Operational

Thanks to the Marcellus Shale, Houston-based Cabot Oil & Gas Corp. recently completed the best quarter in its history on an operational and financial basis. The company is adding a sixth rig in the play as it anticipates multiple infrastructure projects to come online in the months ahead, increasing the ability to get its gas to markets.

Sunoco Logistics Partners’ Sunoco Pipeline is holding a binding open season for its Granite Wash Extension pipeline to provide crude oil takeaway capacity for growing production from the Granite Wash Shale in the northeastern Texas Panhandle and portions of western Oklahoma. The pipeline would originate in Wheeler County, TX, and terminate in Ringgold, TX, where it would interconnect with an existing Sunoco Logistics pipeline with the ability to provide transportation to Corsicana, TX. From Corsicana, access to multiple Sunoco Logistics and third-party pipelines would provide producers the ability to reach various markets and refineries on the Gulf Coast and in the Midcontinent. The partnership would lay 200 miles of new pipeline and construct pump stations, tankage and truck unloading facilities. The Granite Wash Extension is anticipated to have an initial capacity of 70,000 b/d to Ringgold and is expected to be operational in the fourth quarter of 2014.

In an announcement that ends a two-year tug of war with the U.S. Environmental Protection Agency (EPA) over jurisdiction, Wyoming energy and environmental regulators will lead the investigation, working with the EPA, to continue the study of the potential impact of natural gas production activities in the Pavillion, WY, area on drinking water.

The minority 20% share in the San Onofre Nuclear Generating Station (Songs) lessens the overall costs and operational impact, but Sempra Energy and its San Diego Gas and Electric Co. (SDG&E) combination utility will deal with material consequences of the decision, according to officials.

ConocoPhillips has put on hold plans to explore Alaska’s Chukchi Sea in 2014, “given the uncertainties of evolving federal regulatory requirements and operational permitting standards.” The Alaska arm of the Houston producer said “it would not be prudent at this time to make the significant monetary commitments needed to preserve the option to drill in 2014.”

HollyFrontier Corp. and Holly Energy Partners LP are collaborating to construct a rail facility that will enable crude oil loading and unloading near HollyFrontier’s Artesia and/or Lovington, NM, refining facilities. The rail project, which will be connected to Holly Energy’s crude oil pipeline system in southeastern New Mexico, will have an initial capacity of up to 70,000 b/d and will enable access to a variety of crude oil types including West Texas Intermediate, West Texas Sour and Western Canadian Select. The project will provide additional crude oil takeaway options for producers as crude production in the region continues to grow, and an expanded set of crude oil sourcing options for HollyFrontier. Completion is expected by early 2014.

ConocoPhillips on Wednesday put on hold plans to explore Alaska’s Chukchi Sea in 2014, “given the uncertainties of evolving federal regulatory requirements and operational permitting standards.”

An upheaval in investment and operational strategies is roiling the energy industry, in large part because of unconventional natural gas and oil resources, and it’s not all about supply and demand, ConocoPhillips CEO Ryan Lance said last week.

An upheaval in investment and operational strategies is roiling the energy industry, in large part because of unconventional natural gas and oil resources, and it’s not all about supply and demand, ConocoPhillips CEO Ryan Lance said Tuesday.