Reports

Both cash and futures markets fell Tuesday following weather reports that suggested a mild March and incorporated little in the way of blocking patterns necessary for any large-scale cold influx. Notable exceptions were New England and eastern points, which experienced double-digit price erosion as almost spring-like conditions were forecast for Boston and portions of the East Coast.

Signs in the natural gas patch that drilling will be slowed or halted in some basins, and reports of decreased pipeline volumes flowing east are being watched out West, but California energy officials for are not concerned about shortages and price spikes on the horizon. Analysts at the California Energy Commission (CEC) said they are not ready to alter any of their forecasts for 2012.

Denver-based Venoco Inc., an independent exploration and production (E&P) company in California’s oil-dominated Monterey Shale, said Monday CEO Tim Marquez intends to buy back all the publicly held shares of the company he founded, subject to shareholder and regulatory approvals.

Wyoming Gov. Matt Mead on Wednesday asked the U.S. Environmental Protection Agency (EPA) to cooperate in a scientific review and analysis of groundwater quality in Pavillion, which federal officials assert may have been polluted by natural gas drilling and well stimulation practices.

Countering recent reports that drilling activity in the Bakken Shale play in North Dakota was being cut back, an analyst with Standard & Poor’s Ratings Services (S&P) told NGI’s Shale Daily Monday that drilling and production was still “full steam ahead,” although margins may compress some next year.

Two high-ranking state oil/gas drilling officials were fired by California’s Gov. Jerry Brown for putting too many roadblocks in the state’s permitting process, it was reported Monday. The move brought immediate praise from the exploration/production (E&P) industry, which has increasingly been critical of what its leaders viewed as an overly arduous process for obtaining permits to drill new wells.

Contrary to some previous reports, natural gas offers greenhouse gas (GHG) emissions advantages compared with coal-fired power generation, according to a recent study by Worldwatch Institute and Deutsche Bank Climate Change Advisors. Earlier this year the U.S. Environmental Protection Agency updated its methodology for estimating methane (CH4) emissions from natural gas systems, but gas-fired generation still releases 47% less GHGs than coal from source to use, the researchers said. A controversial study by Cornell University earlier this year reported that CH4 leaks were a particular concern for gas produced from shale formations using hydraulic fracturing (see Daily GPI, April 13). But even counting higher estimated emissions of CH4 from shale gas production activities, gas-fired power generation still beats coal-fired power by a wide margin when it comes to overall GHG emissions, according to a subsequent study published by the gas-friendly American Clean Skies Foundation (see Daily GPI, April 21). IHS Cambridge Energy Research Associates in August said GHG emissions from shale gas production likely are “significantly overstated” (see Shale Daily, Aug. 25). Another recent study by the National Center for Atmospheric Research found that burning natural gas emits “far less” carbon dioxide than coal but even so, more reliance on gas won’t significantly slow climate change (see Daily GPI, Sept. 15).

Despite a lack of evidence showing that there is a correlation between hydraulic fracturing (fracking) and increased seismic activity, British Columbia (BC) provincial authorities want to study the issue, focusing on BC’s Horn River Basin shale play.

Contrary to some previous reports, natural gas offers greenhouse gas (GHG) emissions advantages compared with coal-fired power generation, according to a recent study by Worldwatch Institute and Deutsche Bank Climate Change Advisors. Earlier this year the U.S. Environmental Protection Agency updated its methodology for estimating methane (CH4) emissions from natural gas systems, but gas-fired generation still releases 47% less GHGs than coal from source to use, the researchers said. A controversial study by Cornell University earlier this year reported that CH4 leaks were a particular concern for gas produced from shale formations using hydraulic fracturing (see Shale Daily, April 13). But even counting higher estimated emissions of CH4 from shale gas production activities, gas-fired power generation still beats coal-fired power by a wide margin when it comes to overall GHG emissions, according to a subsequent study published by the gas-friendly American Clean Skies Foundation (see Shale Daily, April 21). IHS Cambridge Energy Research Associates in August said GHG emissions from shale gas production likely are “significantly overstated” (see Shale Daily, Aug. 25). Another recent study by the National Center for Atmospheric Research found that burning natural gas emits “far less” carbon dioxide than coal but even so, more reliance on gas won’t significantly slow climate change.