Despite support from Senate Majority Leader Harry Reid (D-NV), an amendment to jump-start the adoption of natural gas vehicles (NGV) and the supporting infrastructure for large trucking fleets failed in the Senate Tuesday as lawmakers did not obtain the 60 votes needed to fend off a filibuster.
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New Projects Lift Chevron Reserves Numbers
Chevron Corp. said Friday it nearly tripled its natural gas and oil production in 2011 and is readying for some new project start-ups in the coming year, as well as delineating its onshore prospects in the Marcellus and Utica shales.
$1-Plus Northeast Dives Lead Dips at Most Points
Prices fell at all but two points Tuesday in the start of the third holiday-shortened trading period in less than a month. The softness appeared to defy cooling trends forecast for Wednesday in the Midwest and South while the Northeast gave up Friday’s big gains even with lows below freezing remaining in the next-day forecast.
Industry Briefs
Utility rates changed at the start of the new year in California, Colorado and Oregon with the biggest shifts occurring at Xcel Energy’s Colorado combination utility. Xcel natural gas utility bills increased 1.55% for residential customers and 5.45% for small businesses, while electric rates dropped 6.48% for residential users and 7.08% for small businesses. In California, Pacific Gas and Electric Co. (PG&E) residential gas charges increased 1.8% as of Jan. 1, compared to December rates, but the new rates are still slightly lower (0.3%) than those in effect in January 2011. PG&E residential electric rates increased compared to December (2.4%) and January 2011 (2.9%). In Oregon, the two electric utilities’ rates went in opposite directions with PacifiCorp’s going up due to its reliance on more coal-fired generation and Portland General Electric’s (PGE) going down slightly due to its greater use of gas-fired and hydroelectric generation. PacifiCorp rates increased 4.4% or $51 million with the “largest single factor” being higher coal costs, said the Oregon Public Utility Commission, which cut $10.9 million from the multi-state utility’s original request. PGE rates dropped 1.3% or $21.8 million due mostly to the replacement of some nonhydro contracts with less expensive gas-fired generation contracts.
Coalition Seeks Executive Order to Implement SEAB Recommendations
A coalition of environmental groups has called on the Obama administration to issue an executive order directing the government to adopt as soon as possible the Secretary of Energy Advisory Board (SEAB) subcommittee on shale gas production’s recommendations that apply to federal agencies.
Transportation Notes
At the start of Wednesday’s gas day Destin will end a force majeure event and resume normal operations from its Main Pass 260 platform through the onshore Pascagoula Gas Plant in Mississippi (see Daily GPI, Oct. 18). The alternate delivery point to Viosca Knoll Gathering System will no longer be available for transportation services until further notice, Destin said.
Occidental Hits Record U.S. Output, Driven by Shale
Hitting an all-time high in domestic U.S. energy production with shale plays as a major driver, Occidental Petroleum Corp.(Oxy) still looks to cut its natural gas production in the Midcontinent basins because of continuing low prices, CEO Stephen Chazen said Thursday.
Obama Urged to Release LIHEAP Funds Quickly
With the start of winter only weeks away and as state agencies prepare their energy assistance programs, Sen. Sherrod Brown (D-OH) led 33 senators in calling for the Obama administration to quickly release funds for the Low Income Home Energy Assistance Program (LIHEAP).
Bentek: Shale to Do for Oil What It Did for Gas, NGLs
Shale basins have rewritten the book on natural gas supply, and now they’re turning the outlook for natural gas liquids (NGL) on its head. Next will be crude oil as the technology transfer to these plays takes hold in earnest, according to an analysis expected to be finished in about three weeks.
Nearly All Points Dip as Bearish Factors Grow
The last day of summer saw lower prices at all but a few locations Thursday. Although the season doesn’t officially start until Friday, fall-like weather was already in place for many market areas. The previous day’s drop of 6.8 cents by October futures, restrictions to avoid packing pipeline (particularly those serving the Northeast), and further evidence that storage injection options are quickly fading added to the overall bearishness.