Rail

The first oilsands project with longer term commercial possibilities in Utah has gotten approval to move forward from a citizen appeal board for the state Division of Oil, Gas and Mining (DOGM). It’s backers say it is the first commercial-scale oilsands project in the United States.

While drilling, prices and permitting all declined in North Dakota, natural gas and oil production set new monthly records, according to the most recent statistics compiled at the end of October in a Department of Mineral Resources (DMR) report released Monday.

Industry investment in infrastructure and more emphasis on infill developmental wells are helping to contain North Dakota’s wellhead flaring of natural gas in the oil/liquids-rich Bakken Shale formation, a state official said.

To give Kinder Morgan Inc. (KMI) complete control of a joint venture (JV) in which merger partner El Paso Corp. now owns one-half, its partnership on Wednesday agreed to buy a 50% interest in the Altamont gathering and processing system in Utah’s Uinta Basin, as well as the Camino Real Gathering System in the Eagle Ford Shale in Texas.

With the Marcellus and Utica shale ethane situation under control for the moment, propane is becoming the next natural gas liquid (NGL) to trouble producers in Appalachia.

Halliburton Co., the U.S. leader in pressure pumping services, and Baker Hughes Inc. last week said they have been challenged logistically and supply-wise as producers move from natural gas plays to liquids-rich fields in the North American onshore. New infrastructure is key because “tens of thousands” of wells remain to be drilled in the unconventional plays, said Baker’s CEO.

Tesoro Corp. said it plans to spend about $50 million on rail facilities to boost Bakken Shale crude oil shipments from North Dakota to its refinery in Anacortes, WA. The San Antonio-based company said it hopes to deliver up to 30,000 b/d after the project’s completion, up from the current rate of 1,000 to 2,000 b/d. The project will include loading and unloading facilities and a unit train. Tesoro estimates construction will take between nine months to a year to complete, once the necessary permits are received.

Two more infrastructure projects to target growing crude oil production from the Eagle Ford Shale of South Texas have been announced.