Extremely

There appears to be no scarcity of global shale gas opportunities, but it may be two years — or longer — before drilling progresses to commercial success, according to Raymond James & Associates Inc.

The natural gas bonanza brought about by unconventional drilling may be displacing coal and diesel as a “cleaner” fuel, but methane leaks from the surge in drilling and processing destroy that advantage, according to the environmental think tank World Resources Institute (WRI).

Secretary of the Interior Ken Salazar on Friday announced the department’s final plan for encouraging research, development and demonstration (RD&D) of oil shale and tar sands resources on more than 800,000 acres of Bureau of Land Management (BLM) lands in three western states.

An “extremely” warm summer, combined with coal-to-gas switching, has created an “unprecedented” Bcf/day swing in the year/year natural gas supply/demand balance, which should lead to higher prices through the second half of the year, according to energy analysts with Raymond James & Associates Inc.

An “extremely” warm summer, combined with coal-to-gas switching, has created an “unprecedented” Bcf/day swing in the year/year natural gas supply/demand balance, which should lead to higher prices through the second half of the year, energy analysts with Raymond James & Associates Inc. said Monday.

With natural gas prices at 10-year lows thanks to an extremely mild winter and robust production from U.S. shale gas basins, natural gas price bulls have been cooling their heels for months, not days. However, as producers lay down gas rigs or redirect them to more liquids-rich plays, analysts are eager to pinpoint a date on the calendar when the cuts to drilling will translate into a tighter supply/demand balance, thus giving prices a floor and the ability to rebound.

December natural gas rose Tuesday on extremely light volume as traders scrambled to determine positions and locate funds in the aftermath of the MF Global trading debacle. At the close December had risen 4.9 cents to $3.745 and January had gained 4.0 cents to $3.843. December crude oil added $1.28 to $96.80/bbl.

Language included in the Energy Policy Act of 2005 (EPACT) relating to the use of diesel fuel in hydraulic fracturing (fracking) “is extremely unclear and is open to interpretation,” making it unclear if the use of diesel fuel in fracking operations would be a violation of the Safe Drinking Water Act (SDWA), according to a Texas Railroad Commission (RRC) spokesman.

Language included in the Energy Policy Act of 2005 (EPACT) relating to the use of diesel fuel in hydraulic fracturing (fracking) “is extremely unclear and is open to interpretation,” making it unclear if the use of diesel fuel in fracking operations would be a violation of the Safe Drinking Water Act (SDWA), according to a Railroad Commission of Texas (RRC) spokesman.