Edged

Natural gas production from unconventional sources in Pennsylvania hit a record 2.04 Tcf in 2012, as the state’s Marcellus/Utica shale gas for the first time edged ahead of the granddaddy Barnett Shale in Texas.

Shale gas is a doubled-edged sword for power generators in the Mid-Atlantic region, supplying them with abundant, low-cost gas while at the same time putting pressure on an already over-taxed pipeline infrastructure, generators said Thursday at the fifth and final FERC conference on gas-power coordination issues.

The impossibility of predicting future natural gas and coal prices adds to the dilemma, but Rosemead, CA-based Edison International’s two-edged conundrum involving an idled California nuclear plant and money-losing merchant coal-fired generation assets in Illinois and Pennsylvania remains unresolved as time constraints worsen the potential financial fallout.

NGI’s Unconventional Rig Count edged up ever so slightly for the week ending July 22, rising to 987 rigs from 984 the previous week. Despite the pedestrian weekly advance, the current unconventional rig count remains a full 3% higher than the 961 rigs that were at work one month ago.

Rep. Joe Barton (R-TX), who was edged out as chairman of the powerful House Energy and Commerce Committee, in a sort of parting gift has been named chairman emeritus of the panel.

Northeast citygates were solidly topping $6 Monday while those in the Midwest edged their way above $5 in a continuing show of strength by the cash market. Only the Rockies lagged behind with minuscule gains, while the rest of the market measured its advance in double digits that exceeded 20 cents in most cases and approached a dollar at Transco Zone 6-New York City.

FERC handed the proposed Trans-Union Interstate Pipelinesomething of a doubled-edged sword last week. While it issued acertificate for the 42-mile, 430,000 Dth/d pipeline project, itdenied its request to operate it as a single-use line.

FERC slapped the proposed Trans-Union Interstate Pipeline withsomething of a double-edged sword yesterday. While it issued acertificate for the 42-mile, 430,000 Dth/d pipeline project, itdenied its request to operate it as a single-use line.

As FERC last week was delivering bad news to the Northeast-boundIndependence Pipeline and associated SupplyLink and MarketLinkprojects, the Commission staff was delivering a report to CapitolHill that concluded new pipeline capacity may be needed for theregion within the next three to five years. It didn’t specify howmuch capacity though (See related story).