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January 28, 2016

NATURAL GAS INVENTORY (Week Ended 1/22/16)

Current: 3,086 Bcf
Actual Injection/(Withdrawal), per EIA: (211) Bcf
Economist Average Estimate, per Bloomberg: (209) Bcf
Previous: 3,297 Bcf

Click here for the chart with five year averages.
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*Natural Gas: Growing Infrastructure Shrinks Marcellus-Henry Hub Price Gap – Oil & Gas 360®

The spread between natural gas prices at Henry Hub and in the North East are narrowing as infrastructure increases, according to information from the Energy Information Administration. Henry Hub in Louisiana acts as the main trading point for natural gas in the U.S., but natural gas from the Utica shale plays in Pennsylvania, West Virginia, and Ohio constantly trade lower than the national benchmark. – Read More

*BG Deal Caps Shell’s Big Gas Bet – The Wall Street Journal

A decade ago, natural gas played second fiddle to oil at Royal Dutch Shell PLC. Now, the company is staking its future on gas—and pitting it against oil—with the acquisition of BG Group PLC, which Shell shareholders approved Wednesday. If BG investors support the deal on Thursday as analysts and investors expect, the combination would nearly double Shell’s production of liquefied natural gas within two years, and turn it into the world’s largest marketer of the fuel by the end of the decade. – Read More

*The U.S. Will Inflict Pain on Iran’s Energy Plans, Once Again, As LNG Competition Heats Up – Forbes

Now that Western sanctions have been lifted from Iran’s energy sector, the country wants to sell its natural gas (the largest gas reserves on the planet at 1,201 trillion cubic feet) to the world. However, unfortunately for Iran it lacks the necessary infrastructure to quickly enter the market. Alireza Kameli, managing director of National Iranian Gas Export Co. (NIGC) said on Tuesday that the Islamic Republic is exploring several options to help join the international LNG club. – Read More

*Energy Producers – Don’t Ever Underestimate the Environmental Activists – Oil & Gas 360®

The warning for energy producers in Colorado came from Christopher Guith, senior vice president for policy at the U.S. Chamber of Commerce’s Institute for 21st Century Energy. Guith’s warning was delivered during a panel discussion with a group of oil and gas industry professionals, two U.S. congressmen, petroleum engineering students and professors at the Colorado School of Mines. The topic was “Lifting the Oil Export Ban & What It Means for Colorado.” – Read More

*Industry Experts See Tide Turning Worse Near-term for Appalachia Operators – Natural Gas Intelligence

Ohio regulators expect combined conventional and unconventional natural gas production to top 1 Tcf in 2015 when fourth quarter data is released in the coming months, a milestone that would mark the rise of the Utica Shale five years ago. The Utica Shale has primarily driven state production numbers higher in recent years. In 2014, combined production reached about 518 Bcf, of which shale wells accounted for about 452 Bcf. – Read More

*A single Ohio County Marcellus Shale well yielded enough natural gas in 2014 to provide electricity for 24,315 homes – Associated Press

A single Ohio County Marcellus Shale well yielded enough natural gas in 2014 to provide electricity for 24,315 homes, according to new numbers released by the West Virginia Geological & Economic Survey. There’s also plenty of what industry leaders term “light crude” oil being produced right here in the local region, including 45,260 barrels of oil from a well in the name of the Ohio County Commission in 2014. Overall, with traditional vertical drilling included with horizontal fracking, West Virginia produced more than 1 trillion cubic feet of natural gas in 2014. – Read More

*KLR Group Sees Markets Rebalancing in 2017 – Oil & Gas 360®

A recent analyst note from KLR Group indicated that oil and gas markets could balance in 2017 as OPEC production begins to stabilize and U.S. production rolls off. Saudi Arabia’s oil production is expected to stay at about 10.4 MMBOPD, while Iran gradually ramps up production and Iraq’s output moderates. The crash in oil prices followed OPEC’s decision to continue pumping in order to defend market share, a move in late 2014 that sent the market into a tailspin. – Read More

*Canada Lengthens Pipeline Wait as Trudeau Seeks to Break Logjam – Bloomberg

Canadian Prime Minister Justin Trudeau’s plan to break a logjam in pipeline approvals means TransCanada Corp. and Kinder Morgan Inc. will have to wait even longer. In a bid to overcome mounting opposition to oil exports, an overhaul of the country’s review process will include more consultation with stakeholders and will apply to proposals such as Kinder Morgan’s Trans Mountain expansion and TransCanada’s Energy East, according to interim rules unveiled by Environment Minister Catherine McKenna and Natural Resources Minister Jim Carr in Ottawa on Wednesday. – Read More

*Colorado Concludes Rule Making Process after 16 Months of Local Government, Environmental, Industry Interaction – Oil & Gas 360®

The Colorado Oil and Gas Conservation Commission (COGCC) approved rules yesterday recommended by a task force organized by Colorado Governor John Hickenlooper. The final rules came after more than a year of talks and negotiations between representatives of local governments, community members and Colorado’s oil and gas industry. The taskforce was created in September 2014 as a compromise between pro- and anti-hydrocarbon development groups who each removed initiatives that were on the November ballot. – Read More

*Inside Iran’s giant natural gas complex – CNN

Flying into the Iranian town of Assaluyeh on the Persian Gulf, the first thing that sticks out during the approach is several large gas flames towering over a gigantic complex. This is South Pars, home to Iran’s biggest and most ambitious energy project, which is gaining momentum despite the headwinds in global oil and gas markets. While many of Iran’s oil and gas facilities are outdated and in dire need of investment, South Pars is a model of how the country would like its hydrocarbon sector to be viewed in the future: modern, efficient and productive. – Read More

*Obama administration seeks to curb methane emissions on public land – Reuters

In its latest move to combat climate change, the Obama administration on Friday said it will overhaul 30-year-old regulations for oil and gas operations on public and tribal lands to limit the “wasteful release” of natural gas and curb methane emissions. The proposal by the Interior department’s Bureau of Land Management would require oil and gas producers to use currently available technology to limit flaring at oil wells on federal land. – Read More

*Cheniere Plans to Pay Off $2.8 Billion in Debt – Oil & Gas 360®

Cheniere Energy (ticker: LNG, announced that it has engaged 13 financial institutions in order to structure and arrange senior secured credit facilities in an aggregate principal amount of up to approximately $2.8 billion, according to a company press release. Cheniere hopes to use the proceeds from the new credit facility to redeem or repay approximately $1.7 billion in senior secured notes due 2016, prepay $400 million on a senior secured term loan due 2017 by Cheniere Creole Trail Pipeline and redeem or repay the $420 million in senior secured notes due 2020 issued by Sabine Pass LNG. – Read More

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