reliability

President Obama’s tilt toward accepting the economic opportunities from U.S. natural gas abundance may have been in fits and starts, but the right-leaning oil and gas industry is finding a lot to praise today, industry officials said Wednesday.

Lake Charles Exports LLC (Lake Charles) last Wednesday became the third prospective liquefied natural gas (LNG) terminal tapped by the U.S. Department of Energy (DOE) to export domestic natural gas worldwide, bringing such authorized export volumes to 5.6 Bcf/d.

A cooler-than-normal July for much of the United States led to decreased levels of demand for natural gas and coal to fuel power plants in a trend that is expected to continue for the rest of the summer, according to data collected by Genscape Inc.

A call to action was sounded last Tuesday at the Rocky Mountain Energy Summit for U.S. oil and natural gas operators to take what industry pioneers created and continue reinventing for the future — with the public’s backing.

Fitch Ratings last week raised its U.S. natural gas price deck because even though there has been a shift to liquids targets by exploration and production (E&P) companies, there are slightly better gas fundamentals.

The six participating planning authorities of theEastern Interconnection Planning Collaborative(EIPC) –ISO New England,New York ISO,Ontario’s Independent Electric System Operator,Midcontinent ISO,PJM Interconnectionand theTennessee Valley Authority– have issued a request for proposals (RFP) to conduct an analysis of natural gas infrastructure and its interfaces with the electric grid within their combined footprints. The Gas-Electric System Interface Study, which is to be completed by mid-2015, “will develop a baseline of the electric and natural gas systems, including their planning, operation and interactions,” EIPC said. “In addition, the study will look at the adequacy of the gas system to satisfy generation needs over five- and 10-year horizons; identify contingencies on the gas and electric systems that could negatively affect the other; and examine the pros and cons of dual-fuel capability for generation versus expanding gas system infrastructure.” Study results are expected to help improve gas-electric coordination to ensure electric system reliability. Intent to bid notices are due by Friday (Aug. 9) and proposals are due Aug. 30. The study would be funded under aU.S. Department of Energygrant.

Production from unconventional wells in Pennsylvania’s Marcellus Shale was strong enough to keep the U.S. gas output total at 81.84 Bcf/d in May, just 0.3% higher than the 81.61 Bcf/d reported in May 2012, according to the Energy Information Administration (EIA).

Interior Secretary Sally Jewelland the top leaders on theSenate Energy and Natural Resources Committeeexpressed support forPresident Obama’schoice ofMichael L. Connorto be deputy interior secretary, succeedingDavid Hayes. Since 2009, Connor has been commissioner of Interior’sBureau of Reclamation, and prior to that he served on Capitol Hill. “Mike will bring a wealth of knowledge and experience to the position after two decades in public service working on energy, conservation and water issues,” Jewell said. Since 2009, Connor has been commissioner of Interior’s Bureau of Reclamation, and prior to that he served on Capitol Hill. If confirmed by the Senate, Connor would be the second highest ranking official at Interior, with statutory responsibility as the COO to help lead a department of more than 70,000 employees and an annual budget of about $12 billion. Connor would continue to serve in his capacity as Interior’s reclamation commissioner, while his nomination is being considered, Jewell said.Sen. Ron Wyden(D-OR), chairman of theEnergy and Natural Resources Committee, andSen. Lisa Murkowski(R-AK), the ranking member of the committee, echoed those sentiments. “Mike Connor is a superb choice to serve as deputy secretary of the Interior,” Wyden said. Murkowski agreed, saying Connor’s “integrity, work ethic and his ability to solve tough resource related issues will make him an asset to the secretary.”

Maritimes Canada natural gas consumers should consider taking up to 600 MMcf/d of firm pipeline capacity from the Marcellus Shale to ensure security of supply and avoid the $30.00/MMBtu gas prices seen last winter, ICF Consulting Canada Inc. said in a new study prepared for the Nova Scotia Department of Energy.