Embark

Thanks to the Montney and Horn River shale plays, Western Canada can hold its own in the natural gas renaissance; however, production from these developing plays will not offset declines in the region’s conventional gas production, according to Ziff Energy Group’s Edward Kallio, director of gas consulting.

The Uncle John semi-submersible drilling vessel will enter the Gulf of Mexico later this month to embark on a 35-day mission to test drilling through methane hydrates with two pairs of deep wells. Methane hydrate, which is called the “ice that burns” because it releases a flammable gas when it melts, may represent up to 200,000 Tcf of natural gas, according to the DOE’s Office of Fossil Energy. But the industry is years away from understanding how to tap the resource.

The Uncle John semi-submersible drilling vessel will enter the Gulf of Mexico later this month to embark on a 35-day mission to map out methane hydrates with two pairs of deep wells. Methane hydrate, which is called the “ice that burns” because it releases a flammable gas when it melts, may represent up to 200,000 Tcf of natural gas, according to the DOE’s Office of Fossil Energy.

Although the Department of the Interior’s Minerals Management Service (MMS) is about to embark on another gas royalty in kind (RIK) pilot in the Gulf of Mexico, that doesn’t mean producers there will be completely relieved of gas sales price reporting requirements.

Although the Department of the Interior’s Minerals ManagementService (MMS) is about to embark on another gas royalty in kind(RIK) pilot in the Gulf of Mexico, it doesn’t mean producers therewill be completely relieved of gas sales price reportingrequirements.