D Three Technology - Natural Gas Scavengers

Pipeline Company Going Public

2011-03-08T04:13:00.002+02:00

HOUSTON--(BUSINESS WIRE)--Plains All American Pipeline, L.P. (NYSE: PAA) announced today that it has commenced, subject to market conditions, an underwritten public offering of 6,400,000 of its common units representing limited partner interests. The Partnership also intends to grant the underwriters a 30-day option to purchase up to 960,000 additional common units to cover over-allotments, if any.

The Partnership intends to use the net proceeds from the offering, including the proceeds from any exercise of the over-allotment option, to reduce outstanding borrowings under its credit facilities and for general partnership purposes. Amounts repaid under the Partnership’s credit facilities may be reborrowed to fund its ongoing capital program, potential future acquisitions, or for general partnership purposes.

Citi, BofA Merrill Lynch, J.P. Morgan, Morgan Stanley, UBS Investment Bank and Wells Fargo Securities will act as joint book-running managers of the offering.

When available, copies of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained from the underwriters as follows:


Citigroup Global Markets Inc. Brooklyn Army Terminal Attention: Prospectus Delivery Dept. 140 58^th Street, Brooklyn, NY 11220 Telephone: (800) 831-9146 batprospectusdept@citi.com				BofA Merrill Lynch 4 World Financial Center New York, New York 10080 Attn: Prospectus Department dg.prospectus_requests@baml.com

J.P. Morgan Securities LLC via Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, New York 11717 Telephone: (866) 803-9204				Morgan Stanley & Co. Incorporated Attn: Prospectus Dept. 180 Varick Street, 2nd Floor New York, NY 10014 Tel: (866) 718-1649 Email: prospectus@morganstanley.com

UBS Securities LLC Attention: Prospectus Dept. 299 Park Avenue New York, NY 10171 Telephone: (888) 827-7275				Wells Fargo Securities, LLC Attn: Equity Syndicate Dept. 375 Park Avenue New York, New York 10152 cmclientsupport@wellsfargo.com Phone: (800) 326-5897

The common units will be offered and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, the stability of the capital markets and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil and other petroleum-related products discussed in the Partnership's filings with the Securities and Exchange Commission.

Plains All American Pipeline, L.P. is a publicly-traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products. Through its general partner interest and majority equity ownership position in PAA Natural Gas Storage, L.P. (NYSE: PNG), PAA is also engaged in the development and operation of natural gas storage facilities. PAA is headquartered in Houston, Texas.

Natural Gas Pipelines Under Review

2011-03-02T02:36:00.000+02:00

The National Transportation Safety Board began on Tuesday three days of hearings in Washington, DC to examine causes of last fall’s pipeline rupture in San Bruno. The natural gas explosion and fire killed eight people and destroyed dozens of homes.

National Transportation Safety Board Chair Deborah Hersman set the scene in San Bruno, a city south of San Francisco near the SFO airport: "On Sept. 9, 2010," she said, "a little after 6 p.m., as commuters were arriving home from work and families were sitting down at the dinner table, a 30-inch-diameter natural gas pipeline ruptured."

The explosion carved out a giant crater, and blew a 28-foot chunk of pipe a football field away. NTSB investigator Ravi Chhatre said a pair of off-duty employees reported the fire to Pacific Gas and Electric.

"The dispatch center dispatched an on-duty employee to investigate the reported explosion," said Chhatre.

But that employee wasn’t qualified to shut off the pipeline. It took PG&E an hour and a half to stop the flow of natural gas that was fueling the fire.

Much of the hearing focused on why the pipeline didn’t have a remote shut-off valve. NTSB investigator Robert Trainor pressed PG&E consulting engineer Chih-Hung Lee about a policy memo he wrote five years ago. He asked Lee to read from a federal report that concludes the longer that natural gas flows, the more potential there is for damage.

"The degree of disruption in the heavily populated or commercial area would be in direct proportion to the duration of the fire," Lee read.

Trainer said he wanted to contrast that conclusion with Lee's memo which states, "the duration of the flame has little or nothing to do with human safety or property damage."

Lee said he based his memo on pipeline industry research that said most of the damage occurs in the first 30 seconds after a gas line rupture. But the San Bruno blast touched off a fire that firefighters couldn’t stop until the gas was shut off manually 90 minutes after the blast. PG&E officials testified that had there been a remote shut-off valve in place, the gas could have been turned off in 20 minutes.

Democratic Congresswoman Jackie Speier has introduced a bill that requires pipeline operators to install automatic or remote shut-off valves. Speier’s district includes San Bruno.

"I am frankly sick and tired of a scenario on Capitol Hill," she said, "where we hold hearings over and over again and then don’t do anything. I want to see something done this time."

The House hasn’t yet scheduled a committee hearing for Speier’s bill.

On the second day of the NTSB’s San Bruno hearings, the board will hear from San Bruno’s fire chief and from members of the California Public Utilities Commission.

Russia Sending Natural Gas to Europe

2011-02-27T02:35:00.000+02:00

PRLog – Feb 25, 2011 – Historically, Europe has been one of the leading consumers of natural gas, though in recent years, the natural gas consumption has been declining. Decline in consumption has been a result of economic slowdown, due to recession and a conscious attempt by European Union to cut it natural gas consumption, of which a substantial amount comes from Russia. And worrying part remains that there are very few alternatives for Europe to Russian gas supplies. According to IEA’s estimates, the current European energy imports of 50% are projected to rise to 70% by 2030. This means, the current share of Russian supply, which makes almost half of Europe’s natural gas imports, is likely to increase over next two decades. Synergyst’s “Future of European Natural Gas Market (2011-2015)” explores the current situation of natural gas imports in Europe, role of Russia in those supplies and an analysis of alternatives to Russian supplies.

Report Coverage and Highlights

- Report discusses the overall economic condition in Europe and analyzes Current electricity production, consumption and trade Trends and projects future economic growth and energy demand and supply.

- European gas market is evaluated in detail with Current demand and supply scenario and future projection for the same.

- Importance of Russian gas supply is analyzed with emphasis on European imports and estimates for future Russian production and export. Role of Gazprom is also looked into in detail.

- Natural gas demand and supply Trends and import dependency are examined for leading European Countries and future recommendations are presented. Countries analyzed include Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Poland, Spain and United Kingdom.

- Also discussed is the situation in Countries that are highly dependent on Russian Natural gas supplies. These include Austria, Bulgaria, Estonia, Finland, Greece, Latvia, Lithuania, Poland, Romania and Slovakia.

- Issues like monopolistic attitude of Gazprom, geopolitical disturbance in the region and rising costs are discussed in detail to highlight the Importance of Europe looking elsewhere for gas supplies.

- In-depth evaluation of alternative supply options is presented along with our recommendations for future choices.

Natural Gas Safety Tips

2011-02-23T02:28:00.002+02:00

PRLog (Press Release) – Feb 18, 2011 – Natural Gas Safety Awareness Can Mean The Difference Between Life and Death

A leading energy company reminds people safety is key following deadly Pennsylvania gas explosion

Stamford, CT – February 18, 2011 – The cause of the natural gas explosion that rocked a Pennsylvania neighborhood and left five people dead last week is still unclear. The investigation is currently focused on the aging cast-iron gas main that services the Allentown, Pennsylvania neighborhood.

According to a leading independent energy provider, regardless of the cause of this particular tragedy, the accident serves as an opportunity for everyone to review the importance of natural gas safety.

«This terrible tragedy in Pennsylvania illustrates just how deadly natural gas can be,» says Jeffrey Mayer, President and CEO of MXenergy, one of the nation's fastest growing independent energy providers. «Natural gas provides an important and invaluable service but it is equally critical that we treat it with respect and always use the upmost care when dealing with it in any capacity.»

Natural Gas Safety Tips

Use Your Nose: If you smell even the slightest odor of gas leave the area immediately and call your service provider or 911 from a remote location. Do not waste time or use anything that can cause a spark, such as a cell phone or even a garage door opener

Regular Inspections: Have all gas appliances, furnaces, chimneys, vents and gas lines regularly inspected and maintained by a certified professional

Keep Areas Clear: Keep all areas surrounding appliances and equipment unblocked to allow for clear airflow

Look for the Blue Flame: Check all pilot lights and burners for a steady blue flame. The only exception is gas fireplaces which sometimes have a yellow flame

Dig Safely: Always call your local provider before you begin digging to avoid hitting an underground pipe and causing a leak

Store Properly: Never set flammable material close to any gas appliance or equipment

Properly Maintain Your Meter: Don't allow frozen rain or ice to build up on your meter. Use a broom (never a shovel) to clear ice and snow

Signs Of Trouble

Listen: A hissing noise near a pipeline or building is cause for concern. Immediately call your local service provider

Look: Dead or distressed vegetation above a gas main is another cause for concern and should be reported

Sniff: Any hint of natural gas odor inside or outdoors is cause for immediate action. Quickly leave the area and then call your provider or 911 for help

«Safety and awareness are of critical importance,» continues Mayer. «While there is no evidence of homeowner negligence in the Pennsylvania explosion, it still is a reminder to us all of the awesome power of natural gas and the necessity for constant caution and respect.»

Pennsylvania investigators report no calls of problems or odor prior to the explosion and plan to send cameras through the main to look for cracks and will perform pressure tests on the service lines.

# # #

MXenergy is one of the fastest growing retail natural gas and electricity suppliers in North America, serving approximately 500,000 customers in 41 utility territories in the United States and Canada. For over 11 years, the company has provided millions of customers with a choice in how they purchase energy to run their homes and businesses. Founded in 1999 to provide natural gas and electricity to consumers in deregulated energy markets, MXenergy helps residential customers and small business owners control their energy bills by providing both fixed and variable rate plans. MXenergy is committed to best practices in environmental conservation, supporting local communities through various outreach programs and is a member of the Chicago Climate Exchange. For more information MXenergy please visit www.mxenergy.com.

European Gas Group Met in January

2011-02-20T04:43:00.001+02:00

IMMEDIATE RELEASE

PRLog (Press Release) – Jan 13, 2011 – There are high expectations in the gas industry for a lively European Gas Conference when all the major role players in the great pipeline debate take to the stage in Vienna from 26-28 January.

The Great European Pipeline Debate
The attendance of the European Gas Conference by the heads and high-level supporters of the five major European pipeline projects, including Nabucco, South Stream and White Stream, promises some fascinating debate during the event.

South Stream is a proposed gas pipeline to transport Russian natural gas to the Black Sea to Bulgaria and further to Italy and Austria. It is seen as a rival to the planned Nabucco pipeline which will run from Turkey to Austria and is supported by the EU as an attempt to lessen European dependence on Russian energy. White Stream (also known as the Georgia-Ukraine-EU gas pipeline) is a proposed pipeline project to transport natural gas from the Caspian region to Romania and Ukraine with further supplies to Central Europe.

Report back on latest developments
Austrian Economy minister Reinhold Mittlerlehner, the leading oil and gas corporation, OMV, and former German Foreign minister Joschka Fischer are also amongst the distinguished panel of speakers at the event which will bring together some 300 stakeholders from the European gas industry.

The Managing Director of Nabucco Gas Pipeline International, Reinhard Mitschek, will report back on the latest developments in the project, Joschka Fischer is a committed Nabucco supporter while OMV is a partner in the pipeline.

Representing South Stream is the CEO, Marcel Kramer, who will also present an update while the head of the Russian Gas Society on energy and gas co-operation and State Duma deputy chairman, Valery Yazev, is a well-known proponent of the Russian pipeline project. A significant delegation from the Russian gas giant, Gazprom, is attending as well as a high-level representative from the Turkish Energy Ministry.

Robert Pirani, the chairman of the White Stream project will also be there and along with the other major European pipelines, TAP and ITGI, will present the latest project developments during the European Gas Conference.

Other topics that will be addressed include:
 How long the decoupling of oil and gas prices will last, and how it will affect the industry
 North, East, South, West and Central European cooperation to ensure security of
supply
 The facilitation of an open European gas market
 Global context: how developments in Middle Eastern, US, and North African gas will impact the European market

Oil and Natural Gas Assets Acquired by DeeThree

2011-02-18T03:21:00.002+02:00

D Three Technology is not affiliated with DeeThree

DeeThree Exploration Ltd. ("DeeThree" or the "Company") (TSX:DTX) is pleased to announce that it has entered into a definitive purchase and sale agreement (the "Agreement") with Fairborne Energy Ltd. and Fairborne Pivotal Production Partnership (the "Vendor") pursuant to which DeeThree will, subject to certain conditions, acquire producing oil and natural gas assets (the "Assets") for cash consideration of $125 million (the "Acquisition"), subject to customary closing adjustments. The Acquisition is expected to close on or about March 22, 2011 with an effective date of January 1, 2011. The closing of the Acquisition is subject to certain conditions and the receipt of all required regulatory approvals, including the approval of the Toronto Stock Exchange.

DeeThree will finance the Acquisition through a combination of the net proceeds of a $100 million 'bought deal' short form prospectus subscription receipt offering and its existing working capital. In addition, the 'bought deal' prospectus offering will also include the issuance of common shares on a "flow-through" basis under the Income Tax Act (Canada) for additional proceeds of $15 million. A description of the prospectus offering is provided below under "Financing".

Summary of the Acquisition

Through the Acquisition, DeeThree is acquiring approximately 1,830 boe/d (2010 exit production) of primarily high working interest, operated oil, natural gas and natural gas liquids production and reserves principally situated in Brazeau, West Pembina and the Peace River Arch area of northern Alberta.

The Assets have the following material attributes.

Low-decline production of approximately 1,830 boe/d of which 40% is light crude oil and natural gas liquids;
High working interest, operated light oil resource style play with production from the Belly River formation over a contiguous land base in the Brazeau area with associated facilities and infrastructure ownership;
Various oil and gas producing assets in the Peace River Arch consisting of stable diversified production from the Montney, Charlie Lake, Bluesky, Spirit River Group and Doe Creek formations with ownership in associated facilities and infrastructure including a gas processing plant;
Proved plus Probable Reserves – 5.416 mmboe ¹;
Reserve life index of 8.1 years on proved plus probable reserves as of December 31, 2009 and based on current production;
Undeveloped land of approximately 32,000 net acres which DeeThree estimates to have a value of approximately $7 million;
Numerous identified low-risk vertical and horizontal drilling locations on the acquired lands.

¹ The aforementioned reserves information is based on an independent engineering evaluation report prepared by GLJ Petroleum Consultants Ltd. effective December 31, 2009.

Transaction Metrics

DeeThree will significantly increase its oil and natural gas liquids weighting upon completion of the Acquisition to approximately 40% of proved plus probable reserves. Based on the $125 million purchase price, net of $7 million of undeveloped land value, the key transaction metrics are:

$64,480 per boe/d of production;
$21.78 per proved plus probable boe of reserves; and
The acquisition is accretive to DeeThree on all key metrics.

Strategic Rationale

DeeThree believes there are numerous anticipated benefits and upside potential associated with the Acquisition, as described below:

The Brazeau property which forms part of the Assets complements the Company's emerging Alberta Bakken light oil play providing an additional "high-quality" resource play with several operational synergies;
Internal reserve estimates indicate considerable upside associated with the Assets beyond current reserves bookings, particularly in a light oil resource play at Brazeau where the Company estimates significant unrecovered reserves;
The Assets will provide the Company with a more balanced and diverse production base resulting in 2011 pro forma exit of approximately 50% crude oil and NGLs;
With the combination of increased cash flow from the acquired Assets along with the anticipated increase to the Company's credit facility, the Company can comfortably fund its aggressive program to explore and develop the Alberta Bakken;
DeeThree is seeking and is confident that it will obtain an increase of $30 million to its existing revolving credit facility to a total of $40 million. The new credit facility is subject to credit approval and satisfaction of conditions that are typical of transactions of this nature, including the closing of the Acquisition. The planned incremental borrowing capacity associated with the Assets will help DeeThree retain its strong balance sheet and financial flexibility;
The Peace River Arch component of the asset package provides DeeThree with access to a production and land base in which the Company's technical team has extensive past experience and success in exploring and developing.

Financing

DeeThree has concurrently entered into an agreement with a syndicate of underwriters co-led by Macquarie Capital Markets Canada Ltd. and Casimir Capital Ltd. pursuant to which DeeThree will issue 23,300,000 subscription receipts ("Subscription Receipts") at a price of $4.30 per Subscription Receipt, by way of a 'bought deal' short form prospectus offering for gross proceeds of $100,190,000 and 3,000,000 common shares ("Flow-Through Shares") issued on a "flow-through" basis under the Income Tax Act (Canada) at the price of $5.15 per share for gross proceeds of $15,450,000, representing aggregate gross proceeds of $115,640,000. In addition, DeeThree has granted the underwriters a 15% an over-allotment option (the "Option") to purchase, on the same terms, up to an additional 3,495,000 Subscription Receipts for additional gross proceeds of up to $15,028,500 if the Option is exercised in full. This Option is exercisable, in whole or in part, by the underwriters at any time up to 30 days following the closing of the offering to cover the Underwriters' over-allotments, if any. The maximum gross proceeds raised under the offering will be $130,668,500 should this Option be exercised in full. Closing of the offering is anticipated to occur on or before March 11, 2011, and is subject to the receipt of applicable regulatory approvals, including approval of the TSX.

The proceeds of the Subscription Receipt offering will be used to partially fund the Acquisition and the proceeds of the Flow-Through Share offering will be used to fund DeeThree's ongoing exploration activities on its newly acquired properties and also its Lethbridge properties.

Upon completion of this Acquisition, DeeThree's 2011 capital expenditure program is anticipated to be increased from the previously announced $32 million to $41 million including the planned drilling of seven Bakken locations and an additional seven light oil horizontal locations on the anticipated acquired Property. With the additional cash flow from the acquired property and the anticipated increase in the Company's credit facility, DeeThree is well positioned to fund its 2011 capital expenditure program.

Bakken Update

In late 2010, the Company spud its first vertical Bakken stratigraphic test well on its Lethbridge property. The well was successfully drilled to the planned vertical depth with the target section cored and retrieved. After reviewing encouraging results from the core data, DeeThree proceeded with a horizontal leg. As of today's date, DeeThree has successfully drilled its planned horizontal leg and with continued positive results, installed a 15-stage frac assembly. The well is currently awaiting fracture stimulation operations.

The Company has two more licensed stratigraphic vertical wells that will be cored; testing additional land blocks and is currently in various stages of acquiring several multi-well pad sites. In total DeeThree plans to drill another seven Bakken locations on its Lethbridge property throughout 2011 with one rig being utilized consistently throughout the year with the possibility of engaging a second rig depending on results.

DeeThree's Advisors

Macquarie Capital Markets Canada Ltd. acted as financial advisor and Casimir Capital Ltd. acted as strategic advisor to DeeThree with respect to the Acquisition.

For further information, please contact Martin Cheyne, President and Chief Executive Officer of DeeThree Exploration Ltd., by telephone at (403) 263-9130.

Reader Advisory

Forward-Looking Statements. Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, information with respect to: operational decisions and the timing thereof, development and exploration plans and the timing thereof; future production level; timing for completion of the Acquisition and the Prospectus financing and the anticipated benefits resulting from the transactions described in this press release. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect.
Although DeeThree believes that the expectations reflected in such forward-looking information is reasonable, undue reliance should not be placed on forward-looking information because DeeThree can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things: field production rates and decline rates; the ability of DeeThree to complete the Acquisition and the other transactions described in this press release and, once completed, to realize the anticipated benefits of the Acquisition and other transactions; the timely receipt of any required regulatory approvals; the ability of DeeThree to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business; DeeThree's ability to operate the properties in a safe, efficient and effective manner; the ability of DeeThree to obtain financing on acceptable terms; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters; and the ability of DeeThree to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. DeeThree undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law.

Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by DeeThree and described in the forward-looking information. The material risk factors affecting DeeThree and its business are contained in DeeThree's Annual Information Form which is available under DeeThree's issuer profile on SEDAR atwww.sedar.com.

The reader is cautioned not to place undue reliance on this forward-looking information.

BOE Presentation. References herein to "boe" mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

For more information, please contact

DeeThree Exploration Ltd.
Martin Cheyne
President and Chief Executive Officer
(403) 263-9130

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Munn from Mack Energy Says Slow Down the Talk

2011-02-17T02:29:00.000+02:00

Amid the frenzy of shale gas drilling that has extended from the Barnett Shale to the Marcellus in the northeast, one Midland expert is holding a stop sign.

"My pitch is to slow down," said Bill Munn, manager of gas marketing with Mack Energy of his recent talk with members of the Natural Gas Society of the Permian Basin.

"The shales, no one knows what they are yet," he continued. "The facts have nowhere near caught up with the hype. The facts may support the hype or they may not; we're getting way ahead of ourselves."

Munn compared the hype to the dot-com and real estate bubbles or even electric deregulation in Texas where "we were told under deregulation our electric bills would be real cheap."

He stressed that the gas reserves operators active in the shale plays promise may well exist, "but this is still bad rock," and producing that gas will be difficult and expensive. The operators promoting those reserves are not doing anything wrong, he added. But, he pointed out, everyone has their own agenda.

"I'm not an expert," said the veteran gas marketer. "I'm not a geologist, I don't have degrees. But I have some facts and I don't believe we have all this gas that will be coming out of the ground. I don't think it's economical," and he is skeptical production could rise to 30 billion cubic feet.

Again, he said, he is urging patience.

"If I were these companies, I'd put the best spin on it; that's not wrong. But the public is not seeing a lot of the facts. We don't know if the depletion rate is rapid or if the rate will last forever. When I see phrases like 'game changer' or 'new world,' when I hear those terms I get cautious. We need that gas and it's there, we just don't know what it will cost. In an area that covers 100 miles, that shale isn't uniform. This isn't a hoax but we need to slow down and make sure we know what the production will be and what it will cost."

What is not a part of the discussion about the nation's natural gas supplies, Munn added, is the sharp decline in conventional gas production, which he said has sunk to 6 billion cubic feet a day since he began marketing gas.

Natural Gas Trucks Coming

2011-02-16T03:52:00.001+02:00

FT. WORTH, TX--(Marketwire - February 15, 2011) - EVCARCO, Inc. (OTCBB: EVCA) (OTCQB:EVCA) announced today that it will sell CNG powered Foton MD 3000 medium-duty class 3-5 trucks at its green auto dealerships. Foton Motor Co. is the largest commercial vehicle manufacturer in China, its existing assets are in excess of 5 Billion Dollars U.S. and they have a staff of 28,000 employees. Foton has the capacity to produce up to 26,000 units of the Foton MD 3000 medium-duty class 3-5 trucks a year.

The MD 3000 and LD1000 are versatile for multi-use applications and are equipped with cargo delivery bodies. The vehicle's chassis and Euro-style cab design allows for easy multi-conversions for uses such as street sweepers and refuse collection. The truck will allow businesses and municipalities to have a high quality, environmentally friendly, domestically produced clean natural gas solution for all of their truck needs.

Mack Sanders, CEO of EVCARCO, stated, "The MD 3000 and LD1000 CNG powered truck will allow our green auto dealerships to enter the commercial sales arena with a high quality versatile environmentally friendly medium duty truck, DOT compliant and with a full warranty. We expect to receive the first CNG powered Foton 3000 next month. Government support and mandates, which have been the key to the adoption of natural-gas vehicles in the U.S. recently, has confirmed our vision. Our team has worked diligently for some time with the manufacturer's distributor on the development of this project and we are pleased with the results."

For more information on EVCARCO, Inc., please view: www.evcarco.com. Shareholder inquiries should be directed to (972) 571-1624.

EVCARCO, Inc. is the first automotive retail group dedicated to deploying a coast-to-coast network of environmentally friendly franchised dealerships and vehicles. EVCARCO is bringing to market the most advanced clean technologies available in plug-in electric, alternative fuel, and
pre-owned hybrid vehicles. We live in the communities we work in; our corporate culture reflects the greening aspirations of our customers. Our dealerships are not just a place to buy a vehicle; they are a warm embrace of eco-culture, a place where like minded individuals can interact while getting a quick AltEng refill on their way to work.

This Press Release contains certain forward looking statements that involve substantial risks and uncertainties, including, but not limited to, the results of ongoing clinical studies, economic conditions, product and technology development, production efficiencies, product demand, competitive products, competitive environment, successful testing and government regulatory issues. Additional risks are identified in the company's filings made with the Securities and Exchange Commission.

Penn Residents Worried About Shale

2011-02-15T02:17:00.000+02:00

Residents worried about Marcellus Shale natural gas drilling want to make sure Allegheny County Council holds a second public hearing on the subject.

Council's agenda for Tuesday night includes a motion to schedule a hearing next month.

Gloria Forouzan, of Lawrenceville, said she and other anti-drilling advocates want council members to know the topic is important to many of their constituents.

If authorized by a majority of full council, the session would take place 5 p.m. March 10 in the Gold Room of the courthouse.

Council had held a similar hearing on July 21.

Since that time, County Executive Dan Onorato has come out in support of natural gas drilling on county-owned land, a position that has drawn support from both Republican and Democratic candidates looking to succeed him.

County officials have said that any drilling would have to be done in ways that benefit the local community, protect the environment and respect the rights of neighboring property owners.

With a primary election coming in May, Ms. Forouzan said the topic deserved another airing. "A lot more people have become concerned about this issue in the past few months," she said. "They need a chance to speak out."

Council's government reform committee last week discussed but took no action on three measures that would regulate drilling in the county.

Councilman Michael Finnerty, D-Scott, proposed an ordinance to prohibit natural gas wells within 2,000 feet of a residence. Councilmen Rich Fitzgerald, D-Squirrel Hill, and John DeFazio, D-Shaler, proposed a 500-foot buffer zone. Lycoming County had passed a similar regulation, Mr. Fitzgerald said.

State law requires only a 200-foot buffer around drilling platforms.

Committee members discussed both measures with representatives of the state Department of Environmental Protection and of Range Resources, a drilling company active in Southwestern Pennsylvania.

The proposed county restrictions, which would be stricter than state rules, might not be legal, Range Resources spokesman Jim Cannon said. It was not clear if state law would pre-empt local regulations on setbacks, he said.

Elizabeth Schneider, a member of Lincoln Place Action group, urged council to pass tougher drilling rules. Even a 500-foot buffer zone was not sufficient to protect neighbors in urban or suburban areas, she said.

Councilwoman Jan Rea, R-McCandless, had proposed an ordinance to set up a county disposal registry to keep track of the liquids used to fracture underground rocks and release natural gas.

She withdrew her measure after George Jugovic, the EPA's southwest regional director, said the state collected such reports two times a year.

Worker Still Missing from Mont Belvieu Explosion

2011-02-14T03:11:00.000+02:00

Mont Belvieu, TX—One worker is still missing following an explosion and fire at a natural gas liquids plant in Mont Belvieu, Tuesday afternoon, February 8, 2011. The blast occurred around 12:30 p.m. at Enterprise Products petrochemical plant, which is about 30 miles southeast of Houston, as reported by Forbes and Fox News.

A plume of smoke from the explosion and subsequent fire could be seen for 30 miles, as firefighters battled to contain the flames. The fire was so intense that it caused trucks parked in a nearby lot to explode.

Officials believe the blast was caused by a “failure of some kind” on one of the plant’s pipelines that feeds liquids into the dome. Another source stated the explosions also occurred in an iso-octane unit.

One worker is still missing following the blast. Details regarding the missing worker have not been released.

Enterprise Products Partners is one of the largest NGL fractionation complexes in the world.

Investigations are underway.

LNG Plant Ensenada Still a Go

2011-02-13T06:42:00.002+02:00

Ensenada officials who attempted to shut down a big natural gas import terminal that supplies Mexican and U.S. customers were rebuffed Friday by Baja California and federal intervention.

"The municipal police came onto the site," said Kathleen Teora, a spokeswoman for San Diego-based Sempra Energy, which owns the Energia Costa Azul plant. "There was an issue between the state, the federal and the municipal authorities."

The plant continued operating, she said.

Ensenada Mayor Enrique Pelayo Torres ordered the plant shut down Friday saying there were "irregularities and flagrant violations to the law."

Later in the day, however, the president of the Mexican Energy Regulatory Commission sent Pelayo a letter asserting that the plant is operating within the law and that it's up to federal officials, not local politicians, to decide whether it stays open or not.

Chevron Finds More Natural Gas in Australia

2011-02-10T03:08:00.001+02:00

SAN RAMON, Calif., Feb 09, 2011 (M2 PRESSWIRE via COMTEX) --

Chevron Corporation (NYSE: CVX | PowerRating) today announced a further drilling success in the Carnarvon Basin offshore Western Australia, Australia's premier hydrocarbon basin.

The Orthrus-2 well is located in the WA-24-R permit area approximately 60 miles (100 kilometers) northwest of Barrow Island. The well was drilled to a total depth of 14,098 feet (4,297 meters).

Combining both appraisal and exploration objectives, the well encountered 243 feet (74 meters) of net gas pay, of which 102 feet (31 meters) of net gas pay was encountered in a deeper, previously unexplored target interval in the Orthrus field.

George Kirkland, vice chairman, Chevron, said, "The find at Orthrus-2 represents our tenth offshore discovery in Australia within the past 18 months. Our successful drilling program offshore Western Australia demonstrates Chevron's global exploration capability and our commitment to technical excellence and safe operations."

Jim Blackwell, president, Chevron Asia Pacific Exploration and Production, said, "Our leading Carnarvon Basin leasehold and our accompanying exploration success help underpin further expansion opportunities on the Gorgon Project."

Chevron's Australian subsidiary is the operator of WA-24-R and holds a 50 percent interest, while Mobil Australia Resources Company Pty Limited holds 25 percent. Shell Development (Australia) Pty Ltd and BP Exploration Alpha Ltd each hold a 12.5 percent interest.

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products;manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

Insignia Energy Upbeat

2011-02-09T03:25:00.002+02:00

CALGARY, Feb. 8 /CNW/ - Insignia Energy Ltd. ("ISN" - TSX) ("Insignia" or the "Company") is pleased to announce the results of its independent reserve evaluation, effective December 31, 2010, of the Company's reserves by GLJ Petroleum Consultants Ltd. ("GLJ").

2010 YEAR-END RESERVE HIGHLIGHTS

Proved producing reserves increase by 34% to 3.9 MMboe, proved reserves increased by 14% to 6.2 MMboe and proved plus probable ("P+P") reserves increased by 10% to 14.7 MMboe, compared to 2009 year end levels, on a per share basis and on an absolute basis.
Insignia's reserve additions totaled 2.4 MMboe on P+P reserves and 1.8 MMboe on proved reserves.
The Company increased its oil and natural gas liquid reserves by 98% and 77% on total proved and total P+P reserves, respectively, compared to its 2009 year end reserves.
Based on fourth quarter 2010 average production of 3,289 boe per day, Insignia's reserve life index ("RLI") is 12.2 years on P+P basis and 5.1 years on a proved basis

Gas Trader Pleads Guilty

2011-02-08T02:08:00.001+02:00

HOUSTON—Former Houston gas trader Stephanie Roqumore has pleaded guilty to two counts of wire fraud arising from her scheme to defraud numerous natural gas trading companies of nearly $8 million, United States José Angel Moreno announced today.

Today, at a hearing before United States District Judge Lynn N. Hughes, Roqumore, 48, admitted that from March 2002 through April 2010, she used false and fraudulent financial statements to defraud 12 known companies—Virginia Power Energy Marketing, Inc.; Coral Energy Resources, L.P.; Occidental Energy Marketing, Inc.; Energy-Koch Trading, L.P.; Cargill, Inc.; Hess Corporation; Natural Fuel Resources, Inc.; Proliance Energy, LLC; Southwest Energy, L.P.; Adams Resource Marketing, LTD; Allegheny Energy; and CMS Resource Energy Management Company. Judge Hughes scheduled Roqumore’s sentencing for May 9, 2011. Each of the wire care fraud counts carries a maximum penalty of 20 years in a federal prison and a $250,000 fine. In addition to pleading to the criminal charges, Roqumore has agreed to a forfeiture order of over $4.8 million in illegal proceeds from her scheme.

Roqumore admitted that as the sole employee, owner, and operator of three natural gas trading companies: SRR Energy Management Resources, Inc, d/b/a Gas Energy Management, Inc. (GEM); Gas American Resources, Inc. (GAR); and, Resource American Energy (RAE), she contacted natural gas trading companies all over the country requesting to trade natural gas with them. If the company was interested in trading with Roqumore, the two parties entered into a Base Contract for Sale and Purchase of Natural Gas. Shortly after entering into the contract, Roqumore would request a line of credit from the trading company in order to purchase natural gas from them. The companies required financial statements from Roqumore for whichever of her three companies she was using at the time. The line of credit was granted based on the net worth of the company provided in its financials. The financial statements that Roqumore provided to obtain the lines of credit were intentionally falsified by her to make her companies (GEM, GAR and RAE) appear to be more profitable and worth far more than they actually were.

She further admitted the false financial statements for GEM or GAR were faxed by Roqumore under a cover letter purportedly from an actual Certified Public Accountant (C.P.A.). The attached sheets were stamped "audited" and always showed Roqumore's companies, whether GEM or GAR, with a net year-end income in the millions of dollars. Roqumore admitted that she falsified the cover letters also and that the C.P.A. played no role in her fraudulent behavior. The fraudulent financials showed year-end net incomes for GEM and GAR for 2003 to 2006 in the multi-millions, when in fact neither company’s yearly net income ever exceeded $100K and their ending net income was usually negative. Roqumore also created fraudulent financials for RAE for the same purposes. The RAE financials, however, were sent under a cover letter from a fictitious C.P.A. firm, R&R Accounting and Consulting Group, in Houston.

Roqumore admitted purchasing natural gas from one of the victim companies using the fraudulently obtained line of credit and then selling that natural gas to other gas companies. When the trades settled, Roqumore was paid for the gas she sold but she did not pay the victim company for the gas she bought. For example, from November to December 2005, Energy-Koch Trading, L.P. (EKT) sold GEM $1.1 million of natural gas on credit. Roqumore, in turn, sold that natural gas to four other companies for just under $1.1 million. On the settlement dates, GEM was paid a total of $1,092,187.80 by the four companies, but GEM paid EKT only $50,000. Roqumore never paid EKT the remaining $1,046,331.20 for the natural gas she purchased from them. On August 30, 2006, Roqumore faxed fraudulent financial statements showing a net income of more than $10 million for GAR to National Fuel Resources, Inc. (NFR). Another time, Natural Fuel Resources, Inc. (NFR) sold GAR $1.6 million of natural gas on credit. Roqumore, in turn, sold that natural gas to Conoco Phillips for just over $1.6 million. On the settlement dates, GAR was paid $1,649,730.00 by Conoco Phillips but GAR paid NFR only $100,000. Roqumore never paid NFR the remaining $1,494,617.00 for the natural gas she purchased from them. In total, Roqumore fraudulently obtained approximately $7.9 million in natural gas on credit from the 12 energy companies from March 2002 through April 2010. Roqumore never paid for that natural gas.

Roqumore remains free on bond pending sentencing.

The investigation leading to the criminal charges and today’s conviction was conducted by the FBI. Assistant United States Attorney Al Balboni is prosecuting the case.

Tucson Area Had Natural Gas Shortage This Week

2011-02-05T02:00:00.002+02:00

Some Tucson-area customers may be without natural gas service as late as Monday or Tuesday, Southwest Gas spokeswoman Libby Howell said.

The utility is bringing in about 70 workers from elsewhere to help re-start gas service at homes on Tucson's east side.

About 14,000 Tucson homes east of North Swan Road in the Catalina Foothills and in the Rita Ranch area have been without natural gas service since this morning, Howell said.

Southwest Gas workers will have to go door-to-door in those areas twice, Howell said. First they will turn off the meters at each house, then they will go inside each house to light pilot lights and ensure service has resumed, Howell said.

In response to the outages and record cold, city officials are opening two shelters at 5 p.m. today. They are at Udall Center, 7200 E. Tanque Verde Road and Pantano Christian Church, 10355 E. 29th St.

The Udall location will permit pets but only if they are in crates, and the Pantano location will not accept pets.

A shortage of natural gas in the pipeline that serves Tucson left areas on Tucson's northeast and southeast sides without gas service beginning this morning.

The southern part of Sierra Vista, down to Hereford, also is without gas service. Cochise County has set up temporary warming centers, not equipped as shelters, in Benson, Bisbee, Douglas, Sierra Vista and Willcox.

The places most affected around Tucson are from North Swan Road eastward in the Catalina Foothills to North Wentworth Road and the Rita Ranch area on the southeast side.

Southwest Gas is asking customers who still have natural-gas service to limit their use by turning down the heat and reducing hot-water usage.

The reason for the shortage is not only the high demand by residential customers but also high demand by power companies to fuel their plants, El Paso Natural Gas said in a news release. In addition, power outages and freeze-offs in the areas that supply gas have reduced the supply.

“More gas is being taken off our system than we have supplies coming into the system,” El Paso said.

El Paso supplies the gas used by Southwest’s customers, while Southwest runs the local distribution system. El Paso said it is shifting all the gas possible into its pipeline.

East-side resident Donna Ester said her thermostat was set at 60 degrees all night but the gas went out before it automatically goes up during the day. The result: the indoor temperature was in the low 50s all day and promised to go further down.

“I worry most about my cat because he is always cold,” Ester said via e-mail. “I’ve been heating up a neckwarmer in the microwave and putting it in his bed.”

A drop in the pipeline's pressure began knocking out customers' service around 6:30 a.m., Howell said. As the extent of the problem became clear, the utility turned off service to affected areas.

It’s a scary scenario for elderly people living in Hereford, resident Beverly Manigault said. The temperature dropped below zero in their area, which lies in a dip near the Huachuca Mountains, she said.

Electric space heaters are sold out at local retail stores, but Manigault’s husband was able to buy three at the store on Fort Huachuca, she said.

They’re using two in their home and gave the other to an elderly neighbor, she said.

At Loew's Ventana Canyon resort, on the northeast side, 400 guests found themselves without heat today, General Manager Brian Johnson said. The resort adjusted by serving mostly cold items in the restaurants and providing extra blankets to guests.

About 10 guests checked out as a result, he said. Guests may also request to be moved to another inn, he said.

The resort's engineers also examined the gas fireplace in the resort's lobby and determined it could be used to burn wood, so logs are flaming there now, Johnson said.

"A lot of guests we’ve talked to have been very understanding," he said. "It’s totally out of our control."

Natural Gas Processing Complex Deal is Done

2011-02-02T03:07:00.002+02:00

ENVER & PITTSBURGH--(BUSINESS WIRE)--MarkWest Energy Partners, L.P. (MarkWest) (NYSE: MWE) and EQT Corporation (EQT) (NYSE: EQT) today announced the closing of MarkWest’s previously announced acquisition of EQT’s natural gas processing complex in Langley, Kentucky and an associated natural gas liquids (NGL) pipeline for $230 million.The acquisition includes a 100 million cubic feet per day (MMcf/d) cryogenic processing plant, a 75 MMcf/d refrigeration processing plant, approximately 28,000 horsepower of compression, and a partially constructed NGL pipeline that MarkWest will complete. In conjunction with the acquisition, MarkWest executed a long-term agreement with EQT to provide processing services for EQT’s Kentucky Huron shale gas and to extend its existing agreement with EQT to provide NGL transportation, fractionation, and marketing services.

“We are very pleased to complete the acquisition of the Langley processing facility and NGL pipeline, which will expand our extensive midstream capabilities in the Marcellus and Huron/Berea shales,” said Frank Semple, chairman, president and chief executive officer of MarkWest. “We are also excited about the quality group of EQT employees who have joined the MarkWest team. We have been a leader in providing fully integrated midstream services in the Northeast for more 20 years and the new facilities and enhanced organization in Kentucky will strengthen our capabilities and provide long-term value to MarkWest and to EQT.”

“We look forward to working with MarkWest in support of the development of our liquids rich plays, Marcellus Shale in West Virginia and Huron Shale in Kentucky," said David Porges, president and chief executive officer of EQT.

About MarkWest

MarkWest Energy Partners, L.P. is a master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has extensive natural gas gathering, processing, and transmission operations in the southwest, Gulf Coast, and northeast regions of the United States, including the Marcellus Shale, and is the largest natural gas processor in the Appalachian region.

This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although MarkWest believes that the expectations reflected in the forward-looking statements are reasonable, MarkWest can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect MarkWest’s operations, financial performance, and other factors as discussed in its filings with the Securities and Exchange Commission. Among the factors that could cause results to differ materially are those risks discussed in the periodic reports MarkWest files with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2009, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2010. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” MarkWest does not undertake any duty to update any forward-looking statement except as required by law.

About EQT

EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, transmission and distribution. Additional information about the company can be obtained through the company's web site, http://www.eqt.com; Investor information is available on that site at http://ir.eqt.com. EQT Corporation uses its web site as a channel of distribution of important information about the company, and routinely posts financial and other important information regarding the company and its financial condition and operations on the Investors web pages.

Wells Fargo Securities, LLC advised EQT on this transaction.

EQT Cautionary Statements

Disclosures in this press release contain forward-looking statements. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include EQT's guidance regarding the availability of processing capacity and NGL transportation, fractionation and marketing services following the transaction. These statements involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements on current expectations and assumptions about the future events. While EQT considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond EQT's control. The risks and uncertainties that may affect the operations, performance and results of EQT's business and forward-looking statements include, but are not limited to, those set forth under Item 1A, "Risk Factors" of EQT's Form 10-K filed for the year ended December 31, 2009 and in the company’s 10-K for the year ended December 31, 2010 to be filed with the Securities and Exchange Commission, as updated by any subsequent Form 10-Qs.

Any forward-looking statement speaks only as of the date on which such statement is made and the company does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

Contacts

MarkWest Energy Partners
Frank Semple, 866-858-0482
Chairman, President & CEO
or
Nancy Buese, 866-858-0482
Senior VP and CFO
or
Dan Campbell, 866-858-0482
VP of Finance & Treasurer
investorrelations@markwest.com
or
EQT
Analysts:
Patrick Kane, 412-553-7833
Chief IR Officer
pkane@eqt.com
Media:
Karla Olsen, 412-553-5726
Public Relations Manager
kolsen@eqt.com

ExxonMobil Sees Future Profit in Natural Gas

2011-01-30T02:39:00.000+02:00

Expanding prosperity for a growing world population will drive an increase in energy demand of about 35 percent by 2030 compared to 2005, even with significant efficiency gains, and natural gas will emerge as the second-largest energy source behind oil, ExxonMobil said today as it released its new edition of Outlook for Energy: A View to 2030.

The growing use of natural gas and other less-carbon intensive energy supplies, combined with greater energy efficiency in nations around the world, will help mitigate environmental impacts of increased energy demand. According to the Outlook, global energy-related carbon dioxide emissions growth will be lower than the projected average rate of growth in energy demand.

“Our energy outlook clearly points to a growing demand for energy globally which reflects improving living standards for millions of people around the world. ExxonMobil will continue to invest in technology and innovation to develop new economic energy supplies to help meet this demand while looking for ways to reduce environmental impacts,” said Rex W. Tillerson, chairman and chief executive officer.

“The forecasts also show a shift toward natural gas as businesses and governments look for reliable, affordable and cleaner ways to meet energy needs,” Tillerson said. “Newly unlocked supplies of shale gas and other unconventional energy sources will be vital in meeting this demand.”

The Outlook for Energy is developed annually to help guide ExxonMobil’s global investment decisions. The company shares the findings publicly to increase understanding of the world’s energy needs and challenges. The outlook is the result of a detailed analysis of approximately 100 countries, 15 demand sectors and 20 fuel types and is underpinned by economic and population projections and expectations of significant energy efficiency improvements and technology advancements.

Rising electricity demand -- and the choice of fuels used to generate that electricity -- represent a key focus area, which will have a major impact on the global energy landscape over the next two decades. According to the outlook, global electricity demand will rise by more than 80 percent through 2030 from 2005 levels. In the non-OECD (Organization for Economic Co-operation and Development) countries alone demand will soar by more than 150 percent as economic and social development improve and more people gain access to electricity.

According to ExxonMobil’s Outlook, efforts to ensure reliable, affordable energy while also limiting greenhouse gas emissions will lead to polices in many countries that put a cost on carbon dioxide emissions. As a result, abundant supplies of natural gas will become increasingly competitive as an economic source of electric power as its use results in up to 60 percent fewer CO2 emissions than coal in generating electricity. Demand for natural gas for power generation is expected to rise by about 85 percent from 2005 to 2030 when natural gas will provide more than a quarter of the world’s electricity needs. Natural gas demand is rising in every region of the world but growth is strongest in non-OECD countries, particularly China where demand in 2030 will be approximately six times what it was in 2005.

Shale Still in Play for Some

2011-01-25T05:52:00.001+02:00

Shale drilling takes a particular expertise. Recently we have seen companies with this expertise do very well as shales and their millions of barrels are just waiting to be tapped. At first, horizontal drilling was performed on natural gas wells, and recently this was expanded to oil. If we are to use the Bakken shale as an example, where drillers are getting about 95% oil, companies like Brigham Exploration Company (BEXP) or Continental Resources Inc. (CLR) are making a mint.

Carrizo Oil and Gas Inc (CRZO) has this expertise. Carrizo is in a situation that could be something great. They were founded in 2003 and since then they have been busy. As of December 31st of 2009, they had participated in drilling 786 wells. At that time they had a 73% success rate.

Carrizo has a sizeable position in the North Sea. They also have accumulated several shale acreages:

Fort Worth Barnett 47000 acres
Marcellus Shale 111290 acres
Marfa Basin 58000 acres
Fayetteville Shale 26000 acres
Eagle Ford Shale 20000 acres
Niobrara Shale 61000 acres

Carrizo's plan is strong organic growth. To do this they are drilling for gas in the Barnett and Marcellus. The Eagle Ford and Niobrara will be drilled for oil. They plan to drill the low risk Barnett Shale initially. Estimates have this location's proved reserves at 570 Bcfe with potential for an additional 780 Bcfe. There are 470 potential well sites (500 foot spacing) . They are planning on developing their Marcellus Shale position. They are planning on being much more aggressive with respect to their liquids positions. Due to the better margins, the Niobrara and Eagle Ford Shales are a priority. In 2010, Carrizo drilled 5 wells and frac'd 3 in Eagle Ford. Eagle Ford will have up to 2 rigs running this year. The Niobrara had 3 drilled and 1 frac'd, and are expecting at least one rig running. These two areas could add up to 7000 BOED sometime this year. At today's prices this will increase production by one-third and double revenue.

How Do You Frac a Well

2011-01-22T19:42:00.002+02:00

Activist shareholder groups are pressing natural gas companies to reduce the environmental impact of a drilling technique called hydraulic fracturing.

The investor groups say they have filed resolutions with nine oil and gas companies that use hydraulic fracturing, or "fracking," to extract gas from shale formations thousands of feet underground. Critics contend that fracking has the potential to pollute groundwater. The industry says it is safe.

The shareholder proposals ask drillers to explain how they plan to manage the risks associated with fracking. The shareholders also want full disclosure of fracking chemicals, a reduction in the volume and toxicity of the chemicals and improvements in well construction

Chinese Participate in USA Well Drilling Program

2011-01-21T01:53:00.000+02:00

PORTLAND, OR--(Marketwire - January 20, 2011) - Xun Energy, Inc. ("XNRG") (OTCBB: XNRG) Xun Energy, Inc. announces the Company will participate in a planned 15 well drilling program with Global Energy Acquisitions, LLC and its affiliates ("GEA"). GEA is a Florida limited liability company. GEA intends to drill 15 oil and gas wells on a 416 acre parcel located in Adair County, Kentucky. Each well will be drilled to a depth of up to 2,000 feet in order to reach the Murfreesboro or Knox Formations. The targeted date for the completion of the $2,550,000 funding requirement has been set to February 28, 2011.

Upon the success of the drilling program, GEA will pay to XNRG up to 12.5% gross royalty on revenues generated from the drilling program. XNRG's participation will be based upon XNRG's investment in GEA's 15 well drilling program. XNRG's participation interest has not yet been established.

Peter Matousek, the Company's president, commented, "The agreement with GEA provides the Company with an opportunity to participate in an oil and gas program which would provide the Company with steady cash flow."

About GEA

GEA is in the business of investing in oil and natural gas exploration programs.

About XNRG

Xun Energy, Inc. is a development stage company with limited assets. The Company's prospects will be subject to securing financing and the success of the drilling program.

This Press Release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995 and any amendments thereto. Such forward-looking statements by definition involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance that reserves, production, pricing levels or other factors pertaining to the oil and gas operations will be sustained at the expected rates or levels over time. Discussions of factors, which may affect future results, are contained in our recent filings. Under no circumstances does this Press Release constitute an offer to sell or a solicitation of an offer to buy the securities of the company described in this Press Release in which such offer, solicitation or sale of securities would be unlawful prior to registration, qualification or filing under the securities laws of any jurisdiction.

For Further information on this news release or on XNRG, please visithttp://www.xunenergy.com/ or contact XNRG's Investor Relations Department, telephone: 1-775-200-0505, e-mail address: investor@xunenergy.com.

Encana Selling Natural Gas Plant

2011-01-20T04:19:00.001+02:00

Encana (TSX:ECA, NYSE: ECA) said Tuesday it has agreed to sell its Fort Lupon natural gas processing plant to Western Gas Partners (NYSE: WES) for $303 million.

The plant, located in Colorado, processes about 84 million cubic feet per day (MMcf/d) of natural gas. The sale also includes five natural gas gathering pipeline systems and associated compression facilities.

Under the agreement, Encana USA has processing fees that allows the company to extract about 3,500 barrels of natural gas liquids per day from its processed natural gas.

"This divestiture is part of Encana's ongoing initiative to capture significant incremental value from its midstream assets -- natural gas processing plants, pipeline gathering systems and compression facilities,” said Renee Zemljak, an executive at Encana.

“We are looking to enter into long-term and competitive fee-for-service agreements with industry-leading midstream companies.”

Encana is also trying to sell its Cabin Gas Plant, which has received regulatory approval for two phases of development for a total processing capacity of 800 MMcf/d. The plant is in the early stage of constructing the first phase, which is designed to have capacity of about 400 MMcf/d. The plant is scheduled to start processing natural gas from Horn River, British Columbia in 2012.

The sale of the Fort Lupon plant, subject to regulatory approval, is expected to close in the first quarter of 2011.

Anderson Energy Ltd Update

2011-01-17T20:37:00.002+02:00

CALGARY, ALBERTA--(Marketwire - Jan. 17, 2011) - Anderson Energy Ltd. ("Anderson Energy" or the "Company") (TSX:AXL) is pleased to provide an update of its Cardium drilling operations and its 2011 capital budget.

CARDIUM OPERATIONAL UPDATE

As of January 16, 2011, the Company has drilled 24 gross (17.2 net) Cardium horizontal oil wells with a 100% success rate. Of these wells, twenty gross (13.4 net) Cardium wells have been placed on production. The remaining four wells are expected to be producing in February 2011.

In November 2010, the Company reduced its interstage frac density from 100 meters to 75 meters with improved initial productivity when compared to offsetting wells. In January 2011, the Company conducted its first operated water based frac. The completion costs of this well are expected to be approximately $500,000 less than other oil based 18-20 tonne fracs. Initial oil production rates from the first water frac have been encouraging. The Company is continuing to evaluate the merits of water based fracs. If further evaluation is positive, this may prove to be a method to significantly decrease the costs of Cardium completions and improve economic returns.

The Company continues to add land through farm-ins, acquisitions and property swaps. The Company's non contingent drilling inventory has grown to 143 gross (85.3 net) development locations. Ultimate potential drilling inventory based on three wells per section is 309 gross (180 net) drilling locations. The Company has increased the Cardium prospective land that it owns or controls to 103 gross (60 net) sections of land.

In 2010, the Company developed Cardium horizontal core areas in Garrington, Willesden Green and Pembina East. This winter, a new Cardium core area is being developed in Ferrier. In each core area, tank batteries are built and individual wells drilled off pads are pipelined to the tank batteries further increasing efficiencies and decreasing operating costs. The Company consolidates its position in each core area through land acquisitions and farm-ins.

Devon's Nichols Bullish on Natural Gas

2011-01-12T00:43:00.000+02:00

The chairman of Devon Energy Corp. says he expects a "revolution" in the growing use of natural gas as a power source for electricity generating facilities across the country according to press reports.

Devon co-founder and Chairman Larry Nichols made the comments Tuesday during a "Legislative Boot Camp" for new Oklahoma lawmakers sponsored by The State Chamber it was widely reported in the press.

Oklahoma City-based Devon is a natural gas and oil exploration and production company that employs more than 5,400 people worldwide and Nichols says the growing use of technologies like hydraulic fracturing and horizontal drilling has dramatically boosted the amount of natural gas available in the United States for use and recovery. And while he says he predicts natural gas prices to remain fairly low this year, he says he expects prices to rebound as the nation's economy recovers from the recent recession and further uses of natural gas are exploited.

Honda to Offer Natural Gas Civic

2011-01-11T03:29:00.000+02:00

Honda Motor Co. says it plans to sell a natural-gas version of its new Civic sedan in all 50 states starting this year. The company currently sells around 1,500 natural-gas Civics each year, mostly to government fleets. Until now, it only sold natural-gas Civics to individual buyers in four states.

Natural gas-burning vehicles produce lower emissions, and 98 percent of the natural gas used in the U.S. comes from North America. But there are only 1,000 natural gas fueling stations in the U.S.

Honda is also releasing a gas-electric hybrid version of the Civic. Honda introduced the new Civic on Monday at the Detroit auto show. It has a more aerodynamic, chiseled look than the outgoing Civic. The compact sedan goes on sale this spring.

Apache Production at Balboa Field

2011-01-07T03:07:00.002+02:00

HOUSTON, Jan. 6, 2011 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that hydrocarbon production has begun at its Balboa Field, located on East Breaks Block 597. Initial gross flow rates have stabilized at approximately 30 million cubic feet of natural gas and 1,400 barrels of oil per day. Apache's subsidiary is the operator of the field and holds a 50 percent working interest.

Balboa is located in estimated water depths of 3,350 feet approximately 130 miles south of Galveston, Texas. The field is a one-well development with a six-mile tieback to the Anadarko-operated Boomvang spar on East Breaks 643. The reservoir features oil-bearing sandstones with a natural gas cap. The well has been completed near the crest of the structure to optimize overall hydrocarbon recovery. This completion was designed to initially produce natural gas and liquids with increasing liquids and decreasing gas volumes throughout the life of the field.

"Subsea tieback technology has significantly improved the economics for deepwater developments by lowering the threshold for commercial accumulations," said John Crum, co-chief operating officer and president -- North America. "Through acquisitions completed in 2010, Apache now has both the capability in-house and the portfolio of properties in the deepwaterGulf of Mexico to exploit assets such as Balboa and add shareholder value."

Apache assumed operatorship of Balboa with the acquisition of Mariner Energy in November 2010. The field commenced production on Dec. 28, 2010.

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, updates, investor information and all press releases, on its website, www.apachecorp.com.

Forward-looking statements

This news release contains certain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K available on our website, http://www.apachecorp.com/, and in our other public filings and press releases. There is no assurance that Apache's expectations will be realized, and a number of factors could cause actual results to differ materially from projections, anticipated results or other expectations expressed in this news release, including Apache's drilling risks, and the ability to execute on production and development plans. We assume no duty to update these statements as of any future date. However, readers should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.

Natural Gas Processing Plant for West Virginia

2011-01-06T03:05:00.002+02:00

MarkWest Liberty Midstream & Resources, L.L.C., a partnership between MarkWest Energy Partners, L.P. (NYSE: MWE) and The Energy & Minerals Group, today announced the development of a midstream natural gas processing complex in Logansport, West Virginia.

MarkWest Liberty will construct a 120 million cubic feet per day (MMcf/d) cryogenic gas processing facility and associated natural gas liquids (NGL) pipeline by mid 2012 to process liquids-rich gas transported in EQT Corporation’s Equitrans gas pipeline, which recently announced a significant expansion to increase transmission capacity. EQT has substantial rich-gas Marcellus acreage in northern West Virginia and has contracted with MarkWest Liberty for the majority of the Logansport plant capacity. The NGLs recovered at Logansport will be transported via pipeline to MarkWest Liberty’s fractionation, storage, and marketing complex in Houston, Pennsylvania.

The Logansport complex is MarkWest Liberty’s third processing complex serving Marcellus production in southwestern Pennsylvania and northern West Virginia. The new processing facility and associated NGL pipeline significantly expands the integrated processing, fractionation, and NGL marketing services that MarkWest provides to producers in the Appalachian region.

“We continue to expand our midstream presence in the rich-gas area of the Marcellus and the Logansport complex will allow EQT and other producers to fully develop their Marcellus acreage in Wetzel and Doddridge counties,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. “We are excited to access significant new Marcellus acreage and to take advantage of the tremendous downstream takeaway options for residue gas on the Equitrans system, including Equitrans’ planned expansion to five interstate pipelines. MarkWest Liberty is the largest provider of midstream services in the rich-gas areas of the Marcellus and is committed to continue investing significant capital to develop the critical midstream infrastructure necessary to meet our producer customers’ long-term needs.”

"We are excited about the strategic value created from the combination of MarkWest's industry leading Appalachian processing and fractionation footprint with EQT's Equitrans pipeline header system expansion," said Randall Crawford, Senior Vice President of EQT. "The linking of NGL processing with downstream transportation will provide the critical infrastructure solution to facilitate the development of EQT’s and other liquids-rich Marcellus acreage in northern West Virginia."

About MarkWest Energy Partners

MarkWest Energy Partners, L.P. is a master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has extensive natural gas gathering, processing, and transmission operations in the southwest, Gulf Coast, and northeast regions of the United States, including the Marcellus Shale, and is the largest natural gas processor in the Appalachian region.

About The Energy & Minerals Group

The Energy & Minerals Group is the management company for a series of private equity funds totaling in excess of $2.5 billion of commitments. EMG focuses exclusively on making direct investments across the natural resources industry in conjunction with experienced management teams focused on hard assets that are integral to existing and growing markets. For additional information on EMG, please contact John Raymond at 713-579-5000.

This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although MarkWest believes that the expectations reflected in the forward-looking statements are reasonable, MarkWest can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed with the SEC, including MarkWest’s Annual Report on Form 10-K for the year ended December 31, 2009, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2010. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” MarkWest does not undertake any duty to update any forward-looking statement except as required by law.

Natural Gas Prices Could Go Up in 2011

2011-01-04T03:31:00.002+02:00

NEW YORK, NY--(Marketwire - January 3, 2011) - 2010 marked a year that most natural gas investors would like to forget. The reason for the drop in prices and stocks was simply supply and demand. Natural gas supplies have grown in recent years as new technologies have made it easier for producers to unlock previously unreachable reservoirs in onshore shale formations. Some natural gas producers have vowed to reduce natural gas drilling until the gas becomes more valuable, however the chances of supply being greatly reduced are minimal. In the last few months, reports have surfaced implying that the industry appears to be taking steps to avoid catastrophe, though the outlook is highly dependent on political action and (as always) the weather. The Bedford Report examines investing opportunities in natural gas and provides research reports on Chesapeake Energy Corporation (NYSE: CHK) and Petrohawk Energy Corporation (NYSE: HK). Access to the full company reports can be found at:

According to the Energy Department, around 52 percent of American households use natural gas for heating. While weather forecasts still call for a cooler-than-usual winter, a recent government report showed there was an adequate supply of natural gas to meet cold-weather needs, while the US Energy Information Association (EIA) said that natural gas in storages declined by 89 billion cubic feet.

The Bedford Report releases regular market updates on the natural gas so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Going forward there is slightly more optimism surrounding natural gas. Analysts argue that the natural gas oversupply in the United States could make the nation a major natural gas exporter in upcoming years. Demand for gas is soaring in Asia and other emerging markets as their economies expand.

More liquefied natural gas export facilities could be developed going forward. The Wall Street Journal reported that a subsidiary of Cheniere Energy is working on a deal to supply liquefied natural gas to one of China's largest independently owned natural gas companies. Chesapeake Energy's Chief Executive Aubrey McClendon told investors at a conference he has been in talks with Cheniere to supply gas to the proposed facility. While Cheniere would still need to build the liquefaction facility, the company's CEO believes that interest in the project from natural gas suppliers such as Chesapeake, as well as Chinese interest "confirms the global appetite for US natural gas."

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer athttp://www.bedfordreport.com/disclaimer

Israel Finds Large Natural Gas Field

2010-12-31T02:16:00.000+02:00

Noble Energy, a US-based oil and gas firm, along with its Israeli exploration partners, have confirmed the discovery of a huge offshore gas field called Leviathan, 130km off the coast of the Mediterranean port of Haifa.

Delek Energy, one of the Israeli partners, said on Wednesday that the discovery was the largest deepwater natural gas find in the world in the past decade.

Leviathan is estimated to have 450 billion cubic metres of gas and could transform Israel into an exporter of gas.

Tamar, a nearby site already being drilled by Noble and Delek, was the largest gas find in the world in 2009, at 8.4 trillion cubic feet.

"A world power," read a headline in Israel's Maariv newspaper, describing the country's new energy potential.

But experts noted that there is currently a glut in natural gas and that unlike oil, which is sold on global markets, gas is geographic and needs a specific buyer.

"It's not a great time for Israel to enter a lot of the markets," Brenda Shaffer, an energy expert at the University of Haifa, told Reuters news agency.

"European consumption is going down, new suppliers are coming on. I'm not sure there's a buyer waiting by the door at this point."

Shaffer also said that larger amounts have been discovered onshore, where it is also cheaper to produce than in deep water.

Economic advantage

The find could potentially alter the geopolitical balance of the Middle East, with energy disputes already shaking regional relations.

Politicians in neighbouring Lebanon are trying to lure companies to explore their nearby waters, and the two countries have also threatened each other over offshore resources.

Beirut has also staked out its own claim to offshore gas. In August, politicians rushed the country's first oil-exploration law through parliament.

Gebran Bassil, Lebanon's oil minister, said in October that his ministry hopes to start auctioning off exploration rights by 2012.

Qazanfar Roknabadi, Tehran's ambassador to Lebanon, said last month that three-quarters of the Leviathan field actually belongs to Lebanon.

The Leviathan find also raises the chances of other major discoveries in Cyprus, Egypt and the Palestinian territories.

Energy map

Even before Leviathan, a series of finds had put the so-called Levant Basin, stretching offshore in the Mediterranean, on the international energy map.

In March, the US Geological Survey released its first assessment of the zone, estimating it contained 1.7 billion barrels of oil and 122 trillion cubic feet of gas.

That is equal to half the proven gas reserves of the US.

Even if the hurdles to export prove insurmountable, the gas at Leviathan will give Israel, which has always been dependent on imports, long-term energy security, with analysts saying gas at the site could be worth $95bn.

Production from Tamar is scheduled to begin in 2013 and it is being targeted for local consumption.

Leviathan, its developers say, will not be ready until 2017.

The Israeli energy companies have talked of exporting the resource through a pipeline or as liquefied natural gas (LNG).

Shaffer told Reuters that the chances of the gas being sold to Europe were small and probably the most viable option would be using existing LNG facilities in Egypt.

"Asian markets are growing in LNG imports but Israel would have to compete with Qatar, Russia and Australia, which are already producing LNG," she said.

Natural Gas Services Company Acquired

2010-12-28T03:16:00.002+02:00

An Austin- and Dallas-based natural gas services provider was acquired by a group of equity funds, the companies announced Monday.

The Riverstone/Carlyle Global Energy and Power Funds purchased USA Compression Holdings LP, the parent company of USA Compression Partners LLC, for an undisclosed amount. Riverstone/Carlyle, an energy-focused private equity consortium, is overseen by $17 billion investment fund manager Riverstone Holdings LLC.

USA Compression, founded in 1998, is one of the largest natural gas compression service providers in the nation. The company services businesses in 13 states with more than 610,000 horsepower of compression equipment.

The Riverstone/Carlyle Global Energy and Power Funds in April invested an unspecified amount in Austin-based Three Rivers Operating Co. The Central Texas private upstream oil and gas enterprise at the same time acquired West Texas and New Mexico assets from the Chesapeake.

XTO Acquires Arkansas Shale Assets

2010-12-27T04:15:00.000+02:00

Petrohawk Energy Corporation, which is engaged in the exploration and development of shale-based oil and natural gas resources, has completed the sale of its natural gas assets in the Fayetteville Shale, located primarily in Cleburne and Van Buren Counties, Arkansas, to XTO Energy Inc., a subsidiary of ExxonMobil, for $575 million.
The sale has an effective date of October 1, 2010. In addition, the Company has entered into a definitive agreement with XTO Energy to sell its midstream assets in the Fayetteville Shale for $75 million. The portion of the transaction involving the midstream assets is expected to close in early 2011 and is subject to regulatory approval and customary closing conditions.
As of December 31, 2009, Petrohawk had estimated proved reserves in the Fayetteville Shale of approximately 299 billion cubic feet of natural gas. Current production is approximately 98 million cubic feet of natural gas equivalent per day (Mmcfe/d). Bank of America Merrill Lynch acted as marketing and financial advisor to Petrohawk in connection with both transactions.

Americans Would Choose Clean Water versus Cheap Natural Gas

2010-12-25T03:08:00.000+02:00

According to a new survey, nearly half of Americans (45 percent) are already very or somewhat aware of the controversy about hydraulic fracturing (fracking) drilling used to tap cheap natural gas supplies in the United States, says Infogroup/Opinion Research Corporation.

Infogroup conducted the survey for the nonprofit Civil Society Institute (CSI). Among Americans who already are aware of “fracking,” more than two out of three (69 percent) are concerned about the drilling technique’s possible threat to clean drinking water.

The first national poll to gauge the attitudes of Americans on the subject was released Dec. 21 along with two separate survey reports for more than 800 New York State/New York City residents and more than 400 Pennsylvanians.

The survey was conducted between Nov. 26-28, among a sample of 1,012 adults comprising 501 men and 511 women 18 years of age and older living in the Continental United States. Completed interviews are weighted by four variables: age, gender, region, and race to ensure reliable and accurate representation of the total population, 18 years of age and older. The margin of error for results based on the total sample is plus or minus 3 percentage points.Key findings include:

78 percent would “strongly” (49 percent) or “somewhat” (29 percent) support “tighter public disclosure requirements as well as studies of the health and environmental consequences of the chemicals used in natural gas drilling.”
56 percent who are very/somewhat aware of fracking think state and federal officials are either “not doing as much as they should” (42 percent) or “not doing anything at all” (14 percent) to “require proper disclosure of the chemicals used in natural gas drilling.”
72 percent of Americans say that they would tell their legislators they would vote for public health and the environment when it comes to energy production that requires large amounts of water or where water quality is in jeopardy as a result of the energy production
Only about 21 percent would say that energy production priorities have to come first.

Pam Solo, founder and president, Civil Society Institute, said: “Fracking is a perfect illustration of the fact that Americans don’t think of an energy source as ‘cheap’ or ‘clean’ if there is a hidden price in terms of safe drinking water and human health.”

The Civil Society Institute has carried out more than 25 major national- and state-level opinion polls on energy issues since 2003. The 100-percent independent CSI think tank receives no direct or indirect support of any kind from any natural gas industry interest, or any other energy-related company, trade group or related individual, according to the group's press release.

Based in Newton, Mass., the nonprofit and nonpartisan Civil Society Institute is a think tank that serves as a catalyst for change by creating problem-solving interactions among people, and between communities, government, and business that can help to improve society. CSI also is the parent organization of 40MPG.org and the Hybrid Owners of America.

EIA Revises Shale Gas Estimates - Double

2010-12-23T02:55:00.001+02:00

New information gleaned from drilling activity in the United States reveals shale gas reserves are about twice as abundant as previously thought, the EIA has reported.

The U.S. Energy Information Agency said in its 2011 outlook that it projects technically recoverable unproven shale gas reserves sit at 827 trillion cubic feet, 474 trillion cf larger than the previous year's outlook.

Shale deposits are considered an emerging energy resource for the United States. T. Boone Pickens, a Texas oil magnate, said abundant gas reserves in the United States made the country the "Saudi Arabia of natural gas."

U.S. consumers by 2035 are projected to rely on imports to meet 18 percent of their energy demands compared with 24 percent in 2009, the EIA said. This is moderated, the agency said, by increased use of domestic biofuels, rising energy prices and better efficiency standards.

Renewable energy resources and natural gas are the fastest growing fuels for electricity, though coal remains the dominant source of energy for electricity in the United States.

This, the EIA said in its outlook, in part suggests carbon dioxide emissions should grow slowly but won't return to their 2005 highs until 2027.

"Our reference case projection shows the growing importance of natural gas from domestic shale gas resources in meeting U.S. energy demand and lowering natural gas prices," said EIA Administrator Richard Newell in a statement. "Energy efficiency improvements and the increased use of renewables are other key factors that moderate the projected growth in energy-related greenhouse gas emissions."

U.S. Shale Still Bullish

2010-12-21T01:31:00.002+02:00

Enterprise Products Partners L.P. (NYSE:EPD) announced today that the partnership has entered into 10-year agreements to handle a substantial portion of Chesapeake Energy Corporation’s (NYSE:CHK) liquids-rich natural gas production in the Eagle Ford Shale. Chesapeake’s gross acreage position currently comprises more than 625,000 acres in and around the oil and natural gas liquids (NGL)- rich areas of the Eagle Ford Shale across Dimmit, LaSalle, McMullen, Webb, and Zavala counties located in South Texas. The agreements provide Chesapeake with a comprehensive package of midstream natural gas and NGL services, including firm commitments for gas transportation, processing, and NGL transportation and fractionation services.

“We are extremely pleased with our new agreements with Chesapeake, which represent one of the largest single producer commitments to date for Enterprise in the Eagle Ford Shale,” said Michael A. Creel, Enterprise’s president and chief executive officer. “The deal with Chesapeake marks the fifth major midstream transaction Enterprise has executed with Eagle Ford Shale producers in the past year, reflecting the strategic importance of our integrated and expanding assets serving the various demands of producers in the prolific region.”

Enterprise has previously announced long-term commitments with Petrohawk, EOG, Anadarko and Pioneer.

Chesapeake’s NGL-rich natural gas will initially be gathered and compressed by Chesapeake affiliate, Chesapeake Midstream Development, LLC, for delivery to a central location. Enterprise will then transport and process the NGL-rich gas at its existing facilities while a previously announced natural gas processing plant that is currently under development in Texas is completed. This cryogenic processing facility, expected to be completed early in 2012, is designed for an initial capacity of 600 million cubic feet per day (MMcf/d) and with an initial capability to extract as many as 75,000 barrels per day (BPD) of NGLs.

The NGL production from Chesapeake’s gas will ultimately be transported on Enterprise’s previously announced 127-mile NGL pipeline that will extend from the new gas processing plant to Enterprise’s NGL fractionation complex in Mont Belvieu, Texas. This new NGL pipeline, also scheduled for completion in early 2012, is expected to have an initial capacity of more than 85,000 BPD and would be readily expandable to over 120,000 BPD.

Activity in the Eagle Ford Shale continues to increase as approximately 115 rigs working in the play have drilled more than 330 wells completed to date. Total current production from the play is estimated at approximately 425 MMcf/d of natural gas and 35,000 BPD of crude oil and condensate.

Enterprise Products Partners L.P. is the largest publicly traded energy partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The partnership’s assets include: 49,100 miles of onshore and offshore pipelines; approximately 195 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation, transportation, storage, and import and export terminaling; crude oil and refined products; offshore production platform services; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. Additional information is available atwww.epplp.com.

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise expects, believes or anticipates will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition and other risk factors included in the reports filed with the Securities and Exchange Commission by Enterprise. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, Enterprise does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Enterprise Products Partners L.P.
Investor Relations
Randy Burkhalter, (713) 381-6812 or (866) 230-0745
or
Media Relations
Rick Rainey, (713) 381-3635

87% of Natural Gas Use Domestically Produced in the USA

2010-12-19T19:21:00.002+02:00

The Greatest Commodity Story Ever Told
The Energy Report for Friday, December 16th 2010
By Phil Flynn, PFGBest.com

You are about to hear a story about the greatest commodity story ever told. Well ok, maybe it isn't the greatest commodity story ever told and perhaps I am inspired by the season but it is the greatest commodity story of our generation. It is the story of natural gas and the shale gas revolution. Yesterday Natural gas went below $4.00 MMBTU the lowest price in the month of December since 2001. That came even after the EIA reported a withdrawal from storage of 164 Bcf in a December whose chill has been colder than normal...Perhaps that is because supplies are an astounding 9.9 percent above the five year average a feat that would have been impossible just a few years ago. Oh sure you may have heard this story before the one where US natural gas production had peaked out. How our dwindling supplies and sharply rising gas prices of gas was one of the biggest threats to the US economy. We were warned from Canada our biggest foreign supplier that if push came to shove and it was a very cold winter they might have to cut the US off. Countries like Iran and Russia who owned some of the world's largest proven reserves of gas were talking about forming an OPEC like cartel to press their advantage of the Gas starved U.S.A. The situation was bleak.

But then something amazing happened! High prices cured high prices. Because natural gas prices soared to all time highs people started to wonder how they could profit or at least solve this problem Then one amazing entrepreneur decided to look at existing technology and none supply in a different way and before you knew it that ingenuity created an abundance of supply. They knew that gas was in shale rock but it was hard to get too. Shale rock shattered when drilled into and the recoverable gas was mostly lost making it uneconomical to produce.

Yet the idea that you could horizontally drill and shoot water and chemicals (hydraulic into the rock recovered the majority of that trapped gas and the world was changed forever. And it continues to change. In fact so quickly that yesterday the Energy Information Agency had to issue a press release yesterday to update their projections our energy future. The EIA says because of the growing reliance on natural gas from shale we will reduce energy imports as well as these countries greenhouse gas emissions. First of all the EIA had to increase its estimate of domestic shale gas recoverable unproved shale gas resource at 827 trillion cubic feet which is 474 trillion cubic feet larger than previously reported. The EIA says that this larger resource leads to about double the shale gas production and over 20 percent higher total lower-48 natural gas producing states.

Because of the EIA says that US energy Imports will meet a major but declining share of total US energy demand. The EIA says that projected demand for energy imports is moderated by increased use of domestically produced biofuels, demand reductions resulting from the adoption of efficiency standards, and rising energy prices. Rising fuel prices also spur domestic energy production across all fuels, which moderate growth in energy imports. The net import share of total U.S. energy consumption in 2035 is 18 percent, compared with 24 percent in 2009...

What is more because of our entrepreneurial ways the air will be cleaner. Even without government mandates or the Kyoto protocol. How is that possible? The EIA says that assuming no changes in policy related to greenhouse gases, carbon dioxide emissions grow slowly, but do not again reach 2005 levels until the year 2027. After falling 3 percent in 2008 and nearly 7 percent in 2009, largely driven by the economic downturn, energy-related CO2 emissions do not return to 2005 levels (5,980 million metric tons) until 2027. CO2 emissions then rise by an additional 5 percent from 2027 to 2035, reaching 6,315 million metric tons in 2035.

So if you are worried about our foreign dependence on energy the EIA says that of f the natural gas consumed in the United States in 2009, 87% was produced domestically; thus, the supply of natural gas is not as dependent on foreign producers as is the supply of crude oil, and the delivery system is less subject to interruption. (Or by OPEC or Russia) The availability of large quantities of shale gas will further allow the United States to consume a predominantly domestic supply of gas.

If you're worried about global warming (which I can't Imagine if you have been in Chicago this week) Natural gas is cleaner-burning than coal or oil. The EIA says that the combustion of natural gas emits significantly lower levels of key pollutants, including carbon dioxide (CO2), nitrogen oxides, and sulfur dioxide, than does the combustion of coal or oil. When used in efficient combined-cycle power plants, natural gas combustion can emit less than half as much CO2 as coal combustion, per unit of energy released.

Natural gas produced by shale will revolutionize our economy and our world. And it happened not because the government mandated it but because high prices inspired ingenuity. That is why I am so concerned about the CFTC position limits that could harm innovation in the future. Sometimes high prices are not a bad thing and actually have a function to move the economy forward. Proof that speculators drove up oil prices in 2008 the reason for this push for position limits In fact the truth is that in my mind we have proven the opposite. The spike in oil prices was a reaction and a reflection of the greatest economic crisis of modern times. But as we can see from the natural gas story if we allow the markets to work the benefits may far exceed our wildest expectations. Make sure you are signed up for my daily buy and sell points!! Just call me at 800-935-6487 or email me at pflynn@pfgbest.com. Also demand the Fox Business Network!

Rig Count Down 7 This Week

2010-12-18T04:48:00.001+02:00

Gas drilling rig count slips for second straight week

* Horizontal rigs fall from record highs
 (Adds rig graphic)

NEW YORK, Dec 17 (Reuters) - The number of rigs drilling
for natural gas in the United States slid by seven this week to
941, oil services firm Baker Hughes said Friday.

The gas-directed rig count, which has lost ground for two
straight weeks, hit 992 in mid-August, its highest since
February 2009, when 1,018 rigs were drilling for gas.

Horizontal rigs -- the type most often used to extract oil
or gas from shale -- dropped by 12 to 954 after holding at a
record high of 966 in the previous two weeks.

Analysts estimate that two-thirds of horizontal rigs are
drilling for natural gas, and these comprise part of the
overall rig count. The rest are drilling for oil.

(Graphic: link.reuters.com/sup34k)

Front-month U.S. natural gas futures NGc1, which were up
3.2 cents at $4.08 per mmBtu just before the data were released
at 1 p.m. EST (1800 GMT), climbed to an intraday high of $4.11
right after the report before backing off to $4.094 by 1:15
p.m., still up 4.6 cents.

While some firms have said they will shift spending away
from gas due to low prices, gas drilling activity is down only
5 percent from its mid-August high, and recent government data
show production continues to be robust.

Most analysts expect no meaningful slowdown in gas
production until the second half of 2011, at the earliest.

The gas-drilling rig count is still up 276 since bottoming
at 665 on July 17, 2009, its lowest since the 640 posted on May
3, 2002.

While the gas rig count is 41 percent off its record peak
of 1,606 from September 2008, it still stands 168 rigs, or 22
percent, above the same week last year.

Rising output from shale gas has been the primary driver of
increased gas production in the last few years, and most
traders agree it will be difficult to tighten the gas market
unless drilling slows sharply.

Some analysts estimate the gas rig count will have to fall
well below 850 to tighten the supply-demand balance.

Recent estimates by the U.S. Energy Information
Administration put U.S. gas output this year at 22.66 trillion
cubic feet, a record high and the highest since 1973. Next year
EIA sees output dropping only fractionally.

With gas inventories heading into winter still at high
levels and production likely to remain strong into 2011, many
traders expect gas prices to remain cheap relative to oil, at
least until an improving economy boosts industrial demand,
which accounts for nearly 30 percent of U.S. gas consumption

Natural Gas Storage High

2010-12-16T23:51:00.002+02:00

Following is the text of the weekly natural gas update as released by the U.S. Department of Energy in Washington D.C.:

Extremely cold weather conditions moving across the country boosted demand for space heating this report week (December 8- 15). Spot prices nonetheless decreased in most markets (with the exception of several in the Northeast), likely influenced by storage for winter usage remaining near historical highs and very strong current supplies. During the report week, the Henry Hub spot price decreased $0.24 to $4.22 per million Btu (MMBtu).

At the New York Mercantile Exchange (NYMEX), prices for futures contracts also decreased with expectations of ample supply levels for this winter, despite the current higher demand. The futures contract for January 2011 delivery decreased by $0.38 on the week to $4.22 per MMBtu.

The level of working gas in underground storage fell 164 billion cubic feet (Bcf) to 3,561 Bcf during the week ending Friday, December 10, according to the Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR). Inventories are 9.9 percent above the 5-year (2005-2009) average.

The natural gas rotary rig count, as reported December 10 by Baker Hughes Incorporated, was 948, a decrease of 13 rigs from the previous week.

Prices

With cold temperatures gripping much of the country for the first half of December, the heating season is well underway with large storage withdrawals. Nonetheless, a trend of rising prices since Thanksgiving ended during this report week for most regions of the country. Following two weeks of increases, the price at the Henry Hub declined $0.24 per MMBtu to $4.22 and is now just one cent higher than its price at the beginning of December. During the report week, price changes at specific market locations depended largely on local weather conditions and constraints in transportation into local markets. While prices in the Gulf of Mexico region generally decreased in the range of $0.25-$0.30 per MMBtu, prices at several markets in the Northeast increased dramatically. In the Rockies and California, where weather conditions improved late in the report week, price decreases ranged from $0.05-$0.21 per MMBtu. The decline in prices this week, which appears counterintuitive and is a reversal of historically rising prices with extreme weather early in the season, in part reflects strength in current supplies. According to BENTEK Energy, LLC, U.S. production during the report week, which averaged close to 63 Bcf per day, was nearly 10 percent higher than the comparable period last year. At the same time, imports from Canada have also increased recently and natural gas in storage is near its historical high for this time of year (see Storage below). Because of the strength in current supplies, prices are far below their levels this time last year. On December 15, 2009, the Henry Hub price was $5.53 per MMBtu, or about 31 percent above Yesterday’s average of $4.22.

Nonetheless, the extreme temperatures in many parts of the country led to large consumption increases during the report week. Compared with the prior week, U.S. natural gas consumption increased about 4.3 percent to an average of 96 Bcf per day. Combined consumption in the residential and commercial sectors also increased 4.3 percent, and exceeded 50 Bcf for most of the days of the report week. In the electric power sector, increased demand for electricity for heating purposes, primarily in the Southeast, contributed to a 6.5-percent increase in natural gas consumption relative to the prior week. Overall, U.S. consumption was 6.6 percent higher than the comparable period in 2009, according to BENTEK.

In the Northeast, prices rose significantly at certain markets as temperatures dipped as much as 20 degrees below normal. This week’s cold front contributed to the highest spot natural gas settlement prices at Northeastern trading points along the Atlantic seaboard since January 2008. The spot natural gas price at the Transco Zone 6 trading point in New York City peaked during the report week at $20.43 per MMBtu for delivery on Tuesday, December 14. On the week, the price at Transco increased $2.13 per MMBtu, following a sharp decrease yesterday. In the western portions of the Northeast, prices generally declined on the week, and the sharp prices seen in New York and elsewhere did not occur. The spot price at Dominion South in western Pennsylvania settled at $4.88 per MMBtu yesterday, lower on the week by $0.18. The stark difference in intraregional prices resulted from pipeline constraints between west and east portions of the region. Estimated natural gas flows into the entire Northeast market on Tuesday topped 31 Bcf per day, or 55 percent greater than normal. This estimated Northeast gas consumption was the highest recorded for any December day since BENTEK began collecting this information starting in 2005. Short-duration price spikes in the winter have been fairly common in New York City and New England. However, almost 4 Bcf per day of new pipeline projects for the region are targeted to enter service before November 2011, in large part to move more gas from the new shale wells in the Marcellus play to downstream markets.

In the West, natural gas spot prices decreased as extreme cold subsided. Despite increased flows on pipelines that transport supplies to the east, such as Cheyenne Plains Gas Pipeline, prices in the Rockies decreased at all trading locations. For example, the price for supplies on the Questar Corporation system in Utah decreased $0.12 per MMBtu to $4.04. Prices declined moderately in the Northwest. At Sumas, Washington, the price decreased by $0.05 per MMBtu to $4.25 in trading since the prior report week.

U.S. imports were significantly higher during the report week in comparison with the prior week, resulting in part from increased withdrawals from storage in Canada to meet heating demand in the United States. U.S pipeline imports from Canada during the report week increased 5.2 percent relative to the prior week to about 8.6 Bcf per day. Liquefied natural gas (LNG) imports (as measured by sendout from regasification terminals) also increased to an average of 1.2 Bcf per day, or 13 percent more than the prior week. While Canadian imports were about 14 percent higher than last year at this time, LNG supplies were still almost 21 percent lower than last year during the comparable week.

Spot Prices

At the NYMEX, the price of the near-month contract for January delivery decreased $0.38, or 8.3 percent, during the report week to $4.22 per MMBtu. The decrease occurred likely in response to expectations of a reprieve from the extreme cold in consuming regions of the country, thus decreasing space-heating demand. While the early cold will likely result in large withdrawals from storage, the current strength in supplies may prevent any change in the pricing environment fundamental. The January 2011 contract is trading much lower than the settlement prices of contracts for comparable months over the last 2 years. The January 2010 and January 2009 contracts expired at $5.81 per MMBtu and $6.14 per MMBtu, respectively.

Storage

Working natural gas in storage fell to 3,561 Bcf as of Friday, December 10, according to EIA’s WNGSR http://tonto.eia.doe.gov/oog/info/ngw/storagefig.html. The net draw of 164 Bcf is larger than the 5-year average draw of 153 Bcf but less than last year?? draw of 186 Bcf for the report week. The Producing region storage levels are now 73 Bcf above last year?? level, while the East region is 90 Bcf below. Working gas stocks in the West region are 18 Bcf below last year.

The week’s draw was significantly less than last year despite lower temperatures and higher heating degree days this year. The difference is likely largely due to a large increase in domestic natural gas production, which has lessened the need to draw gas from storage. According to the Short-Term Energy Outlook, December 2009 marketed production was just 59.5 Bcf per day, compared to a projected value of 63.1 Bcf per day for December 2010.

Temperatures were colder than normal in the lower 48 States during the week ending December 9. The National Weather Service’s degree-day data show that the temperature in the lower 48 States last week averaged 34.0 degrees, 5.3 degrees below normal, and 1.6 degrees below last year (See Temperature Maps and Data http://tonto.eia.doe.gov/oog/info/ngw/maps.html. Every region except the Mountain and Pacific averaged colder temperatures than normal. The South Atlantic region had the coldest temperature relative to normal at 33.9 degrees, 12.1 degrees less than normal. Heating degree days in this region were 53.4 percent above normal compared to an increase of 19.2 percent for the lower 48 States as a whole.

Other Market Trends

EIA Projects Growth in Natural Gas Production Through 2035. Expanding domestic shale gas resources are expected to lead to increased domestic natural gas production at lower prices, according to EIA’s Early Release of the 2011 Annual Energy Outlook (AEO). According to the report, which was published on December 15, the technically recoverable unproved shale gas resource is 827 trillion cubic feet (Tcf), which is 474 Tcf larger than estimated in last year’s AEO. Growth in natural gas extracted from shale formations will drive an increase in domestic natural gas production from 21.50 Tcf in 2009 to 26.78 Tcf in 2035. Production from shale is expected to grow to 12 Tcf in 2035, more than offsetting a decline in conventional production. Natural gas prices at the Henry Hub are expected to increase from the 2009 level of $3.95 per MMBtu to an average of $7.19 per MMBtu in 2035. Natural gas and renewable power plants will comprise the majority of generation capacity additions, according to the AEO. The share of generation from natural gas increases from 23 percent in 2009 to 25 percent in 2035. The AEO includes projections through 2035 and is based on a reference case assuming the use of technology that is current or reasonably expected to become available over the next decade. Additionally, the reference case does not include the effects of possible future policies. More information is available here: http://www.eia.doe.gov/oiaf/aeo/index.html. The full AEO will be released in March 2011.

Regulations Proposed for Drilling the Delaware River Basin. The Delaware River Basin Commission (DRBC) released draft natural gas development regulationshttp://www.state.nj.us/drbc/notice_naturalgas-draftregs.htm that would conditionally allow natural gas development projects in the Basin areas of the Marcellus Shale. The proposed rules would allow water within the basin to be used for gas development if the water is within the physical boundaries of a DRBC-approved natural gas development plan. Under specified conditions, producers would be able to reuse treated wastewater, non-contact cooling water, recovered flowback and production water, and mine drainage waters for natural gas development. Additionally, the regulations call for a streamlining of the permitting process for gas development projects that demonstrate that they satisfy certain criteria this would shorten the current 6- to 9-month lag time to less than 30 days. Three public hearings will be scheduled during the 90-day comment period to receive oral testimony on the proposed rulemaking.

Natural Gas Transportation Update

Higher demand from cold weather this week prompted some pipelines to release alerts regarding their operations. On December 15, Florida Gas Transmission Company, LLC (FGT), issued an Overage Alert Day for customers in FGT market, with a 15% tolerance on negative daily imbalances. Mississippi River Transmission issued a System Protection Warning on December 15 and December 16 until further notice, due to cold weather in its market area. Due to significantly lower than normal system weighted temperatures, Northern Natural Gas issued a System Overrun Limitation in all market-area zones December 11 through December 15. Southern Natural Gas issued a Type 6 Operational Flow Order, effective December 12 through December 15, due to cold weather.

Texas Eastern Transmission, LP, experienced an outage at its Bernville, Pennsylvania, compressor station on December 13, which was repaired and operational the following gas day. However, their Entriken compressor station remains offline, with an approximate capacity reduction of 65,000 dekatherms through and downstream on Entriken. Texas Eastern is continuing to investigate repair options for that compressor.

Marcellus Shale Webinar

2010-12-15T02:27:00.001+02:00

Region —

By now, many are aware of the huge volume of natural gas held in the deeply buried Marcellus Shale formation and its enormous economic potential for Pennsylvania and neighboring states.
For those who want to learn more about the Marcellus "play," Penn State Cooperative Extension is offering a free, Web-based seminar at 1 p.m. on Dec. 16, titled, "Plumbing the Depths in Pa.: A Primer on Marcellus Shale Geology and Technology."
During the one-hour webinar, Michael Arthur, professor of geosciences, will focus on the geology of the Marcellus Shale and technology for extraction as they influence exploration and development of the natural-gas resource. Co-director of the Penn State Marcellus Center for Outreach and Research, Arthur will answer questions from online participants during the session.
"The middle Devonian Marcellus Formation in the Appalachian Basin of Pennsylvania and New York is estimated to contain in excess of 486 trillion cubic feet of extractable natural gas," he said. "That is sufficient for more than 20 years supply at the United States' current rate of consumption."
Arthur pointed out that there is also the possibility of additional significant shale gas deposits that may be targeted within the same basin -- Devonian black shale units above the Marcellus Shale and the Ordovician Utica Shale below.
"In my presentation, I will discuss the geologic characteristics of the Marcellus Shale formation, the estimated volume of gas deposits at various points, and the process and effect of hydraulic fracturing," Arthur said. "I also will address the continuing concern that drilling operations could allow gas migration into shallow, fresh-water aquifers, which is now being studied intensively."
The webinar, "Plumbing the Depths in Pa.: A Primer on Marcellus Shale Geology and Technology," is part of an ongoing series of workshops and events addressing issues related to the state's Marcellus Shale gas boom. Information about how to register for the webinar is available on the webinar page of Penn State Cooperative Extension's "Natural Gas" website at http://extension.psu.edu/naturalgas/webinars.
Additional one-hour webinars will be held at 1 p.m. on the following dates:
--Jan. 20, 2011: "Marcellus Shale Legislation: What Was Accomplished in the 2009-10 Session and What Issues Remain to be Addressed."
--Feb. 16, 2011: "Dealing with Gas Tax Issues: What You Need to Know."
--Mar. 17, 2011: "Natural Gas Well Development and Emergency Response and Management."
Previous webinars, publications and other information on topics such as water use and quality, zoning, gas-leasing considerations for landowners and implications for local communities also are available on the "Natural Gas" website at http://extension.psu.edu/naturalgas.
For more information, contact John Turack, extension educator in Westmoreland County, at (724) 837-1402 or by e-mail at jdt15@psu.edu.

No Frac in New York

2010-12-12T19:50:00.001+02:00

After months of debate, Gov. David Paterson on Saturday issued an executive order prohibiting the high-volume, horizontal hydraulic fracturing process of drilling for natural gas until at least July 1.

But the outgoing Democratic governor also vetoed a bill that would have suspended all new natural-gas and oil drilling permits in the state for five months.

Paterson’s move balances environmentalists’ worries about the potential harmful effects of the drilling on groundwater, and industry groups who said the moratorium would have hurt business and the state’s economy.

“We in government must always focus on protecting the well-being of those whom we represent and serve, but we also have an obligation to look to the future and protect the long-term interests for our state and its residents,” Paterson said in a news release. “Therefore, I am proud to issue this executive order, which will guarantee that before any high-volume, horizontal hydraulic fracturing is permitted, the Department of Environmental Conservation will complete its studies and certify that such operations are safe.”

The process of hydraulic fracturing, also known as hydrofracking, involves mixing millions of gallons of water with other chemicals and then pumping the mixture down wells to create fractures in the rock and allow natural gas from the rocks to be obtained.

Companies in the industry plan to combine hydraulic fracturing with horizontal drilling to tap into natural gas in the Marcellus Shale, a rock formation located beneath the earth’s surface between Appalachia and Central New York. The area includes several counties just south of Oneida and Herkimer counties.

Prior to Paterson’s decision Saturday, some said signing the state legislation would have negatively affected thousands of jobs and hurt economic development in the state.

But others said vetoing the bill would allow rushed approval of drilling techniques that, without proper regulation, could harm the environment and pollute drinking supplies.

The governor said the proposed moratorium was “principally symbolic” and would have negatively affected the state’s struggling economy.

“I cannot agree to put individuals out of work for a symbolic act,” he said in the release.

Before making his decision, Paterson reviewed the bill, talked to experts and listened to public comments, Paterson spokeswoman Jessica Bassett said late last week.

“There’s been an overwhelming constituent response from interested New Yorkers on both sides of the issue,” Bassett said.

The state Assembly voted 93-43 on Nov. 29 to approve the moratorium through May 15. The Senate passed its version of the bill in August.

Mixed messages

Norwich resident Steven Palmatier owns land where wells have been drilled and other land with the potential for drilling. He also is a consultant on the issue for Chenango County and has spent more than 150 hours at seminars and training sessions about the topic, he said.

Palmatier believes the regulatory decisions should be left in the hands of the state DEC — which is reviewing the procedure — and said prior to Paterson’s decision that the moratorium would have sent a message to companies in the industry that their investments in New York state aren’t safe.

“It is a horrible thing for our state to do,” he said.

William Cooke, director of government relations for the Citizens Campaign for the Environment, said his group would have liked the full moratorium to pass, but was pleased with Paterson’s final decision, regardless.

“We’re looking at this as a victory,” Cooke said. “We wanted him to sign the bill. He didn’t sign the bill … but he did an executive order moratorium that gets us to July, and that is a response to hearing from thousands and thousands of New Yorkers who are more than concerned about what this technology has the ability to do to our drinking water.”

Cooke said a “timeout” was needed for both vertical and horizontal drilling because of the volume of water being used and concerns about the chemicals added to it during the hydrofracking process. He said his group will ask Gov.-elect Andrew Cuomo to extend Paterson’s moratorium after he takes office in January.

The debate

Opponents of the moratorium legislation said the problem with the bill Paterson vetoed was that it limited not only the newer procedure of horizontal drilling, but also hydraulic fracturing for vertical wells.

Paterson’s executive order affects only high-volume, horizontal hydraulic fracturing, which already was effectively delayed by the DEC’s procedural review.

About 90 percent of vertical wells in the state use hydraulic fracturing, a process that became common in the state 60 years ago, said Jim Smith, spokesman for the Independent Oil and Gas Association of New York.

Smith said vetoing the bill was the right decision because, as worded, it would have affected “types of drilling that have been going on in New York for decades” and hurt 300 companies employing a total of about 5,000 people.

“The delay will prevent the expansion of the industry in New York, but the veto of the moratorium means that those companies who were planning to drill vertically and frack those vertical wells can now breathe a sigh of relief,” he said.

He added that the DEC has been evaluating hydofracking and horizontal drilling for nearly three years and has received tens of thousands of comments from all sides on its draft regulations.

“There’s no doubt in my mind that the DEC is doing a very thorough job,” he said. “We hope that what comes out of it are reasonable, achievable regulations.”

State Assemblyman Robert Sweeney, D-Lindenhurst, was the primary sponsor of the bill and is the chairman of the Assembly’s Environmental Conservation Committee.

Sweeney previously acknowledged the legislation affected both vertical and horizontal wells, but he said there were some instances of problems even with vertical wells, and the health of New Yorkers has to be the first priority.

Local legislators

State Assemblywoman RoAnn Destito, D-Rome, previously said she believed the bill was flawed because it affected vertical wells as well as the horizontal wells. But, faced with a decision on the bill as a whole, she voted for the moratorium to provide more time for the review process.

“Protecting the health and safety of the people was first and foremost on my mind and the quality of the water,” Destito said.

State Sen. Joseph Griffo, R-Rome, said Saturday that Paterson’s reasons for vetoing the bill mirrored the concerns that led him to vote against it earlier this year.

“I think we can grow the economy and preserve the environment; they don’t have to be polar opposites,” Griffo said. “And I think in this particular instance, what (Paterson) is saying is what I had indicated earlier – we need to wait for the experts.”

He added that he hopes the DEC finishes its study in “an expeditious way” so that legislators will have the guidance they need to balance economic interests against environmental concerns.

“We have an opportunity here to help ourselves economically,” Griffo said. “But we also have to make sure we’re doing everything to protect the watershed.”

Rig Count at 948

2010-12-11T02:52:00.001+02:00

The number of rigs drilling
for natural gas in the United States slid by 13 this week to
948, oil services firm Baker Hughes said on Friday.

The gas-directed rig count, which had gained in the
previous two weeks, hit 992 in mid-August, its highest since
February 2009, when there were 1,018 rigs drilling for gas.

Horizontal rigs -- the type most often used to extract oil
or gas from shale -- were unchanged for the week, holding at
the record high of 966 hit last week.

Analysts estimate that two-thirds of horizontal rigs are
drilling for natural gas, and these comprise part of the
overall rig count. The rest are drilling for oil.

EPA Accuses Gas Driller in Texas of Contamination

2010-12-08T02:40:00.002+02:00

The U.S. Environmental Protection Agency has accused a natural gas driller of contaminating an aquifer on which some North Texas residents depend.

The EPA has been frustrated by Texas' slow response to a water contamination issue near Dallas. So on Tuesday, it gave Range Resources in Fort Worth, Texas, 48 hours to provide clean drinking water to affected families and take other steps.

EPA regional director Al Armendariz says the action comes after the Texas Railroad Commission said it would be "premature" to take emergency steps. The commission oversees oil and gas drilling in the state.

Armendariz says the EPA found high levels of explosive methane gas in the drinking water wells of at least two residences in Parker County, where Range has been drilling for natural gas in the Barnett Shale.

Range and the Railroad Commission did not immediately comment.

Natural Gas Car Momentum Builds

2010-12-07T03:15:00.003+02:00

Fiat and Chrysler intend to focus on developing natural gas vehicles and forego investing in electric hybrids, a Chrysler Group LLC spokesman confirmed Monday.

"We're looking at a variety of alternative fuels, such as compressed natural gas, natural gas that will reduce our dependence on imported oil," said Chrysler spokesman Vince Muniga.

"We are not throwing out diesel" as a fuel source, he added.

Muniga confirmed published reports, in which Fiat and Chrysler Group CEO Sergio Marchionne said natural gas engines offer a better way to reduce emissions because they are cheaper than competing technologies.

In the same report, Marchionne said electric-powered vehicles present too many obstacles, such as the time it takes to recharge batteries.

Other Fiat officials asserted that natural gas use in the US is very suitable for mass transit and fleet vehicles hauling heavy loads that are refueled from a central location.

Chrysler Group LLC was formed in June 2009 a "global strategic alliance" with Fiat Group, the company said.

Denise McCourt, director of communications for NGVAmerica, said the Chrysler Group became an association member in late November. "The Chrysler Washington office has been working with our government affairs committee on key legislative issues," she said.

Chrysler doesn't offer any natural gas vehicles in the US now, but McCourt said Fiat "is the largest producer of light duty natural gas vehicles in the world."

"Chrysler is looking at the Fiat models that they have now in Italy [to] see what might be appropriate to use in the US market," McCourt said, noting that the focus of the international natural gas vehicle market is "on passenger vehicles, where as here in the US the focus has been on more fleet-oriented vehicles.

The Honda Civic GX is the only light duty passenger car model that has come of the production line right now as a natural gas vehicle, McCourt said, adding that "it is being used as part of the fleets that are being used. We do see consumers buying the Honda Civic GX where there are fleets in the area that have generated enough business to have a public access station."

"We have no idea what Chrysler will be bringing over to the US," McCourt said. "The thing that the president of Chrysler has said about natural gas vehicles is certainly agreeing with our position t

Natural Gas Car Momentum Builds

2010-12-07T03:15:00.001+02:00

Fiat Likes Natural Gas

2010-12-06T02:48:00.001+02:00

MILAN — As Sergio Marchionne brings Fiat back to the United States after nearly three decades, he might add another Italian specialty: the natural-gas engine.

Marchionne, the CEO of Fiat and Chrysler Group, says natural-gas engines offer a better way to reduce emissions because they’re cheaper than competing technologies. He also argues that electric cars, which General Motors and Toyota are betting on, present “too many obstacles” such as the recharge time for batteries.

“Natural gas is very suitable for the U.S.,” said Constantinos Vafidis, who oversees transmission and hybrid development at Fiat’s research center in Turin, Italy. “Especially for public services and goods transportation, where vehicles are refueled from a central base.”

Fiat is the market leader in Europe in natural-gas engines, with an 80 percent share of methane-powered cars and 55 percent of light commercial vehicles. Bolstering Marchionne’s view, the United States has the natural-gas supply for the engines after passing Russia last year to become the world’s largest producer.

“Fiat will use its technological leadership in natural gas, in a region discovered to have huge reserves,” said Giuliano Noci, a professor at the MIP management school of Milan’s Polytechnic university. “It’s almost a mandatory strategy. Fiat should lead the natural-gas car market, as it’s far behind in the electric-vehicle sector.”

Fiat sold 127,000 methane-powered cars in Europe last year, including versions of the Panda compact and Ducato van, helped by government incentives.

US Rig Count at 1713

2010-12-05T01:38:00.001+02:00

Rigs in the U.S. totaled 1713, up by 26 rigs from the previous week's rig count, according to a weekly rig count released Friday by Houston-based oil service company Baker Hughes Inc..

Of the total, 961 rigs were exploring for natural gas and 742 for oil, with another 10 rigs listed as miscellaneous, according to the release. The figure represents the highest level this year.

A year ago this week, the rig count stood at 1,141.

The Baker Hughes rig counts, issued since 1944, are an important business barometer for the drilling industry and its suppliers. The counts act as an important yardstick for drilling companies in gauging the overall business environment of the oil and gas industry.

The U.S. rig count peaked at 4,530 in 1981 as the result of the oil boom. It plummeted to a record low of 488 in 1999.

For full details on Baker Hughes Inc (BHI) BHI. Baker Hughes Inc (BHI) has Short Term PowerRatings at TradingMarkets. Details on Baker Hughes Inc (BHI) Short Term PowerRatings is available at This Link.

Russia and China Working on Natural Gas Deal

2010-11-30T22:45:00.001+02:00

Russia and China have are close to reaching an agreement on a natural gas supply deal, Milton Financials sources report Russian Prime Minister Vladimir Putin as having said recently.

Speaking after talks with his Chinese counterpart, Putin told reporters that while a final pricing agreement is not expected until next year negotiations between Russia’s Gazprom and China National Petroleum Corporation on the prospects of supplies of Russian natural gas to China are looking very positive.

Under the terms of an earlier agreement Russia is to supply China a total of 30 billion cubic meters of natural gas a year beginning in 2015 via the Altai gas pipeline, which joins Siberia and China's western border with Russia.

The two nations have been locked in the final supply price negotiations of the gas from 2006, with China demanding a lower price than that charged by Russia for supplying European countries

With the difference between what Russia is asking and what China is prepared to pay being around $100 per 1,000 cubic meters being the final hurdle, negotiations are expected to conclude by mid-2011.

Milton Financials data shows that economic ties between the two countries have significantly strengthened over the past year with mutual trade between Russia and China increasing by 56% in the first nine months, reaching $42 billion.

Russia also recently completed the Skovorodino-Daqing section of the East Siberia-Pacific Ocean oil pipeline that connects Skovorodino in the Amur region with Daqing in northeastern China and supply is expected to begin by early next year.

Milton Financials has learned that the two nations signed a total of 11 documents during Putin’s meeting with Wen, including an agreement to construct the third and fourth phases of the Tianwan nuclear power plant situated on the Yellow Sea coast. The Tianwan power plant currently consists of two reactor units each rated at 1,000 MW capacity, which were constructed by Russia's Atomstroyexport. The first reactor began full operations in 2006 and the second in 2007

Gas Association Promoting Fracking

2010-11-28T03:59:00.002+02:00

ALBANY – As environmental groups across the Hudson Valley and Catskills regions and statewide lobby the state Assembly to have it approve a moratorium on natural gas drilling in the Marcellus Shale formation until all studies have been completed, a gas and oil trade association is urging lawmakers not to do it.

The Independent Oil and Gas Association of New York says the bill would halt most oil and gas drilling currently allowed, would intrude on the current work of the state DEC and contain flaws that would harm the state's entire oil and gas industry.

The group said the bill would bar existing safe drilling that has been going on in the state; result in the loss of 5,000 jobs; and jeopardize $1 million in annual revenue the state collects from traditional drilling permit fees.

“The members of the Assembly must understand that [the proposed legislation] would jeopardize an industry that has operated safely in New York for more than 100 years and employes more than 5,000 people today,” said Brad Gill, executive director of the association. “We hope the Assembly will allow the DEC to complete its review of the state's regulations governing high volume fracturing and not cave to the smear campaign being waged by radical opponents against the people of our industry.”

Natural Gas Fracking TV Show

2010-11-25T20:08:00.000+02:00

WASHINGTON--(BUSINESS WIRE)--Citizens at the center of the natural gas boom will soon have the chance to see Shale Gas and America’s Future, a 30-minute, made-for-TV film that provides a unique look at how local communities are balancing trade-offs related to drilling in their back yards.
TV Broadcast Schedule
The following provides a partial list of when and where Shale Gas and America’s Future is being broadcast.

Albany		Ch. 6 WRGB, CBS affiliate, 11 a.m. Sundays Nov. 28 and Dec. 5
Binghamton/Ithaca		Ch. 12 WBNG, CBS affiliate, 8:30 a.m. Sundays Nov. 28 and Dec. 5
		Ch. 34 WIVT, ABC affiliate, 11:30 p.m. Saturdays Nov. 27 and Dec. 4
Harrisburg		Ch. 27 WHTM, ABC affiliate, 11 a.m. Sundays Nov. 28 and Dec. 5
Pittsburgh		Ch. 11 WPXI, NBC affiliate, 2:30 p.m. Saturday Dec. 4
Wilkes-Barre/Scranton		Ch. 22 WYOU, CBS affiliate, 6:30 a.m., 8:30 a.m. and 11 a.m. Sundays Nov. 28 and Dec. 5

“This film shows the whole hydrofracking process and what local citizens and state regulators are doing to limit potential environmental problems. It also puts local issues into context,” said Gregory C. Staple, CEO of American Clean Skies Foundation. "The film talks about why we are drilling for gas – jobs, energy independence, the climate. On the flipside, the film gives voice to those who feel we should refrain from drilling for natural gas because it may endanger drinking water supplies or spoil the landscape. There are plenty of opinions. We want residents across the Marcellus shale region in Pennsylvania to look at what’s happening for themselves and draw their own conclusions.”
Shale Gas and America’s Future has already been watched by thousands of people at cleanskies.org, shalegasfuture.com and youtube.com/shalegasfuture.
The broadcast in the Marcellus shale area reflects the interest in the topic, which has dominated local and state politics, as well as community meetings. The timing coincides with the holidays when families are home and can watch together.
This new film supplements a Foundation-supported web site on the same subject – www.shalecountry.com – that was launched this summer.

DOE Grants Money for Natural Gas Van

2010-11-24T00:38:00.000+02:00

nditional loan commitment with the U.S. Department of Energy (DOE) under its Advanced Technology Vehicles Manufacturing (ATVM) Loan Program. VPG will use the DOE funds to enter into full production of the CNG version of the MV-1, which the company expects to begin late in the first quarter of 2011.

he MV-1 is the first and only purpose-built vehicle designed from the ground up to meet the needs of people in wheelchairs as well as for the demanding duty cycles of fleet operators. It is the only factory built light-duty vehicle to date that meets or exceeds the guidelines of the Americans with Disabilities Act. The vehicle features a deployable access ramp with a 1,200-pound weight capacity, a 36-inch entryway and an interior that accommodates up to six occupants with the optional jump seat, including either one or two wheelchair passengers and the driver.

“With this conditional commitment, the Department of Energy has demonstrated its confidence in our program and the impact that it will have in transforming a significant portion of U.S. light duty fleets to clean-burning, natural gas vehicles,” said David Schembri, CEO of VPG. “The MV-1 will help to reduce America’s dependence on foreign oil and substantially reduce light-duty fleet emissions and costs, while at the same time dramatically increasing the quality of life for millions of Americans with physical disabilities.”

The MV-1 will be available with a factory-installed Ford 4.6L V8 engine, configured either for gasoline or compressed natural gas fuel. VPG estimates that the company will manufacture at least 24,000 vehicles per year and over 900 workers will be involved in the project. Over 70% of the vehicle’s content is domestic, making it compliant with the Buy American Act. The vehicle will be built in Mishawaka, IN, under a contract with AM General, the manufacturer of the HUMVEE for the U.S. armed forces. VPG is headquartered in Miami, FL with offices in Troy, MI.

VPG is a portfolio company of Perseus, L.L.C., a private equity fund management company with offices in Washington, D.C. and New York.

About the ATVM Loan Program

The Department of Energy’s Loan Programs Office oversees the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program. The ATVM Loan Program supports the development of innovative, advanced technologies that create thousands of clean energy jobs while reducing the nation’s dependence on oil. The Department has provided over $8 billion in loans to advanced technology vehicle manufacturers, including Ford Motor Company, Fisker Automotive, Nissan North America and Tesla Motors.

About The Vehicle Production Group LLC

Headquartered in South Fla., The Vehicle Production Group LLC (VPG) designs, manufactures, markets and distributes the first mobility vehicle engineered from the ground up for wheelchair accessibility. The vehicle, aptly named the "MV-1" (the first Mobility Vehicle), is the only vehicle that meets or exceeds the stringent vehicle guidelines of the Americans with Disabilities Act (ADA). For more information, visit www.vpgautos.com.

About Perseus, L.L.C.

Perseus, L.L.C. is a merchant bank and private equity fund management company headquartered in Washington, D.C., with an office in New York City. Since its inception in 1995, Perseus has made investments in more than 60 portfolio companies in a wide variety of industries in which Perseus and its principals have expertise, including energy, environmental, and engineering technologies; healthcare, and branded consumer products. For more information on Perseus, L.L.C. visit http://www.perseusllc.com.

Contacts

Fracking is Key for New York Development

2010-11-23T05:35:00.001+02:00

Hydrofracking—drilling into the Marcellus shale near the Finger Lakes—continues to be a big controversy in New York. The public and the natural gas industry are still waiting for the state Department of Environmental Conservation to complete its environmental impact study, two-and-a-half years after it started. As the Innovation Trail's Daniel Robison reports, the natural gas industry hopes permits for new drilling follow soon after.

The Innovation Trail is a collaboration among five upstate public media outlets, reporting about New York's innovation economy. Support comes from the Corporation for Public Broadcasting.

U.S. Rig Count 936

2010-11-20T03:16:00.001+02:00

The number of rigs drilling
for natural gas in the United States slid by 19 this week to
936, according to a report on Friday by oil services firm Baker
Hughes in Houston.

The gas-directed rig count, which has fallen four times in
the last six weeks, hit 992 in mid-August, its highest level
since February 2009 when there were 1,018 rigs drilling for
gas.

Horizontal rigs -- the type most often used to extract oil
or gas from shale -- dropped by eight to 932, the second
straight weekly decline after hitting a record high of 943 on
Nov. 5.

Analysts estimate that two-thirds of horizontal rigs are
drilling for natural gas, and these comprise part of the
overall rig count. The rest are drilling for oil.

Graphic: link.reuters.com/sup34k

Front-month U.S. natural gas futures NGc1, which were up
about 13.5 cents in the $4.43 per mmBtu area just before the
data were released at 1 p.m. EST (1800 GMT), hit an intraday
high of $4.17 after the report.

Despite relatively low gas prices this year, gas drilling
activity has been slow to react, but recent declines,
particularly in the horizontal count may signal a shift away
from gas to more profitable oil-related projects.

Some firms have said they will shift spending away from gas
due to relatively low prices, but most analysts expect no
meaningful slowdown in gas production until the second half of
2011, at the earliest.

They said some producers may continue drilling for gas to
meet lease obligations, while others may be protected by
profitable hedges and can still produce and sell gas at prices
well above current levels.

The gas-drilling rig count is still up 271 since bottoming
at 665 on July 17, 2009, its lowest since the 640 posted on May
3, 2002.

While the gas rig count is 42 percent off its record peak
of 1,606 from September 2008, it stands 210 rigs, or 29
percent, above the same week last year.

Rising output from shale gas has been the primary driver of
increased gas production in the last few years, and most
traders agree it will be difficult to tighten the gas market
unless drilling slows sharply.

Some analysts estimate the gas rig count will have to fall
well below 850 to tighten the overall market.

Recent estimates by the U.S. Energy Information
Administration put U.S. gas output this year at more than 22
trillion cubic feet, its highest since 1973, but next year the
EIA sees output dropping 1.2 percent.

With gas inventories heading into winter at record highs
and production likely to remain strong into 2011, many traders
expect gas prices to remain cheap relative to oil, at least
until an improving economy boosts industrial demand, which
accounts for nearly 30 percent of U.S. gas consumption.
 (Reporting by Joe Silha;editing by Sofina Mirza-Reid)

Marcellus Production to Effect Canadian Production

2010-11-19T03:37:00.000+02:00

According to a new report from BENTEK Energy, LLC, Canadian producers face serious challenges as the continued growth of unconventional natural gas supplies and newly added pipeline infrastructure in the U.S. push Canadian imports out of the U.S. market. The Big Squeeze: Ruby, Canada and Marcellus examines the broad displacement of Canadian imports and its impact on the North American natural gas market, which will ultimately lead to curtailments in Canadian production.

“Marcellus shale volumes are now pushing Canadian imports out of the Northeast, and this trend will accelerate as new pipeline expansions drive additional U.S. gas supplies into Ontario,” said BENTEK Managing Director E. Russell (Rusty) Braziel. “In the West, the new Ruby and Bison pipelines will increase deliverability of the more economical Rockies gas to Western markets and the Midwest, respectively, while displacing gas back into Canada. Because of this, we anticipate gas imports to the U.S. to drop 2.0 billion cubic feet per day (Bcf/d) or 30% by 2015.”

According to BENTEK, in the next few weeks Western Canadian supply currently bound for the Midwest markets on Northern Border Pipeline will face direct competition from Rockies supplies flowing east on the newly installed Bison Pipeline. By next summer, Rockies producers will have an additional 1.5 Bcf/d of westbound capacity on El Paso’s Ruby Pipeline bound for Malin, Oregon. These supplies will compete head-to-head with Canadian supply for PG&E’s Citygate, the premium market in the West.

“We are looking for a 1.0 Bcf/d decline in Canadian production from 2010 to 2015, despite the growth of Canadian unconventional shale production in the Montney and Horn River plays of British Columbia,” continued Braziel. “The bright spot on the Canadian supply/demand horizon is a significant increase in Canadian natural gas demand, which will partially help offset the otherwise bearish outlook for Canadian gas prices.”

BENTEK forecasts an increase in gas usage due to the renewed focus on oil sands development in Alberta and increased power generation in Ontario as coal-fired power plants are replaced with natural gas power generation.

The Big Squeeze: Ruby, Canada and Marcellus examines these issues in detail, including a five-year outlook of the expected market changes throughout North America. The report includes an in-depth look at the Canadian import outlook through 2015, including the impact of the Ruby and Bison pipelines and the supply increases expected from the Marcellus shale.

For more information on The Big Squeeze: Ruby, Canada and Marcellus and BENTEK’s Forward Curve Suite visitwww.bentekenergy.com or call BENTEK at 888-251-1264.

About BENTEK Energy, LLC

BENTEK Energy, LLC, is the leading energy markets information company. Based in Evergreen, Colorado, BENTEK brings customers the analytical tools and competitive intelligence needed to make time-critical, bottom-line decisions in today's natural gas and power markets. Additional information about BENTEK Energy is available on the Web at www.bentekenergy.com.

No Natural Gas Drilling in Pittsburgh

2010-11-17T02:50:00.001+02:00

By a vote of 9-0, the council adopted an ordinance that would prevent any energy company from drilling a gas well within city limits.

No wells currently exist but the industry has about 1,500 acres of city land under lease, according to Councilman Douglas Shields, who sponsored the measure.

Shields said he believes Pittsburgh is the first U.S. city to ban natural gas drilling at a time when abundant domestic reserves of the cleaner-burning fuel are seen as a way of reducing U.S. dependence on imported oil and cutting greenhouse gas emissions.

The vote reflects concern about possible water and air contamination from hydraulic fracturing, an extraction technique that has enabled a boom in gas drilling in Pennsylvania's Marcellus Shale formation.

"This is a dangerous activity to be doing in a densely populated area," he said. "The industry is in total denial about its impacts. All they care about is jobs and money."

The Marcellus Shale Coalition, an industry group, said the vote was expected, but disappointing.

"The vote represents a blow to the city's weak financial standing, and at the same time is a straightforward attack on individual property rights," said MSC president Kathryn Klaber in a statement.

Shields said the vote represents a challenge to Pennsylvania's 1985 Oil and Gas Act which asserts the right of the state to preempt local laws that would ban oil and gas drilling.

According to the Community Environmental Legal Defense Fund, a Pennsylvania nonprofit that drafted the Pittsburgh ordinance, local communities have a constitutional right to deny drilling rights to companies within their bounds.

Norway Calms Natural Gas Market

2010-11-16T02:39:00.001+02:00

Norway, the world’s second-biggest natural-gas exporter, expects increased demand will reduce a glut of the fuel more quickly than forecast by the International Energy Agency, according to its Oil Minister.

An excess of supply capacity will peak at more than 200 billion cubic meters next year, from 130 billion in 2009, before starting “a hesitant decline” to at least 150 billion in 2020, the IEA said in a report this month. The Paris-based agency defines the glut as the capacity of inter-regional pipelines and LNG export plants minus the volume of gas actually traded.

“I’m a little bit surprised to hear that the IEA is projecting a glut of natural gas for the next ten years, this is contrary to the message I get from the industry and other market advisers who say that much of the gas surplus has already disappeared,” Terje Riis-Johansen said today in an Oslo interview. “We see an imbalance in the market now, but we believe this will stabilize itself relatively soon.”

Gas for next month has tumbled 32 percent in New York this year amid rising production from U.S. shale formations and as exporters increased liquefied natural gas capacity. European gas demand dropped 5 percent, or 27 billion cubic meters last year, according to Bank of America Merrill Lynch. Global demand will return to growth this year after dropping in 2009, the IEA said.

“The size of the gas glut will go down, but it may be with us for some time to come,” Fatih Birol, chief economist at the agency, said today at a conference in Oslo.

Gabon Natural Gas Cost

2010-11-14T20:11:00.002+02:00

Resource rich Gabon Saturday signed a 1.3 billion dollar deal to set up a fertiliser complex with Singapore-based Olam International, on the back of its cheap natural gas reserves, officials said.

Gabon President Ali Bongo Ondimba hailed the agreement as an opportunity to "build one of the most competitive fertiliser businesses in the world in Gabon".

Olam Group Managing Director and chief executive Sunny Verghese said Olam believed that "Africa, and Gabon in particular" offered the best prospects for the complex "due to long term availability of natural gas at competitive prices..."

Gabon was "the ideal location" largely due to "one of the lowest cost natural gas reserves in the world...", he added.

The Gabonese presidency added in a statement released in Libreville that the agreement could generate around 10,000 jobs.

The deal was inked in Singapore by Gabonese Finance, Commerce and Tourism Minister Magloire Ngambia and Mines, Petrol and Hydrocarbon Minister Julien Nkoghe Bekale at a ceremony presided by the president, it said.

Olam added it had also signed a 236 million dollar deal with Gabon to develop large scale palm oil plantations.

Gabon said in August it had signed 4.5 billion dollars in contracts with Indian and Singaporean companies for infrastructure projects although it did not name the companies involved.

The projects included the construction of 1,000 kilometres (600 miles) of roads, the construction of a special economic zone for the processing of wood, creating palm plantations and building 5,000 homes.

GE to Buy GM Electric Cars

2010-11-13T18:53:00.001+02:00

General Electric has said it will make a record order of electric cars, to try to kick-start the market.

It hopes that its purchase of 25,000 electric vehicles will drive the development of a network of charging stations, and other related products, which it produces.

Its first order is for 12,000 Chevrolet Volts, which will start to roll off GM's production lines this month.

GE will use them as company cars and lease them to corporate customers.

It intends to buy the 25,000 cars by 2015. It will use some of them in its own fleet.

The rest will go into its Capital Fleet Services business, which leases cars to corporate customers.

GM said it wanted to "lead wide-scale electric adoption and generate growth for its businesses".

GE's Jeff Immelt said he hope the purchase would "move electric vehicles from anticipation to action".

It predicts that the nascent electric vehicle market could be worth $500m (£310m; 366m euros) in revenue to GM over the next three years.

Cheniere Making LNG for China

2010-11-12T02:35:00.000+02:00

A subsidiary of Cheniere Energy Inc. ( LNG | PowerRating) said Thursday that it is working toward a deal to supply liquefied natural gas from its Sabine Pass terminal in Louisiana to one of China's largest independently owned natural gas companies.

Cheniere Energy Partners LP ( CQP | PowerRating) said it signed a memorandum of understanding with China-based ENN Energy TradingCo. that could lead to ENN's contracting 1.5 million metric tons per year of processing capacity at Cheniere's terminal. That capacity could be used to import or export gas for an initial term 20 years, Cheniere said.

ENN Energy Trading Co. is a subsidiary of ENN Energy Holdings Ltd. (XNGSF, 2688.HK), formerly known as XinAo Gas. The deal will be contingent on Cheniere's securing regulatory approval and moving forward with the construction of a facility to turn natural gas produced in the U.S. into liquid for export. If that occurs, LNG exports could begin in 2015.

Cheniere originally built its Sabine Pass terminal, the largest regasification facility in the world, with the aim of importing LNG to the U.S. But the glut of natural gas that has come from domestic shale formations in recent years has turned the U.S. natural gas market upside down--and seems to make massive importation of LNG unnecessary.

The U.S. Department of Energy granted Cheniere permission in September to begin annually exporting up to 16 million metric tons of liquefied gas, culled from shale formations in Texas, Oklahoma, Arkansas and Oklahoma, through the Sabine Pass terminal. However, the company needs to build the exporting infrastructure first.

No LNG export facilities exist in the lower 48 states, although there is one in Alaska.

"We are excited to participate in supplying natural gas to China and we believe that ENN is a successful model for developing diverse solutions to serve its fast growing energy markets," Cheniere Energy Partners Chief Executive Charif Souki said in a news release.

Surplus Gas and Consolidation

2010-11-11T02:05:00.000+02:00

If you didn't think America's energy policy battles could get any more confusing, consider this: Some fossil fuel companies are pulling for a carbon tax. Specifically, companies that focus on cleaner-burning natural gas would benefit from subsidies for energy that generates less carbon dioxide.

But it will be almost impossible to squeeze a carbon tax through Congress in the aftermath of the midterm elections. The new Republican majority means that more politicians in power support both the coal industry and the concept of less government regulation of businessThat knocks out one strut that could have supported energy companies through a recent tough spate where they are locked into producing more gas than the market demands.

Overproduction has led to a natural gas surplus. In the United States, we produce about 24 trillion cubic feet of gas per year. In 2009, the country consumed under 23 trillion cubic feet of gas. According to the U.S. Energy Information Administration, the United States had a record-setting amount of natural gas in storage this year, about 3.8 trillion cubic feet.

The makings of the surplus started in 2003 when Halliburton introduced a new well stimulation method called horizontal hydraulic fracturing to a shale play in Texas. The method enabled drillers to get much more gas out of wells, which ignited a gold rush on major gas plays in the United States. Companies scrambled to borrow money or go in on joint ventures to afford the drilling equipment and land leases. They started drilling, and producing, like crazy.

Centerpoint Energy Passing the Savings to Customers

2010-11-10T03:44:00.001+02:00

Through the Gas Supply Rate (GSR), an allowed adjustment to the gas supply charge portion of a customer bill, CenterPoint Energy passes on increases and decreases in the cost of natural gas with no markup. The GSR typically makes up 60-70 percent of a customer bill.

After lowering the GSR, a typical Oklahoma residential customer's bill using a winter usage of 120 Ccf that was $107.95 last winter will be $100.03, excluding taxes. This represents a more than 7 percent decrease.

"This is good news for consumers and we are happy to be able to pass this natural gas price decrease on to customers particularly because natural gas usage typically increases in the winter months due to heating needs," said Walter Bryant, division vice president of Gas Operations in Oklahoma.

In most cases, natural gas continues to be the best energy value for home heating, water heating, cooking and clothes drying.

CenterPoint Energy recommends that customers take advantage of the many low-cost, no-cost things they can do around the home to save energy and money:

Lower your thermostat to 65 degrees when you're home and even lower when you're not. By lowering your thermostat 10 - 15 percent for eight hours a day, you can save up to 10 percent a year on your heating costs. Installing a programmable thermostat can help you automatically control your heat usage.

Change your air filters regularly. A dirty filter restricts airflow and can increase the operating cost of your furnace by as much as 10 percent.

Set your water heater temperature at 120 degrees and wrap water heater pipes. Lowering the temperature to 120 degrees from 140 degrees and insulating your pipes can save you up to 10 percent on your water heating costs.

Seal leaks around doors, windows and other openings such as pipes or ducts, with caulk or weather-stripping. The most common places where air escapes in homes are floors, walls and ceilings, ducts, fireplaces, plumbing penetrations, doors, windows, fans and vents, and electrical outlets.

On sunny days, open draperies and blinds to let the sun's warmth in. Close them at night to insulate against the cold air outside.

Customers can enroll in Average Monthly Billing to spread heating costs more evenly throughout the year and avoid high winter bill peaks.

To learn more helpful information on ways to save energy and money, visitwww.centerpointenergy.com/readyforwinter.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines, and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $19 billion. With about 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the Web site at www.CenterPointEnergy.com.

Creative Idea for in Serbia for Natural Gas

2010-11-08T18:23:00.002+02:00

NEW YORK, November 8, 2010 /PRNewswire via COMTEX/ -- Energtek Inc., a leader in hi-tech natural gas solutions and Adsorbed Natural Gas (ANG) technology, today announced that its recently formed subsidiary, Pan Energy d.o.o., has signed a gas supply contract with an industrial energy consumer in Northern Belgrade, Serbia.

Natural gas will be transported from a filling station by Pan Energy to a local dairy factory. The contract provides for the ongoing supply of natural gas, utilizing Energtek's cost-effective and environmentally-friendly mobile transportation solutions. The transportation project will help test the local technological, organizational and regulatory components of the supply system in Serbia.

"Pan Energy's first customer in Serbia will demonstrate the effectiveness of Energtek's bulk transportation natural gas solutions," said Energtek CEO Lev Zaidenberg. "Our mobile solutions enable the delivery of a viable and affordable alternative energy source. With the success of this pilot project, we anticipate growing regional demand for natural gas supplied by Pan Energy."

About Energtek

Energtek develops and applies innovative low-pressure storage technology and expertise to provide complete well-to-wheel pipeless Natural Gas supply solutions to industrial consumers and fleets of small vehicles. Energtek's Natural Gas solutions reduce pollution and alleviate consumer energy costs. Energtek provides competitive bulk transportation solutions to industrial users and alternative motor fuel solutions for 2- and 3-wheel vehicle drivers in Asia. Energtek operates subsidiaries in North America, Europe, Asia and the Middle East. To learn more about Energtek, visithttp://www.energtek.com

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of Energtek and its technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and other matters set in Energtek's filings. These risks and uncertainties could cause actual results to differ materially from those indicated in the forward-looking statements.

Crude Oil Hits $84.33/bbl This Week

2010-11-07T02:10:00.002+02:00

The price of December crude jumped 2.1% Nov. 4 to the highest level for a New York front-month contract since Apr. 6 as the market continued its reaction to the Federal Reserve Bank’s decision to buy $600 billion of Treasuries over the next 8 months to stimulate the US economy.

It was the fourth consecutive price hike for crude this week. The December natural gas contract increased 0.5%, regaining most of its loss from the previous session.

Analysts in the Houston office of Raymond James & Associates Inc. said, “Apparently, the market needed some time to make up its mind about the Fed's latest round of quantitative easing (QE2). After posting modest gains [on Nov. 3], the broader market screamed higher yesterday with the Standard & Poor’s 500 Index (up 1.9%) reaching levels not seen since 2008.” They said energy corporate stocks “took the cue from crude,” outperforming the broader market.

The Fed’s monetary stimulus plan furthered weakened the US dollar, which fell 0.4% against the euro to the lowest level since Jan. 20, encouraging investors to shift their money to the riskier commodities of oil and gold. Gold prices surged 2.5%, the biggest 1-day jump in nearly 6 months.

“We don’t see crude decoupling from the currency markets in the near future as the reactions about the US’s looser monetary policy will keep this pot boiling,” said Anuj Sharma, research analyst at Pritchard Capital Partners LLC in Houston. “The Fed also kept the benchmark funds rate unchanged at 0.25% as economic recovery remains disappointing slow.”

The dollar exchange rate and equity market trends “are working in favor of even higher oil prices,” said Adam Sieminski, chief energy economist for Deutsche Bank in Washington, DC. However, he said, “We would be more convinced of the sustainability of the oil price rally if it were accompanied by an elimination in contango in the crude oil forward curve and improvements in fundamentals.”

Sieminski said, “The recovery in middle distillates demand growth has been more robust relative to other fuels.” Demand growth among nonmembers of the Organization for Economic Cooperation and Development—specifically Asian countries—continues to outpace the developed world. “In our view, these two features of the market will persist, which has implications for supply-demand balances from a seasonal perspective as well as price trends,” he said.

Meanwhile, Walter de Wet at Standard New York Securities Inc., the Standard Bank Group, said, “We believe that the Commodity Futures Trading Commission data released later today is likely to show that noncommercial long positions have increased from already high levels last week.” The weekly CFTC report last week showed net speculative length in crude pushed higher last week, while net speculative length in oil products declined.

De Wet said, “The current level of the speculative length in oil could cause oil prices to pull back very sharply despite the Fed’s QE2 program. To highlight the risk of such a correction, there were two previous big drops in oil prices when net speculative length had reached current levels. One was in January-February, another was April-May. We believe that commodity markets are pricing in QE2 already, and commodities will not necessarily continue to rally. We need new data to support higher prices.”

The biggest immediate threat to the current commodity price rally is “another round of tightening in monetary policy in China,” he said.

Olivier Jakob at Petromatrix, Zug, Switzerland, said, “We continue to believe that QE2 is better played in equities than in oil futures. Oil prices are already back to the end 2007 levels, but the oil fundamentals are nowhere near those of 2007, and we continue to expect that higher commodity prices will be met with increasing hectic reactions from the CFTC (never mind that it is the Fed fueling the commodity price hike).”

In its just-published medium-term outlook for crude, the Organization of Petroleum Exporting Countries assumes oil prices will stay at $75-85/bbl until 2020. “They have a Call-On-OPEC for 2014 at 30.4 million b/d, i.e. only 1.2 million b/d higher than the current production and 1.6 million b/d less than the 2007 Call-On-OPEC,” Jakob noted. “It is easy to discount anything that comes out of OPEC, but we need to keep in mind that the International Energy Agency also is not calling for an increase in the Call-on-OPEC for next year. In the meantime, unresolved unemployment and rising oil prices are not a positive for oil demand, and it is at those price levels that US oil demand started to get hit at the end of 2007.”

Energy prices
The December contract for benchmark US light, sweet crudes traded at $84.92-86.83/bbl Nov. 4 before closing at $86.49/bbl, up $1.80 for the day on the New York Mercantile Exchange. The January contract climbed $1.81 to $87.16/bbl.

On the US spot market, West Texas Intermediate at Cushing, Okla., was up $1.80 to $86.49/bbl, once more in lockstep with the front-month futures price. Heating oil for December delivery gained 4.52¢ to $2.33/gal on NYMEX. Reformulated blend stock for oxygenate blending for the same month increased 3.91¢ to $2.18/gal.

The December natural gas contract recovered 2¢ to $3.86/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., escalated by 13.9¢ to $3.51/MMbtu. Meanwhile, the Energy Information Administration reported the injection of 67 bcf of natural gas into US underground storage in the week ended Oct. 29. That put working gas in storage above 3.8 tcf—up 37 bcf from the comparable period last year and 353 bcf above the 5-year average (OGJ Online, Nov. 4, 2010). “Weak supply and demand balances suggest excess storage will persist across the winter,” Sieminski said.

In London, the December IPE contract for North Sea Brent crude was up $1.62 to $88/bbl. Gas oil for November gained $15.25 to $737.50/tonne.

The average price for OPEC’s basket of 12 reference crudes rose $1.77 to $84.33/bbl.

Barnett Shale Very Productive

2010-11-03T01:55:00.002+02:00

Total natural gas production in North Texas' Barnett Shale has passed a milestone level of 8 trillion cubic feet. And the area continued to produce more than 5 billion cubic feet per day in the first eight months of this year, despite a steep decline in drilling since gas prices crashed in the latter half of 2008, the Powell Barnett Shale Newsletter reported Monday.

The authoritative newsletter noted that with gas prices remaining weak, drilling has made a dramatic shift to the "wetter" part of the play, where Barnett wells not only produce dry gas, but also higher-priced liquids, including oil, condensate and natural gas liquids such as butane and propane. The Barnett Shale lies under more than 20 North Texas counties.

Gene Powell, an oil industry veteran and the newsletter's publisher, told the Star-Telegram on Monday that he stands by his forecast, first made in 2004, that the Barnett will produce 94 trillion cubic feet of gas over 80 to 100 years, a volume roughly quadruple current annual U.S. gas production.

967 Rigs Looking for Natural Gas

2010-10-30T02:48:00.000+02:00

The number of rigs actively exploring for oil and natural gas in the U.S. increased by 3 this week to 1,672.

Houston-based Baker Hughes Inc. said Friday that 967 rigs were exploring for natural gas and 696 for oil. Nine were listed as miscellaneous. A year ago this week, the rig count stood at 1,069.

Of the major oil- and gas-producing states, Texas gained five rigs, Alaska gained two and California and Louisiana each gained one. Arkansas, New Mexico, Oklahoma and Wyoming each lost one, while Colorado lost two rigs. North Dakota, Pennsylvania and West Virginia remained unchanged.

The rig count tally peaked at 4,530 in 1981, during the height of the oil boom. The industry posted a record low of 488 in 1999

Oil $82.55/barrel - Natural Gas $3.31/MCF

2010-10-29T04:27:00.002+02:00

Oil prices fell to near US$82 a barrel yesterday in Asia after a report showed a surge in US crude supplies undermined hope demand is improving.

Benchmark oil for December delivery was down US37c at US$82.18 a barrel on the New York Mercantile Exchange. The contract rose US3c to settle at US$82.55 on Tuesday. The American Petroleum Institute said crude inventories rose 6.4 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill, had forecast a rise of 1.5 million barrels. Inventories of petrol fell while distillates rose.

Investors are also looking for hints about the size of a Treasury bond-buying programme the Federal Reserve may implement next week to spur economic growth, known as quantitative easing.

"The surprisingly large build in API crude oil stocks could work with a stronger US dollar, a watered-down [quantative easing] event and technical resistance to turn oil prices lower from here," said Cameron Hanover.

Natural gas slid US4.4c to US$3.31 per 1000 cubic feet.

Gas Inventories Up

2010-10-28T03:38:00.002+02:00

Analysts and traders expect government data scheduled for release Thursday to show another above-average build pushing natural gas inventories to last fall's levels.

The U.S. Energy Information Administration is expected to report that 73 billion cubic feet of gas were added to storage during the week ended Oct. 22, according to the average prediction of 16 analysts and traders in a Dow Jones Newswires survey.

The EIA is scheduled to release its storage data Thursday at 10:30 a.m. EDT (1430 GMT).

The survey's median result was 74 billion cubic feet, with a high estimate of a 92-bcf build and a low of a 60-bcf injection. The storage estimate is higher than last year's 24-bcf build in storage for the same week and the 45-bcf five-year average build for that week.

If the storage estimate is correct, inventories as of this past Friday will total 3.756 trillion cubic feet, 9.1% above the five-year average and nearly in line with the year's level for the same week.

The last six weeks of storage builds have been above average, narrowing the gap between this year's level and last November's when U.S. storage hit an all-time high of 3.837 tcf.

Last fall's build was attributed to weak demand from commercial and industrial users hard-hit by the recession. Blame for the current swell falls on warmer-than-normal temperatures and a rosy outlook in the futures market, which "has been creating plenty of financial incentive to put gas in the ground," said analyst Martin King, an analyst with First Energy Capital.

The EIA's weekly storage page is http://tonto.eia.doe.gov/oog/info/ngs/ngs.html.