Drilling

Record natural gas drilling is growing gas reserve additions in both the United States and Canada, leading to full reserve replacement in both countries, according to Ziff Energy Group.

Record natural gas drilling is growing gas reserve additions in both the United States and Canada, leading to full reserve replacement in both countries, according to Ziff Energy Group.

Despite the drilling progress that has been made and the liquefied natural gas (LNG) import terminals that have been planned, the gas supply picture remains uncertain, and over the next few years natural gas markets can expect continued price volatility, speakers at GasMart 2006 said Thursday. LNG supply will remain tight until the end of the decade, and Gulf of Mexico, unconventional onshore and LNG resources all will be needed to meet growing industrial and power generation demand.

The Senate Budget Committee’s approval last Thursday of a provision authorizing drilling in the Arctic National Wildlife Refuge (ANWR) as part of the budget resolution for fiscal year 2007 has drawn the wrath of Democrats and Republicans alike. Lawmakers from both sides of the aisle have threatened to vote against the budget package if ANWR remains.

Centrist House Republicans are seeking to reprise their successful strategy from last year to keep drilling in the Arctic National Wildlife Refuge (ANWR) out of the fiscal year 2007 budget resolution.

The American Gas Association (AGA) has warned in a new study that despite recent record gas prices and strong gas-directed drilling, the changing composition of domestic natural gas supply and the politics that continue to impede exploration and development will limit the ability of the gas industry to meet growing gas demand in the future. AGA believes that if the status quo is preserved, U.S. gas production will remain at about 19 Tcf, no higher, for the next five to15 years.

Chemical producers, who have been rocked by escalating natural gas prices, called on the Bush administration this week to lift the restrictions on oil and natural gas drilling in much of the federal Outer Continental Shelf (OCS).

The biggest disappointment of the newly-enacted energy bill is its failure to overturn the moratorium on oil and natural gas drilling in much of the federal Outer Continental Shelf (OCS), an American Gas Association (AGA) official said Friday.

Legislation encompassing a sweeping reform of leasing and drilling rules in New York State that was signed by the governor last week is “a good compromise for all the parties involved,” according to Brad Gill, executive director of the Independent Oil and Gas Assoc. of New York (IOGA). “This is fair to operators and landowners.