Wait

Natural gas-hungry Japan is knocking on Alaska’s door, but the world’s third-largest economy won’t wait forever for liquefied North Slope gas — or pay dearly for it. The message to state lawmakers and the energy industry: hurry up with cost-competitive supply — or you’ll add even more years to the decades-long effort to commercialize those long-stymied gas reserves.

Natural gas prices have been due for a shot in the arm, and they’re going to get one, actually more than one. But producers will have to wait until the impact of drilling declines is felt, lifting gas to $4.00/MMBtu, and then until power generation load growth gains traction and lifts prices to $5.00/MMBtu after 2015, according to consultant ICF International.

Gas prices have been due for a shot in the arm, and they’re going to get one, actually more than one. But producers will have to wait until the impact of drilling declines is felt, lifting gas to $4.00/MMBtu, and then until power generation load growth gains traction and lifts prices to $5.00/MMBtu after 2015, according to consultant ICF International.

Spectra Energy has been busy building out infrastructure in the Northeast, where capacity is needed to get Marcellus and Utica gas to market. However, the Southeast and Gulf Coast regions are ripe for billions of dollars of investment as well, said Spectra’s Bill Yardley, president of the U.S. transmission and storage business.

Riding high on record profits and continuing efficiencies, the contract drilling sector nevertheless faces uncertainties during the first half of next year that require patience and flexibility, said the CEO of Tulsa-based Helmerich & Payne Inc. (HP).

Results from recent U.S. Geologic Survey (USGS) water quality testing in U.S. Environmental Protection Agency (EPA) monitoring wells in Pavillion, WY, “raise serious questions about the adequacy of EPA practices in drilling monitoring wells and testing water samples,” said Erik Milito, American Petroleum Institute (API) upstream director.

Even with more cooperation between state and federal officials in the testing of ground water in Pavillion, Wyoming Gov. Matt Mead said Tuesday that unilateral actions by the U.S. Environmental Protection Agency (EPA) are raising concerns.

Two municipalities in upstate New York have decided to remain neutral on the issue of high-volume hydraulic fracturing (HVHF) and will wait until the state Department of Environmental Conservation (DEC) issues its report on the practice.

These days with no end to decade-low gas prices in sight, Newfield Exploration Co. CEO Lee Boothby can’t wait to be in charge of an oil-weighted production company, and it’s going to happen soon, he said Wednesday. Newfield has put down the dry gas drillbit and is focusing intently on oil and liquids-rich plays.