Peaked

Two environmental groups are asking the Interior Department’s Bureau of Land Management (BLM) to reconsider its decision to allow WPX Energy Inc. to drill unconventional natural gas wells into the Mancos Shale play in northwest New Mexico’s San Juan Basin.

The U.S. natural gas rig count peaked more than a year ago in August 2010 and continues to drift slowly lower, but the country’s still swimming in gas and there’s no drought in sight, Raymond James & Associates Inc. said last week.

The U.S. natural gas rig count peaked more than a year ago in August 2010 and continues to drift slowly lower, but the country’s still swimming in gas and there’s no drought in sight, Raymond James & Associates Inc. said Monday.

West Virginia has more taxes and fees on natural gas production than most of the 18 other gas-producing states included in an analysis prepared for a West Virginia Legislature subcommittee by the Marshall University Center for Business and Economic Research. However, it isn’t clear if taxes are hampering development of the state’s Marcellus Shale, the analysts said.

Ten years on, drilling in the Barnett Shale has expanded the economy of the 24-county region in North Texas by 38%, according to a new study that said cumulative economic benefits of the Barnett from 2001 to 2011 include $65.4 billion in gross product for the region and $80.7 billion for the state.

After running higher prior to Monday’s regular trading session, the March natural gas futures contract peaked at $5.679 just a few minutes after the open before declining for the rest of the day. The prompt-month contract finished out the regular session at $5.401, down 11.4 cents from Friday’s close.

After running higher prior to Monday’s regular trading session, the March natural gas futures contract peaked at $5.679 just a few minutes after the open before declining for the rest of the day. The prompt-month contract finished out the regular session at $5.401, down 11.4 cents from Friday’s close.

A year has passed since the natural gas rig count peaked in October 2008, but “normalized” estimated quarterly gas supply from publicly traded producers didn’t cross into negative territory until July from the 1Q2009 peak, which points to “substantial uncertainties” for supply and demand drivers in 2010, energy analysts with Raymond James & Associates Inc. said Monday.

Chesapeake Energy Corp.’s natural gas production in nonshale plays peaked in late 2007, fell by 16% in 2008 and is on track to be down more than a third (36%) by the end of this year, company executives said Wednesday.