Reductions

State of New Mexico officials, Albuquerque-based utility PNM and the U.S. Environmental Protection Agency (EPA) last Friday reached a tentative agreement on an emission reductions plan that would shutter two coal-fired generation units and create new natural gas-fired generation.

Marcellus Shale natural gas production leaped to nearly 4 Bcf/d in just three years, and even though it remains the most economical gas play in Lower 48 states, producers already are moving rigs to more liquids-prone targets, according to Barclays Capital energy analysts.

Continuing as one of the leading producers in the Marcellus Shale play, Fort Worth, TX-based Range Resources Corp. on Thursday reported increased production of natural gas, liquids and crude oil, while prices were down and initial results were in on Pennsylvania’s newly imposed natural gas impact fee. The fee’s initial charge put overall production taxes at about $13.6 million, or 23 cents/Mcfe, for the first quarter, Range said.

While 2009’s recessionary economy was credited for nationwide reductions in greenhouse gas (GHG) emissions, GHG emissions from power generating facilities were on the decline for another reason: greater reliance on natural gas-fueled plants, according to Harvard University researchers.

While 2009’s recessionary economy was credited for nationwide reductions in greenhouse gas (GHG) emissions, GHG emissions from power generating facilities were on the decline for another reason: greater reliance on natural gas-fueled plants, according to Harvard University researchers.

In apologizing to customers for unexpected reductions in capacity on the Baja Path over the holiday weekend (see the bulletin board for details), Pacific Gas and Electric’s California Gas Transmission (CGT) system said in addition to planned maintenance, it discovered an excessive amount of odorant in a section of Line 300B late May 25. Operations personnel have been working to isolate and purge the overodorized gas and expected to have this situation resolved Wednesday (June 1), CGT said.

The natural gas-directed rig count has fallen by about 100 rigs from last summer’s peak, but further reductions are necessary if the market is to be rebalanced, argue analysts at Barclays Capital in a note published Tuesday. While independent producers appear to have stepped off the gas (in favor of oil), as a group they haven’t stopped their pursuit of company-level production growth, Barclays said.

Intermountain Gas Company has asked the Idaho Public Utilities Commission (PUC) to authorize further reductions of its retail natural gas utility rates based on lower wholesale gas costs. Intermountain asked to lower its annual revenue requirement by $2.2 million, effective Oct. 1.

A process that could lead to significant cost reductions to transport, store and use natural gas and methane hydrates — especially as compressed natural gas (CNG) and liquefied natural gas (LNG) — has been developed by researchers at the Department of Energy’s (DOE) National Energy Technology Laboratory (NETL).