Even if all drilling rigs were removed from the northern Marcellus Shale region and current drilling ceased, dry gas production in northeastern Pennsylvania would continue growing for 16 months, thanks to a large inventory of nonproducing wells and high initial production (IP) rates, Bentek Energy LLC said in a market note. “In fact, if zero rigs were operating there, production could still grow from approximately 4.1 Bcf/d today to 5.4 Bcf/d by September 2013, a 31% increase that results exclusively from working off the existing backlog of 1,000 nonproducing wells in the region,” the firm said. The assumptions in its analysis are that the 12-month average completion rate is carried forward and the average IP rate in the area is 6,500 Mcf/d. A “typical” Marcellus decline curve is also assumed. Potential pipeline capacity constraints were not included in the analysis.
Pipeline
Articles from Pipeline
FERC Denies North Baja Pipe’s Plea for Project Extension
FERC on Tuesday rejected North Baja Pipeline LLC’s request for a two-year extension of its certificate authority to construct and place into service proposed Phase II facilities to transport regasified liquefied natural gas (LNG) from Sempra Energy’s Energia Costa Azul terminal in Baja, Mexico, to California and Arizona.
ANR Expansion Would Target Marcellus, Utica Production
TransCanada’s ANR Pipeline Co. is holding a nonbinding open season for potential expansion of receipt capacity on its Lebanon Lateral in eastern Indiana and western Ohio. The project would carry growing production from the Marcellus and Utica shales, TransCanada said.
Industry Brief
The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is seeking comments on a request it plans to make to the Office of Management and Budget to gather information on excess flow values (EFVs). The agency said it wants to collect data on operators’ experiences, practices, benefits and costs associated with the use of ETVs. An EFV is a device designed to limit the impact of a potential leak or explosion by restricting the flow of natural gas if a line is broken or damaged. The information to be collected is necessary to conduct a cost-bnefit analysis of requiring an expansion of the use of EFVs, the PHMSA said. Comments should be submitted by July 16 to http://www.regulations.gov or by mail to the Docket Management Facility; DOT, 1200 New Jersey Ave. SE., West Building, Room W12-140, Washington, DC 20590-0001.
Industry Brief
The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is seeking comments on a request it plans to make to the Office of Management and Budget to gather information on excess flow values (EFVs). The agency said it wants to collect data on operators’ experiences, practices, benefits and costs associated with the use of ETVs. An EFV is a device designed to limit the impact of a potential leak or explosion by restricting the flow of natural gas if a line is broken or damaged. The information to be collected is necessary to conduct a cost-bnefit analysis of requiring an expansion of the use of EFVs, the PHMSA said. Comments should be submitted by July 16 to http://www.regulations.gov or by mail to the Docket Management Facility; DOT, 1200 New Jersey Ave. SE., West Building, Room W12-140, Washington, DC 20590-0001.
Study: Eagle Ford Booming But Just Getting Started
Production of oil, natural gas and condensate from the Eagle Ford Shale in South Texas increased dramatically from 2010 to 2011, according to a new study of the play and its impact on the region. And there’s more to come, thanks in large part to the attractive economics offered by the Eagle Ford’s oil and liquids-rich gas.
Texas Panhandle Gas Plant Explodes, No One Injured
Eagle Rock Energy Partners LP said there were no injuries or fatalities from Monday afternoon’s explosion and subsequent fire at a natural gas processing facility in the Texas Panhandle. It is investigating the incident.
Oneok Adding to Cana-Woodford Gathering, Processing
Oneok Partners LP said it will invest $340-360 million by the first quarter of 2014 to construct a gas gathering and processing plant and related infrastructure in the Cana-Woodford Shale in Oklahoma.
Industry Brief
The California Energy Commission (CEC) has awarded $3 million to two University of California campuses for research to improve natural gas production, fuel infrastructure and pipeline reliability. Investment in gas research is intended to accelerate development of clean energy technologies. The UC Riversidecampus was awarded $1.4 million to develop a more efficient thermochemical method for producing renewable gas. The research is thought to have the potential to replace 30% of the natural gas burned in California, which receives 87% of its supplies from out of state. The Riverside campus was awarded $1.2 million to help ensure the compatibility of natural gas with other alternative fuels in the transportation sector. The UC Berkeley campus received $425,000 to study the effects of rising sea levels on gas pipelines in San Francisco Bay.
Industry Brief
Plains All American Pipeline LP’s Plains Gas Solutions experienced a fire Saturday at its Basile gas processing facility near Eunice, LA. One employee was injured and is in stable condition at an area hospital. The cause, extent of the damage and time required to repair the facility are not yet known. The Basile Plant is a 150 MMcf/d cryogenic processing facility. Neither the operation of the Basile Plant nor the fire have any impact on the operations at PAA Natural Gas Storage’s Pine Prairie facility, located nearby, Plains said. Additionally, there is no impact to area gas producers, third-party gas processing facilities or natural gas pipelines.
