ADN — A 13-pound, battery-powered drone catapulted from a Prudhoe Bay gravel pit on Sunday has become the first authorized commercial operation by an unmanned aircraft over land in the United States. (See our breaking news alert from yesterday.)
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Our friend, Katy, of energycitizens.org, write us today that, "Recent events in Ukraine and other parts of the world have made it abundantly clear that the United States can no longer sit on the sidelines. (See our related editorial.)
"By increasing liquefied natural gas (LNG) exports", she writes, "we have an opportunity to help provide security to our allies and strengthen our position as a global energy leader. It’s good for our country, good for jobs, and good for our allies.
"That’s why I’m asking that you take one minute out of your day to send a letter in support of the Cove Point LNG project in Southern Maryland.
http://advocacy.energycitizens.org/cgi-bin15/DM/t/hoQJ0bkYMY0MRU0EP8J0EK
You have a chance to make a big difference by speaking out on this important issue. Will you make your voice heard today?
The National Journal asked Consumer Energy Alliance President David Holt (NGP Photo) to weigh in on the political liability of the EPA regulations on coal power plants. He said:
“When it comes to a debate over the cost of basic necessities such as heat or electricity voters will not give candidates much wiggle room. The candidates who can make the case that their votes will support policies that make prices affordable are going to win over their electorate.” —David Holt, president, Consumer Energy Alliance
Today's Energy In Depth Headlines:
NATIONAL
New York should regulate, not prohibit, development. Buffalo News, Op-Ed. In 2012, New Yorkers consumed more than 1.2 trillion cubic feet of natural gas, most of it coming from shale gas being produced in other states. We need to be regulating, not prohibiting, the development of natural gas in New York.
The War On Fracking Is Over — And The Greens Lost. Daily Caller, Op-Ed. Approximately one million wells have been hydraulically fractured over the last six decades without cases of water contamination. During Congressional testimony in 2011, Environmental Protection Agency administrator Lisa Jackson stated, “I am not aware of any proven case where the fracking process itself has affected water, although there are investigations ongoing.”
Cost-effective completions. Oil & Gas Financial Journal. In early 2006, the oil and gas industry soared to never-explored heights and profitability. The cost of individual projects began to receive less scrutiny, and an arms race to develop the next industry-revolutionizing technology and grab the corresponding market share was on.
US natural gas output will set a record this year. Kansas City Star. U.S. natural gas output will reach 73 billion cubic feet a day for the first time this year as new pipelines tap into shale supplies stranded in the Marcellus formation in the Northeast, a government report said Tuesday.
Water Shortage in West Does Not Stop Development. NBC News. Used since the 1940s, hydraulic fracturing is the process of drilling and injecting fluid into the ground at high pressure in order to fracture shale rock to release natural gas and oil. The fluid is a combination of water and chemicals, mixed with sand. As of now, the method is in use in 17 states, with a total of some 82,000 wells nationwide.
Drillers give updates on where they and their plans stand. Farm and Dairy. Consol Energy will begin drilling its 9,000-acre leasehold around the Pittsburgh airport in August. The company plans to drill 8,000 feet laterals on the wells and expects production to start flowing from the airport acreage in early 2015.
INTERNATIONALSejm approves shale gas law. Warsaw Business Journal. Poland's lower house of parliament approved legal regulations on shale gas extraction on Tuesday. The bill, an amendment to the existing geology and mining law, is aimed at speeding up work on shale deposits in the country.
South's gas could help planet. Otago Daily Times, Op-Ed. This is a direct result of the US shale gas boom. That has enabled gas to replace coal in US power plants, and natural gas produces less than half the CO2 of coal.
US shale boom benefits Asian buyers. Oil & Gas Financial Journal. Using the US natural gas production boom to promote the idea of a sustainable "global gas glut," Asian importers have successfully managed to chip away at the longstanding oil-indexed pricing mechanism for liquefied natural gas over the past two years.CALIFORNIA
Texas Gov. promotes interstate competition. Bakersfield Californian. Texas Gov. Rick Perry, unapologetic for luring California jobs to his home state, told Kern County political and business leaders Tuesday the Golden State must free industry from excessive taxation, regulation and litigation in order to become more competitive.
COLORADO
Colorado at Epicenter of Political HF Fight. KUNC News. Colorado is quickly becoming ground zero for a political war over the future of hydraulic fracturing. Political spending both for and against potential anti-fracking ballot measures is already washing over the state.
Lawsuit Claims Ban Not Being Enforced In Lafayette. Associated Press. Two Lafayette residents are suing Colorado officials for not enforcing a ban on hydraulic fracturing. The Daily Camera reports that the residents say that a hydraulic fracturing ban passed in November is not being enforced.
Colorado now regulates industry. Reporter-Herald, LTE. The responsible opponents of hydraulic fracturing, those that study the science behind the issue, have concluded that the short-term hydraulic fracturing process itself is essentially non-damaging. They have rightly concluded that volatile organic compounds and methane emitted in the long-term production process are one remaining area in which the industry can improve its performance.
Will Potential HF Compromise Really Stop the Fight? CBS-Local, Column. Governor John Hickenlooper, along with the two largest gas and oil operators in Colorado, is shopping a new compromise to avoid potential hydraulic fracturing initiatives from appearing on the November ballot. Like any compromise, selling the idea to both sides of the aisle is difficult. But that is a political reality that is true for almost any significant compromise.
Loveland vote on separate ballot from county. The Coloradoan. On June 24, the city of Loveland will count citizens’ votes for or against a proposed two-year moratorium on hydraulic fracturing, a controversial oil and gas extraction process that has already been restricted in five Front Range cities, including Fort Collins.
Colorado could be 'ground zero' for debate. KUSA News. If state lawmakers can't reach a compromise on hydraulic fracturing, it could lead to a battle on the ballot getting national attention. Late Tuesday, it appeared a compromise drafted by Governor Hickenlooper and some of his democratic allies was falling apart. The Denver Business Journal reported the Colorado Oil and Gas Association voted against the proposal, after it sat at the table working to draft it.
ILLINOISEnergy companies wait on IDNR. Rock River Times. A bill aimed to skip the rule-drafting process and begin hydraulic fracturing in Illinois recently died in the hands of legislators. The bill would have allowed hydraulic fracturing to begin while rules for the practice were still being drafted. It would have also imposed a moratorium in northern Illinois.
Regulating carbon dioxide emissions. Rock River Times, Op-Ed. Switching to natural gas could generate pressure to accelerate hydraulic fracturing within the state. Fortunately, an effort to weaken state HF standards was recently blocked.LOUISIANA
Analyst says Australian shale play could benefit Lafayette. Daily Advertiser. Two oil conferences kick off this week: The Global Petroleum Show opened Monday in Calgary, Canada, and the Louisiana Energy Conference kicks off today in New Orleans. At both, attendees are sure to discuss where the next big boom will happen.
NORTH CAROLINALibertarian conservatism at work in NC legislature. News & Observer, Column. On many issues, the legislature has strongly tilted public policy toward market forces – and against anything they perceive as being an impediment to the market, whether it involves the environment, health insurance, education, worker injury claims or taxes. So the legislature is trying to jump-start natural gas exploration of the state’s shale deposits –called hydraulic fracturing– by paying for some initial testing to entice energy companies to begin operating here.
Senate GOP calls on candidate to denounce 'dirty' green money. News & Observer. The state Senate Republican caucus on Tuesday rallied behind one of its own, Sen. Chad Barefoot, who is the object of a barrage of TV ads by national and state environmental groups. The News & Observer reported Tuesday that Barefoot, a Republican who represents parts of Wake and Franklin counties, is one of four GOP senators being targeted by a $1 million-plus advertising campaign because of their support of hydraulic fracturing.
House budgets zero dollars to drill shale-gas test holes. Greensboro News & Record. Republican leaders set aside no money in the state House’s budget proposal Tuesday to probe for shale-gas reserves, in contrast to the proposals recently made public by Gov. Pat McCrory and the N.C. Senate.NORTH DAKOTA
Bakken production growth expected to slow as the play matures. Oil & Gas Journal. Production growth from the Bakken tight oil formation is expected to moderate in the next 2 years as older wells decline and new wells strain to offset natural production declines, analysis by Wood Mackenzie Ltd. shows. The research and consulting firm expects Bakken oil production will increase at a rate of 100,000 b/d/year, rising from an average of 1.1 million b/d in 2014 to 1.7 million in 2020.
Statoil tackles Bakken flaring with innovation. Oil & Gas Journal. Statoil North America Inc. is at the forefront of efforts to reduce flaring in the Bakken shale in North Dakota, pilot-testing a mobile system that converts associated gas into CNG at the well site. The system, called the Last Mile Fueling Solution, uses a device the size of a standard 8 ft-by-20 ft. shipping container to compress associated gas.
MDU expands North Dakota presence with greenfield refinery. Oil & Gas Journal. A greenfield refinery, an interstate gas pipeline, and production from the Bakken shale are just a few of the projects being pursued by MDU Resources Group Inc. in the rolling prairie of North Dakota.
NORTHEAST
Marcellus continues to defy expectations. Oil & Gas Journal. Shale has been the primary driver of US gas supply growth since 2007, and the Marcellus shale has been the largest single contributor to rising production. Marcellus production topped 14.5 bcfd in March and is expected to account for nearly one fourth of all US gas output by 2015, according to a report by Morningstar Inc.
Bulgarian professor visits Marcellus region. Associated Press. Georgiev, assistant professor of economics at Sofia University in Bulgaria, spent the past month researching the economic impacts of Marcellus Shale drilling in Allegheny and Washington counties. By the end of his stay, he concluded that natural gas drilling in Bulgaria would "definitely be beneficial" from an economic perspective.
Critics challenge Sunoco Pipeline as public utility. Philadelphia Inquirer. Sunoco is repurposing an 83-year-old refined-products pipeline to transport Marcellus Shale natural-gas liquids to Marcus Hook, where most of the material – ethane and propane – would be exported.
NY top court considers local bans on drilling. Straus News. New York's highest court is expected to decide by the Fourth of July whether municipalities can use local zoning laws to ban shale gas development using hydraulic fracturing within their borders.
OHIO‘Manufacturing renaissance ahead’ for shale gas industry. Columbus Business First. Oil and gas shale drilling in the Appalachian Basin is rapidly developing, but there is still a laundry list of challenges facing the industry, a law firm in the region says in a new report. “The shale gas industry is entering a period of transition – from its startup years to an era of production efficiencies and a manufacturing renaissance ahead,” Pittsburgh-based Babst Calland says in its annual report.
Ohio approves 32 new Utica shale permits last week. Akron Beacon Journal. A total of 32 new Utica shale permits were paproved as of June 7 by the Ohio Department of Natural Resources. That included three in Belmont County, two in Carroll County, one in Guernsey County, two in Harrison County, one in Hefferson County, seven in Monroe County, 14 in Noble County, one in Tuscarawas County and one in Washignton County.
Hilcorp Gets More Well Permits for Western Pa. Youngstown Business Journal. Hilcorp Energy Co. continues to seek oil and gas prospects in western Pennsylvania three months after one of its drilling operations was linked to a spate of small earthquakes that rattled the eastern edge of Mahoning County. The Pennsylvania Department of Environmental Protection issued five new permits to Hilcorp June 3, authorizing the company to drill horizontal wells in Mercer County, the agency reports.
McClendon announces billions more in shale investment. WKSU. A billboard on I-77 south of Canton announces that American Energy Partners is hiring. And the founder of that partnership — Aubrey McClendon — announced this week he’s investing $1.75 billion in the Utica and Marcellus shale regions of Ohio, Pennsylvania and West Virginia.
TEXASPinnergy will develop an Eagle Ford disposal well. San Antonio Business Journal. Pinnergy Ltd. will begin development on a wastewater disposal well in the Eagle Ford Shale in the next 60 days, the Austin-based oilfield services firm’s top officer says.
New distribution facility will hire 20 south of San Antonio. San Antonio Business Journal. Leading chemical distributor Univar Inc. has begun work on a new 52,000-square-foot facility south of San Antonio and plans to hire 20 people within its first year of operation, officials say. The Redmond, Wash.-based company in April confirmed plans to develop a warehouse on 12 acres of land in the nearby city of Elmendorf. However, it didn’t break ground until late last month.
Permian operators increasingly target shale. Oil & Gas Journal. Horizontal drilling last year overtook vertical drilling in the basin as new technology and high oil prices rejuvenated the legacy oil play and independent operators like Pioneer Natural Resources Co. and Approach Resources Inc. tapped into shale formations previously considered uneconomic. "The Permian is one of the hottest regions in North America right now," Benjamin Shattuck, analyst with Wood Mackenzie Ltd., told UOGR.
FTS will go to China with new Sinopec joint venture. Dallas Business Journal. FTS International will be taking its hydraulic fracturing talents to China through a joint venture with Sinopec Group, the companies announced Tuesday. Fort Worth-based FTS International will own 45 percent of SinoFTS while Sinopec will own 55 percent. It’s the first collaboration between a non-Chinese well completion company and a national Chinese company.
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