Under pressure to make its natural gas operations more independent of its electric utility business, Pacific Gas and Electric Co. (PG&E) said it is relocating its newly defined gas operations group in a large office complex in the East San Francisco Bay suburb of San Ramon, CA. Most of a contingent of 800 employees will be moved to the Bishop Ranch business park by October this year, a PG&E spokesperson said. Teams of employees now spread around in separate locations in San Francisco, Fresno, Walnut Creek and Concord, CA, will be brought together for the first time, the spokesperson said. Bringing together engineers, emergency dispatchers, system operators and others, Executive Vice President Nick Stavropoulos, the head of gas operations for the utility, said the utility “expects big gains in communication, efficiency and team building.” A new PG&E gas control center will be located in the San Ramon facilities as of the second quarter next year, Stavropoulos said. Regulators have criticized PG&E’s alleged lack of coordination in its gas operations in the wake of the September 2010 San Bruno transmission pipeline rupture and explosion.
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Production Cuts: Marcellus Didn’t Get the Memo
Last year saw an increase in domestic gas production of 4.3 Bcf/d, or 7.5%, over 2010, marking the largest year-over-year production jump in the last 25 years, according to Bentek Energy LLC.
Analysts See Potential for Coal Switching to Balance Gas Market
Continuing low prices for natural gas could make it possible for the addition of anywhere from 2 Bcf/d to 10 Bcf/d in demand due to displacement of coal-fired power generation, various analysts have estimated.
Noble Energy, Stone Energy Agree to More Risk Disclosures
Noble Energy Inc. and Stone Energy Corp. have agreed to make additional disclosures of how they are managing the risks associated with hydraulic fracturing (fracking), an investment manager organization said Thursday.
Wyoming Sets New Gas Flaring Policy
Wyoming officials who make up the state’s Board of Land Commissioners on Thursday unanimously (4-0) issued new rules on natural gas flaring that include the option of charging operators royalties on flared gas. This reverses the past practice of allowing flaring without royalties.
McDonnell Pursues Virginia’s ‘Energy Capital’ Crown
Still wanting to make his state the “energy capital of the East Coast,” Gov. Bob McDonnell last week unveiled a series of recommendations for the 2012 Virginia General Assembly session, which he said will allow the state to take advantage of “a bounty of natural resources that can aid in our nation’s growing need for affordable and reliable energy sources.”
McDonnell Pursues Virginia’s ‘Energy Capital’ Crown
Still wanting to make his state the “energy capital of the East Coast,” Gov. Bob McDonnell Wednesday unveiled a series of recommendations for the 2012 Virginia General Assembly session that he said will allow the state to take advantage of “a bounty of natural resources that can aid in our nation’s growing need for affordable and reliable energy sources.”
North Dakota Exploration Continues at Record Pace
North Dakota continues to set all-time records for oil and gas production based on the most recent statistics available as of the end of October, according to Lynn Helms, director of the state Industrial Commission’s Department of Mineral Resources (DMR). He noted that the oil and gas industry still plans to invest more than $3 billion in the state through 2013.
Industry Brief
The chair of the Railroad Commission of Texas has directed commission staff to look into its existing rules on water recycling in the oil and gas patch. “If we need to streamline our old rules and make amendments where necessary to encourage companies to expand their recycling activities, then that is what we will do,” said Chair Elizabeth Ames Jones. “…[W]e must maintain that hydraulic fracturing can continue to benefit Texas by allowing companies to manage water use and conserve when possible as it relates to this process of energy production.”
Interior Announces 2012-2017 OCS Leasing Program
A proposed Outer Continental Shelf (OCS) Oil and Gas Leasing Program for 2012-2017 announced by the Department of Interior last week will make more than 75% of estimated undiscovered but technically recoverable oil and gas resources in federal offshore areas available for exploration and development, according to Secretary of the Interior Ken Salazar.
