Field

There is no doubt that shale gas will be a factor in future natural gas supply forecasts, but how big the role that turns out to be is still uncertain as a “huge learning curve” accelerates, a lead gas analyst at the California Energy Commission (CEC) told NGI last Friday.

Kinder Morgan Energy Partners LP (KMP) is buying Petrohawk Energy Corp.’s half of the companies’ Haynesville Shale midstream joint venture, KinderHawk Field Services, and also acquiring a 25% interest in Petrohawk’s gas gathering and treating business in the Eagle Ford Shale, the companies said.

Newfield Exploration Co. Thursday raised its 2011 capital budget to $1.9 billion from $1.7 billion set at the beginning of the year. The increase largely relates to leasing in “an undisclosed resource play,” said CEO Lee Boothby during a conference call with financial analysts.

Withdrawal capacity at the Aliso Canyon storage field of Southern California Gas has decreased by 750 MMcf/d through June 30 due to maintenance on the facility’s #2 dehydration unit.

Southern California Gas lost 75 MMcf/d of injection capacity at its Playa del Rey storage field due to a retrofit of station injection piping. The restriction, which adds no impact to one that began late last week, is expected to last through March 28.

Natural gas found in North Texas water wells did not come from the Barnett Shale but rather the gas-bearing Strawn formation, which is closer to the surface, hearing examiners at the Railroad Commission of Texas (RRC) said in a report released Monday. If accepted by commissioners, the finding would exonerate Range Resources Corp., which had been accused of contaminating the wells with its Barnett drilling activities.

EOG Resources Inc. has such faith in its shift from a natural gas-weighted producer to one more weighted to natural gas liquids (NGL) and oil that it sees the traditional production growth yardstick almost obsolete, according to CEO Mark Papa.

EQT Corp. grew its proved natural gas reserves by 28% in 2010, ending the year with 5,220 Bcfe. The growth came due to drilling in the Marcellus Shale, continuing improvement in the estimated ultimate recovery of Marcellus wells, as well as an increase in the projected number of wells to be drilled in the Marcellus over the next five years, EQT said.

Dallas-based EXCO Resources Inc. on Thursday credited drilling success in the Haynesville Shale for “a significant increase” in proved reserves. The company also said it is shopping for offers that would compete with a buyout proposal it received from its CEO late last year.