E&P

Capital spending reductions by exploration firms and the pace of falling rigs have moved beyond trivial and now pose real dangers to 2015 prospects, according to analysts.

Houston’s Halcon Resources Corp., which in November reduced 2015 capital expenditures by half of 2014, on Thursday cut that forecast by half again. The Permian Basin unit of American Energy Partners LP (AELP) also is setting its sights lower.

Magnum Hunter Resources Corp.’s midstream subsidiary recorded a new record throughput of 406,000 MMBtu, exiting 2014 above its anticipated rate of 400,000 MMBtu/d, the company said.

With the public notice last year of at least the possibility of one oilfield service firm contemplating laying off workers, sharply lower global oil prices at the start of the new year are sending some economic aftershocks of uncertainty through California’s oil and natural gas sector, not unlike other parts of the nation.

Houston-based Sanchez Energy Corp. has again cut its capital spending plan for this year due to depressed commodity prices. The original plan to spend $1.15 billion has now been cut to $600-650 million with the latest reduction. Previous guidance was for $875 million.

Pennsylvania’s Commonwealth Court has ruled to uphold an executive order issued by Gov. Tom Corbett to lift a four-year moratorium on subsurface oil and gas leases in state parks and forests, determining that revenue from those leases could go toward the state budget rather than a special fund for conservation.

Recognizing the growing gloom over sharply falling global oil prices, North Dakota’s chief oil/natural gas regulator Thursday told state lawmakers at a committee hearing in Bismarck that the situation doesn’t necessarily spell doom for the state’s robust energy production, which has set continuous growth records, elevating the state to the nation’s No. 2 spot in oil production.

There is no slippage in the push to build more railroad tank cars for transporting crude oil and other energy products, the CEO of a leading railcar manufacturer told financial analysts.

The city council of Barnett Shale town Denton, TX, on Tuesday continued to hear comments on proposed revisions to the city’s gas drilling ordinance that are intended to address quality of life issues (see Shale Daily,Dec. 15).