Enjoy

Producers active in Louisiana — where they enjoy an exemption from state severance taxes on horizontal well production — are increasingly eschewing conventional drilling to take advantage of the tax break, and that’s showing up in state revenue figures, according to a recent forecast from the state’s Legislative Fiscal Office. However, industry advocates advise: look at all the other taxes producers are paying.

Producers active in Louisiana — where they enjoy an exemption from state severance taxes on production from horizontal wells — are increasingly eschewing conventional drilling to take advantage of the tax break, and that’s showing up in state revenue figures, according to a recent forecast from the state’s Legislative Fiscal Office. However, industry advocates advise: look at all the other taxes producers are paying.

The Pittsburgh region is poised to enjoy freedom from foreign energy and a new era of self-sufficiency, thanks to development of the Marcellus Shale, according to a recent report.

The American Gas Association (AGA) predicted that consumers will enjoy lower gas bills this winter compared with last year. “With natural gas storage at all time highs and prices well below past years, homeowners across the nation are in for some well-deserved relief from high energy costs when heating their homes this winter,” said AGA CEO David Parker. The Potential Gas Committee, a volunteer group of scientists and energy experts, reported in June that there is enough natural gas in the United States to supply the country for at least a century. New and advanced exploration of shale basins and other gas sources has led to an unprecedented amount of natural gas available on the marketplace, AGA noted. Piedmont Natural Gas said its annual forecast of winter heating costs for customers in North Carolina, South Carolina and Tennessee shows that residential customers could see a reduction in winter heating costs of 10-20% compared to last year. For the typical residential customer, the reductions could result in savings of $15-25/month during the winter, the company said.

Given robust gas production from unconventional plays and abundant gas in storage, the American Gas Association (AGA) Monday predicted that consumers will enjoy lower gas bills this winter compared with last year.

As waves of natural gas supply pour into eastern markets from the Rockies, the Midcontinent and the Appalachian Basin, gas utility consumers could one day enjoy lower prices. But don’t expect that day to arrive anytime soon.

Supermajor and large independent producers generally enjoy strong liquidity positions, but tighter capital markets will crimp the purchasing power of smaller players at a time when some properties would likely become available at “distressed prices,” Standard & Poor’s Ratings Services (S&P) analyst Thomas Watters wrote in a recent note.

Supermajor and large independent producers generally enjoy strong liquidity positions, but tighter capital markets will crimp the purchasing power of smaller players at a time when some properties would likely become available at “distressed prices,” Standard & Poor’s Ratings Services (S&P) analyst Thomas Watters wrote in a recent note.

Still unable to enjoy some early holiday cheer, a second Oregon liquefied natural gas (LNG) project was left waiting Thursday, but with some positive expectations it will clear another local hurdle in its permitting processes before Christmas. The Jordan Cove Energy Project LP at Coos Bay hopes to wrap up a second key local permit by Wednesday, its project manager told NGI late Thursday.