November

As weather in its service territory gets much colder than it was during the last half of November, Northern Natural Gas plans to lift a systemwide System Underrun Limitation (SUL) at the end of Tuesday’s gas day (9 a.m. CST Wednesday). The SUL had been implemented Nov. 10 (see Daily GPI, Nov. 10).

Not satisfied with the nine-month high notched on Tuesday, November natural gas futures continued to press the upside for a majority of Wednesday’s regular session before collapsing in afternoon trade to close at $5.100, down 6.1 cents from Tuesday’s finish.

Dave Neslin, who has been acting director of the Colorado Oil and Gas Commission (COGCC) since November 2007, has been named director by state officials. Neslin, who holds a law degree, has run the commission in an acting capacity since it began to revamp the state’s natural gas and oil drilling rules. “After a rigorous testing and interview process, the commission unanimously recommended David Neslin and I am pleased to have him at the helm of the COGCC,” said Harris Sherman, executive director of the Colorado Department of Natural Resources (DNR), which oversees the commission. Sherman called Neslin “a consummate professional whose fairness and integrity will be invaluable assets as Colorado develops its rich natural gas resources.” Since August 2007 Neslin also had been serving as assistant director for energy and minerals within the DNR. He will step down from that position.

Dave Neslin, who has been acting director of the Colorado Oil and Gas Commission (COGCC) since November 2007, has been named director by state officials. Neslin, who holds a law degree, has run the commission in an acting capacity since it began to revamp the state’s natural gas and oil drilling rules. “After a rigorous testing and interview process, the commission unanimously recommended David Neslin and I am pleased to have him at the helm of the COGCC,” said Harris Sherman, executive director of the Colorado Department of Natural Resources (DNR),which oversees the commission. Sherman called Neslin “a consummate professional whose fairness and integrity will be invaluable assets as Colorado develops its rich natural gas resources.” Since August 2007 Neslin also had been serving as assistant director for energy and minerals within the DNR. He will step down from that position.

Chesapeake Energy Corp. closed its Marcellus Shale joint venture transaction with Norwegian producer StatoilHydro ASA. The transaction was announced in mid-November (see Daily GPI, Nov. 12). Chesapeake sold 32.5% of its Marcellus leasehold to StatoilHydro for $3.375 billion, with $1.25 billion received in cash at closing and $2.125 billion set aside to fund 75% of Chesapeake’s drilling and completion costs in the shale between 2009 and 2012. Prior to the transaction Chesapeake had 1.8 million net acres in the leasehold; StatoilHydro now owns 600,000 net acres. StatoilHydro also has the right to a 32.5% participation in any additional stake that Chesapeake acquires in the play.

Abundant supplies and weakening demand fundamentals have November gas futures trading around $6.70, but U.S. gas would have to get cheaper in order to compete in a liquefied form on the world market, according to Wood Mackenzie’s Ed Kelly.

Abundant supplies and weakening demand fundamentals have November gas futures trading around $6.70, but U.S. gas would have to get cheaper in order to compete in a liquefied form on the world market, according to Wood Mackenzie’s Ed Kelly.

Driven by skyrocketing oil prices and howls of business and consumer pain heading into the November election, the Senate is expected to take up major legislation Tuesday designed to limit energy futures market speculation, which has been billed as one of the major causes of the high prices.

Driven by skyrocketing oil prices and howls of business and consumer pain heading into the November election, the Senate is expected to take up major legislation Tuesday designed to limit energy futures market speculation, which has been attacked as one of the major causes of the high prices.