The Marcellus Shale, among other regions, could see persistent ethane rejection until the market comes back into balance, according to analysts at Raymond James & Associates Inc.
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J. Larry Nichols is retiring as an employee of Devon Energy Corp. effective Dec. 31. He plans to continue to serve as executive chairman and as a director. Nichols’ retirement follows a succession plan announced in June 2010, when Devon President John Richels was promoted to CEO, a post that Nichols had held since 1980. Nichols and his father, John Nichols, co-founded Devon in 1971; the company went public in 1988. Among the company milestones under J. Larry Nichols’ leadership, Devon in 2002 acquired Mitchell Energy & Development Corp., giving it the top position in what was then the emerging Barnett Shale, as well as access to the drilling technology pioneered by George Mitchell, which successfully combined horizontal drilling techniques with hydraulic fracturing well stimulation (see Daily GPI, Jan. 25, 2002; Aug. 15, 2001).
Following the abrupt departure of Forest Oil Corp. (FST) CEO H. Craig Clark, one analyst that follows the company suggested that his quick exit was related to the company’s failure to strike a joint venture (JV) in the Eagle Ford Shale of South Texas.
MarkWest Energy Partners LP is building out its services for Appalachian rich-gas producers with the $512 million acquisition of Pennsylvania-based Keystone Midstream Services LLC.
Canaccord Genuity on Wednesday cut its 2012 natural gas price forecast by 50 cents to $4.00/Mcf on the strength of gas-directed and oil well-related gains in the U.S. onshore.
Bayer AG continues to discuss the lease or sale of acreage it owns in West Virginia for potential locations for ethane crackers, but at least one company has dropped out of those talks. “An affiliate of ours had been looking at a project in that area for an ethylene facility, but they are no longer doing that,” a spokesman for Houston-based PetroLogistics told NGI’s Shale Daily. In December, Bayer said a trio of sites it owns in industrial parks in New Martinsville, Institute and South Charleston, WV, totaling about 1,480 acres were available and would be ideal locations for thermal crackers (see Shale Daily, Dec. 23, 2010). Bayer wouldn’t discuss “speculation or market rumors” about possible deals, but has been in “serious discussions with several interested companies” that are looking at the West Virginia properties, Bayer spokesman Bryan Iams told NGI’s Shale Daily.
Temperatures in the Northeast and North Central portions of the United States will average warmer than normal through November, but are likely to turn colder than normal in December as the historically persistent negative phase of the North Atlantic Oscillation and the strength of the North Pacific climate overcome the effects of a La Nina event off the western coast of South America and record warm North Atlantic, WSI forecasters said Monday.
Consol Energy Inc. is offering to buy the nearly 17% of CNX Gas Corp. common stock it does not already own. The offer follows the recent announcement that Consol would acquire Dominion Resources Inc.’s exploration and production (E&P) business, making it the largest gas producer in Appalachia (see NGI, March 22).