Four

Hydrocarbon resources — oil, natural gas and coal — in North America are more than four times the resources existing in the Middle East, and the United States is now the fastest-growing producer of oil and natural gas in the world, according to a new report from the Manhattan Institute for Policy Research.

Patriot Water Treatment LLC of Warren, OH, is back in business after the Ohio Environmental Review Appeals Commission (ERAC) on Tuesday ruled that the Ohio Environmental Protection Agency (OEPA) had overstepped its regulatory authority when it pulled the private operator’s permit to deliver natural gas drilling wastewater to the City of Warren for treatment.

Two graduate students at The Ohio State University say their state’s policymakers should levy appropriate taxes on the oil and gas industry, be wary of hidden shale extraction costs and commit to good governance if they want to avoid the perils of boom-and-bust cycles common to other regions of the country rich in natural resources.

Wrapping up the $38 billion acquisition that has been called a “once in a lifetime transaction,” Kinder Morgan on Thursday completed its acquisition of El Paso Corp., creating the largest midstream and the fourth largest energy company in North America, owning an interest in or operating approximately 75,000 miles of pipelines and 180 terminals with an enterprise value of more than $90 billion.

Midstream operations in the Marcellus Shale are significantly expanding for Penn Virginia Resource Partners LP (PVR), after the partnership inked agreements with four of the biggest natural gas producers to extend its Lycoming County, PA, pipeline system to provide access to multiple markets.

The cash market overall on average tallied a four cent gain Thursday as the market piggy-backed off the screen’s nearly 12 cent advance Wednesday and points in the East were expected to see well above normal temperatures. Most cash points proved strong with the exception of a handful of spots in the Northeast. The Energy Information Administration (EIA) reported a build of 61 Bcf, a bit more than the market was expecting and futures eased. At the close of futures trading June had fallen 2.4 cents to $2.594 and July fell 1.4 cents to $2.673. June crude oil continued lower falling 25 cents to $92.56/bbl.

Wyoming state investigators said Thursday a mechanical failure in the well was the main cause of a natural gas well blowout late in April at a Chesapeake Energy Corp. drilling site. However, operating errors also contributed. The incident lasted about three days; no one was injured (see Shale Daily, April 30).

An “active series” of cyber attacks were reported on natural gas pipeline companies’ computer networks over the past four months, according to the Department of Homeland Security (DHS). The department said it is working with the FBI and other federal agencies, as well as pipelines, to bring down the cyber intruders.

The Federal Energy Regulatory Commission has approved for early environmental review Sempra Global’s proposal to construct facilities to liquefy natural gas for export and expand a pipeline that serves the existing liquefied natural gas (LNG) terminal in Hackberry, LA. Sempra Global asked FERC to begin the review process on the Cameron LNG Liquefaction Project and Cameron Interstate Pipeline LLC’s and Cameron LNG LLC’s planned expansion project. “Cameron LNG plans to construct three liquefaction trains, capable of exporting a total of 12 million metric tons per year of LNG; a fourth 160,000 cubic-meter full containment storage tank; and additional facilities on land adjacent to the existing Cameron LNG terminal in Hackberry. The related pipeline project would add bi-directional flow capability to the existing Cameron Interstate Pipeline, allowing the pipeline to transport gas from various interstate pipeline interconnections to the LNG terminal for export, as well as sending out regasified LNG from the LNG terminal to the same pipeline interconnections,” Sempra told FERC [PF12-13]. As part of the pipeline project, Cameron plans to build a 66,0000 hp compressor station and 21 miles of 42-inch diameter pipeline in Cameron, Calcasieu and Beauregard parishes. It plans to file applications in December.