Horizontal

3% Tax on Marcellus Wells Proposed in New York

A 3% tax on horizontal wells drilled in the Marcellus and Utica shale plays would help close New York state’s $7.4 billion budget gap, according to New York Gov. David Paterson, who on Tuesday proposed just such a tax.

January 20, 2010

Creek Crossing Could Delay REX-East Service to Clarington, OH

Rockies Express Pipeline LLC (REX) expects to begin service to Clarington, OH, on Nov. 1 on REX-East, provided horizontal directional drilling between Lebanon, OH, and Clarington at Deer Creek goes as planned, which might not happen, REX said late last week.

October 13, 2009

Industry Briefs

Rockies Express Pipeline (REX) Thursday revised its estimate for in-service of REX-East due to delays in completing its Illinois River horizontal directional drill (HDD), which has been complicated by adverse weather. Service to all REX-East interim service delivery points is expected to begin in late May. REX affirmed its previously projected in-service dates for Lebanon, OH, of June 15 and Clarington, OH, of Nov. 1. The Illinois River HDD has caused repeated delays of REX-East work (see NGI, April 27). Initial REX-East service is projected to commence in late May into Zone 3 at 1,600 MDth/d. This includes all interim service delivery points, which are NGPL (Moultrie County, IL), Trunkline (Douglas County, IL), Midwestern (Edgar County, IL) and PEPL (Putnam County, IN). In addition, the Ameren (Moultrie County, IL) delivery point is expected to commence service contemporaneous with interim service. Service to Lebanon is projected to commence June 15 with an initial capacity of 1,600 MDth/d to the Lebanon delivery points. Capacity will later increase to 1,800 MDth/d. In-service of the fully powered REX-East to Clarington is projected to be Nov. 1, capacity following necessary operational approvals will be 1,800 MDth/d. For more information visit www.rexpipeline.com, “Rockies Express — East,” “REX-East — Informational Posting.”

May 11, 2009

Weather Continues to Plague REX-East Work

Rockies Express Pipeline (REX) Thursday revised its estimate for in-service of REX-East due to delays in completing its Illinois River horizontal directional drill (HDD), which has been complicated by adverse weather.

May 11, 2009

Economist: Producers Must Adjust to Shale-Era Economics

Horizontal drilling and hydraulic fracturing are unlocking the continent’s bountiful gas shale plays one by one, leading to a seismic shift in production economics — and prices will never be the same, a Calgary-based energy economist told NGI.

April 27, 2009

Economist: Shale Abundance Dictates Low-Cost Mindset

Horizontal drilling and hydraulic fracturing are unlocking the continent’s bountiful gas shale plays one by one, leading to a seismic shift in production economics — and prices will never be the same, a Calgary-based energy economist told NGI.

April 22, 2009

Industry Briefs

Rockies Express (REX) said Thursday it has experienced delays with its two remaining horizontal directional drills and now projects it will begin interim service on REX-East in mid-May. Late last month the pipeline said service on the segment would begin in late April or early May (see NGI, March 30). Most notably, the Wabash River has significantly exceeded flood stage and is projected to remain above flood stage through the coming week, the pipeline said. REX affirmed its previously projected in-service dates for Lebanon, OH (June 15), and Clarington, OH (Nov. 1). Initial REX-East service is projected to commence mid-May with a capacity of 1,800 MDth/d into Zone 2 and 1,600 MDth/d into Zone 3. Zone 3 delivery points for interim service will include deliveries to NGPL (Moultrie County, IL), Trunkline (Douglas County, IL), Midwestern (Edgar County, IL), and Panhandle Eastern (Putnam County, IN). In addition, REX expects to have the Ameren (Moultrie County, IL) delivery point available for service contemporaneous with the interim service delivery points, it said. Service to Lebanon is projected to commence June 15 with a capacity of 1,600 MDth/d to the Lebanon delivery points and a pipeline capacity of 1,800 MDth/d to the interim service delivery points upstream of Bainbridge Compressor Station. In-service of the fully powered REX-East pipeline to Clarington is projected to commence Nov. 1.

April 13, 2009

REX-East In-Service Pushed Back Again

Rockies Express (REX) said Thursday it has experienced delays with its two remaining horizontal directional drills and now projects it will begin interim service on REX-East in mid-May.

April 13, 2009

BP to Use Horizontal Drilling to Tap Beaufort Reservoir

Using horizontal drilling techniques that have led to phenomenal success onshore in North America, BP plc plans to spend $1.5 billion to tap a hard-to-reach offshore reservoir in the Arctic waters of the Beaufort Sea.

July 16, 2008

Screen Guidance, Cooling Load Boost Prices Again

With a 31.9-cent futures spike on Monday as support in addition to this week’s spread of power generation load due to higher temperatures, cash prices continued their run-up Tuesday.

May 24, 2006