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Natural Gas Roundup

November 19, 2015

NATURAL GAS INVENTORY (Week Ended 11/13/15)

Current: 4,000 Bcf
Actual Injection/(Withdrawal), per EIA: 15 Bcf

Economist Average Estimate, per Bloomberg: 19 Bcf

Previous: 3,985 Bcf (Revised from 3,978)

Click here for the chart with five year averages.

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*Increasing Oil Production Challenges North Dakota’s Goal to Cut Flaring – Oil & Gas 360®

North Dakota has been working to lower the percentage of the natural gas flared inside the state, with a goal set to lower the percentage of flared natural gas to just 15% by the end of first-quarter 2016. Historically, North Dakota flared more than 35% of its natural gas production, according to information from the Energy Information Administration (EIA). Increases in crude oil production have resulted in increased associated natural gas production from oil reservoirs, especially in the Bakken. – Read More

*Why China Can’t Save the Global LNG Market – The Wall Street Journal

China lighted a fire under the market for liquefied natural gas this week. But the world’s most important incremental buyer of the chilled commodity won’t entirely thaw this troubled market. Chinese regulators said late Wednesday that they would cut the price for natural gas by an average 28% for commercial users. This is the first change in the gas price in more than a year, and finally adjusts for the plunge in oil prices. Not only do oil products compete with gas, but natural-gas contracts in Asia are often linked to the price of crude. – Read More

*How Liquefied Petroleum Gas Saves Lives And Can Save More – Forbes

Liquefied Petroleum Gas (LPG) and other hydrocarbon products continue to save lives and could save many more if made available to more people. The United States Energy Information Administration (EIA) defines LPG as “…hydrocarbon gases, primarily propane … derived from crude oil refining or natural gas processing”. According to the European LPG Association (AEGPL) LPG has “literally thousands of uses in the home, in commercial business, in industry, on the farm and for transportation”. Familiar to many campers who have used LPG products such as Coleman fluid for light and fuel, LPG is the primary fuel source for cooking, lighting, and heating in many parts of the world. – Read More

*TRP Analyst Day: “More to the TransCanada Story than Keystone XL” – Oil & Gas 360®

The Obama administration’s rejection of the Keystone XL pipeline on November 6, 2015, was not a huge surprise to the public majority following the issue that has dragged on for the better part of a decade. The timing, however, was critiqued by pro-industry siders, who grumbled Obama may have rejected the project to put a proverbial feather in his cap prior to the United Nations Climate Change Conference at the end of the month. The timing was also significant for TransCanada, who hosted its 2015 Investor Day in Toronto on November 17. – Read More

*U.S. and Russian gas exporters square up over Europe – Reuters

The first export of U.S. gas to Europe will head for Lithuania, two industry sources say, a gesture to the Baltic states, reliant on Russia for supply, and the likely first shot in a price war over market share in Moscow’s backyard. The February delivery will be of U.S. liquefied natural gas (LNG) transported by sea to custom built terminals, challenging Russia’s land locked pipelines, as producers turn from the wilting Asian market to Europe. Europe has attained strategic importance for the United States, where companies that have already invested $60 billion in building four giant export schemes are offered a lifeline by the continent’s deep markets and dozens of under-used import terminals. – Read More

*IEA Says Natural Gas to Play Key Role in Climate Talks – Bloomberg

Natural gas, the “least carbon-intensive fossil fuel,” could play a key role in reaching global climate goals, an issue at the center of upcoming talks in Paris, said the head of the International Energy Agency. Fatih Birol, the agency’s new executive director, noted that energy production and use account for two-thirds of global greenhouse gas emissions, so energy policies will be key at the Paris talks starting Nov. 30, which have the aim of achieving a global deal to fight climate change, largely through commitments to cut carbon dioxide emissions. – Read More

*Proposed Colorado Oil and Gas Regulations: Concerns about Community Rules Persist at Hearing – Oil & Gas 360®

A crowded room listened intently today as several parties shared their concerns with the Colorado Oil and Gas Conservation Commission (COGCC) over new rules being put in place after study and recommendation by the Colorado Oil and Gas Task Force. In September 2014, Colorado Governor Hickenlooper created the task force in a compromise over pro- and anti-hydrocarbon development initiatives that were removed from the November ballot. The COGCC released the proposal for two new regulations based on the task force’s recommendations in early October 2015. – Read More

*Mass. AG sees no need for new natural gas pipelines – The Boston Globe

Attorney General Maura Healey, who by law represents consumers in utility cases, said Wednesday that the state can meet its energy needs and lower costs without building new natural gas pipelines, citing a study that calls instead for improving energy efficiency and management. The study was commissioned by Healey’s office, but financed by two national foundations that have contributed to environmental causes. In its report, the Boston consulting firm Analysis Group Inc. concluded that increasing energy efficiency and encouraging electricity users to scale back their use when demand and prices are high would keep the lights on and save consumers $146 million per year through 2030. – Read More

*Mexico Declares Interest to Join the IEA – Oil & Gas 360®

Mexican Secretary of Energy Pedro Joaquin Coldwell today presented International Energy Agency (IEA) Executive Director Fatih Birol with an official letter declaring Mexico’s interest in becoming an IEA member. The declaration of interest is the latest step in Mexico’s ongoing process of reforming its oil and gas industry. “I am delighted that Mexico, a G20 member and significant energy producer and consumer, has decided to take this important step,” Dr. Birol said during a press conference with Secretary Joaquín Coldwell at IEA headquarters. – Read More

*Kemp: U.S. shale oil output will be less resilient than gas – Reuters

U.S. natural gas production hit a new record in August, despite the deepening slump in gas prices and a fall in the number of rigs targeting gas formations. The failure of gas production to respond to lower prices and a falling rig count has left many analysts wondering if it heralds the same problem in the oil market – worsening oversupply. The number of rigs drilling for oil has plunged almost two-thirds over the last 12 months, but crude production is unchanged since October 2014 and down by less than 5 percent compared with its peak in April. – Read More

*New Iranian Oil Is Not Needed, But Neither Is Its Gas In Asia And Europe – Forbes

This isn’t exactly what global oil markets need, more supply hitting already saturated oil markets. But that’s what the market is going to get soon. Iran is poised to start adding at least 500,000 barrels per day (bdp) (perhaps as much as 1 million bpd in a best case scenario for Tehran but worse case scenario for global oil markets) to global oil supply when the deal reached this summer to remove sanctions on the Islamic Republic’s energy sector kick in early next year. Meanwhile, some think that Iran should be thinking more about natural gas than oil. – Read More

*Statoil Bails on Alaska Offshore Leases, Citing Competitive Reasons – Oil & Gas 360®

Statoil (ticker: STO) is closing the door on its Alaska operations, the company announced in a press release on November 17, 2015. The Norway-based exploration and production company plans to shut its office in Anchorage and will walk away from 16 operated and 50 non-operated leases in the Chukchi Sea. The announcement comes less than two months after another supermajor, Royal Dutch Shell (ticker: RDS.B), exited the region based on an exploration well that was deemed uncommercial in the current commodity environment. – Read More

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