Experiencing

Hydraulic fracturing (fracking) may be at the center of current debate in states that are experiencing a shale gas boom, but it will remain an important part of the industry and can be performed safely, according to Interior Secretary Ken Salazar.

Hydraulic fracturing (fracking) may be at the center of current debate in states that are experiencing a shale gas boom, but it will remain an important part of the industry and can be performed safely, according to Interior Secretary Ken Salazar.

The market rallied by generally small amounts Monday from the overall weakness it was experiencing going into the weekend. Although Tropical Storm (TS) Don had long since dissipated over South Texas and forecasts going out to mid-August are more moderate than before, heat is building to high — sometimes severe — levels in much of the U.S., especially in the central region and parts of the desert Southwest.

Pacific Gas and Electric did not extend a systemwide high-inventory OFO beyond Saturday.

Florida Gas Transmission ended a lengthy period of Overage Alert Days Saturday.

Freeze-offs were becoming a very real threat to production Thursday as nearly all of the United States and Canada was experiencing lows in the 30s or below — often much below — that are expected to last into early next week in most cases. Abetted by a 37.2-cent futures gain a day earlier, most of the cash market responded to the onslaught of frigid weather with price spikes that exceeded a dollar in several cases, particularly in the Gulf Coast and Midcontinent.

TransCanada reported experiencing a mainline rupture Saturday upstream of Station 112 in Ontario. The pipeline said it had isolated the affected section, but did not anticipate any capacity restrictions as a result of the event.

Noting that it has posted several shipper notices in recent weeks indicating that its system is experiencing high line pressure and linepack, Transco said Wednesday it is implementing an Imbalance OFO effective Friday with minimum penalties of $50/Dth. To avoid a penalty shippers must ensure that long imbalances (due-shipper) not exceed 5% or 1,000 Dth, whichever is greater. High utilization of firm services and various maintenance activities have resulted in reduced operating flexibility, Transco said.

Even after experiencing a rare loss in its joint venture energy trading business, San Diego-based Sempra Energy senior executives talked bullishly about the prospects for the fourth quarter and next year during a conference call with financial analysts Monday in which the utility holding company reported essentially flat third quarter results ($308 million, or $1.24/diluted share, compared with net income of $305 million, or $1.15/diluted share, in the same period in 2007).