The WSJ published an Energy Report with several interesting articles. One takes a look at the technologies Western oil companies are using to increase their crude oil production, including the use of carbon dioxide and water flooding to increase reservoir pressure. A copy can be found here.
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American natural gas potential heralds a shift in the nation's energy landscape, according to this article in the WSJ. Interesting look at the potential for shale development and its impact on energy and environmental policies.
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On December 5, 2008, CenterPoint Energy Gas Transmission filed an application with the Federal Energy Regulatory Commission (FERC) to construct and operate an expansion of its Carthage to Perryville pipeline (Line CP) in order to increase deliveries of Haynesville Shale gas supplies to the Perryville Hub. The FERC granted that application earlier this week (see here, search for Docket No. CP09-29).
The Hill reports that one high-ranking Democrat has indicated that cap-and-trade legislation may not reach a vote in the House this year if there is a belief that it may not pass the Senate.
U.S. EPA has submitted a proposed finding to OMB that greenhouse gas emissions are pollutants that endanger the public's health and welfare, according to this report from the Washington Post. If finalized, it could lead to the regulation of carbon dioxide under the Clean Air Act.
[Update: EPA issued the proposed finding today, providing for a 60-day public comment period following publication in the Federal Register. A pre-publication copy can be found here. (Moved up).]
[Update: The proposed finding has now been published in the Federal Register here (as well as supporting documents). Comments are due on or before June 23, 2009, Docket No. EPA-HQ-OAR-2009-0171. (Moved up).]
The NYT has an article on how nuclear power may be used to produce oil from oil sands in Canada. Very interesting.
"When drills unleash danger: Does underground hunt for natural gas put drinking water at risk?" is the title to this special report in the Albany Times Union from ProPublica, a nonprofit New York City newsroom. Similar to other reports by ProPublica challenging energy development in the Marcellus Shale and elsewhere around the country.
Landowners in NY remain concerned that the economy and state regulatory obstacles will encourage producers to move south to Pennsylvania, Ohio and West Virginia, according to this article in pressconnects.com (Greater Binghamton, NY). Interesting article if you're looking to drill in the Marcellus.
The Florida House is prepared to vote on a measure that would allow the governor and Cabinet to approve oil drilling as close as three miles off Florida's coast, according to this article in the Miami Herald. Proponents claim that it could be worth to Florida $6 billion a year and create more than 16,000 jobs.
[Update: The Florida Senate promptly rejected the proposal, according to this article, also from the Miami Herald.]
California has adopted the nation's first low-carbon fuel mandate in an effort to reduce associated greenhouse gas emissions, according to this article from the LA Times. The new rules require a reduction in the carbon content of fuels sold in the state by 10 percent by 2020 (including emissions related to the delivery of fuels to California consumers).
EQT has launched its Big Sandy Pipeline to transport gas from the company's Langley processing plant in Floyd County, KY, to markets in the northeastern United States. For more information, see here.
The Energy Information Administration has released several new publications: Natural Gas Year-In-Review 2008; Natural Gas Market Centers: A 2008 Update; EIA’s Natural Gas Production Data; and Natural Gas Residential Choice. Copies can be found here.
The Department of Energy has issued a primer on modern shale gas development in the U.S. Commissioned through the Ground Water Protection Council, it's full of interesting information on shale gas resources, technology and regulation. A copy can be found here.
This is interesting - The Manhattan Institute has released its second edition of Energy & the Environment: Myths & Facts. It takes a look at public opinion on energy matters, such as the energy resources relied upon in the U.S., the safety of nuclear power, and the promise of renewable energy sources.
Did you know, for example, that Canada is our top foreign supplier of oil, and not Saudi Arabia? (Only 13% of those surveyed answered the question correctly.)
The House Committee on Energy and Commerce is holding hearings on the American Clean Energy and Security Act of 2009 issued for comment late last month. Related documents and videos of the testimony can be found here (including, for example, testimony from the new Administrator of U.S. EPA, the new Secretary of U.S. DOE, representatives of electric power producers and The Heritage Foundation and the American Enterprise Institute). Interesting.
According to this NYT article, small independents are projecting optimism in face of difficult crude oil and natural gas markets. Not a bad discussion of the challenges faced by industry.
The Colorado Supreme Court has upheld a lower court ruling that the withdrawal of groundwater during coalbed methane production is an integral part of the CBM process requiring a permit under state law. A copy of the decision can be found here.
The Public Utility Commission has concluded that effective retail natural gas competition still does not exist in Pennsylvania, according to this report from the Pittsburgh Post-Gazette.
Clean energy isn't cheap, according to this report from USA Today. California, for example, has some of the highest electric rates in the country, in part because it requires twenty-percent of its power to be produced from clean energy sources by 2010.
The Federal Energy Regulatory Commission (FERC) has issued its 2008 State of the Markets Report. Among other things, it notes that the dramatic natural gas price levels and fluctuations seen last year can only be explained in part by market forces. It also discusses how unconventional shale production is altering the nature of natural gas markets. An interesting report (a copy can be found here).
Chesapeake Energy Corp. plans on cutting back natural gas production in the Mid-Continent and Barnett Shale regions due to low energy prices, according to this report from the Fort Worth Business Press.
A federal court has told the Department of the Interior that it must better consider the environmental impacts of the Department's crude oil and natural gas leasing plan for 2007-2012, possibly halting development in the Gulf of Mexico and Alaska, according to this report from CNN.
The PA Department of Environmental Protection has announced new discharge standards for industrial wastewater high in total dissolved solids (TDS), effective January 2011. This could have an impact on energy development in the Marcellus Shale, and is being addressed by the Pennsylvania Oil & Gas Association.
DEP plans to undertake a rulemaking to amend the water quality regulations accordingly some time this summer, allowing interested parties an opportunity for public comment.
The American Petroleum Institute (API) reports that drilling activity has decreased to levels not seen since 2004, according to this report from the Houston Chronicle. A recent Baker Hughes rig report states that the number of natural gas rigs in the U.S. has dropped to 790.
Yesterday, the Public Utilities Commission of Ohio adopted rules for meeting the alternative energy portfolio standards required under S.B. 221. Among other things, the new rules establish incremental percentage requirements that electric utilities must meet to fulfill the renewable portion of the portfolio standard (e.g., its sets a benchmark of 2.5% for renewable energy resources by 2014), which can be met through the use of renewable energy credits (RECs). The new rules also establish requirements for greenhouse gas reporting and carbon dioxide control planning.
For more, see here.
The EIA's Short-Term Energy Outlook for this month has been released. Regarding natural gas, it concludes:
Total consumption of natural gas is projected to fall by nearly 2 percent in 2009, leading to lower natural gas prices. Industrial natural gas consumption is expected to decline by more than 7 percent, as industrial production declines during the current economic downturn. However, natural gas consumption in the electric power sector is projected to increase by almost 1 percent, since the lower natural gas prices will back out some coal consumption in this sector. The Henry Hub natural gas spot price is projected to decline from an average of $9.13 per thousand cubic feet (Mcf) in 2008 to $4.24 per Mcf in 2009, then increase in 2010 to an average of more than $5.80 per Mcf.
A copy of the report can be found here.
This is interesting - The largest refiner in the U.S. Midwest, Marathon Oil Corp., has reported that its margin on a gallon of gasoline was 8-cents last quarter, up from a negative 26-cents a year ago, according to this report in the Houston Chronicle.
We reported earlier on litigation brought by energy producers in PA against the U.S. Forest Service for preventing development in the Allegheny National Forest. A separate lawsuit brought by environmental groups regarding that development was recently settled, according to this article in the Philadelphia Inquirer. According to the Pennsylvania Oil and Gas Association (POGAM), this settlement would require future drilling projects in the Forest to undergo site-specific environmental assessments under NEPA.
POGAM has asked the court for a stay of the settlement. More on this issue can be found here.
This is interesting - "Unconventional sources of natural gas will account for more than half of North American supply by 2020, despite a current industry downturn, according to a new report by a Calgary-based energy consultant." From this article in the NYT. It looks like others - outside the industry - are starting to pay attention.
Retail customers can now terminate their gas contracts with a fee of no more than $50 under a new Illinois law, according to this article in the Chicago Tribune.
President Obama's new science adviser, John Holdren, has indicated that geoengineering the climate - by introducing pollution particles into the atmosphere, for example - is being considered as one method for addressing global warming concerns, according to this article in the Washington Times. The law of unintended consequences suggests, though, that we might want to be very cautious in our conclusions regarding global warming before relying on this technology.
Last year, in a series of orders the Federal Energy Regulatory Commission (FERC) required certain market participants to report limited information on the previous calendar year's natural gas transactions by May 1st of the following year (see here for more information, including forms). At the request of the Independent Petroleum Association of America and others, the deadline for compliance this year has been extended to July 1, 2009.
Atlas Pipeline Partners, LP, has announced that it has sold its NOARK natural gas gathering and interstate transmission system to Spectra Energy Partners, LP, for $300 million in cash.
We reported previously on Santa Barbara's surprising willingness to encourage drilling offshore for energy development last August. According to this LA Times article, that decision is now being reconsidered.
Department of Interior Secretary, Ken Salazar, is hosting a series of regional public meetings to gather public comment on a comprehensive energy strategy for the Outer Continental Shelf. Videos of his comments and copies of his presentations can be found here.
Columbia University researchers may have found a method for separating natural gas from permafrost, according to this NYT report.
According to this report in the WSJ, higher futures prices relative to near-term prices (contango) may encourage the increased use of supertankers to store crude oil offshore. [Subscription required.]
Williams Cos., Inc., and Atlas Pipeline Partners, L.P., have formed a joint venture - Laurel Mountain Midstream, L.L.C. - to gather and process natural gas produced from the Marcellus Shale, according to this report from the Philadelphia Inquirer.
Here's some good news - U.S. Geological Survey has updated its 1989 assessment of oil shale in-place in the Piceance Basin in western Colorado to 1.525 trillion barrels. You can access a copy of the study here.
Catalyst Energy, Inc., has sued the U.S. Forest Service over its refusal to permit energy development in the Allegheny National Forest despite having the mineral rights to do so, according to this report from the Philadelphia Inquirer.
The EIA's March 2009 Short-Term Energy Outlook is now available. Among other things, it finds that:
The U.S. economic downturn is the principal cause for the decline in domestic natural gas consumption, particularly in the industrial sector—where it is projected to fall by 6 percent in 2009—which in turn has led to lower natural gas prices. The Henry Hub natural gas spot price is projected to decline from an average of $9.13 per thousand cubic feet (Mcf) in 2008 to about $4.70 per Mcf in 2009, but then increase in 2010 to an average of almost $5.90 per Mcf.
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