A pair of approvals by FERC last week, as well as plans announced by GDF SUEZ Mexico, could help extend the reach of natural gas pipelines — and the market for gas produced in the United States — in Mexico.
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The Fayetteville Shale is Dry, But It’s Hardly Dried Up
“We have thousands and thousands of well locations,” he said at the UBS Global Oil and Gas Conference. “We’ll be drilling at this pace for many years to come, assuming the [Nymex] strip pricing that we have today. We do plan to drill close to 400 wells this year and that certainly, of all of our operations, can flex more than any others as we need to respond to gas prices, one way or the other [see Shale Daily, May 24].”
Industry Briefs
Natural gas prices trending up nationally were cited by Minnesota-based Xcel Energy for its latest higher retail gas charges at its Colorado combination utility as part of its quarterly price adjustments for retail electric and gas rates. Overall, Xcel said total utility bills in Colorado will be lower in the third quarter compared to the second quarter, but on an annual basis, “a national trend in higher natural gas commodity prices” will continue to put upward pressure on utility bills. Under the quarterly gas cost adjustment, the cost of natural gas in the third quarter will be slightly higher than the second quarter, but because of a “significant drop” in use expected in the summer quarter, residential bills will be about $8 lower/month, compared to the current quarter, Xcel said. Residential gas bills in the third quarter will still be $3.15 more than they were in the third quarter last year. “Much of 2012 was marked by historically low gas prices,” Xcel said. Typical monthly residential and small business gas bills during the third quarter are expected to be $21.98 and $81.73, respectively, compared to average bills of $18.83 and $68.81, respectively, in the third quarter of 2012.
Fracking Bills Get Cold Shoulder in California
All but one of the proposals to address hydraulic fracturing (fracking), including all of those seeking moratoriums on the well stimulation practice, have bitten the dust in the California legislature. The lone bill standing (SB 4) is still awaiting committee referral in the lower house Assembly (see Shale Daily, June 3).
Industry Partner Sought for Tennessee Natural Gas, Oil Impact Study
The University of Tennessee’s Institute of Agriculture (UTIA) is seeking an industry partner for a proposed research project to investigate impacts of natural gas and oil exploration, as well as development from shale formations, in East Tennessee and the wider region.
Northern Seeks to Abandon ‘Grossly Underutilized’ Matagorda System
Northern Natural Gas Co. on behalf of itself, as well as Southern Natural Gas and Florida Gas Transmission, has asked FERC for the green light to abandon in place offshore facilities and onshore facilities in Texas, known as the Matagorda Offshore Pipeline System (MOPS), which are seldom used by shippers anymore.
Production Records Broken Again in North Dakota
Three storms in March failed to deter oil and natural gas operations in North Dakota, which set new all-time highs for the month, according to the latest statistics from the state Department of Mineral Resources (DMR).
Three California Drilling Bills Advance
Three bills that if enacted would place a moratorium on using hydraulic fracturing (fracking) in drilling operations, as well as review oil and gas drilling practices, have advanced in the California legislature along partisan lines in a body dominated by Democrats.
Bill Would Remove Industry From Colorado Oil and Gas Commission
With the legislature looking at adjournment May 8, a bill (HB 1269) that would restrict oil and natural gas representation and participation on the Colorado Oil and Gas Conservation Commission (OGCC) passed out of committee on a partisan 3-2 vote late Monday night, worrying industry backers.
Shales Continue Pushing Lower 48 Production Higher
Natural gas production in the Lower 48 and Other States categories, which include some of the nation’s most prolific shale plays, was up in February compared with January and with February 2012, according to the Energy Information Administration’s (EIA) Monthly Natural Gas Gross Production Report.