Viability

Is the next U.S. energy boom following shale going to evolve around oilsands? A Canadian producer is testing the viability of the unconventional oil based on its work to date in Utah.

Is the next U.S. energy boom following shale going to evolve around oilsands? A Canadian producer is testing the viability of the unconventional oil based on its work to date in Utah.

Goodrich Petroleum Corp. said Thursday it plans to spend between $175 million and $200 million on capital expenditures (capex) in 2013, most of which will go toward drilling for oil in the Eagle Ford Shale and Tuscaloosa Marine Shale (TMS), but a small portion will be spent on dry gas in the Haynesville Shale.

South Africa’s Sasol Ltd. on Monday made a long-term bet on the viability of U.S. natural gas in announcing plans to construct a $16-21 billion natural gas-to-liquids (GTL) plant in Westlake, LA — the second largest commercial plant of its kind in the world.

The growing size and complexity of several liquefied natural gas (LNG) export projects in western Canada is casting some doubts about their viability, according to the CEO of one of the similar proposed West Coast export projects in Oregon. Ultimately, this may work to the advantage of U.S. LNG export projects that are relatively simple in comparison.

Improved well results experienced by Houston-based Crimson Exploration Inc. and other operators continue to demonstrate the economic viability of the Eagle Ford Shale in Zavala and Dimmit counties, TX, said Crimson CEO Allan Keel in announcing the company’s latest well results Monday.

Perth, Western Australia-based Golden State Resources has received further verification it could be holding a significant shale gas play in the Golden Eagle field in Grand County in southeast Utah. The economics look good, according to a recent petroleum engineering consultant’s study.

The board of directors of Russian natural gas giant OAO Gazprom sounded another blast on its shale gas alarm Tuesday, questioning the environmental and economic viability of the process that is overhauling North American markets and promising to do the same in Europe.

As BP plc was expected to cut its dividend, shares in the company continued their downward slide Wednesday. While BP continued to cite its large cash reserves and viability, some analysts were speculating that the company would declare bankruptcy.