nymex settlement

Responding to multiple questions from a New York audience a week ago on issues surrounding natural gas production, Energy Department Secretary Ernest Moniz said the fuel is both “part of the problem” and “part of the solution,” and it has a strong role to play in underpinning the U.S. economy.

The Western Gulf of Mexico (GOM) Lease Sale 233, which last week offered for bid 20.7 million acres offshore Texas, yielded fewer offers and lower total high bids than in the past, with 12 operators making 61 offers for 53 blocks that covered just more than 300,000 acres, Bureau of Ocean Energy Management (BOEM) officials said.

Both oil and natural gas production in the Lone Star state climbed during June from year-ago levels, and the top producing counties remained the familiar Permian Basin and Eagle Ford Shale region names, according to Railroad Commission of Texas (RRC) data.

For the Monday-Thursday week preceding the extended Labor Day holiday weekend natural gas prices nationally averaged a nickel gain to $3.54 with most regions adding anywhere from a nickel to 9 cents.

Liquids-rich and oil plays have clearly won the hearts and dollars of North American producers. The Eagle Ford and Bakken shales are stars now, but several others are poised to join or possibly eclipse them, according to a recent note by Standard & Poor’s Ratings Services (S&P).

The Western Gulf of Mexico (GOM) Lease Sale 233, which last week offered for bid 20.7 million acres offshore Texas, yielded fewer offers and lower total high bids than in the past, with 12 operators making 61 offers for 53 blocks that covered just more than 300,000 acres, Bureau of Ocean Energy Management (BOEM) officials said.

The Dow Chemical Co. last week confirmed it would move forward to expand two big petrochemical facilities along the Gulf Coast of Texas and Louisiana integrated by “advantaged shale gas.” A unit of Royal Dutch Shell plc also has launched an open season to solicit more interest in a proposed ethane cracker expected to be sited in Pennsylvania.

A new frontier is opening for unconventional drilling in the Canol Shale, a sub-arctic landscape of forests, muskeg swamps and permafrost 2,000 kilometers (1,200 miles) north of the border between Western Canada and the United States.

TheFederal Energy Regulatory Commissionhas issued a favorable environmental assessment (EA) to allowGulf South Pipelineto build the Southeast Market Expansion Project for increased natural gas deliveries primarily to the Southeast. TheBoardwalk Pipeline Partnerssubsidiary proposes to construct about 70 miles of 24-inch diameter and 30-inch diameter gas pipeline facilities in Mississippi and Alabama; and 34,215 hp of additional compression in Mississippi. It also requests thatPetal Gas Storage LLCbe permitted to abandon capacity by lease to Gulf South. Capacity on the system would be increased by 510,500 Dth/d if the Commission approves it. Capacity would serve the expanding Southeast gas markets and provide additional volumes to the Northeast market via an interconnect withTranscontinental Gas Pipe Line. The project, estimated to cost of $283.8 million, is targeted for in-service on Nov. 1, 2014. Construction is scheduled to get underway in April 2014, assuming the project is approved.