Reservoirs

In the headline of a story published Jan. 2, “DOE Identifies 2.4B Metric Tons of CO2 Storage Capacity” (see Daily GPI, Jan. 2), the amount of possible carbon dioxide (CO2) storage capacity in U.S. saline formations, oil and gas reservoirs and unmineable coal seams was incorrectly stated. The Department of Energy report actually identified 2.4 trillion metric tons of CO2 storage capacity. NGI regrets the error.

The United States has at least 2,400 billion metric tons of possible carbon dioxide (CO2) storage capacity in saline formations, oil and gas reservoirs and unmineable coal seams, enough to potentially store “hundreds of years’ worth of industrial greenhouse emissions,” according to a report from the Department of Energy (DOE).

The Pennsylvania Supreme Court is hearing oral arguments this week in a controversial mineral rights case that could have enormous implications over ownership rights in the Marcellus Shale.

The extent of the risks associated with development of shale oil and natural gas is “unknown” because existing studies have not taken into account the potential long-term, cumulative effects of the activity, according to a new report issued by the Government Accountability Office (GAO) Tuesday. The agency in a companion report did not make any recommendations to change environmental and public health requirements in light of advances in horizontal drilling and hydraulic fracturing (fracking).

Domestic proved oil and natural gas reserves achieved record annual volumetric increases in 2010, thanks in large part to advances in drilling technology, according to a report released by the Energy Information Administration (EIA) Wednesday.

Officials from the United States and Mexico have signed an agreement that would allow for the development of oil and natural gas reservoirs along the two countries’ maritime boundary in the Gulf of Mexico (GOM). The transboundary agreement removes a ban on exploration and production activities in nearly 1.5 million acres of U.S. Outer Continental Shelf, which the Interior Department estimates contain as much as 304 Bcf of natural gas and 172 million bbl of oil. The agreement also would open up resources in the Western Gap — located in the western planning area of the GOM — that were off limits to both countries under a previous treaty, which imposed a moratorium along the boundary through 2014. The agreement sets guidelines for U.S. producers and Mexico’s state oil company Petroleos Mexicanos (Pemex) to agree to jointly develop the boundary-hugging reserves. If consensus cannot be reached, the agreement establishes a process through which U.S. producers and Pemex can individually develop the resources on each side of the border while protecting each nation’s interests and resources.

British Columbia will eclipse Alberta as Canada’s top gas producing province by tapping prolific shale deposits, the National Energy Board said.

Meritage Midstream Services LLC plans to build a rich gas gathering system in Webb County, TX, with Escondido Resources II LLC as the anchor customer.

Schlumberger Ltd. CEO Andrew Gould repeated an old adage and added something new to it on Monday, telling an industry audience in New Orleans, “if you want to find oil, you have to drill. And if you want to produce unconventional gases or oils, it is even truer.”