“If at first you don’t succeed, try, try again” could have been the natural gas futures market’s motto over the past few days during which it attempted several times to break below the psychological $7.00 level. It finally paid off Thursday as December natural gas futures settled 41 cents lower at $6.873.
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If at first you don’t succeed, try, try again could be Tri-Valley Corp.’s motto when referring to its Sunrise Natural Gas Project near Delano, CA. The Bakersfield, CA-based company reported Thursday that it has logged in excess of 2,000 feet of gas-saturated diatomite/porcelanite in its Sunrise-Mayel No. 2HR horizontal redrill. Tri-Valley said the well has all the log and geologic features expected and is scheduled for hydraulic fracturing in late June to liberate the natural gas at what Tri-Valley management expects to be commercial rates. The latest move comes as the third attempt by Tri-Valley to unlock what independent engineers have projected as a potentially immense amount of natural gas in place in the tight McClure Shale formation beginning at about 5,800 feet. The company noted that Independent reports on the nearly 300 vertical net feet of pay in the McClure Shale section show 40% porosity with 70% gas saturation, which calculates to about 80 Bcf of gas in place per 160 acres. On its own, Tri-Valley has mapped some 6,600 acres of closure on its leasehold and speculates as much as 3.3 Tcf of gas may be contained in the prospect area. In March, the company failed to produce at commercial rates at its Sunrise-Mayel No. 2H natural gas well because the zone had clay content that could swell and block gas delivery (see Daily GPI, March 7). The company notes there is still risk of commerciality and will give no estimate of how much might be recoverable until it has completed and tested the rate of gas deliverability from the well.
California Parties Try for Rehearing of FERC Refund Case
Following the motto that “if at first you don’t succeed, try, try again” (and again) California’s coalition of state government agencies and private sector utilities late Friday asked the Federal Energy Regulatory Commission to reconsider its March 26 ruling on future wholesale power refunds to consider all of the additional evidence the state coalition provided early in March.
People
Shell Oil Co. said Wednesday that it has appointed Steve Murray, currently president of Shell Trading United States, to succeed Alan Raymond as CEO of Shell Energy Services Co. LLC. The company said the switch will take effect on Dec. 1. Shell said that Raymond has been instrumental in the operation of Shell Energy Services since its inception. He is retiring after 34 years of service.
Drive to Succeed: Enron Prefers Toyota to GM
To prosper in the new energy economy, Enron COO Jeffrey K.Skilling says oil and gas companies need to trash their traditionalbusiness models and instead reshape themselves to resemble Toyotawhen it captured the imagination and pocketbook of U.S. consumers30 years ago.
Nickles Aide Rumored to Succeed Bailey at FERC
With the disclosure that Commissioner Vicky A. Bailey will beleaving the Federal Energy Regulatory Commission effective Feb. 1,rumors have been flying fast and furious as to who will be hersuccessor. So far, only one name has surfaced – that of McLaneLayton, staff counsel for Sen. Don Nickles (R-OK).
People
National Fuel Gas Co. said Philip C. Ackerman has been electedpresident of the company. David F. Smith will succeed Ackerman aspresident of National Fuel Distribution Corp. Ackerman has beenwith the company since 1968, and Smith has been with National Fuelsince 1978.
If at First You Do Not Succeed, Try Again In Access Trading
For the second day in a row the futures market openeddramatically higher en route to posting a $2.08 daily high in thefirst hour of trading. And similar to Wednesday’s topsy-turvysession, no new buying was seen to help lift the May contract overresistance in the $2.07-09 area, which paved the way forprofit-taking activity yesterday afternoon. However in contrast tothe day prior, Thursday’s trading saw a late rally, which buoyedthe market into settlement and put a positive spin on the day’sevents. The May contract finished up 4.5 cents to $2.069.
El Paso Takes Another Stab at Expanding Bondad
Believing in the saying that “if at first you don’t succeed, tryagain,” El Paso began a new open season Friday to solicit interestin firm service agreements to move gas on an expansion of theBondad Line in the San Juan Basin. A previous attempt at a Bondadexpansion ultimately broke down after FERC rejected some of thetariff provisions last year, leading the primary expansion shipperto withdraw from the project and FERC to vacate its projectcertification (see Daily GPI, Jan. 7, 1998; Oct. 19, 1998; Dec. 11,1998; and Jan. 18, 1999).
El Paso Takes Another Stab at Expanding Bondad Line
Believing in the saying that “if at first you don’t succeed, tryagain,” El Paso began a new open season Friday to solicit interestin firm service agreements to move gas on an expansion of theBondad Line in San Juan Basin. A previous attempt at a Bondadexpansion ultimately broke down after FERC rejected some of thetariff provisions last year, leading the primary expansion shipperto withdraw from the project and FERC to vacate its projectcertification (see NGI, Sept. 7, 1998; Oct. 19, 1998; Dec. 14,1998; and Jan. 18, 1999).