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Shale development and rising oil prices are pushing up domestic demand for oilfield chemicals at a rate of more than 8% a year, according to new research by The Freedonia Group Inc. By 2015 the U.S. market for chemicals should reach $13.6 billion, the Cleveland-based industry analyst said.

Mexico’s energy secretary said Tuesday that the nation’s natural gas reserves could be multiplied as much as six fold after the discovery of large shale gas deposits in the country’s north and east, and could enable the country to stop importing natural gas.

Empire Pipeline Inc. has asked FERC to approve its request by Oct. 28 to begin service on its Tioga County Extension to transport Marcellus Shale production in Pennsylvania to the U.S.-Canadian border [CP10-493].

It’s only been two and a half months, but Range Resources Corp. said its decision to leave the Barnett Shale is already paying off.

As natural gas production in Michigan posts its 14th consecutive year of decline, a Michigan Public Service Commission (PSC) report projects interstate pipeline deliveries to the state will be 664.2 Bcf in 2011, a 14.2% increase. The state’s production is projected to decline by 5.5% to 133.5 Bcf in 2011, according to the PSC’s “Summer 2011 Energy Appraisal.” Gas sales in the state are projected to be 780.7 Bcf this year, an increase of 2.4% over 2010 sales and 11.3% over 2009 sales, based on an assumption of normal weather. Residential home heating is seen as the driver for consumption growth as the 2010-2011 winter season was 3% colder than normal, the PSC report said. Despite increased sales, prices should remain relatively flat, the report said. “…[T]he continued growth in estimated and proven natural gas reserves is having a dampening effect on inflationary forces.”

Enbridge Energy Partners LP (EEP) plans to invest $175 million to expand its East Texas system to provide gathering, treating and transmission services for several major gas producers on the Texas side of the Haynesville Shale, the Houston-based partnership said Thursday.

Rep. Glenn “GT” Thompson (R-PA) said he supports exporting surplus Marcellus Shale gas to China and other countries that do not have free trade agreements with the U.S., and also backs the concept of exporting liquefied natural gas (LNG) from a port in Maryland.

Transco reported sending a force majeure notice to customers under the ESS and EESWS rate schedules. The pipeline explained that on Dec. 26 it detected a large, unexpected pressure drop in one of seven caverns at Eminence Storage Field in Covington County, MS. Eminence is the facility that supports the service for affected customers. Two days later Transco determined that gas was leaking from Cavern 3 and since then has reduced the cavern’s pressure by venting and flaring gas. On Jan. 4, Transco continued, based on a determination that the reduced pressure in Cavern 3 created a risk to the salt pillars separating it from adjacent Caverns 1 and 2, the pipeline began to reduce the pressures of Caverns 1 and 2 by withdrawing gas from them. During those operations, on Jan. 15 Transco discovered gas escaping from the ground around the wellhead for Cavern 1. It continued to safely withdraw gas from Caverns 1 and 2, and by Jan. 24 their pressure was low enough to avoid potential effects on Cavern 3. However, due to the leak at Cavern 3 and the damage to the well at Cavern 1, both are out of service, and that prompted last Thursday’s force majeure declaration, Transco said. Determining that neither cavern can be returned to service, it plans to file an application with FERC seeking to abandon them. Transco estimates that due to the force majeure event, Eminence is capable of providing about 70% of contracted capacity and 92% of contracted deliverability. The field’s daily injection capability is not affected.

Iowa regulators have approved a natural gas rate increase of $3.4 million, or 2.1%, for North Dakota-based Black Hills Corp.’s gas distribution utility operations in the state. The Iowa Utilities Board (IUB) approved a settlement submitted in January by Black Hills’ Iowa Gas Utility Co., which originally filed with the IUB for a $4.7 million, or 2.9%, increase last June. The settlement-based increase will average about $1.80 more monthly for residential customers and $1.50 more each month for commercial customers.