Improving

An early spring thaw — or break-up season as it’s known in Canada — has slowed work in the country’s oil patch, improving the odds that it will be a down year for drilling, according to energy experts.

With prospects rapidly improving to produce and transport oil and natural gas from the deepwater, energy companies are expected to spend between $3.4-5 billion on subsea processing systems worldwide between now and 2015, according to a joint study conducted by energy analysts Douglas-Westwood Ltd. and technology specialists OTM Consulting.

The House Resources Committee task force’s initial recommendations for improving the project review process under the National Environmental Policy Act (NEPA) could have a “significant,” potentially favorable benefit for the energy industry, according to a Washington, DC-based law firm that specializes in energy and environmental legal issues.

The Gulf Coast oil and natural gas industry appeared to be gaining ground on Tuesday, with production output improving and several offshore rigs back in service. However, several key natural gas pipelines, as well as onshore natural gas processing units and compressor stations, may be idled until flood waters have receded, power is restored, and integrity tests are performed.

Expanding upon its testimony Monday before the Senate Energy and Natural Resources Committee on dampening price volatility and improving storage surveying methods (see Daily GPI, Jan. 25), AEP’s written comments to the committee went a little further.

The Agriculture Department’s Forest Service has issued a final rule that is aimed at improving the forest management planning of 155 national forests and 20 grasslands. A key part of the rule will allow the government to complete forest planning (i.e. ecological, social and economic issues) much quicker, which would provide more “certainty” to oil and natural gas producers about whether they can drill in these areas, said U.S. Forest Service spokesman Dan Jiron.

The Agriculture Department’s Forest Service has issued a final rule that is aimed at improving the forest management planning of 155 national forests and 20 grasslands. A key part of the rule will allow the government to complete forest planning (i.e. ecological, social and economic issues) much quicker, which would provide more “certainty” to oil and natural gas producers about whether they can drill in these areas, said U.S. Forest Service spokesman Dan Jiron.

The expected arrival of more liquefied natural gas in the Gulf Coast region and improving market conditions have prompted the launch of another Gulf Coast gas storage project. Port Barre Gas Storage (PBGS) is planning to develop a high deliverability salt dome storage field in St. Landry Parish, LA, to provide service in the Gulf Coast market. The 10.5 Bcf facility is expected to be developed in three phases with the first 3.5 Bcf of working capacity available in the fourth quarter of 2006.

The expected arrival of more liquefied natural gas in the Gulf Coast region and improving market conditions have prompted the launch of another Gulf Coast gas storage project. Port Barre Gas Storage (PBGS) is planning to develop a high deliverability salt dome storage field in St. Landry Parish, LA, to provide service in the Gulf Coast market. The 10.5 Bcf facility is expected to be developed in three phases with the first 3.5 Bcf of working capacity available in the fourth quarter of 2006.