The WSJ has a good article on the potential of the Bakken Shale. Takeaway: "[T]echnological improvements in the past two years have taken what was once a small, marginally profitable field and turned it into one of the fastest-growing oil-producing areas in the U.S." Worth a read.
(Note: Subscription required.)
The rig count - and associated drilling activity - is on the rise despite low natural gas prices, according to this article in the WSJ: "But the number of rigs drilling for gas has bounced back 36% since July, as energy companies plowed into new fields in Pennsylvania, Louisiana and elsewhere that remained profitable even at low prices." Nice, brief discussion.
(Note: Subscription required.)
The Pittsburgh Post-Gazette is reporting on the impact that Marcellus drilling is having on the local real estate market, and it's working to support real estate prices!
On February 19, 2010, the USEPA proposed a rule to revise the procedures for developing Enforceable Consent Agreements ("ECA") to generate test data under TSCA. The rule would generally apply to those who manufacture or process chemical substances. ECAs are legally enforceable agreements entered into with USEPA wherein a manufacturer or processor of chemical substances agrees to conduct specific testing on a chemical substance to fill an USEPA data need (without requiring EPA to first make a risk determination under TSCA Section 4). The proposed rule is intended to shorten the average time to complete negotiations for ECAs and to use deadlines to terminate negotiations for ECAs if not completed.
The House Subcommittee on Energy and Environment held a hearing today to discuss endocrine disrupting chemicals in drinking water and their risks to human health and the environment. Testimony can be found here.
The WSJ has an article on the migration of shale exploration to our friends in the north, leading to uncertainty for Canadian producers. "Over the course of six months last year, Canada's National Energy Board shifted from a prediction that the decline in conventional gas output would far outstrip new shale supplies, to saying that shale gas could satisfy domestic demand 'far into the 21st century' and spur exports of liquefied natural gas." Interesting.
(Note: Subscription required.)
On Monday, USEPA Administrator Jackson outlined decisions she has made related to greenhouse gas regulation/permitting. The short read is as follows:
In the letter, the Administrator outlines several of the decisions she has made for 2010-2011:
No facility will be required to address greenhouse gas emissions in Clean Air Act permitting of new construction or modifications before 2011.
For the first half of 2011, only facilities that already must apply for Clean Air Act permits as a result of their non-greenhouse gas emissions will need to address their greenhouse gas emissions in their permit applications.
EPA is considering a modification to the rule announced in September that required large facilities emitting more than 25,000 tons of greenhouse gases a year to obtain permits demonstrating they are using the best practices and technologies to minimize GHG emissions.
EPA is considering raising that threshold substantially to reflect input provided during the public comment process.
EPA does not intend to subject smaller facilities to Clean Air Act permitting for greenhouse gas emissions any sooner than 2016.
[Update: The Administrator was responding to a letter sent by a group of Senators (D) from coal producing states challenging EPA's potential regulation of greenhouse gases. A copy of the related news release, with a link to the Senators' letter, can be found here. Senator Rockefeller's response to the Administrator's letter can be found here, stating in part, “As I evaluate the EPA’s letter, I remain committed to presenting legislation that would provide Congress the space it needs to craft a workable policy that will protect jobs and stimulate the economy.” Read: Legislation to suspend EPA's authority to regulate GHG's for some period of time.]
The Obama Administration is stepping up its efforts to pass a hybrid energy and climate bill, according to this article in the NYT. "Fred Krupp, president of the Environmental Defense Fund, said the ongoing efforts are aimed at a bill that is a 'hybrid of ideas' that would attract enough votes from fence-sitting Democrats whose states are heavily reliant on coal and from Republican ranks to secure passage through the Senate." The precise contours of that legislation remain indeterminate, however.
The WSJ has an interesting article on the reluctance of utilities to compel the use of smart metering technology on customers. The reason: Fear that it might cause resistance that stalls the technology (not an unreasonable concern).
(Note: Subscription required.)
The Oklahoman is reporting that the House Energy and Commerce Committee will be investigating the environmental risks allegedly posed by hydraulic fracturing operations used to produce natural gas from many of our country's shale reservoirs.
[Update: For a good summary, see this article from the NYT.]
The Houston Chronicle has an article on the possibilities presented by shale gas reserves for long time production. "That's part of the reason a company like Exxon Mobil Corp., which reported a 3 percent decline in net reserves worldwide from 2007 to 2008, is willing to pay $38 billion, based on current market value, to acquire shale gas driller XTO Energy."
The NYT is reporting that energy company mergers are expected to increase this year. "This time, companies are focused on buying fast-growing small companies, or on acquisitions that expand their reserves in an era when it is hard for them to find new places to drill."
The NYT is reporting that ConocoPhillips, Caterpillar Inc., and BP America are leaving the U.S. Climate Action Partnership - a coalition industry and environmental groups formed to lobby Congress on climate change legislation. The reason (one among many in all likelihood): Not enough was being done to encourage natural gas use.
El Paso Corporation has announced that Tennessee Gas Pipeline (TGP), a wholly-owned subsidiary, has entered into 20-year contracts with Chesapeake Energy Marketing, Inc., and StatOil Natural Gas LLC, for all of its Northeast Upgrade Project capacity - i.e., 636,000 Dth/day from TGP's 300 Line in Pennsylvania to an interconnect in New Jersey. "The Northeast Upgrade Project is a natural extension of TGP's presence in the heart of the developing Marcellus Shale play. The project would cost approximately $400 million with a majority of the capital spending taking place during 2013."
Shell and HP are collaborating to develop new seismic technology with a higher channel count and broader sensor frequency range, according to this press release. "'These advances in technology to discover energy resources could transform the ability to pinpoint abundant new oil and gas reserves,' said Joe Eazor, senior vice president and general manager, HP Enterprise Services. 'HP is uniquely positioned to offer Shell a complete sensor system that delivers innovation to address key technical seismic challenges.'"
The Southeastern Legal Foundation has filed suit, together with more than a dozen U.S. representatives and nearly two dozen associations, to challenge U.S. EPA's efforts to regulate carbon dioxide as a pollutant under the Clean Air Act (i.e., EPA's related "Endangerment Finding"), according to this opinion piece in the Washington Examiner.
A copy of the petition, and related materials, can be found here.
[Update: Texas is filing suit too, according to this article in the Houston Chronicle. (Moved up.) And more here from the NYT (note the "skeptic" pejoratives).]
The WSJ is reporting that the Director of U.S. EPA's Drinking Water Protection Division believes that states are doing a good job of regulating hydraulic fracturing: "'I have no information that states aren't doing a good job already,' Steve Heare*** said on the sidelines of a [NARUC] conference here. He also said despite claims by environmental organizations, he hadn't seen any documented cases that the hydro-fracking process was contaminating water supplies."
Interesting. (Note: Subscription required.)
The Energy Information Administration (EIA) released its storage report showing a decline of 191 Bcf from the previous week. Graphically:
.gif)
For more, see here.
The Energy Information Administration (EIA) has released its February 2010 Short-Term Energy Outlook, finding in part:
EIA expects this year's annual average natural gas Henry Hub spot price to be $5.37 per million Btu (MMBtu), a $1.42-per-MMBtu increase over the 2009 average of $3.95. EIA projects continuing price increases in 2011, averaging $5.86 per MMBtu for the year. EIA expects working gas inventories to end the first quarter at about 1,644 billion cubic feet (Bcf) compared with 1,734 Bcf in the previous Outlook, because of colder-than-normal weather in early January.
Columbia Gas Transmission, LLC, recently filed an application with the Federal Energy Regulatory Commission (FERC) asking to abandon pipeline facilities located in Marshall County, West Virginia, and Washington County, Pennsylvania, by transfer to a newly created affiliate, NiSource Midstream Services, LLC. It further requested the FERC to determine that such facilities would be considered gathering following the transfer.
For a copy of the application, see here (Docket No. CP10-44).
The Herald-Dispatch is reporting on legislation introduced last week in the state House and Senate regarding landowner notification and wastewater issues.
The Philadelphia Inquirer is reporting that the budget proposed by Governor Rendell includes not only a wellhead tax anticipated to generate $160 million next year, but also a proposal to increase the leasing of state forest lands, anticipated to raise $180 million. Not everyone is happy, though. "Some Democratic lawmakers are decrying the governor's effort to cash in on the Marcellus land rush as an affront to efforts by the Department of Conservation and Natural Resources (DCNR) to sustainably manage 2.1 million acres of state forests."
The National Oceanic and Atmospheric Administration (NOAA) is proposing to form a new Climate Service to improve its ability to respond to requests for climate data, according to this NOAA news release. "Unifying NOAA’s climate capabilities under a single climate office will integrate the agency’s climate science and services and make them more accessible to NOAA partners and other users."
The Cleveland Plain Dealer is reporting on the threat to biodiesel development due to Congress' failure to extend related federal tax credits. "The profit margins are so thin for the organic product that it cannot compete with petroleum-based diesel without the tax break."
The WSJ has an article on Denbury Resources Inc.'s plan to use CO2 recovered from industrial plants to improve its oil recovery. "Denbury wants to capture the entirety of the Dow plant's annual carbon-dioxide emissions, taking a liability off Dow's hands equivalent to the annual emissions of 27,000 cars." Interesting.
(Note: Subscription required.)
The NYT is reporting on the aggressive questioning of Energy Secretary Chu at a hearing on the Obama administration's fiscal 2011 budget proposal for the Energy Department by both Senate Democrats and Republicans. A sample: "Chairman Jeff Bingaman (D-N.M.) also criticized DOE's suggestion to cut all funding for oil and gas research, 'especially in light of the recent natural gas discoveries here in the U.S.'"
The Federal Energy Regulatory Commission (FERC) will be holding a technical conference on Wednesday, March 3, 2010, focusing on the mechanics of preparing an initial electric public utility market-based rate application and subsequent filings. For a copy of the public notice, see here.
The Obama Administration has announced several initiatives designed to enhance American energy independence while building a foundation for a new clean energy economy, including the creation of an Interagency Task Force on Carbon Capture and Storage. For more, see this press release (which includes links to the source documents).
The Washington Post has an article reporting on wastewater treatment and disposal issues related to Marcellus production. A sample: "Before that can happen [i.e., the Marcellus can become one of the most prolific natural gas fields in the U.S.], the industry is realizing that it must solve the challenge of what to do with its wastewater. As a result, the Marcellus Shale in on its way to being the nation's first gas field where drilling water is widely reused."
The United Stated District Court for the Southern District of Ohio ruled on February 2, 2010 that the Ohio EPA was in violation of the Clean Air Act by improperly exempting from regulation businesses that emitted less than 10 tons per year of certain air pollutants. A copy of the case can be found here.
We reported previously on the Federal Energy Regulatory Commission's (FERC's) request for supplemental comments on possible revisions to the posting requirements adopted in Order 720 (Docket No. RM08-2-000). The FERC has now issued Order 720-A, modifying its regulations requiring major non-interstate pipelines to post daily scheduled volume information and other data for certain points. "These modifications include a requirement that major non-interstate pipelines post information for receipt and delivery points at which design capacity is unknown."
Enter keywords:
Add this blog to your feeds or put your e-mail in the box below and hit GO to subscribe by e-mail.