As production from the Marcellus Shale grows and gas continues to trudge eastward on the Rockies Express Pipeline (REX), gas-fired power generation and exports to Canada are about the only opportunities to relieve Northeast oversupply, Barclays Capital analysts said in a note last week.
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Articles from Shale
Barclays Sees ‘Anemic’ Northeast Demand Growth
As production from the Marcellus Shale grows and gas continues to trudge eastward on the Rockies Express Pipeline (REX), gas-fired power generation and exports to Canada are about the only opportunities to relieve Northeast oversupply, Barclays Capital analysts said in a note Tuesday.
Texas Bills Seek Review of Well Tax Breaks
The tax break for high-cost natural gas wells in Texas — which is of particular importance to producers active in the state’s shale plays — continues to draw attention from lawmakers wrangling with a $27 billion budget shortfall.
Proposed Base in Eagle Ford Raises Ire of Landowners
Landowners in the Eagle Ford shale play are worried that plans by the Texas Army National Guard to build a new training center will keep them from their mineral rights.
Price Correction
NGI’s Shale Price Indices in Tuesday’s issue (No. 115) incorrectly reflected deals done Friday March 18 for gas delivery March 19 through March 21. The correct indices for deals done March 21 for March 22 delivery are attached and the issue’s pdf has been updated. ( click here for revised pdf )
Drilling Companies Lose Marcellus Counter Suit
A federal judge ruled earlier this month that Pennsylvania landowners who signed Marcellus Shale leases with oil and gas companies — then unsuccessfully sued to have them nullified — did not “repudiate” the lease terms, and turned down the companies’ counter suit to extend the leases by two years to regain time lost during litigation.
Industry Brief
JayHawk Energy Inc. has begun evaluating for drilling its recently acquired acreage in the Bakken Shale. The Post Falls, ID-based company also said it was looking to add more acreage to its Bakken holdings and plans to accelerate its efforts through purchases and joint ventures through 2011. JayHawk has procured more than 1,066 gross acres — about 135 net acres — in Divide County, ND. Spacing of wells is currently 1,280 acres, so JayHawk said it will pool its acreage with other interest holders in order to drill a well, possibly by 4Q2011.
West Virginia Ponders Watered-Down Marcellus Bill
The West Virginia House of Delegates was set to vote late Friday or Saturday on a bill to change the state’s regulation of Marcellus Shale drilling.
Linn Energy Enters Bakken Play
Linn Energy has agreed to pay $196 million to Concho Resources to acquire oil properties in the Bakken play in North Dakota, the companies said Monday. The properties are expected to add current net production of about 1,350 Boe/d (94% of it oil), proved reserves of approximately 8 MMBoe (83% oil) and more than 400 potential oil drilling locations, according to Linn.
Review OKs Oklahoma Hydrofracking Regulation
Regulation of hydraulic fracturing (hydrofracking) by the Oil and Gas Conservation Division of the Oklahoma Corporation Commission (OCC) is well managed but could use more funding, according to a review conducted by the nonprofit State Review of Oil and Natural Gas Environmental Regulations (STRONGER).