Formation

Last week the North Dakota Senate voted to support hydraulic fracturing and to extend oil tax breaks in the unlikely event that oil prices sharply decline, but turned down a proposal to reduce the top oil tax rate in exchange for higher production totals.

West Virginia Gov. Earl Ray Tomblin, joined by leaders in the natural gas and chemical industries, announced last week the formation of the Marcellus to Manufacturing Task Force, intended to harness the business opportunities surrounding the development of the Marcellus Shale.

West Virginia Gov. Earl Ray Tomblin, joined by leaders in the natural gas and chemical industries, announced Tuesday the formation of the Marcellus to Manufacturing Task Force, intended to harness the business opportunities surrounding the development of the Marcellus Shale.

The Obama administration fully supports a cumulative study of the effects of natural gas drilling in the Marcellus Shale, but it also supports the Delaware River Basin Commission’s (DRBC) decision to release proposed rules that would allow some natural gas development projects before that study is completed, according to a letter written by Brigadier Gen. Peter A. DeLuca.

For the second time in less than a month the Delaware River Basin Commission (DRBC) has delayed release of proposed regulations that may dictate how portions of the Marcellus Shale are developed. The proposed rules now aren’t expected until November or December.

An action plan to improve the health of the Chesapeake Bay and the Susquehanna River watershed, including some activities that focus on the impact of drilling for natural gas in the Marcellus Shale, is under way by federal officials.

Futures traders essentially ignored the formation of Tropical Storm Alex, and the cash market also paid it little heed as prices were little changed from flat Monday. Lower numbers constituted a slight majority, especially in the Midcontinent, Rockies and Western Canada.

For the third time this year, WSI Corp. has increased its Atlantic hurricane forecast, now saying that a La Nina event will contribute to the formation of 20 named storms, including 11 hurricanes, five of them intense (Category Three or greater) — and tropical storm activity is already heating up, with 2010’s first potential hurricane churning in the Caribbean.

In natural gas, Texans have no monopoly on thinking big. When prices make a comeback Canadians — including affiliates of international producers with high profiles in the Lone Star State — say they will be ready to launch the next generation of supplies on a scale deserving to rate as large by any standard.