Room

With the backdrop of high and growing reliance on natural gas for power generation driven by the continuing shale gas expansion and resulting low prices, a conference room filled with gas industry representatives Tuesday discussed ways to better coordinate regional and national gas and power grids during a daylong FERC conference in Portland, OR.

Williams late Thursday said it is drawing up plans to build the first propane dehydrogenation (PDH) facility in Canada, which would give it room to increase its polymer-grade propylene production to serve a growing petrochemical market.

A ballot initiative to raise the Arkansas severance tax on natural gas production being promoted by former gas industry executive Sheffield Nelson recently drew a few more foes, according to the energy industry-backed anti-tax group Arkansans for Jobs & Affordable Energy (AJAE). The Association of Arkansas Counties (AAC), the Poultry Federation and the Northwest Arkansas Council recently signed on in opposition to the tax hike on producers. “…[O]ur association believes a natural gas severance tax increase would be harmful for Arkansas counties and for Arkansans,” said Chris Villines, executive director of the AAC.

State regulation of hydraulic fracturing (fracking) practices in Arkansas is “well managed and professional” but has room for improvement in a few areas, a recent review found.

What a difference a year makes. When President Obama directed Energy Secretary Steven Chu last March to establish a subcommittee to assess the environmental impacts of shale gas drilling, industry interpreted this as bad news. But Tuesday members of the subcommittee touted the industry and criticized detractors of both hydraulic fracturing (fracking) and shale gas development.

The global market for hydraulic fracturing (fracking) services continues to grow at a double-digit pace but not nearly as much as in 2011 since natural gas prices have begun to discourage exploration, according to a survey by Spears & Associates Inc.

If Europe develops its shale gas resources, it will likely take its sweet time about it, according to a new report from Ernst and Young Global Ltd.

December futures continued their relentless retreat Wednesday as traders calculated that spot futures may have almost 18 cents more room to the downside and weather forecasts moderated again. At the close December had dropped 6.0 cents to $3.344 and January had shed 5.9 cents to $3.483. December crude oil vaulted $3.22 to $102.59/bbl.

A recent audit of pipeline safety oversight by the Railroad Commission of Texas (RRC) found “comprehensive and detailed” inspection procedures but also room for improvement. In response, RRC said it has already been working to address areas of concern raised by the audit.