A flat domestic natural gas rig count, combined with an eroding storage overhang, provide opportunities for U.S. gas prices and related operators to trade higher this year, according to BMO Capital Markets Dan McSpirit and Phillip Jungwirth. Bank of America Merrill Lynch (BofA) also expects higher gas prices on average, but coal may regain some of the market this summer.
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U.S. NatGas Rig Count Won’t Top 450 This Year, Says Analyst
The recent surge in natural gas prices may have provoked some optimism in the energy sector, but it’s not enough to encourage more drilling, according to Barclays Capital, which expects the rig count to not surpass 450 this year.
Industry Briefs
A train derailment near the town of Parkers Prairie, MN, Wednesday morning spilled 20,000-30,000 gallons of crude oil into a field, but frozen, snow-covered ground was “a saving grace” that should keep environmental damage to a minimum, a Minnesota Pollution Control Agency (MPCA) spokesman told NGI’s Shale Daily. Fourteen of the Canadian Pacific Railroad train’s 94 cars derailed and oil from three of them was leaked, the spokesman said. “They’re going to be able to recover most, if not all” of the oil, according to MPCA spokesman Dan Olson. No injuries were reported.
Hedge Fund Forces Power Shift at SandRidge
After months of haggling, hedge fund TPG-Axon Capital, which owns 7.3% of outstanding SandRidge Energy Inc. shares, has gained at least a portion of the changes it had urged at the Oklahoma City-based company, and it stands poised to remove CEO Tom Ward or take control of the board of directors.
TransCanada Sees Continued Weakness in NatGas Pipelines
Natural gas infrastructure “presents significant opportunities” in the long-term, but not so much today, TransCanada Corp. CEO Russ Girling said last week.
Economist: Pipeline Network Failing Canadian Oil Industry
If left unaddressed, pipeline shortfalls will put Canada’s oil industry at risk and will have “substantial negative impact” on the country’s economy, according to a report issued by the Canada West Foundation (CWF).
TransCanada CEO: ‘Continued Weakness’ in Natural Gas Pipelines
Natural gas infrastructure “presents significant opportunities” in the long-term, but not so much today, TransCanada Corp. CEO Russ Girling said Tuesday.
Unconventionals Lead the Way into 2013
“There are no scenarios that I see where anything is going to stop [the United States] from reaping the benefits of unconventional energy resources,” a Houston-based energy attorney said.
Britain Clears Way for Fracking
With the introduction of new risk controls, the British government has cleared the way for hydraulic fracturing (fracking) to resume in the country where the shale gas reserve could be 4.2 Tcf, according to one estimate.
Dow Seeks Permit for Its Largest-Ever Ethylene Plant
Dow Chemical Co. late Monday made good on some of the “opportunities” that have come its way with the U.S. natural gas revolution by applying for a federal air emissions permit to build a $1.7 billion ethylene facility in Freeport, TX, which would be the chemical manufacturer’s biggest in the world.