The Weekly US Oil & Gas Update: 25 March 2014
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The Oil & Gas Weekly is compiled by Todd Erickson. Todd is a veteran executive manager in the North American E&P market.
He has management experience in high-growth oil & gas service organizations performing a leadership role in operations, strategy, and corporate development with a track record of identifying opportunities and best-practices, creating execution plans, then developing effective teams and leaders to execute them.
Learn more about Todd here
Rig Counts - select states with key plays |
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Oil & Gas Prices - Bloomberg/EIA |
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General News |
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Congressional act could speed up pipeline approvals on federal and Indian land Two senators from Wyoming, and one from North Dakota have introduced the Natural Gas Gathering Enhancement Act, aimed at expediting permits for gas gathering lines on federal and Indian land. The act looks to address the problem of flaring, the practice of burning natural gas associated with crude oil production while the well site waits for a natural gas pipeline. Waiting for NEPA approval for pipeline right of ways is claimed to be a serious impediment to building this much-needed gas gathering capacity, and this act seeks to address part of the problem by speeding up approvals on Federal surface. Article here
Another small diesel refinery planned for North Dakota Quantum Energy's planned 20,000 barrel per day grassroots hydroskimming refinery would be the second new refinery in North Dakota,along with Calumet/MDU Resources' Dakota Prairie plant, which opens later this year. Quantum's project is largely modeled off the Dakota Prairie refinery, and will also sell diesel into the local market. Quantum will locate its new refinery in East Fairview North Dakota, on an 80 acre site it is purchasing from Northstar Transloading. Article here |
Unconventional Oil & Gas News |
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ICF International expects $641 billion investment into US/Canadian midstream by 2035 Massive expansion of oil and gas production in the US and Canada is driving investment into the midstream sector, the part of the industry that transports oil and gas, and processes natural gas. This equates to about $30 billion each year over this time. The Marcellus Shale play, US's leading natural gas producer located in the northeast part of the country, is expected to receive investment of $70 billion over this time as it doubles its gas production. Article here
Hiland to expand Bakken crude pipeline The Double H pipeline's anticipated capacity was originally filled at 50,000 barrels per day when launched,but further demand has prompted Hiland to launch another open season to expand capacity to 100,000 b/d. Currently under construction, the pipeline will carry crude from Dore, ND and Sydney, MT down to connecting pipelines at Guernsey, WY. Article here |
Environment and Safety News |
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Colorado's new air emissions rules could be a model for other states The recent passing of Colorado's air emissions rules, the strictest in the country which target methane and VOC emissions, appears to be having an influence in other states, including the number-one oil and gas producer, Texas. The Colorado rules specifically address natural gas leak detection and repair at the well site level, and "are the next wave of issues for oil and gas", according to Bruce Baizel, energy program director at the environmental group Earthworks. The rules on Colorado were crafted with significant influence and cooperation from a small group of the leading oil producers, including Noble Energy, Anakarko, Encana and DCP Midstrem, and the Environmental Defense Fund. Many in the industry object to Colorado's new stricter rules however, including the Colorado Oil & Gas Association, and the new rules' influence on Texas and other states may depend on how successfully they are implemented. Luke Metzger, director of Environment Texas, thought the Colorado rules would have an influence lawmakers in Texas. "Frequently, legislators in this state ask for other models to look to, and Colorado, being a big oil and gas state, is somewhere Texas officials will take seriously," he said. Article here |
Mergers and Acquisitions News |
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Chesapeake files paperwork to enable spin-off of services unit For the last two years, Chesapeake has talked about separating from its services business unit, which provides drilling and completions services to the company. Paperwork filed recently makes this look like an imminent move that would also improve Chesapeake's balance sheet by taking $1 billion of debt with it. Analysts value the services unit a about $2.7 billion. Article here |
