Increasing

Dramatically increasing the production of domestic natural gas, oil and coal offers the United States its best opportunity to create sustainable jobs, but political wrangling stands in the way of achieving that goal, according to a new report from the Manhattan Institute for Policy Research.

Crude oil production from the Eagle Ford Shale of South Texas has overtaken gas production, which is increasing the shale’s profitability, a recent analysis of the play has found.

Continuing its strategy of increasing its acreage in the liquids-rich Bakken Shale and Three Forks Formation, a QEP Resources Inc. subsidiary has entered into two deals with multiple sellers to acquire “significant crude oil development properties” in the Williston Basin for an aggregate purchase price of close to $1.38 billion.

Forecasting increasing natural gas prices through the rest of this year, energy analysts at Raymond James said Monday their estimates indicate natural gas-fired power generation added 6 Bcf/d of demand year over year through May this year.

Houston-based Vanguard Natural Resources LLC has closed on its acquisition of natural gas and liquids assets in the Arkoma Basin from Antero Resources for an adjusted price of $434.4 million, subject to post-closing adjustments. The effective date is April 1, 2012. The deal was announced early last month (see Shale Daily, June 5). Vanguard funded the acquisition with borrowings under its existing reserve-based credit facility. The borrowing base was increased from $670 million to $975 million in connection with an interim borrowing base redetermination to include the properties from the acquisition. Updated 2012 production and financial results guidance will be included with second quarter results, which are expected to be released on Aug. 2.

Atlas Pipeline Partners LP (APL) has completed a 60 MMcf/d expansion of its Velma system in the Woodford Shale of Oklahoma, increasing capacity to 160 MMcf/d.

North Dakota continued setting new oil and natural gas production records in April, but drilling equipment shortages grew, increasing the estimated number of idle wells by 76 in April.

With increasing demand for natural gas by power generators on the horizon and some in the energy industry lamenting a lack of coordination between gas and power interests, the Interstate Natural Gas Association of America (INGAA) has established a board-level task force to tackle issues related to growing power demand for gas.

Chesapeake Energy Corp. has been downgraded again by Fitch Ratings, and on Monday two proxy services recommended against reelecting two directors at the annual meeting in June.