natural gas

Spending cuts by domestic producers and the swift decline in the onshore rig count could signal a drop in U.S. oil production by the end of the year, the Organization of Petroleum Exporting Countries (OPEC), said Monday. Meanwhile, analysts with Raymond James & Associates also see a substantial risk for even lower U.S. oil prices in the months ahead.

An organization that originated in South America wants to create a set of voluntary standards for the oil and natural gas industry to follow for hydraulic fracturing (fracking) and other shale development activities in the United States.

Just hours before concluding this year’s first regular legislative session, the West Virginia House of Delegates on Saturday rejected a bill that would have allowed exploration and production companies drilling the Marcellus Shale and other shallower formations to pool landowners into units.

Sanchez Production Partners LP (SPP) is shopping its assets and operations in Oklahoma and Kansas. The company cited what it sees as ongoing basin consolidation in the region as the impetus for the move.

The Nova Scotia Utility and Review Board has approved construction of Bear Head LNG Corp.’s proposed 8 million tonne per annum liquefied natural gas (LNG) export project (see Daily GPI,March 2). Bear Head has obtained nine of the 10 initial Canadian federal, provincial, and local regulatory approvals needed to construct a the LNG terminal on the Strait of Canso in Nova Scotia. The final approval needed for the project, from the Nova Scotia Environmental Board, is expected during the second quarter, according to Bear Head, which is a unit of Perth, Australia-based Liquefied Natural Gas Ltd. The facility could be online during 2019, according to the company.

Canada’s fossil fuel heartland, Alberta, has taken its biggest step yet towards replacing coal with cleaner-burning natural gas as its prime power plant fuel.

Natural gas consumers served by Transcontinental Gas Pipeline Co. LLC (Transco) in the Southeast and Mid-Atlantic could have saved $2.6 billion from 2012 to 2014 if the pipeline’s proposed Atlantic Sunrise project had been in service, according to researchers at The Pennsylvania State University.

Sabine Oil & Gas Corp. said it will not file its annual Form 10-K on time, but it expects to file it by March 31. The Houston-based company said it also does not plan to host a conference call to discuss 4Q2014 and full-year 2014 earnings. Sabine also said it has retained financial advisors Lazard and legal advisors Kirkland & Ellis LLP to advise management and the board of directors on strategic alternatives related to its capital structure.

Physical natural gas for next-day delivery was largely mixed in Monday’s trading, but at the end of the day overall prices were a dime higher at $2.53 as gains in the Northeast, Mid-Atlantic, Midwest, and Rockies easily outpaced lower quotes in the Gulf region.