Estimate

Industry spending in the Pennsylvania portion of the Marcellus Shale jumped from $3.2 billion in 2008 to an estimated $12.7 billion this year and could top $14.6 billion in 2012, according to a Pennsylvania State University study commissioned by the Marcellus Shale Coalition.

The Canadian subsidiary of Apache Corp. has dropped out of a joint venture (JV) with Corridor Resources because it said poor results from two natural gas test wells in New Brunswick’s emerging Frederick Brook Shale did not justify spending more.

The United States had 1,898 Tcf of natural gas in the ground at the end of last year, according to the Potential Gas Committee’s (PGC) latest biennial assessment released last Wednesday. The estimate surpasses the previous record-high assessment by 61 Tcf, thanks mainly to shale gas plays in the Gulf Coast region, the Midcontinent and Rocky Mountains, PGC said.

The United States had 1,898 Tcf of natural gas in the ground at the end of last year, according to the Potential Gas Committee’s (PGC) latest biennial assessment released Wednesday. The estimate surpasses the previous record-high assessment by 61 Tcf, thanks mainly to shale gas plays in the Gulf Coast region, the Midcontinent and Rocky Mountains, PGC said.

Shares of BP plc took a roller coaster ride last week while the estimate of the amount of oil its leaking Macondo well has spewed into the Gulf of Mexico (GOM) was on the ascent.

A marketer’s estimate that Thursday’s increase of 19.5 cents by September futures likely would be able to lift cash prices by small amounts Friday proved to be too bullish. A few points were flat to slightly higher, but a large majority of locations continued to sink as forecasts of cooler-than-usual summer temperatures in many regions again depressed power generation demand for gas.

Rockies Express Pipeline (REX) Thursday revised its estimate for in-service of REX-East due to delays in completing its Illinois River horizontal directional drill (HDD), which has been complicated by adverse weather.

Rockies Express Pipeline (REX) Thursday revised its estimate for in-service of REX-East due to delays in completing its Illinois River horizontal directional drill (HDD), which has been complicated by adverse weather. Service to all REX-East interim service delivery points is expected to begin in late May. REX affirmed its previously projected in-service dates for Lebanon, OH, of June 15 and Clarington, OH, of Nov. 1. The Illinois River HDD has caused repeated delays of REX-East work (see NGI, April 27). Initial REX-East service is projected to commence in late May into Zone 3 at 1,600 MDth/d. This includes all interim service delivery points, which are NGPL (Moultrie County, IL), Trunkline (Douglas County, IL), Midwestern (Edgar County, IL) and PEPL (Putnam County, IN). In addition, the Ameren (Moultrie County, IL) delivery point is expected to commence service contemporaneous with interim service. Service to Lebanon is projected to commence June 15 with an initial capacity of 1,600 MDth/d to the Lebanon delivery points. Capacity will later increase to 1,800 MDth/d. In-service of the fully powered REX-East to Clarington is projected to be Nov. 1, capacity following necessary operational approvals will be 1,800 MDth/d. For more information visit www.rexpipeline.com, “Rockies Express — East,” “REX-East — Informational Posting.”

CenterPoint Energy Inc. said its expected costs for restoration efforts following Hurricane Ike have ballooned to $650-750 million from its preliminary estimate of $350-500 million in late September (see NGI, Sept. 29).