Regime

A petroleum geosciences professor said hydraulic fracturing (fracking) can be performed safely in New Brunswick, and believes that Canadian province and others will eventually establish appropriate regulations to govern the practice.

Natural gas will play an ever expanding role over the next decade to meet the energy needs of New Brunswick (NB), according to a 10-year energy plan unveiled by the New Brunswick Department of Energy on Wednesday.

The expiring August contract settled unchanged, but more distant contracts eased although analysts viewing a deteriorating price regime remain optimistic and suggest that if prices should somehow surge pass $5 during the hurricane season or later in the fall, it would be a good time to initiate producer hedging. At the close August remained unchanged at $4.370 and September had fallen 1.3 cents to $4.318. September crude oil faltered $2.19 to $97.40/bbl.

The Commodity Futures Trading Commission (CFTC) Thursday issued an order clarifying the effective date of the provisions in the swap regulatory regime established under the Dodd-Frank financial reform law, providing temporary relief from certain provisions that would otherwise have kicked in on Saturday, July 16, until the CFTC completes the rulemakings specified in the order.

The Commodity Futures Trading Commission (CFTC) Thursday issued an order clarifying the effective date of the provisions in the swap regulatory regime established under the Dodd-Frank financial reform law, providing temporary relief from certain provisions that would otherwise kick in as of Saturday, until the CFTC completes the rulemakings specified in the order.

April natural gas futures posted a solid advance Tuesday, leaving some calling for a new price regime while others still see a continuation of a rangebound market. At the close April had risen 9.3 cents to $4.254, the highest settlement since early February, and May gained 9.0 cents to $4.331. The expired April crude oil contract rose $1.67 to $104.00/bbl.

Quebec said Thursday a new royalty regime for shale gas will take effect in the province once it concludes a two-year strategic environmental assessment of the industry.

The House Agriculture Committee Thursday approved by voice vote legislation that would give the Commodity Futures Trading Commission (CFTC) the authority to carry out criminal prosecution of fraud and manipulation of commodity futures markets, but only in cases where the Department of Justice decides not to take action (see Daily GPI, Feb. 12). The CFTC’s existing authority is limited to investigation and prosecution of administrative and civil violations of the Commodity Exchange Act (CEA).

ConocoPhillips has joined with Alberta-based producers to express its disappointment in the province’s proposed oil and natural gas royalty regime changes.