The Eagle Ford Shale will drive a 15% increase in onshore gas production from the Texas Gulf Coast by November, offsetting declines elsewhere in Texas, according to Bentek Energy LLC. The firm said it expects Texas to be “increasingly long gas in the near term as Eagle Ford production growth continues to outpace demand,” putting downward pressure on regional prices. According to Bentek’s Texas Observer, the state’s supply is up by 1 Bcf/d, or 5%, from a year ago, with the increase driven by growth in onshore production. Demand is up only 0.6 Bcf/d over the same period, according to Bentek. “Due to the combination of Marcellus [Shale] pushback and milder winter weather, net Texas outflows have declined nearly 0.4 Bcf/d since this time last year. As a result, Texas is currently 0.8 Bcf/d longer supply than year-to-date 2011,” Bentek said.
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Range Production Up, On Track for 30% Growth in 2012
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.
Jury Still Out on USGS Earthquake Data
Environmental groups and supporters of the oil and gas industry have different opinions over claims by the U.S. Geological Survey (USGS) that an increase in earthquakes in the Midcontinent region are more than likely caused by wastewater injection well activities.
USGS: ‘Remarkable’ Uptick in Quakes Probably from Injection Wells
Researchers with the U.S. Geological Survey (USGS) say there has been a “remarkable” increase in the number of earthquakes in the Midcontinent region, and believe the seismic activity is more than likely attributable to injection wells that handle wastewater from oil and gas drilling.
BP Gains Entry into Ohio Shale Play
The Houston-based arm of energy giant BP plc Tuesday said it was leasing thousands of acres in a yet-to-be explored area of northeastern Ohio’s Utica/Point Pleasant Shale formation near the Pennsylvania border for future natural gas and oil production.
Top North American Gas Marketers (Bcf/d)
Companies participating in NGI’s quarterly North American natural gas marketer survey reported nearly the same results in 4Q2011 as in the year-ago period, and a 1% decline in full-year 2011, compared with 2010. read more
Ohio Says Injection Well May Have Caused Quakes, Unveils New Rules
The Ohio Department of Natural Resources (ODNR) said Friday a dozen small earthquakes in northeastern Ohio over the last year may have been triggered by a wastewater disposal well in Youngstown, and it unveiled a series of tough new regulations for injection wells.
Barnett-Focused Quicksilver Had Weak 4Q
Shares of debt-burdened Quicksilver Resources Inc. fell Monday after the company reported lower profits and said production would be flat this year. Meanwhile, efforts on two joint venture deals continue, as the company targets more liquids-rich production, executives told financial analysts.
National Fuel Cuts Seneca Capex, Two Marcellus Rigs
National Fuel Gas Co. (NFG) said low natural gas prices were forcing its Seneca Resources Corp. subsidiary to scale back capital expenditures (capex) on exploration and production (E&P) for fiscal 2012, which includes dropping two of its six drilling rigs in the Marcellus Shale.
Industry Brief
Pacific Gas and Electric Co. (PG&E) reported to state regulators late Friday that it had found a safety violation in the utility natural gas distribution pipeline system in California’s Silicon Valley and corrected it last Wednesday. A regulator station that had been closed and isolated since 2002 was nevertheless still connected to the PG&E pipeline system in violation of state code. After obtaining permits from Santa Clara city and county officials, PG&E said it removed the deactivated equipment. The utility stressed that the situation had not posed any safety issue for the general public or utility employees, but the station piping should not have been left connected to the larger utility distribution pipeline system. PG&E told state regulators it will review its overall system to ensure that other deactivated regulator stations are properly disconnected from the gas system by Sept. 1.
