Chevron Corp. increased its natural gas output in the first two months of 2013 at the same time it was collecting higher gas prices than it did a year ago. In the United States, net gas production in January and February averaged 1.256 Bcf/d, versus 1.170 Bcf/d for the full three-month first quarter of 2012. Global net gas output climbed 5.4% to average 5.291 Bcf/d in January and February, compared to 5.019 Bcf/d in 1Q2012. The producer, which is scheduled to release its 1Q2013 earnings report on April 26, said realized prices for U.S. gas averaged $3.06/Mcf in the first two months of this year, compared with $2.48 in 1Q2012. U.S. net oil-equivalent production increased to 663,000 boe/d in the first two months of 2013 compared with 651,000 boe/d in 1Q2012, but it was down from 4Q2012’s total of 674,000 boe/d because of maintenance activity in the Gulf of Mexico.
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Air Liquide Large Industries U.S. LP announced two projects in Freeport, TX, for its Gulf Coast pipeline and hydrogen/syngas businesses. The first project went on-line in March and has increased the supply of hydrogen purification and compression capacity to Air Liquide’s hydrogen pipeline system. The second project is expected to go online in 2014 and involves the construction of a new liquid oxygen storage and vaporization facility at the Freeport air separation unit complex to supply oxygen to the Gulf Coast pipeline network. This new installation represents an increase of nearly 25% over current storage and vaporization capacities on the networkd. Hydrogen gas is used by refiners to produce cleaner burning fuels, among other industrial uses. Government regulations calling for reductions in fuel emissions have increased demand for hydrogen. Growth in industrial gas demand is also anticipated as a result of the cost advantages resulting from low-priced natural gas, the company said.
Shares of Kodiak Oil & Gas Corp. took a nosedive on Tuesday, allegedly over concerns that the Denver-based independent energy company may be facing liquidity concerns.
Fort Worth-based Quicksilver Resources Inc. reported 2010 net income of $435.1 million ($2.45/share) compared to a net loss of $557.5 million (minus $3.30 share) for 2009. The 2009 net loss was primarily attributable to a $656 million after-tax impairment charge on oil and gas properties. For 2010 production averaged 355.2 MMcfe/d, up 9% from 2009, primarily driven by higher volumes from the Barnett Shale. The 2010 production volumes were 79% natural gas, 20% natural gas liquids (NGL) and 1% crude oil and condensate. Sales of natural gas, NGLs and crude oil totaled $856.3 million, up about 7% from 2009, mainly due to a 9% increase in production coupled with increased realized prices for NGLs and crude oil, which were offset in part by lower gas prices. The company is active in the Barnett Shale of North Texas, The greater Green River Basin in Colorado and Wyoming and the Wind River Formation in Oklahoma, as well as in northwestern Montana, Alberta coalbed methane and the Horn River Basin in British Columbia.