Chesapeake Energy Corp.’s U.S.-focused natural gas production is forecast to drop by 7% in 2013, bringing “to an end our likely unprecedented public company record of 23 consecutive years of gas production growth,” CEO Aubrey McClendon said Tuesday.
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U.S. E&P Spending Forecast to Jump 9.6% in 2012
A sharp drop in natural gas prices and recent weakness in oil prices haven’t stalled too much U.S. exploration and production (E&P) spending, which is expected to jump by 9.6% to $143 billion this year, according to 239 domestic producers surveyed by Dahlman Rose & Co.
U.S. E&P Spending Forecast to Jump 9.6% in 2012
A sharp drop in natural gas prices and recent weakness in oil prices hasn’t stalled too much U.S. exploration and production (E&P) spending, which is expected to jump by 9.6% to $143 billion this year, according to 239 domestic producers surveyed by Dahlman Rose & Co.
Texas Regulator Proposes Flaring Measures
Railroad Commission of Texas (RRC) Commissioner David Porter said Wednesday the state must work to mitigate the impact of numerous gas flares across the state as Texas develops its oil and gas reserves from shale plays.
Dry Gas Rig Count Forecast to Drop 40% by Year’s End
Between now and the end of the year, the United States should drop 130, or 40%, of the rigs drilling in dry natural gas plays, according to Raymond James and Associates Inc. Meanwhile, Societe Generale said the lag that separates drilling cutbacks to actual production declines “will keep the market waiting for a true supply response.”
Raymond James: 40% Decline in U.S. Dry Gas Rig Count by Year’s End
Between now and the end of the year, the United States should drop 130, or 40%, of the rigs drilling in dry natural gas plays, according to the energy team at Raymond James and Associates Inc.
EIA Cuts Marcellus Shale Estimate, But Predicts Net U.S. Exports
The Department of Energy’s (DOE) Energy Information Administration (EIA) Monday cut its estimate of the U.S. shale gas resource base almost in half, based on a dramatic drop in Marcellus Shale estimates.
Goldman: Haynesville Shale Does a Lot More with Less
In the world of shale gas plays, the Haynesville is rather long in the tooth compared to the Eagle Ford, Marcellus and others. However, wells in the play are running “faster” for longer, enough so that production has continued to climb while the rig count has dropped. Analysts at Goldman Sachs said they’ve figured out how the Haynesville does it.
Drought Forces Haynesville Operators to Look Elsewhere For Water
The Louisiana Department of Natural Resources (DNR) has asked four companies operating in the Haynesville Shale to temporarily refrain from withdrawing water for hydraulic fracturing (fracking) from Bayou Pierre because of an ongoing severe drought.
Industry Brief
Pacific Gas and Electric Co. (PG&E) said last Friday that a slow drop in pressure occurred during a hydrostatic pressure test on a portion of the same 30-inch diameter transmission pipeline (Line 132) involved in last year’s deadly San Bruno rupture near Palo Alto. It turned out to be a small pinhole leak of approximately one millimeter in diameter, a situation that PG&E stressed was safe with no customer impacts. This is the second recent incident in the utility’s ongoing intensive pipeline testing program prompted by San Bruno (see Daily GPI, Oct. 26). PG&E said the water leak was detected during the initial phase of a hydrostatic pressure test at 75% of the test pressure for one hour. The pressure at the time of the leak was 525 psig; Line 132’s maximum allowable operating pressure is 400 psig. Its normal operating pressure is 375 psig and it is currently operating at a reduced pressure of 300 psig, mandated since the San Bruno incident. PG&E said it will identify the exact location of the leak in the next few days, excavate, make repairs and then reconduct the hydrostatic pressure test.