Shales

The shift to shales — and the rise in oil prices — has lifted the domestic rig count close to 20-year highs and shifted the landscape, helped several states join Texas, Oklahoma and Louisiana in the chase for natural gas and oil production, according to Headwaters Economics.

Researchers with the Massachusetts Institute of Technology Energy Initiative (MITEI) say natural gas has a bright future, but they said the government needs to be more involved and industry needs to remain vigilant over potential — but so far unrealized — environmental disasters.

The promise of continued production growth from unconventional gas plays — shales in particular — has been repeated yet again in the Energy Information Administration’s (EIA) latest production forecast. While the overall gas-directed rig count has fallen, the number of rigs targeting unconventional plays (gas and oil) has increased from last year.

Gas production in the Haynesville and Marcellus shales was the bright production star in February, while output in the traditional, more mature regions fell due to cold weather and maintenance/repairs, according to the Energy Information Administration’s (EIA) monthly natural gas report.

Thomas S. Liberatore has joined Eclipse Resources as a partner, executive vice president and COO, the State College, PA-based oil and gas company said. Liberatore, who resigned as vice president of Cabot Oil & Gas Corp.’s East region following a restructuring there two years ago (see Daily GPI, June 1, 2009), is a member of the American Association of Petroleum Geologists and the Appalachian Geological Society, has served on the board of directors of the West Virginia Oil and Natural Gas Association and is a past president of the Independent Oil & Gas Association of West Virginia. Additionally, Brian Panetta, who was previously a geologist with Waco Oil & Gas and a senior geologist for Chesapeake Energy Corp., has joined Eclipse as vice president of geology. Eclipse focuses on the acquisition, exploration and development of unconventional oil and natural gas properties in the Appalachian Basin, including the Marcellus Shale, Utica Shale and Upper Devonian shales.

Norway’s Norse Energy Corp. ASA said Monday it has received regulatory approval to sell two natural gas pipeline companies so that it can focus on exploration and production activities in the Marcellus Shale play in New York.

Activity in the Delaware Basin of West Texas-southeastern New Mexico — specifically the Avalon and Wolfcamp shales and Bone Spring formation — has heated up enough for Nuevo Midstream LLC to take its gas processing plant near Orla, TX, out of mothballs. Separately last week Targa Resources Partners LP announced an anchor commitment to DCP Midstream LLC’s Sandhills Pipeline.

Activity in the Delaware Basin of West Texas-southeastern New Mexico — specifically the Avalon and Wolfcamp shales and Bone Spring formation — has heated up enough for Nuevo Midstream LLC to take its gas processing plant near Orla, TX, out of mothballs.

Shale gas production in the Haynesville and Marcellus shales was the bright production star in February, while output in the traditional, maturer regions fell due to cold weather and maintenance/repairs, according to the Energy Information Administration’s (EIA) monthly natural gas report.