Rich Kinder, who helms one of the largest pipeline transportation and energy storage companies in North America, agrees with a host of energy pundits that North America’s extraordinary shale discoveries have pressured U.S. gas prices and contributed to near-capacity storage levels. However, to the savvy business leader, the new shale supplies are “sort of like nirvana.”
Host
Articles from Host
Industry Briefs
Borrowing a page from federal officials, Anadarko Petroleum Corp. has selected the Oil & Gas Asset Clearinghouse to host a lease sale auction later this month to market all of its unleased holdings in the Fayetteville Shale and Smackover play in Arkansas. Lease sales are commonly used by state and federal agencies to market drilling rights. This lease sale will be the first of its kind for a publicly held entity, according to the clearinghouse, which will market and advise Anadarko about the sale. Anadarko will offer the right to lease about 250,000 gross (206,000 net) acres throughout the state. About 170,000 net acres are considered to be in the natural gas-rich Fayetteville Shale fairway; another 5,000 acres lie within the Smackover play in southern Arkansas. The assets will be offered under predetermined lease terms, which will be available prior to the auction through the clearinghouse. Royalties retained by Anadarko will be 12.5-15%, with primary lease terms ranging from five to 10 years. The hybrid auction will be held Nov. 14-15 at the Sheraton North Houston Hotel in Houston and via the Internet. The auction will begin with the sale of Anadarko leases followed by other oil and gas properties owned by various sellers including Chevron Corp., EOG Resources Inc., McClymond Ltd., Reed Partners, Rudman Partnership, Samson Resources and Whiting Petroleum. For more information on the properties to be offered, visit www.ogclearinghouse.com.
Anadarko to Lease Arkansas Properties in First-of-Its-Kind Sale
Borrowing a page from federal officials, Anadarko Petroleum Corp. has selected the Oil & Gas Asset Clearinghouse to host a lease sale auction in November to market all of its unleased holdings in Arkansas.
El Paso Pipes to Review Nonuniform Hourly Flow Communications
The El Paso Western Pipeline Group said Tuesday it will host discussions beginning this week with customers who require non uniform hourly flow rates and others who may be affected by nonuniform hourly flow rate operations, including those responsible for the operation of gas-fired electric generation facilities.
CFTC Complaint Says BP Cornered Propane Market in February 2004
Despite a host of energy market manipulation cases already on the books, the U.S. Commodity Futures Trading Commission (CFTC) is still finding more work to do in that area. The agency filed a civil enforcement action Wednesday against BP Products North America for allegedly cornering the propane market in February 2004 to drive up prices. BP has denied the charges, saying that “legitimate forces of supply and demand” were the cause of the price increases.
Industry Brief
Minerals Management Service Director Johnnie Burton will be in New Orleans on March 15 to host the Central Gulf of Mexico Lease Sale 198.Burton will open the sale at 9 a.m. (CST) in the Napoleon Ballroom with brief remarks.Immediately following the bid reading, she will hold a media availability to discuss the results of the sale. Lease Sale 198 encompasses 4,040 unleased blocks covering approximately 21.3 million acres in the Central GOM Outer Continental Shelf Planning Area offshore Louisiana, Mississippi, and Alabama. The blocks are located from three to more than 210 miles offshore, in water depths of four to more than 3,400 meters. MMS estimates the lease sale could result in the production of 276 to 654 million barrels of oil and 1.59 to 3.30 Tcf of natural gas. The lease sale will be broadcast at www.oosa.com.
Futures Bounce as Traders Prepare for ‘Busy Week’
Coming off the long holiday weekend, natural gas futures traders decided to give the upside a try on Tuesday. Gaining support from a host of factors including colder weather and strength in the crude futures arena, March natural gas soared to a high of $7.770 before settling at $7.731, up 54.9 cents on the day.
Industry Execs, Analysts, Regulators to Review Gulf Recovery at FERC Pow-wow Wednesday
A host of state regulators, industry executives and analysts, and association representatives are scheduled to appear at FERC’s annual “State of Natural Gas” conference Wednesday to explore the status of Gulf Coast energy facilities in the wake of Hurricanes Katrina and Rita, as well as other pipeline infrastructure-related issues.
Analyst Increases Oil and Natural Gas Price Forecasts for 2005, 2006
Due to a host of factors including supply disruptions related to Hurricane Katrina, Raymond James analyst J. Marshall Adkins said Monday he is raising the consulting company’s near- and long-term commodity price forecasts for natural gas and oil.
Tribe Votes to Host LNG Terminal on Reservation on Northern Maine Coast
Members of the Passamaquoddy Native American tribe, having lost out in an earlier bid to open a gambling casino, voted in favor of locating an LNG import terminal on their Sipayik Reservation on Passamaquoddy Bay on the northern Maine coast. The vote was 193 to 132, in what Tribal Representative (to the state legislature) Fred Moore III said was the highest turnout ever for a special election.