Pressure

Companies that missed out on the first round of leasing in the Eagle Ford Shale in South Texas that began in 2008 will have another chance as some of those leases will be expiring in the coming months, an industry analyst said recently.

Average net production in the Appalachian business unit of Atlas Energy Inc. hit a record 63.3 MMcfe/d in 3Q2010, representing a 53%-plus increase in output year/year and a 15.4% jump from the previous three months, the Pittsburgh-based producer said Wednesday.

Over the next 12-18 months natural gas liquids (NGL) prices will come under pressure from growing supply and the inability of the petrochemical industry to crack all the output from gas industry fractionators, according to analysts at Raymond James. However, longer term ethane and other NGLs are well positioned to compete with heavier feedstocks derived from crude oil, they said in a note last week.

Despite the presence in the central Atlantic of the year’s fourth named storm and a high probability that an area of low pressure off the coast of Africa could form into another tropical cyclone, Andover, MA-based WSI Corp. has for the second time this summer lowered the number of hurricanes in its 2010 Atlantic hurricane forecast.

Over the next 12-18 months natural gas liquids (NGL) prices will come under pressure from growing supply and the inability of the petrochemical industry to crack all the output from gas industry fractionators, according to analysts at Raymond James. However, longer term ethane and other NGLs are well positioned to compete with heavier feedstocks derived from crude oil, they said in a note Monday.

An ample supply of gas, moderating temperatures and the lack of threatening tropical weather activity continues to put downward pressure on natural gas futures prices, according to Gene McGillian, an analyst with Tradition Energy. On Wednesday the September contract declined by 2.8 cents to close at $4.239.

Questar said the first phase of a pressure uprate in its ML 68 segment was progressing on schedule and was expected to be completed by the start of last Saturday’s gas day. “No special restrictions will be in place until the next phase of the work begins” Tuesday, the pipeline said.

El Paso said it continues to operate under pressure restrictions in a section of Line 1102 north of Amarillo Compressor Station that makes it unable to physically transport gas north or south between the Amarillo and Dumas compressor stations. Transportation through this segment will be scheduled only to the extent that net nominations in both directions are approximately zero, the pipeline said. It has now acquired all of the property required for rerouting this segment. El Paso said. It expects to start construction in August with an anticipated in-service date around Oct. 5.

In the story “Pennsylvania Putting the Pressure on Marcellus Gas Drilling” (see Daily GPI, June 30), NGI said that the Associated Press (AP) had reported that a list of chemicals used in hydraulic fracturing operations being compiled by the Pennsylvania Department of Environmental Protection (DEP) would include compounds associated with neurological problems or other serious health effects. DEP now says that the list AP used included all chemicals used at well sites, not just in fracing operations, the AP said Thursday.