Over the last five years, CenterPoint Energy’s gas operations throughout the state has not experienced the types of incidents recently reported by other Texas utilities and which have been linked to problem compression couplings that lack any internal restraint against pull-out of the pipe. These problem fittings constitute a subset of a much broader category of “compression couplings” that have been widely and successfully used by the gas industry for decades.
The manufacture, installation and maintenance of gas systems are subject to a number of industry-recognized engineering standards designed to minimize the risk of failures. The federal pipeline safety rules adopted in 1971 incorporate many of these engineering standards and require that gas distribution companies utilize leak survey, leak response and failure analysis procedures to timely identify all potential leak sources on their systems and implement appropriate corrective action. CenterPoint Energy operating practices have consistently met or exceeded these standards.
The overwhelming majority of major leaks are caused by third parties that fail to call before they dig or respect the markings of our pipe in violation of state law and Railroad Commission regulations. We did experience an incident in Missouri City in 2007 that has been linked to an unauthorized compression coupling that appears to have been installed by a third party in a manner inconsistent with CenterPoint Energy’s standards.
Today, the Railroad Commission initiated rulemaking proceedings on leak surveys, leak grading and replacement of certain compression fittings used on some meter installations. We will actively participate in these rulemakings and are evaluating the Commission’s directive on compression fittings and determining how to best respond. We look forward to working with the Commission to insure that we operate one of the safest gas distribution systems in the nation.
CenterPoint Energy has an active program to educate both the construction contractors and the public on how to avoid damaging our lines during excavation and what to do if a leak occurs. Anyone contemplating excavating should first contact the Texas One Call system at the new FCC-mandated number of 811 or the Texas One Call number of 1-800-545-6005. If you smell natural gas you should:
Leave immediately. Do not use electric switches, telephones (including cell phones) or anything that could cause a spark.
Wednesday, November 7, 2007
Tuesday, November 6, 2007
Encana Buying Out Natural Gas Partner
DThreetechnology.com is reporting today that one of Canada's most profitable oil and gas companies, EnCana Corp., said Monday it will pay 2.55 billion Canadian dollars (2.73 billion U.S. dollars) to buy out a partner's 50 percent stake in a fertile U.S. natural gas field.
DThreetechnology.com is reporting today that the Calgary-based company said it is buying the half interest in the Amoruso field held by privately owned Leor Energy, located in eastern Texas.
DThreetechnology.com is reporting today that EnCana president and chief executive Randy Eresman said the field, which produces more than 215 million gross cubic feet per day, is centered in one of the fastest-growing natural gas areas in North America, the Deep Bossier formation.
DThreetechnology.com is reporting today that "These assets are a seamless fit with our existing production and operations, and they hold tremendous growth potential in the near and longer term," Eresman said in a statement.
DThreetechnology.com is reporting today that the Calgary-based company said it is buying the half interest in the Amoruso field held by privately owned Leor Energy, located in eastern Texas.
DThreetechnology.com is reporting today that EnCana president and chief executive Randy Eresman said the field, which produces more than 215 million gross cubic feet per day, is centered in one of the fastest-growing natural gas areas in North America, the Deep Bossier formation.
DThreetechnology.com is reporting today that "These assets are a seamless fit with our existing production and operations, and they hold tremendous growth potential in the near and longer term," Eresman said in a statement.
Monday, November 5, 2007
Canadian Natural Gas - Part 4
Sun Media of the edomonton.com website is reporting that the high value of the Canadian dollar is only exacerbating problems in an industry beleaguered by stagnant natural gas prices and by changes imposed by the royalty review, industry watchers said yesterday.
As government officials fret and watch the chunk they get from the oilpatch get smaller thanks to the new-found strength of the Canadian dollar, the tribulations of a strong dollar are only the latest in a series of problems besieging the natural gas sector, said DeltaOne Capital analyst Peter Linder.
"This is going to have a very negative effect, particularly on the natural gas sector," said Linder of the high-flying Canadian dollar.
Alberta Premier Ed Stelmach recently warned that the strength of the Canadian currency was eating away at the province's take from natural gas.
The government's concern surrounds the fact that natural gas prices have remained stagnant and, thanks to the high dollar, Albertans are getting less cash today than they were for the same amount of the resource six months ago.
When gas sold for $7 US per gigajoule and the dollar was at 70 or 80 cents, the exchange rate meant Albertans got close to $9 Cdn per unit.
When the same unit now sells for the same price, thanks to the exchange rate, Albertans are getting just over $6 Cdn, which translates into millions in losses.
"We've had flat gas rates for the last five or six months, while the loonie has gone up 20%," said Linder.
"Companies have already cut back in drilling and exploration because of the price of natural gas.
As government officials fret and watch the chunk they get from the oilpatch get smaller thanks to the new-found strength of the Canadian dollar, the tribulations of a strong dollar are only the latest in a series of problems besieging the natural gas sector, said DeltaOne Capital analyst Peter Linder.
"This is going to have a very negative effect, particularly on the natural gas sector," said Linder of the high-flying Canadian dollar.
Alberta Premier Ed Stelmach recently warned that the strength of the Canadian currency was eating away at the province's take from natural gas.
The government's concern surrounds the fact that natural gas prices have remained stagnant and, thanks to the high dollar, Albertans are getting less cash today than they were for the same amount of the resource six months ago.
When gas sold for $7 US per gigajoule and the dollar was at 70 or 80 cents, the exchange rate meant Albertans got close to $9 Cdn per unit.
When the same unit now sells for the same price, thanks to the exchange rate, Albertans are getting just over $6 Cdn, which translates into millions in losses.
"We've had flat gas rates for the last five or six months, while the loonie has gone up 20%," said Linder.
"Companies have already cut back in drilling and exploration because of the price of natural gas.
Sunday, November 4, 2007
Natural Gas Beats Heating Oil for Home Owners
The Associated Press is reporting that with his furnace sputtering its final gasps, Charles Comito decided it was time to trade in his heating oil system for natural gas this year in 2007. The switch cost Mr. Comito $4,400, a price he says will be worthwhile in the chilly months ahead.
"It was for the convenience and cost," said Comito, a 71-year-old resident of Little Egg Harbor, N.J., who lives in a three-bedroom ranch-style home.
The Associated Press is reporting that with oil topping $90 per barrel, some homeowners are weighing whether the price tag for switching to a natural gas furnace makes sense. The home owners major decision may depend on a variety of factors, including the availability of natural gas lines, an issue in the Northeast, where gas pipelines have historically been less common.
The Associated Press is reporting that costs vary depending on the size and location of the home, but switching a typical three-bedroom house from heating oil to natural gas might run an average of $5,000 to $6,000 and the removal of an oil tank, which some local governments offer rebates for, might run an average of $2,000 additionally.
The Associated Press is reporting that since early 2006, heating oil has been more expensive than natural gas and is currently nearly double the cost, according to Tim Evans, an energy analyst with Citi Futures Perspective. On Thursday, the price of crude oil, which has surged 20 percent in one month, reached a record of $96 per barrel.
The Associated Press is reporting that while natural gas prices are also rising, the Energy Department says those who rely on heating oil will face much higher prices this winter, while those who use natural gas should only see a moderate price increase. Heating oil customers will pay an average of $319 more this winter than last, while natural gas customers are forecast to pay $78 more for heat between October and March.
"It was for the convenience and cost," said Comito, a 71-year-old resident of Little Egg Harbor, N.J., who lives in a three-bedroom ranch-style home.
The Associated Press is reporting that with oil topping $90 per barrel, some homeowners are weighing whether the price tag for switching to a natural gas furnace makes sense. The home owners major decision may depend on a variety of factors, including the availability of natural gas lines, an issue in the Northeast, where gas pipelines have historically been less common.
The Associated Press is reporting that costs vary depending on the size and location of the home, but switching a typical three-bedroom house from heating oil to natural gas might run an average of $5,000 to $6,000 and the removal of an oil tank, which some local governments offer rebates for, might run an average of $2,000 additionally.
The Associated Press is reporting that since early 2006, heating oil has been more expensive than natural gas and is currently nearly double the cost, according to Tim Evans, an energy analyst with Citi Futures Perspective. On Thursday, the price of crude oil, which has surged 20 percent in one month, reached a record of $96 per barrel.
The Associated Press is reporting that while natural gas prices are also rising, the Energy Department says those who rely on heating oil will face much higher prices this winter, while those who use natural gas should only see a moderate price increase. Heating oil customers will pay an average of $319 more this winter than last, while natural gas customers are forecast to pay $78 more for heat between October and March.
Saturday, November 3, 2007
Billionaire Keeps Oil Sands Project
D Three Technology Blog is reporting today that Canadian oil industry giant Canadian Natural Resources Ltd. has responded to Alberta's new royalty regime with a slap and a tickle.
Canadian Natural Resources Ltd created and controlled by billionaire Murray Edwards is shifting its plans for natural gas drilling, saying it will move production to British Columbia, West Africa and the North Sea. It will however keep its oil sands investment plans, which amount to more than $20-billion and are the future of the company.
Yesterday, Canadian Natural Resources Ltd prominently declared it would cut its gas drilling in 2008 by about 40 per cent because of higher royalties to be imposed in Alberta starting in 2009. The natural gas cut is less than the 67 per cent that the company had previously said it would make but still a major blow to the sector as it begins its winter drilling season.
Canadian Natural Resources Ltd created and controlled by billionaire Murray Edwards is shifting its plans for natural gas drilling, saying it will move production to British Columbia, West Africa and the North Sea. It will however keep its oil sands investment plans, which amount to more than $20-billion and are the future of the company.
Yesterday, Canadian Natural Resources Ltd prominently declared it would cut its gas drilling in 2008 by about 40 per cent because of higher royalties to be imposed in Alberta starting in 2009. The natural gas cut is less than the 67 per cent that the company had previously said it would make but still a major blow to the sector as it begins its winter drilling season.
Friday, November 2, 2007
Canadian Natural Gas - No Go, Tax Too High
The canadianpress.com, operated and reported by Google.com has reported that the Canadian Natural Resources Ltd. (TSX:CNQ) plans to drill as much as 50 per cent fewer natural gas wells next year because of Alberta's planned royalty increases, which were announced last week and go into effect in early 2009.
"The new royalty program will have a negative impact on our development plans in 2008 and onward, the extent of which we are still attempting to fully define. As a result we will continue to adjust our activity to ensure that we are optimizing our plan," CNQ chairman Allan Markin said in a conference call Thursday.
"One of our greatest strengths is our flexibility and, in the light of the pending changes to the royalties, this flexibility and breadth of options has become even more important to maintain our focus on maximizing returns to our shareholders."
"The new royalty program will have a negative impact on our development plans in 2008 and onward, the extent of which we are still attempting to fully define. As a result we will continue to adjust our activity to ensure that we are optimizing our plan," CNQ chairman Allan Markin said in a conference call Thursday.
"One of our greatest strengths is our flexibility and, in the light of the pending changes to the royalties, this flexibility and breadth of options has become even more important to maintain our focus on maximizing returns to our shareholders."
Thursday, November 1, 2007
China Natural Gas Prices Going Up 10%
Website www.ndrc.gov.cn which is the government of China website reported today from Beijing on Thursday that China's natural gas prices are "seriously low" and China plans to adjust costs for industrial users and retail prices for car drivers soon, following a 10 percent rise in fuel costs on Thursday.
"China's natural gas prices are seriously low, and supply contradictions are very obvious," the National Development and Reform Commission said in a statement posted on its Web site.
"In order to restrain the overly fast increase in industrial projects using natural gas and the blind development of cars changing from using oil to using gas...the measures for adjusting natural gas pricing will be implemented in the near future."
"China's natural gas prices are seriously low, and supply contradictions are very obvious," the National Development and Reform Commission said in a statement posted on its Web site.
"In order to restrain the overly fast increase in industrial projects using natural gas and the blind development of cars changing from using oil to using gas...the measures for adjusting natural gas pricing will be implemented in the near future."
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