natural gas

The Federal Energy Regulatory Commission was forced to briefly recess its business meeting in Washington, DC, Thursday morning after protesters repeatedly interrupted Chairman Cheryl LaFleur. The protesters addressed multiple topics, including federal government subsidies for fossil fuels, climate change and FERC’s role in pipeline permitting. After a five-minute break to clear the room, commissioners restarted the meeting without incident. “This is relatively new territory for FERC, and I think we’re a bit learning on the job how to handle situations like that,” LaFleur said.

Stephen Riney has been tapped by Apache Corp. as executive vice president and CFO effective in February. He most recently served as CFO for BP plc’s exploration production business, where he oversaw all accounting, business development, planning and commercial operations for the upstream segment. He previously had spent nine years with Amoco, which merged with BP in 1998. Riney holds an undergraduate degree from the University of Notre Dame and a master’s degree from the University of Chicago. John J. Christmann IV, formerly COO of North America operations, has assumed the role of president and CEO following the retirement of G. Steven Farris, 66, who had been CEO since 2002 and chairman since 2009 (see Daily GPI,Jan. 20).

Comstock Resources Inc. said 2014 proved oil and natural gas reserves increased year/year to 620.4 Bcfe from 585 Bcfe, which included 495 Bcf and 20.9 million bbl, 68% proved developed. The present value of the reserves, using a 10% discount or PV-10, was $1.1 billion, using average 2014 prices of $3.96/Mcf and $92.55/bbl. The Frisco, TX-based independent’s output in 2014 averaged 180 MMcfe/d. Oil production comprised 39% of total output, versus 20% in 2013. Oil production rose 86% year/year to 4.3 million bbl; gas output fell 29% to 39.8 Bcfe. The Eagle Ford Shale contributed 5.1 million bbl and 5 Bcf, or 5.9 million boe to reserves. The Haynesville Shale and other regions added 74 Bcf in 2014. Finding costs for 2014 were estimated at $28.75/boe. Comstock has restarted Haynesville development in response to low oil prices (see Shale Daily,Dec. 18, 2014).

Aided by a smaller than expected inventory withdrawal report and moderating temperatures in much of the East, natural gas prices — both physical and futures — dropped significantly on Thursday.

Thursday morning’s natural gas storage report revealing a whopping 216 Bcf was removed from underground inventories for the week ending Jan. 16 hit natural gas markets with a thud instead of a bang, because while the withdrawal was significantly higher than any historical comparison, it fell short of industry expectations.

Two Colorado state lawmakers have proposed separate bills to force local governments that impose drilling bans to pay mineral rights owners for their lost royalties.

In response to weak commodity prices Australia’s BHP Billiton Ltd. is dialing back operations in U.S. shale plays, with plans to cut its operated rig count to 16 from 26 by the end of June, a nearly 40% reduction.

Matheson Tri-Gas Inc.is relocating and expanding an industrial gases facility in Lake Charles, LA, to the Westlake, LA, area in order to take advantage of a planned multibillion-dollar petrochemical complex. The company said it would build a state-of-the-art air separation unit to supply industrial gases to Sasol Ltd. and Matheson’s existing customers. Sasol in October announced a final investment decision for an $8.1 billion petrochemical complex consisting of an ethane cracker and six chemical plants (see Daily GPI,Oct. 27, 2014). Matheson struck an agreement to build, own and operate the air separation unit and pipeline complex serving Sasol, with cryogenic technology to be supplied by Matheson parent Taiyo Nippon Sanso Corp. The project is expected to be finished in 2016.

The U.S. Justice Department is calling expert witnesses to the stand in New Orleans this week to bolster its case that BP plc should pay the maximum penalty for its role as operator and owner of the Macondo well in the deepwater Gulf of Mexico, whose fatal explosion in April 2010 led to an environmental disaster that roiled the Gulf Coast.