Shale

The surge in U.S. unconventional gas production from shale plays has led to a disconnect between natural gas prices and the oil complex, which can persist in the near-to-medium term but is not sustainable in the long run, said analysts in a new Goldman Sachs report on commodities.

CenterPoint Energy Gas Transmission Co. (CEGT) has entered into two separate firm transportation agreements to transport Chesapeake Energy Corp.’s Haynesville Shale natural gas, the companies announced late Monday.

Buoyed by the Barnett Shale’s output, the Texas oil and natural gas economy rose for six years straight, but all of that came crashing down late in 2008, according to the Texas Alliance of Energy Producers.

Buoyed by the Barnett Shale’s output, the Texas oil and natural gas economy rose for six years straight, but all of that came crashing down late in 2008, according to the Texas Alliance of Energy Producers.

Midcontinent Express Pipeline (MEP) has filed an application at FERC for a 300,000 MMcf/d expansion of its mammoth pipeline project that would provide takeaway capacity for shale producers in Texas, Arkansas and Oklahoma.

Questar Corp. subsidiary Questar Exploration and Production (E&P) Co. has completed the company’s first operated Haynesville Shale horizontal wells in northwest Louisiana. The Waerstad #3, located in Red River Parish, was placed on production at an initial rate of 16 MMcf/d on a 23/64-inch choke with 6,400 pounds per square inch (psi) flowing casing pressure. Eight fracture stimulation stages were pumped in the 3,234-foot horizontal lateral. Questar E&P has a 100% working interest in the Waerstad #3 well. The Wiggins 36H- #1, located in Bienville Parish, was placed on production at an initial rate of 7.4 MMcf/d on a 22/64-inch choke with 5,450 psi flowing casing pressure. Nine fracture stimulation stages were pumped in the 3,455-foot horizontal lateral. Questar E&P has a 62% working interest in the Wiggins 36H- #1 well. The E&P unit also is drilling two additional company-operated Haynesville horizontals and is participating in four other wells that are in various stages of completion. Questar E&P has 31,000 net acres of leasehold in the Elm Grove, Woodardville and Thorn Lake areas of the northwestern part of the state.

The gas supply outlook has shifted from a thirst for liquefied natural gas (LNG) imports to reliance on maturing and emerging shale plays in Texas, Louisiana, Arkansas and Pennsylvania; new pipelines and capacity expansions reconfigure continental gas flows; and increasing gas-fired power generation elevates summer demand peaks. Gas storage developers are in the midst of it all.

The gas supply outlook has shifted from a thirst for liquefied natural gas (LNG) imports to reliance on maturing and emerging shale plays in Texas, Louisiana, Arkansas and Pennsylvania; new pipelines and capacity expansions reconfigure continental gas flows; and increasing gas-fired power generation elevates summer demand peaks. Gas storage developers are in the midst of it all.

Just days after the pipeline was given FERC approval for construction, backers of the Midcontinent Express Pipeline, which would give shale producers in Texas, Arkansas and Oklahoma access to southern and eastern markets, said Tuesday they have completed a successful binding open season for a 300,000 Dth/d expansion of a portion of the planned system