Economic

Even as an administrative process is ongoing to hammer out new state rules on hydraulic fracturing (fracking) by oil/gas regulators, the California Senate on Thursday passed on a 27-11 vote a measure (SB 4) to cover chemical disclosure requirements and public notice before fracking can take place. It drew short, at the industry’s urging, of placing any moratorium on the practice for an interim period.

The Railroad Commission of Texas (RRC) amended its oil and gas well construction requirements rule (Statewide Rule 13) to clarify requirements related to casing, cementing, drilling, well control and completions. The changes take effect Jan. 1, 2014 and apply to any wells drilled on or after that date.

Houston’s Plains Exploration & Production Co. is building a facility in Broussard, LA, to support its deepwater Gulf of Mexico (GOM) operations, according to the Lafayette Economic Development Authority (LEDA).

Horizontal drilling and hydraulic fracturing has powered the biggest increase since the 1970s in Alberta oil production from flowing wells outside the northern bitumen sands belt, says the provincial Energy Resources Conservation Board (ERCB).

With relatively little economic growth forecast, the outlook for natural gas in the Pacific Northwest may look deceivingly quiet, too, but a report by the Northwest Gas Association (NWGA) offers a few areas of concern.

With relatively little economic growth forecast, the outlook for natural gas in the Pacific Northwest may look deceivingly quiet, too, but the 2013 outlook by the Northwest Gas Association (NWGA) offers a few areas of concern.

Over the past 10 years natural gas has become the predominant fuel used to generate electricity in New England, a shift that has “provided clear economic benefits” for the region, but has also created “serious reliability threats to the bulk power system,” according to Gordon van Welie, CEO of ISO New England Inc. (ISO-NE).

The Marcellus Shale today is the largest U.S. natural gas production region, with output of more than 7 Bcf/d, which has led to a “significant, positive” impact on early movers, but some operators continue to underperform share-wise in the play, according to IHS Inc.

If left unaddressed, pipeline shortfalls will put Canada’s oil industry at risk and will have “substantial negative impact” on the country’s economy, according to a report issued by the Canada West Foundation (CWF).