Output

Global offshore energy spending will rise by almost one-third between now and 2013 versus 2004-2008, despite cuts in capital spending budgets, according to an analysis by Douglas-Westwood.

Continental Resources Inc. has asked the Oklahoma Corporation Commission (OCC) to order the state’s natural gas producers to reduce their output in order to relieve the oversupplied domestic gas market.

Maritimes & Northeast U.S. (M&N) said it learned that the Sable Offshore Energy Inc. (SOEI) production facility had encountered a decrease in output volume Friday. “Due to this decrease in supply, shippers sourcing their supply from SOEI should contact their supplier to get any information that may be desired concerning the cause, extent and duration of the event, as well as the potential of this event causing supply restrictions for current and/or future gas days,” M&N said. It added that all shippers must act to avoid the creation of due-pipe imbalances and not take due-shipper imbalance paybacks.

California’s natural gas producers stepped up drilling in recent years in response to high commodity prices; however, output has generally remained flat. And holding production at even flat levels will be a challenge, according to a California Energy Commission (CEC) natural gas analyst, given today’s lower commodity prices.

CNX Gas Corp.’s first horizontal well in the Marcellus Shale is producing at a rate of 6.5 MMcf/d, which sets a company record for daily output. The production rate is among the highest reported to date by any producer operating in the Appalachian Basin play. The CNX well, located in Green County, PA, began flowing on Oct. 2 at an initial rate of 1.2 MMcf/d and 4,000 pounds/square inch (psi) of backpressure. The backpressure gradually was reduced, which allowed daily production to increase to about 4 MMcf/d until early in December, when newly installed surface equipment enabled the well to flow at the record rate. The backpressure was being held at 2,640 psi. Cumulative production from the well prior to the record rate achieved was 106 MMcf. The Marcellus well was drilled to a vertical depth of 8,140 feet in the Huntersville Chert, penetrating 83 vertical feet of shale. CNX holds a 100% working stake in the well and also has 100% net revenue interest. The Pittsburgh-based independent is drilling its second vertical Marcellus Shale well, which would be hydraulically fractured using second and third horizontal wells.

Amid the prolific output of gas shales, the lumpiness of liquefied natural gas (LNG) deliveries and the peakiness of gas-fired power generation demand lies the home of numerous high-deliverability gas storage projects coming on-line now and in the coming years. Storage developers in the Gulf Coast region are betting that their services will be in high demand as the market juggles the volatility of the emerging supply-demand landscape.

Amid the prolific output of gas shales, the lumpiness of liquefied natural gas (LNG) deliveries and the peakiness of gas-fired power generation demand lies the home of numerous high-deliverability gas storage projects coming on-line now and in the coming years. Storage developers in the Gulf Coast region are betting that their services will be in high demand as the market juggles the volatility of the emerging supply-demand landscape.

After scoring a streak of revenue gains on exports to the United States that account for a majority of their natural gas output, Canadian producers are drilling at a brisk pace and building a big inventory of fresh targets for further field development.

After scoring a streak of revenue gains on exports to the United States that account for a majority of their natural gas output, Canadian producers are drilling at a brisk pace and building a big inventory of fresh targets for further field development.