Triggered

Shale plays have triggered a “massive upward shift” in U.S. natural gas production and are driving unprecedented growth, with output from publicly traded exploration and production (E&P) companies in 2Q2008 up 6.7% year-over-year (y/y), according to data compiled by energy analysts.

Coming in above most industry expectations, the 89 Bcf storage injection reported Thursday by the Energy Information Administration for the week ended July 7 triggered an initial drop in August natural gas futures, but the market then rebounded in a big way on the back of August crude, which recorded yet another record-setting day to the upside. Prompt-month natural gas reached a high of $6.180 in afternoon trading before settling at $6.129, up 34.7 cents from Wednesday.

Northern Natural Gas reported late Thursday afternoon experiencing a force majeure situation at its Bushton (KS) Compressor Station that triggered an emergency shutdown of the station. Until the station resumes operation, Northern is unable to deliver gas into the Bushton Processing Plant.

Rainfall running almost 165% above normal so far in 2006 has triggered land movement between Washougal and Willard in the Blue Lake area of Washington state at approximately Mile Post 1192, Northwest said Friday. “Strain gauges installed in this segment have registered steady increases in stress on the pipeline in this area,” the pipeline added. “Although the stress levels require remediation soon, they are not such that immediate action is needed.” In order to ensure safety and reliability in this segment, Northwest plans to blow down and excavate the affected area to reduce line stress. It anticipates there will be no physical flow through the area for Wednesday’s gas day. “Based upon current weather forecasts and operating conditions, Northwest does not anticipate primary impacts to customers. Northwest will work with its interconnects and use its Jackson Prairie inventory in an attempt to eliminate customer impacts. However, if net nominations north through the Washougal Compressor [Station] increase significantly over the currently scheduled volume of 386,000 Dth/d, Northwest may be forced to declare a Deficiency Period. Customers can help mitigate market impacts by buying gas at Sumas,” the pipeline said. For the Feb. 22-24 gas days Northwest will only schedule primary nominations north through either the Roosevelt or Washougal Compressor Stations. If the stress on the line accelerates, remediation work may begin earlier than currently planned, it said. A Stage II entitlement remained in place until further notice.

An independent review of the oil and natural gas reserves booking system used by Stone Energy Corp. has triggered the resignation of board member and former CEO D. Peter Canty and directed management to request the resignations of an unnamed officer and senior manager associated with the reserve estimation process.

It will take two decades for supply development triggered by the Mackenzie Gas Project to disturb even 4% of the vast Northwest Territories, says a new study that highlights the scale of the frontier about to be opened up by the Canadian foray into Arctic industry.

It will take two decades for supply development triggered by the Mackenzie Gas Project to disturb even 4% of the vast Northwest Territories, says a new study that highlights the scale of the frontier about to be opened up by the Canadian foray into Arctic industry.

An imminent outbreak of development drilling, triggered by long-awaited technical and exploration successes, is prompting even the most cautious forecasters into raising expectations for coalbed methane in Canada.

An imminent outbreak of development drilling, triggered by long-awaited technical and exploration successes, is prompting even the most cautious forecasters into raising expectations for coalbed methane in Canada.