Expensive

The persistently sharp contrast between expensive oil and cheap gas has had dramatic effects on Western Canadian drilling, boosting activity and accelerating a trend to targeting oil rather than gas.

Canadian natural gas producers and processors are discovering a way to increase supplies and profits without expensive drilling through increased efficiency.

Canadian natural gas producers and processors are discovering a way to increase supplies and profits without expensive drilling through increased efficiency.

Constricted and expensive capital markets have not stifled natural gas pipeline development, and analysts predict projects generally will move forward, driven by producers’ need to get gas to market and supported by investors’ appetite for “more reasonable returns and greater certainty.”

Constricted and expensive capital markets have not stifled natural gas pipeline development, and analysts predict projects generally will move forward, driven by producers’ need to get gas to market and supported by investors’ appetite for “more reasonable returns and greater certainty.”

It would be less expensive and less carbon-intensive to get additional future natural gas supplies via interstate pipelines from the Rocky Mountains rather than imported liquefied natural gas (LNG), according to a recent report from the Oregon Department of Energy. Rockies supplies can be produced with significantly less life cycle greenhouse gas (GHG) impact than gas from LNG imports, said the report, which was ordered by Gov. Ted Kulongoski.

The Oregon Department of Energy has issued a report concluding that it would be less expensive and less carbon-intensive to get additional future natural gas supplies via interstate pipelines from the Rocky Mountains rather than imported liquefied natural gas (LNG). Rockies supplies can be produced with significantly less life cycle greenhouse gas (GHG) impact than gas from LNG imports, said the report ordered earlier in the year by Gov. Ted Kulongoski.

Despite the widespread destruction of Gulf of Mexico infrastructure from Hurricanes Katrina and Rita last year, the lengthy and expensive restoration process and the ongoing risks of offshore operations, deepwater exploration and development is moving full steam ahead, said Chris Oynes, Minerals Management Service (MMS) regional director for the Gulf of Mexico, in an interview with NGI.

Dealing with the federal government on offshore leases will get more expensive under new fee schedules proposed to recover the costs of its services by the Minerals Management Service (MMS) in two recently issued notices of proposed rulemaking.