natural gas

The Railroad Commission of Texas (RRC) has made more upgrades as part of its Information Technology Project with the launch of two applications operators can complete and file online. RRC Form GW-1, Groundwater Protection Determination Request Form, and Statewide Rule 13 exception requests (SWR 3.13 regarding Casing, Cementing, Drilling, Well Control and Completion Requirements) can now be completed and submitted online. The applications allow operators to submit filings more conveniently and also enable RRC staff to review and process them more quickly. For all wells drilled in Texas, the Groundwater Protection letter states the depth of usable-quality water and additional isolation zones to be protected by surface casing. In Texas, all wells are required to be constructed with several layers of casing, with surface casing first required to be set from the surface to at least 25 feet below the base of usable quality water to isolate an oil or gas well from groundwater. In May 2013, RRC updated and clarified Statewide Rule 13 construction requirements for oil and gas wells drilled on or after Jan. 1, 2014 (see Shale Daily,May 28, 2013).

Temperatures will average cooler than normal across the Northeast next month, keeping the pedal on energy consumption in some of the nation’s major population centers, but warmer-than-normal temperatures will dominate the region in May and June, according to forecasters at Weather Services International (WSI).

Fairmount Santrol, one of the largest sand and resin-coated sand providers in the U.S. onshore, continues to see customers expand their use of proppants in each hydraulic fracturing stage, even with the downturn in the marketplace.

The California Public Utilities Commission (CPUC) issued a $200,000 citation to Pacific Gas and Electric Co. (PG&E) for failing to appropriately file a safety-related report to federal and state regulators. On Aug. 19 PG&E discovered a safety-related condition with a natural gas transmission line in Tracy, CA. The condition involved the detection of severe corrosion, which reduced the pipe wall thickness by approximately 41% in the deepest corrosion pit. PG&E reduced pressure on the line on Aug. 21. It replaced the pipe and pressure was restored on Dec. 2. However the safety-related condition was not reported to the CPUC and the Pipeline and Hazardous Materials Safety Administration (PHMSA) until more than four months after detection. Safety related condition reports are required by the CPUC and PHMSA within five working days after first determination that a condition exists and no later than 10 working days after the day the condition was discovered. PG&E did not report the safety condition to the CPUC until Jan. 9. PG&E has 10 calendar days to pay or contest thecitation.

The deepwater Gulf of Mexico (GOM) is proving to be a haven for big producing projects, and it’s bucking the low-price environment, with growth expected to continue through 2016, according to Wood Mackenzie Ltd.

The Brookings Institution has released a wide-ranging study showing that from 2007-2013 the advent of horizontal hydraulic fracturing (fracking) reduced natural gas prices by 47% compared to what they would have been without the shale boom, and provided billions of dollars in annual consumer benefits.

An analyst with Barclays said the Department of Interior’s (DOI) rule for hydraulic fracturing (fracking) on public and tribal lands would have a limited effect on oil and natural gas output, but states that currently have no laws governing fracking could use the federal rule as a template.

It was yet another quiet week for natural gas forwards basis markets as seasonal temperatures ranging from the 60s to 80s are forecast for most of the U.S. over the next couple of weeks.

Those searching for signs that spring has sprung needed to look no further than the physical natural gas market on Monday as the prices for gas delivered Tuesday tumbled in nearly every region of the country, led by the Northeast.