Facto

In two separate but related cases, the U.S. District Court or the Northern District of New York again has ruled that energy operators may not use the state’s de facto moratorium against high-volume hydraulic fracturing (HVHF) as an excuse to invoke force majeure to extend expiring oil and natural gas leases.

Although Norse Energy Corp. ASA has applied for a permit to drill an unconventional gas well in New York’s portion of the Marcellus Shale, the state Department of Environmental Conservation (DEC) said the company’s application is premature.

New York appears more likely to lift the de facto natural gas drilling moratorium in parts of the state’s Marcellus Shale, but for a variety of reasons — not the least of which is hesitation by operators to commit capital — determining how much of an impact the prospective acreage may have on U.S. gas markets leads to more questions than answers, according to research by Goldman Sachs & Co.

New York appears more likely to lift the de facto natural gas drilling moratorium in parts of the state’s Marcellus Shale, but for a variety of reasons — not the least of which is hesitation by operators to commit capital — determining how much of an impact the prospective acreage may have on U.S. gas markets leads to more questions than answers, according to research by Goldman Sachs & Co.

The GOP-controlled House last week easily passed two energy bills calling for an end to the de facto moratorium on shallow water and deepwater drilling in the Gulf of Mexico (GOM) and lifting President Obama’s ban on new offshore drilling. But the legislation faces an uncertain future in the Senate, which is controlled by Democrats.

Government and business leaders blasted the Obama administration’s continuing de facto moratorium on oil and gas drilling in the Gulf of Mexico (GOM) after Seahawk Drilling Inc., a major GOM shallow water driller, filed for bankruptcy Feb. 11.

Government and business leaders blasted the Obama administration’s continuing de facto moratorium on oil and gas drilling in the Gulf of Mexico (GOM) after Seahawk Drilling Inc., a major GOM shallow water driller, filed for bankruptcy on Friday.