Shale Daily

Canada’s frontier shale drilling hot spot lived up to hopes for a new source of premium-grade oil, according to first results disclosed from 2012-2013 winter exploration in the central Mackenzie Valley region of the Northwest Territories.

North American oilfield services activity in the first three months of this year has been less promising than expected, according to Schlumberger Ltd. CEO Paal Kibsgaard.

Differentiated chemicals manufacturer Huntsman Corp. said it will increase capacity at its Geismar, LA, worldscale methylene diphenyl diisocyanate (MDI) facilities. Capacity will be increased by 50,000 tons to 500,000 tons using improved process technology developed by Huntsman and will enable the company to support growth of its key customers and leverage the advantages of the Geismar site and its access to U.S. shale gas, strong logistics base and excellent integration, Huntsman said. “The benefits of U.S. shale gas have significantly improved the economics of investing in U.S. facilities, and Huntsman has a number of other investments planned which will take advantage of lower-cost natural gas,” said Anthony Hankins, president of Huntsman polyurethanes. The new capacity is expected to come on-stream in 2014 and will further consolidate Huntsman’s position as the leading MDI producer in the Americas region, the company said. Huntsman also said it will upgrade its downstream specialties production capability at its Rotterdam, the Netherlands site. The cost of the two projects is $135 million.

Secretary of the Interior Ken Salazar on Friday announced the department’s final plan for encouraging research, development and demonstration (RD&D) of oil shale and tar sands resources on more than 800,000 acres of Bureau of Land Management (BLM) lands in three western states.

It was billed as a bilateral effort to ensure safe and environmentally responsible development of the Appalachian Basin’s shale gas resources, but not everyone on the environmental side of the aisle is ready to embrace the Center for Sustainable Shale Development (CSSD).

Pennsylvania Gov. Tom Corbett announced Friday that Michael Krancer, secretary of the state Department of Environmental Protection (DEP), will step down on April 15 and return to practice law in Philadelphia. But the decision to replace him on an interim basis with the governor’s deputy chief of staff is being derided by Krancer’s predecessor, John Hanger.

While the debate rages over whether exporting liquefied U.S. natural gas is a good idea, stocks of natural gas liquids (NGL) are so abundant, export of some is viewed as a necessity. And in the United States, more chemical sector demand can’t come fast enough.

Following a second vote by the City of Dallas Plan Commission to deny Trinity East Energy LLC permission for three drill sites within the city limits, Trinity East Energy LLC said it will seek to persuade a super-majority of the 15-member Dallas City Council to grant the permits.

Sunoco Logistics Partners LP is holding a binding open season for its Mariner South Pipeline, which is intended to transport export-grade propane and butane, from Lone Star NGL LLC’s storage and fractionation complex in Mont Belvieu, TX, to Sunoco Logistics’ terminal in Nederland, TX. The pipeline is to be available for other natural gas liquids and petroleum products depending on shipper interest, Sunoco said. Initial capacity is expected to be 200,000 b/d and could be scaled to support higher volumes as needed. The pipeline is expected to be operational by the first quarter of 2015. For information, visit www.sunocologistics.com/marinersouth.