliate made a significant natural gas discovery at the offshore Macuira 1X exploration well, which will put the company’s plans to build a liquefied natural gas export project on the front burner.

Consent order in hand, Chevron Corp. and Texaco Inc. became the latest of the majors to merge, after the U.S. Federal Trade Commission (FTC) gave its approval on Friday. The new company, ChevronTexaco Corp., moves to fifth place on the majors’ list, following arduous negotiations that began more than two years ago (see Daily GPI, June 4, 1999). The companies finally came to terms last October and cinched the deal after Texaco agreed to spin off several of its businesses (see Daily GPI, Aug. 13; Oct. 17, 2000).

Successful drilling programs in East Texas, the Arkoma Basin and the River Ridge discovery in New Mexico helped Southwestern Energy Co. grow its natural gas and oil production 25% in the second quarter. The Houston-based independent reported its production reached 12.6 Bcfe in the quarter, up from 10.1 Bcfe a year earlier. Output was also up sequentially from the first quarter’s 11.4 Bcfe.

Dallas-based independent Pioneer Natural Resources Co. on Friday said two discovery wells, Tomahawk and Raptor, began production last Wednesday. The two wells are located in the Falcon field in the western deepwater Gulf of Mexico (GOM), which currently is producing 350 MMcf/d of natural gas and 1,000 bbl/d of condensate.

Alberta, source of four-fifths of Canadian natural gas production, has reached its natural upper limit as a supplier and its industry will have to scramble to maintain current output, the National Energy Board says.

Alberta, source of four-fifths of Canadian natural gas production, has reached its natural upper limit as a supplier and its industry will have to scramble to maintain current output, the National Energy Board says.