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Shell, Chevron Grab Chesapeake Permian Stakes

Chesapeake Energy Corp. on Wednesday clinched multiple agreements to sell most of its prized Permian Basin properties to heavyweights Royal Dutch Shell plc and Chevron Corp. and its remaining midstream properties to Global Infrastructure Partners (GIP), which together with other asset sales would give the cash-strapped producer total net proceeds of $6.9 billion.

September 13, 2012

Flaring Will Remain Part of Bakken, Analyst Says

Even with a multi-billion-dollar natural gas gathering and processing infrastructure buildout ongoing, North Dakota is not likely to greatly reduce the volumes of gas being flared as an offshoot of its accelerated oil boom, according to an analysis released Thursday by RBN Energy LLC.

September 10, 2012

Colorado Governor: Blanket ‘No Fracking’ Policy Makes No Sense

Colorado Gov. John Hickenlooper said Wednesday the state hopes to avoid a lengthy court battle with the City of Longmont over newly enacted natural gas and oil drilling regulations, which challenge the state’s authority to regulate energy operations.

August 17, 2012

Industry Brief

Sempra Energy’s San Diego Gas and Electric Co. (SDG&E) and the California Independent System Operator (CAISO) jointly released a positive outlook for summer energy supplies even with the continued outage of the 2,200 MW San Onofre Nuclear Generating Station (Songs). Earlier in the spring there were concerns about strained natural gas supplies and other energy infrastructure due to the absence of Songs’ baseload power in Southern California (see Daily GPI, May 7). Besides bringing back in service two mothballed natural gas-fired generation units along the Southern California coast at Huntington Beach, SDG&E’s high-voltage Sunrise Powerlink transmission line is expected to be in service soon, as well as a 230kV transmission loop in southern Orange County, Barre-Del Amo and Barre-Ellis No. 2 lines. SDG&E and CAISO still characterized this summer as “challenging” from a power supply perspective, noting that if the region experiences a prolonged heat wave, calls for conservation will be inevitable. More than 283 MW of new generation capacity came online the second half of 2011, and CAISO expects another 923 MW to be added this year by July 1, but most of its if renewable-based wind and solar projects that are intermittent and require backup from gas-fired and hydroelectric sources.

June 18, 2012

Industry Brief

Even if all drilling rigs were removed from the northern Marcellus Shale region and current drilling ceased, dry gas production in northeastern Pennsylvania would continue growing for 16 months, thanks to a large inventory of nonproducing wells and high initial production (IP) rates, Bentek Energy LLC said in a market note. “In fact, if zero rigs were operating there, production could still grow from approximately 4.1 Bcf/d today to 5.4 Bcf/d by September 2013, a 31% increase that results exclusively from working off the existing backlog of 1,000 nonproducing wells in the region,” the firm said. The assumptions in its analysis are that the 12-month average completion rate is carried forward and the average IP rate in the area is 6,500 Mcf/d. A “typical” Marcellus decline curve is also assumed. Potential pipeline capacity constraints were not included in the analysis.

May 25, 2012

Deloitte Survey Sees Era of Energy Frugality Emerging in U.S.

U.S. businesses and consumers are becoming more frugal about their energy consumption, even as the economy slowly begins to recover, according to a new survey from the Deloitte Center for Energy Solutions.

May 22, 2012

U.S. Energy Independence Not Achievable Before 2030, Survey Finds

U.S. energy independence won’t be achievable until at least 2030, even with a renewed focus on domestic energy resources, energy infrastructure and unconventionals, according to more than two-thirds of the energy executives responding to a new survey conducted by KPMG Global Energy Institute (GEI).

May 17, 2012

Outlook: Northwest Gas Demand to Grow; Power Gen Driver

Even with a continuing slow recovery in the regional economy, natural gas demand is expected to grow steadily at just under 1% annually during the next 10 years, with gas used for power generation expected to lead the growth, according to the 2012 Gas Outlook released Saturday by the Northwest Gas Association (NWGA).

May 15, 2012

Fracking Support Outweighs Opposition, Says Survey

Even with the intense media coverage of of hydraulic fracturing (fracking), most people haven’t heard about it or are unfamiliar with the practice, according to a nationwide poll conducted in March by the University of Texas at Austin (UT). Of the one-third familiar with fracking “support outweighed opposition, 48% to 36%.”

April 16, 2012

Most in U.S. Not Wise to Fracking, Survey Finds

Even with the intense media coverage of of hydraulic fracturing (fracking), most people haven’t heard about it or are unfamiliar with the practice, according to a nationwide poll conducted in March by the University of Texas at Austin (UT). Of the one-third familiar with fracking “support outweighed opposition, 48% to 36%.”

April 11, 2012