The Energy Information Administration (EIA) joined a growing list of analysts raising 2013 natural gas price forecasts, saying in a Short-Term Energy Outlook (STEO) released Tuesday that it expects spot prices, which averaged $2.75/MMBtu at the Henry Hub last year, to climb to an average of $3.52 this year and $3.60 in 2014.
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Kinder Launches Open Season for Oil Pipeline to California
Kinder Morgan Energy Partners LP (KMP) is holding a binding open season through May for capacity on the proposed 1,025-mile Freedom Pipeline LLC for transporting Permian Basin crude from Texas to refineries in both Southern and Northern California.
Chesapeake Allegedly Underpaid Royalties on Barnett Shale Natural Gas
A lawsuit filed by a several Barnett Shale mineral owners accuses Chesapeake Energy Corp. of selling natural gas to an affiliate for a reduced price and basing royalty payments on those sales, which violates the terms of the lease agreements.
North American E&Ps See Natural Gas Output Falling
A group of North American exploration and production (E&P) companies, which traditionally have mirrored the overall U.S. natural gas output trajectory directionally, is guiding toward an output decline this year, with the large caps forecasting the biggest drop, according to a review by Barclays Capital.
California Fracking Draws Boost from Governor, Study
As a formal set of proposed rules on hydraulic fracturing (fracking) moves through preliminary public review in California, Gov. Jerry Brown last Wednesday expressed confidence that his state’s oil and gas regulators would apply “science and common sense” to frack regulations.
Industry Briefs
Twin Eagle Resource Management LLC said it will market crude oil rail trans-loading capacity at GT Logistics LLC’s GT OmniPort facility in Port Arthur, TX. GT Logistics operates a unit train facility with about eight miles of track, 18 rail car unloading racks and a two-station barge dock. It maintains direct rail service with the Union Pacific and Burlington NorthernSanta Fe rail lines. The facility has direct access to the Intercoastal Waterway and will have deepwater access after further capital investment, the companies said. GT OmniPort began operations in September and has capacity of 100,000 b/d. Twin Eagle unit Enserco Midstream LLC plans to construct four crude oil storage tanks at the GT OmniPort facility that are expected to be operational in the third quarter. The parties intend to construct additional storage capacity and to establish pipeline connectivity with refiners and other markets in the area. GT OmniPort is adjacent to the Port Arthur refinery community, which has demand for about 2 million b/d of crude oil.
Columbia Gas Pursues Expansions to Accommodate Marcellus Development
Columbia Pipeline Group is seeking to expand the eastern side of its Columbia Gas Transmission system to provide Marcellus Shale gas to growing markets in the Northeast and Mid-Atlantic. It is also pursuing an expansion of the western side of its system to give producers an additional path out of the Marcellus/Utica region and to help avoid continued basis erosion.
State Department Issues Draft SEIS on Keystone XL Pipeline
The U.S. State Department on Friday released a draft supplemental environmental impact statement (DSEIS) on the proposed northern portion of TransCanada Corp.’s controversial Keystone XL oil pipeline from Western Canada to Cushing, OK, drawing strong reactions from supporters and opponents alike.
Midwest Leads Broad Weather-Driven Advance; Futures Gain
Cash natural gas on average added 14 cents Monday as a late-winter storm carrying high winds ripped through the Midwest and Plains, making travel difficult and prompting double-digit gains at virtually all pricing points.
Chesapeake’s Eagle Ford Output Jumps 266%
Chesapeake Energy Corp.’s Eagle Ford Shale leasehold, now is the top producer within the company, delivering year/year growth in 4Q2012 of 266% and sequential growth of 20%, the independent reported Thursday. Net production in the South Texas play averaged 62,500 boe/d, with 66% of it oil, while 19% was natural gas and 15% liquids.