U.S. Interior Secretary Ken Salazar on Friday reiterated the importance of natural gas to the Obama administration’s energy and job-creation programs. Salazar said his department is very active in efforts to boost gas development both on and offshore in the United States.
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US Infrastructure Holdings LLC (USI) is buying the Wildcat Sabine Gathering System in the Bossier-Haynesville Shale. The newly constructed 28-mile pipeline runs along the Texas-Louisiana border in the northwest corner of Sabine Parish, LA, and gathers and transports gas for producers including Eagle Oil & Gas Co., which has dedicated acreage from its North Toledo Bend Project. The system has takeaway capacity of 200 MMcf/d and includes treating and compression facilities. USI said it will begin construction of a 20-mile extension at the southern end of the Wildcat system to provide producers with direct access to markets served by Gulf South Pipeline Co. LP and Tennessee Gas Pipeline. The expansion will bring Wildcat’s takeaway capacity to 400 MMcf/d and is expected to be complete by mid-2012.
In what’s become a larger-than-life drama, natural gas is the energy growth engine for the next 20 years, and hydraulic fracturing in North America is the driver, according to ExxonMobil’s Paul Greenwood, vice president for Americas gas marketing, in keynote remarks at a gas industry meeting in Los Angeles Tuesday.
The Appalachian region of southeastern Ohio provides supply chain companies with cost-effective and easy access to all of the states involved in the Marcellus and Utica shales, “while maximizing return on investment now and over the life of the shale gas reserves,” according to a white paper by the Ohio Business Development Coalition (OBDC). The state “is the ideal location” for Tier I and II suppliers to the shale gas industry, “offering a central location, logistics infrastructures, a skilled workforce and a favorable state tax structure,” according to the OBDC. Among the tax benefits touted by OBDC: Ohio does not tax products and services sold to customers outside the state.
A week after the natural gas transmission pipeline tragedy in the San Francisco Bay Area, gas remained a headline-maker whether it involved speculation on city sewer work somehow contributing to the explosion and fire, or lawmakers proposing safeguards. Routine gas utility distribution pipeline breaks and reports of gas odors were being tracked as potential major events.