Drop

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.

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.

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.

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.”

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.

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.

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.

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.

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.