Eight

The Pacific Northwest hydrolectric season has stretched into an eight-month-long period, producing a similarly long period in which natural gas-fired generation plants remain mostly idle, according to the U.S. Energy Information Administration (EIA). For gas-fired plant operators the short-term summer prospects look bleak, according to EIA. While it is not unusual to see gas generation drop dramatically in the spring, EIA’s data reported a dramatic gas drop in the region since mid-January, with little change envisioned before September. “Natural gas use at [the region’s] plants dropped almost to zero during the third week of May,” EIA said. “This coincides with the curtailment of wind generators discussed in previous [EIA reports]. Gas use for power generation in 2011 is down 68%, or about 300 MMcf/d, compared to the first five months of 2010 [Jan. 1-May 25].”

As the summer recess approaches, Pennsylvania is flooded with proposals to tax the Marcellus Shale industry.

As the summer recess approaches, Pennsylvania is flooded with proposals to tax the Marcellus Shale industry.

Forced pooling is critical to ensuring that the Marcellus Shale is developed to its fullest, but crafting those laws will be difficult because of the unique nature of shale and the slim legal history of pooling in Appalachia, a natural resources legal expert told a Pittsburgh audience Tuesday.

State regulators from eight states — Texas, Oklahoma, West Virginia, Nebraska, Arkansas, Michigan, Colorado and Pennsylvania — told the U.S. Secretary of Energy Advisory Board Natural Gas Subcommittee (SEAB) that its recommendations on hydraulic fracturing (fracking) should address best practices.

State regulators from eight states — Texas, Oklahoma, West Virginia, Nebraska, Arkansas, Michigan, Colorado and Pennsylvania — told the U.S. Secretary of Energy Advisory Board Natural Gas Subcommittee (SEAB) that its recommendations on hydraulic fracturing (fracking) should address best practices.

Westmont Resources Inc. said Thursday it has purchased 3,400 total leasehold acres and 120 existing oil wells in the Marcellus Shale, part of the company’s goal to produce more than 3,500 bbl of oil per month by the end of 2011.

April natural gas futures retreated Monday, but only after registering another eight-week high and keeping the bullish case intact. New high or not, short-term traders are suspicious and sense that a rise above $4.50 will be met with stiff selling. At the end of the day April futures had fallen 2.9 cents to $4.374 and May shed 4.2 cents to $4.448. May crude oil dropped $1.42 to $103.98/bbl.

The Louisiana congressional delegation led by Sen. Mary Landrieu (D-LA) has called on President Obama to put an end to the de facto moratorium in the deepwater Gulf of Mexico.