Primary

While the majority of U.S. primary energy production comes from fossil fuel resources, the bulk of the energy tax breaks have gone to support renewable fuels in the past two years, according to a new analysis by the Congressional Research Service (CRS).

While the majority of U.S. primary energy production comes from fossil fuel resources, the bulk of the energy tax breaks have gone to support renewable fuels in the past two years, according to a new analysis by the Congressional Research Service (CRS).

Natural gas has been the primary target of domestic drilling throughout the past decade, but the focus appears to be shifting to crude oil, according to a report on first quarter well completions issued by the American Petroleum Institute (API).

Natural gas has been the primary target of domestic drilling throughout the past decade, but the focus appears to be shifting to crude oil, according to a report on first quarter well completions issued by the American Petroleum Institute (API). The estimated number of oil wells drilled in the first quarter outnumbered natural gas wells by 5,718 to 3,860, API reported. The figures for oil well completions “show the focus is changing,” the producer group said. While oil and gas well activity was up from the same period in 2010, it was down from 2009, API said. It estimated that 10,431 oil and natural gas wells and dry holes were completed in the most recent first quarter, up 29% from 2010’s first quarter but almost 8% below completions in the first quarter of 2009. API also reported total estimated footage of 75.66 million feet was drilled in the first quarter, a 38% increase from the same period of 2010.

Port Arthur, TX, is slated to be the site of a new multi-user rail terminal to handle delivery of Bakken Shale crude oil to the Gulf Coast for distribution to pipeline or refining consumers in Texas.

Natural gas utilities, commercial firms and state regulators have called on the Commodity Futures Trading Commission (CFTC) to refine its proposed definitions for swap dealers and major swap participants, which — unlike commodity end-users — will be subject to mandatory clearing of swaps under the agency’s proposed reforms (see NGI, Dec. 6, 2010).

Questerre Energy Corp. said late Monday it is deferring two exploration projects in its primary development area, the Utica Shale in Quebec’s St. Lawrence Lowlands, and will decide whether to proceed after the provincial government’s environmental review panel issues a report on shale gas development in February.

Northwest noted that during Dec. 1-15 maintenance at Pocatello Compressor Station, operational capacity at Kemmerer Compressor Station will be limited to 675,000 Dth/d. Since current primary firm scheduled quantities through Kemmerer exceed this capacity, Northwest said Monday afternoon it is issuing a Recall Advisory and declaring an OFO that will take effect Wednesday until further notice for shippers who have an OFO obligation (contract-specific, realignment and/or must-flow) through Kemmerer. See the bulletin board for advisory/OFO details.

While the number of natural gas wells completed fell significantly last year compared with 2008, natural gas remained the primary target for domestic drilling in 2009, according to the American Petroleum Institute’s (API) latest estimates.