Infrastructure

A regional approach to siting drilling infrastructure in Pennsylvania’s Marcellus Shale is needed to help minimize development in core forest and productive agricultural lands and to decrease potential risk to waterways, according to researchers at Pennsylvania State University. A study conducted by the university’s College of Agricultural Sciences found that shale gas development is causing rapid landscape change. “The development of new roads to support drilling could affect forest ecosystem integrity via increased fragmentation,” said Patrick Drohan, assistant professor of pedology. Drohan estimated that slightly more than half of the well pads in Pennsylvania are on agricultural land and most of the rest are on forestland. The study found that drilling is competing with food production for space on the landscape.

In its final rule to eliminate harmful air pollution from oil and natural gas production announced Wednesday, the U.S. Environmental Protection Agency (EPA) granted the industry a “reasonable” time to meet its requirements, extending the deadline for full compliance from 60 days to two and a half years.

The California Energy Commission (CEC) has awarded $3 million to two University of California campuses for research to improve natural gas production, fuel infrastructure and pipeline reliability. Investment in gas research is intended to accelerate development of clean energy technologies. The UC Riversidecampus was awarded $1.4 million to develop a more efficient thermochemical method for producing renewable gas. The research is thought to have the potential to replace 30% of the natural gas burned in California, which receives 87% of its supplies from out of state. The Riverside campus was awarded $1.2 million to help ensure the compatibility of natural gas with other alternative fuels in the transportation sector. The UC Berkeley campus received $425,000 to study the effects of rising sea levels on gas pipelines in San Francisco Bay.

Following 30 years of declining oil output in the Lower 48 states, the United States now is well on its way to becoming energy independent — a structural supply shift that promises to reach well beyond oil and natural gas stocks, analysts with Raymond James & Associates Inc. said in a note Monday.

Following through with market commitments to break through the Midcontinent crude bottleneck, Enbridge Inc. and Enterprise Products Partners LP said late Monday they will double the capacity of the Seaway Pipeline to 850,000 b/d by mid-2014 after lining up capacity commitments from shippers.

The buildout of infrastructure to serve growing liquids-rich natural gas production from shale plays is continuing. Driven by natural gas liquids (NGL) production out of the Rockies and the Eagle Ford Shale of South Texas, Enterprise Products Partners LP plans to construct two more NGL fractionators at its Mont Belvieu, TX, facility. These would provide 150,000 b/d of incremental capacity. Pipeline construction also is under way.

San Antonio-based Howard Energy Partners said Thursday it will acquire the Eagle Ford Escondido Gathering System, which is partially owned by Laredo Energy, and the Cuervo Creek Gathering System from Meritage Midstream Services. Both systems are primarily 12- 16-inch diameter high-pressure gas pipelines. The transaction is expected to close in April.

Despite support from Senate Majority Leader Harry Reid (D-NV), an amendment to jump-start the adoption of natural gas vehicles (NGV) and the supporting infrastructure for large trucking fleets failed in the Senate Tuesday as lawmakers did not obtain the 60 votes needed to fend off a filibuster.

While it is currently straining its balance sheet to accelerate infrastructure buildout, Clean Energy Fuels Corp. likes its strategic positioning to take advantage of what it considers now widespread acceptance of natural gas as the alternative fuel of choice for large trucks and a new national network of fueling stations it expects to be in place by next year, CEO Andrew Littlefair told financial analysts on an earnings call reporting more red ink for the Seal Beach, CA-based firm.