The technological advances in the oil and gas patch just keep coming. While everyone has been scrambling to catch up with the shale gas revolution, the industry has been working on another potentially massive breakthrough in gas. This one is in producing gas that has long been stranded offshore in areas too far or too small to warrant a pipeline to shore.
It was not a bluff. When Centrica warned a month ago that it might choose to leave one of Britain’s biggest gas fields off-line because of the higher taxes levied on UK energy companies, some thought this was an empty threat.
However, South Morecambe gas field has become available after a period of routine maintenance – and Centrica chose to leave it dormant on Wednesday morning. Read more
How strong a hand will Chris Huhne, the UK energy secretary, take into the Cancun talks? Will he be able to persuade foreign ministers and negotiators that the UK is playing its part? Read more
With just over a fortnight to go before climate talks start again in Cancun, a new report warns that the renewables share in final energy consumption will be “very difficult to meet”. Read more
Here’s some news that will cheer both environmentalists and hydrocarbon producers.
The UK government is going to open up its CCS trials to gas plants as well as coal ones. After the first demonstration, the next batch of three will be open to applications from gas-fired power plants. Read more
The shale boom keeps getting better and better. A new report by PFC Energy, the consultancy, shows that the already generous estimates of production from the huge gas field known as the Marcellus Shale were not big enough. Apparently a Pennsylvania law kept well data closed for five years up to August. Now that the data is out, the results, PFC says, are startling.
As of August 1st, the Pennsylvania Department of Environmental Protection (DEP) required that Operators submit the 12 month production records for the dates beginning July 2009 and ending June 2010. After compiling and organizing the data, the DEP released the well production records for those companies which participated in the data submission and the results display some interesting and unique insights into why the Marcellus truly is different than the rest of the shales. An in depth review of the reported well production data shows that the Marcellus Shale appears to be behaving differently than the other shales, with decline rates now estimated at – 15% as opposed to prior view of around 60%. These results place the Marcellus wells in an entirely different category from those in other basins.
So if production is not declining as rapidly as was thought, that means US gas production has room to grow even more robustly than anticipated. And as good as that sounds, the US natural gas market already is so glutted, and prices so low, that some companies are contemplating spending millions of dollars converting natural gas import terminals to export terminals and turning the US into a natural gas exporter. Read more
At least that was the message from a new report published today by Oil & Gas UK and written by Pöyry Energy Consulting. Read more
Following Bloomberg’s story on Thursday morning that Vedanta Resources is in talks “to purchase assets or take a multibillion-dollar equity stake in Cairn Energy Plc, a UK oil and gas exploration company”, Cairn confirmed the following:
The board of Cairn Energy PLC (“Cairn”) notes the media speculation and confirms that discussions are taking place with a third party in respect of the disposal of an interest in Cairn India Limited. Read more
Mergers and acquisitions in the US oil and gas sector shot up in the second quarter, reaching their highest level in more than seven quarers, according to a report released today by PricewaterhouseCoopers, as expectations of buyers and sellers finally aligned Read more