Represents

Aiming to expand its international unconventional resource opportunities, Houston-based exploration and production independent ConocoPhillips said Wednesday it has entered into a set of agreements with PetroChina Co. Ltd., under which PetroChina will acquire an interest in two Western Australia exploration assets and establish a joint study agreement (JSA) for unconventional resource development in China’s Sichuan Basin.

Dow Chemical Co. began producing on-spec ethylene in late December at its St. Charles Olefins 2 Plant near Hahnville, LA, the company said. “The start-up of our St. Charles ethylene plant represents the first major milestone within our U.S. Gulf Coast investment strategy,” said Brian Ames, president, of Dow’s olefins, aromatics and alternatives business. “This action further reduces the company’s purchased ethylene, lowering costs and strengthening the competitiveness of our high-margin, high-growth derivatives businesses.” Restart of the plant had been previously announced and is part of the company’s plan to further connect its U.S. operations with cost-advantaged feedstocks from U.S. shale gas (see Shale Daily, Dec. 13, 2012). “Plans to increase ethylene and propylene supply and ethane cracking capabilities at existing U.S. Gulf Coast facilities strengthen the competitiveness of Dow’s performance plastics, performance products and advanced materials businesses and enable profitable growth in the Americas,” the company said. The St. Charles plant was idled in January 2009 and is now expected to deliver a $150 million increase in earnings before interest, taxes, depreciation and amortization this year.

The Environmental Protection Agency (EPA) has called on FERC to expand the scope of its environmental analysis of Dominion Cove Point’s proposed liquefaction facilities, looking into the “foreseeable future” and exceeding its jurisdiction to include an investigation into the “indirect effects” related to natural gas drilling and combustion.

Lower 48 onshore oil and gas reserves are a huge energy pond, about 1.1 Qcfe worth, and the Marcellus Shale is its biggest fish. According to new research from Calgary-based ITG Investment Research, “the Marcellus dwarfs any other resource at 330 Tcfe, followed by the Eagle Ford and Bakken [shales] at 152 Tcfe (25 billion boe) and 72 Tcfe (12 billion boe), respectively.

Unconventional oil and gas drilling within the 13 plays tracked by NGI’s Shale Daily Unconventional Rig Count increased by one rig over the previous week to 890 rigs for the week ending Aug. 10. While some of the plays reporting increases or declines in activity were to be expected, others came as a bit of a surprise.

The U.S. Fish and Wildlife Service (FWS) said Wednesday the dunes sagebrush lizard (DSL) does not need to be listed on the Endangered Species Act after New Mexico and Texas voluntarily agreed to protect the animal’s habitat.

Idaho regulators approved a 4.5% rate decrease for Intermountain Gas Co., underscoring the continuing decline in wholesale natural gas prices. It represents the fifth consecutive rate decrease for the MDU Resources Group gas-only utility. The Idaho Public Utilities Commission (PUC) cited various reasons for the continuing slide in retail rates, including abundant domestic supplies, pipeline capacity, record quantities of stored gas and the absence of natural disasters interrupting supply deliveries. Intermountain’s rates for supply and transportation of gas dropped from 45.35 cents/therm to 41.8 cents/therm.

The Interstate Natural Gas Association of America (INGAA), which represents the nation’s major interstate gas pipelines, late Friday submitted answers to 120 questions posed by the Pipeline Hazardous Materials and Safety Administration’s (PHMSA) proposed rulemaking on pipeline safety.

The leader of the political party that currently represents the opposition in New Brunswick is calling on the government to form a bipartisan committee on shale gas development and hydraulic fracturing (fracking) in the emerging Frederick Brook Shale.