Same

Analysts at Standard & Poor’s Ratings Service (S&P) are asking themselves the same question that many in the energy industry are: “Will natural gas production ever come down?

Analysts at Standard & Poor’s Ratings Service (S&P) are asking themselves the same question that many in the energy industry are: “Will natural gas production ever come down?

Exploration and production (E&P) companies are in the early stages of a “multi-year, double-digit growth spending upcycle” around the globe that is characterized by increased drilling in complex geologies on land, as well as deepwater development, according to a new survey by Barclays Capital analysts.

Pacific Gas and Electric Co. (PG&E) said last Friday that a slow drop in pressure occurred during a hydrostatic pressure test on a portion of the same 30-inch diameter transmission pipeline (Line 132) involved in last year’s deadly San Bruno rupture near Palo Alto. It turned out to be a small pinhole leak of approximately one millimeter in diameter, a situation that PG&E stressed was safe with no customer impacts. This is the second recent incident in the utility’s ongoing intensive pipeline testing program prompted by San Bruno (see Daily GPI, Oct. 26). PG&E said the water leak was detected during the initial phase of a hydrostatic pressure test at 75% of the test pressure for one hour. The pressure at the time of the leak was 525 psig; Line 132’s maximum allowable operating pressure is 400 psig. Its normal operating pressure is 375 psig and it is currently operating at a reduced pressure of 300 psig, mandated since the San Bruno incident. PG&E said it will identify the exact location of the leak in the next few days, excavate, make repairs and then reconduct the hydrostatic pressure test.

Fuel switching to natural gas in the power, transportation and residential sectors “has significant economic and environmental benefits for Texas,” and could potentially have the same benefits on a larger scale if implemented nationwide, according to an analysis performed by researchers at the University of Texas at Austin (UT).

Fuel switching to natural gas in the power, transportation and residential sectors “has significant economic and environmental benefits for Texas,” and could potentially have the same benefits on a larger scale if implemented nationwide, according to an analysis performed by researchers at the University of Texas at Austin (UT).

Rex Energy Corp. said results from its first test well into the Upper Devonian/Burkett Shale just north of Pittsburgh are encouraging enough to justify additional wells into the formation directly above the Marcellus Shale in the coming year.

A Pennsylvania township has filed lawsuit against its county board of elections, arguing that a referendum put forth by an environmental group that would ban hydraulic fracturing (fracking) in the township violates several state laws and could expose the municipality to legal action by the industry and others.

Drilling activity during the past month was “resilient” despite lower natural gas spot and futures prices, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for September.