Driven

In response to the booming development in the Bakken Shale play, Kinder Morgan Interstate Gas Transmission LLC (KMIGT) is seeking FERC authorization to transfer a portion of its Pony Express natural gas pipeline to an affiliate to transport crude from the Bakken to key refinery centers.

Driven primarily by continuing record oil production from the Bakken Shale formation, North Dakota’s economy is booming and is on target to produce more than $3.5 billion in tax revenues by the end of the state’s current two-year (2011-2013) fiscal year budget period, according to the state tax commissioner.

Houston explorer Marathon Oil Corp. is reducing its rig count in the Eagle Ford Shale because of drilling efficiencies and dropped rigs in the Anadarko Woodford and Bakken plays in response to a “continued decline in natural gas liquids (NGL) and natural gas prices,” the company said Wednesday.

The lowest natural gas prices in a decade — driven lower in large part by production from North American shale plays — are behind many of the decisions being made by regulators and energy companies in the Northwest, but where those prices are likely to go next is a matter of dispute.

The lowest natural gas prices in a decade — driven lower in large part by production from North American shale plays — are behind many of the decisions being made by regulators and energy companies in the Northwest, but where those prices are likely to go next is a matter of dispute.

North Dakota’s Bakken Shale-driven oil and gas production continued to rise in May from April, according to the state’s Department of Mineral Resources. Preliminary results indicated growth in nearly all of 17 counties — particularly Dunn, McKenzie, Mountrail and Williams, where most of the drilling to date has occurred.

The costs to build and operate upstream natural gas and oil facilities are escalating and should continue to move up, driven by increased costs in drilling rig dayrates, equipment and oilfield services, according to IHS Inc.

The costs to build and operate upstream natural gas and oil facilities appear to be escalating and should continue to rise, driven by increased costs in drilling rig dayrates, equipment and oilfield services, according to IHS Inc.

Cash market prices overall fell an average of 28 cents Thursday, but much of the decline resulted from short-term weather-driven changes affecting Northeast markets. Declines averaged closer to 14 cents if the multi-dollar free-fall experienced by Northeast markets is not considered, but losses were widespread nonetheless.