Estimates

Questar Corp.’s exploration and production (E&P) subsidiary is buying two natural gas development properties in Northwest Louisiana for $655 million to bulk up the company’s Midcontinent business.

While there are no hard estimates, an early analysis presented to state energy policymakers last Tuesday indicates the costs to California’s retail energy utility customers will increase up to 30% to pay for stepped up renewable and energy efficiency programs enabling the state to meet its highly touted goal of reducing its overall greenhouse gas (GHG) emissions to 1990 levels by 2010.

While there are no hard estimates, an early analysis presented to state energy policymakers Tuesday indicates the costs to California’s retail energy utility customers will increase up to 30% to pay for stepped up renewable and energy efficiency programs enabling the state to meet its now highly touted goal of reducing its overall greenhouse gas (GHG) emissions to 1990 levels by 2010.

In the first of a series of reports on fossil fuel plants, the Department of Energy (DOE) has issued a comprehensive report establishing baseline performance and cost estimates for pulverized coal combustion (PC), integrated gasification combined-cycle (IGCC) and natural gas combined-cycle (NGCC) power plants, all with and without carbon dioxide (CO2) capture and storage.

Following an appraisal of its deepwater Droshky prospect in the Gulf of Mexico, Marathon Oil Corp. estimates the discovery holds mean recoverable resource of 80-90 MMboe. The Droshky discovery is located in 2,900 feet of water on Green Canyon Block 244, about 137 miles south-southwest of Venice, LA. The appraisal process consisted of drilling a down dip sidetrack well and a lateral sidetrack well. The wells are about two miles south of the Troika Field Production System. The initial well was drilled to a total depth of 21,190 feet and encountered 250 feet of net oil pay. The down dip appraisal sidetrack encountered more than 600 feet of net oil pay, while the lateral sidetrack encountered 300 feet of net oil pay. All pay intervals are Upper Miocene in age. Marathon expects to produce the field via subsea completions through the Troika system and Bullwinkle Platform, with terms already in place. The timing of initial production will be dependent upon delivery of key equipment (i.e., drilling rig and subsea equipment) and regulatory approvals, but could be as early as 2010. Marathon holds a 100% working interest in the Droshky prospect and a 50% working interest in the Troika unit.

Following an appraisal of its deepwater Droshky prospect in the Gulf of Mexico, Marathon Oil Corp. estimates the discovery holds mean recoverable resource of 80-90 MMboe. The Droshky discovery is located in 2,900 feet of water on Green Canyon Block 244, about 137 miles south-southwest of Venice, LA.

U.S. oil and natural gas drilling estimates for the first-quarter of the year hit a 21-year high, with gas activity leading the way, the American Petroleum Institute (API) said in its quarterly well completion report.

Both Northwest Pipeline and Duke Energy were off in their estimates of how much Duke Energy owes Northwest for building lateral facilities for a planned power generation project in Washington State that was later canceled, FERC said last Wednesday.

Both Northwest Pipeline and Duke Energy were off in their estimates of how much Duke Energy owes Northwest for building lateral facilities for a planned power generation project in Washington State that was later canceled, FERC said Wednesday.