ExxonMobil and TransCanada Corp. will launch an open season early next year for capacity on the proposed $26 billion Alaska natural gas pipeline project, which is targeted to make deliveries into Canada and the Lower 48 by 2018.
Launch
Articles from Launch
Screen, Bit of Extra Cooling Load Boost All Points
Cash prices recorded double-digit increases across the board Friday, having gotten a strong launch from July futures making their prompt-month debut a day earlier with a 31.9-cent spike. The fact that Friday’s trading was for Monday-only flows, omitting the usual market baggage of weekend industrial load loss, was also a bullish factor.
Industry Brief
Less than a year after its launch as a publicly traded independent, Oklahoma City-based Crusader Energy Group Inc. has filed for voluntary bankruptcy protection. Crusader primarily develops unconventional resource plays. Most of its production has focused on the Anadarko Basin, the Barnett Shale, Delaware Basin, Val Verde Basin and the Bakken Shale. Crusader until early 2008 was privately held, but last June it completed a merger with Dallas-based Westside Energy Corp. and began operating as a public company (see Daily GPI, June 30, 2008). At the end of 2007 the combined companies had a net proved reserve base of more than 150 Bcfe, 80% weighted to natural gas, with an estimated reserve life of 15.8 years. Combined production at year-end 2007 was more than 26,000 Mcfe/d, 75% gas. The total leasehold at the end of 2007 was more than 765,000 acres (316,000 net), with 92% undeveloped. The Chapter 11 filing was made in U.S. Bankruptcy Court for the Northern District of Texas. Crusader is “continuing its discussions with various parties regarding strategic alternatives, which may include a potential sale of all or substantially all of its assets, a sale of the company or reorganizing the company and its existing capital structure…” Based on its current financial condition, management determined that “it was in the best interest of the company and all of its stakeholders” to seek bankruptcy protection.
New Cold Forecasts Lift Majority of Points
Friday’s launch of the February aftermarket was almost evenly divided between rising and falling points, but gains moderately outnumbered the losses. Frigid weather will be returning early this week in some areas, and Friday’s cash market had extra support from the previous day’s increase of 15.6 cents by March futures.
British Columbia Sets Leasing Record
Producers lining up to launch unconventional natural gas developments propelled drilling rights sales in British Columbia to a record C$2.66 billion (US$2.23 billion) for 2008. The new annual high scored by monthly auctions of provincial mineral rights is more than double British Columbia’s previous peak of C$1.05 billion (US$874 million) set in 2007 and a six-fold jump from the previous 10-year average of C$434 million (US$364 million).
Unconventional Plays Drive British Columbia to Leasing Record
Producers lining up to launch unconventional natural gas developments propelled drilling rights sales in British Columbia to a record C$2.66 billion (US$2.23 billion) for 2008. The new annual high scored by monthly auctions of provincial mineral rights is more than double British Columbia’s previous peak of C$1.05 billion (US$874 million) set in 2007 and a six-fold jump from the previous 10-year average of C$434 million (US$364 million).
Prices Still Softening; Gustav a Hurricane Again
Cash prices continued to soften at most points in Friday’s launch of the September aftermarket even as the pace of Gulf of Mexico (GOM) shut-ins and evacuations quickened. The previous day’s 55.8-cent plunge by futures, generally moderate weather forecasts outside the Southwest and much of the South, the holiday loss of industrial load and a highly bearish storage report a day earlier apparently mattered more to cash traders than the accelerating offshore production losses.
Approaching Heat, Screen Rally Cash Market
Friday’s start of a buildup to a near-nationwide heat wave during the weekend led to a strong launch of the August aftermarket. Prices advanced at nearly all points Thursday. The firmness was enhanced by the previous day’s 11.8-cent futures gain.
Gulf Coast Challenges Spawn Industry-Environmentalist Alliance
Threats to the Gulf Coast — hurricanes and coastal erosion among them — have inspired energy industry leaders, environmentalists and conservationists to launch a sustainability initiative to protect the region, which is an energy breadbasket for the nation.
Industry, Environmentalists Launch Gulf Coast Initiative
Threats to the Gulf Coast — hurricanes and coastal erosion among them — have inspired energy industry leaders, environmentalists and conservationists to launch a sustainability initiative to protect the region, which is an energy breadbasket for the nation.