- Wall Street Overly Bearish to NGL Prices: Wells Fargo’s Blum
- Gas Processors Report will not be published the week of November 25
- Inside Look at Processing Trends
- Chesapeake Adds Acreage in Appalachian, Williston Basins, As Well as New Undisclosed Play
- Considine: Natural Gas Industry Having Positive Impact on Economy
- DUG East 2010: The Marcellus Ranks as Top Shale Play
- October 2010 Frac Spread: Mont Belvieu Margins Up, Conway Margins Down
- Midstream News
- Byron Kelley to Retire as President, CEO of Regency Energy Partners
- U.S. House Begins Taking Shape for 2011
- Keyera Fully Acquires Simonette Processing Plant, Related Assets for US$81.1 Million
- Fractionation Spread
- Higher Gas Prices Help to Drive Down Light NGL Frac Spread Margins
- Pipeline News
- Southcross Energy to Construct Mississippi Pipeline
- International News
- IEA: China, Middle East to Lead Golden Gas Age
Inside Look at Processing Trends
Chesapeake Energy Corp. continues to add to its natural gas liquids (NGL) and crude oil investments as well as new shale plays, as the company announced it had reached an agreement to acquire acreage from several parties in the fourth quarter of 2010.
“The natural gas industry is making a real contribution to our economy by creating jobs in an economy that is suffering from rather high rates of unemployment,” Timothy J. Considine, professor of energy economics at the University of Wyoming, said earlier this month at Hart Energy Publishing’s DUG East conference in Pittsburgh, Pa.
Shales are great, and the Marcellus is the best," said Joe Gladbach, managing director, Jefferies & Co. Inc., at DUG East 2010. "How do we know? We've financed a lot of them." Currently, shales offer the best opportunities for investment worldwide. "It's no wonder that large international firms are drawn to the shales," he said. Like flies to honey, foreign oil companies have pledged more than US$23 billion to North American shale development in the past two years.
Frac spread margins for natural gas liquids largely told two different tales between Conway and Mont Belvieu in the month of October with margins at Conway mostly down and Mont Belvieu margins up across the board.
Byron Kelley announced his retirement as president and CEO of Regency Energy Partners, effective November 22. The company named Michael J. Bradley, CEO of Matrix Service Co., and an independent director at Regency since January 2008 as his replacement. Kelley will serve as a consultant to Regency for the next three years
The November 2 midterm elections saw Republicans storm back into power in the U.S. House of Representatives and reduce the Democratic majority in the U.S. Senate – altering the direction of several legislative issues through the appointment of new leadership in House committees – and making it more difficult for the Democrats to gain the 60 votes needed for cloture.
Keyera Facilities Income Fund signed a letter of intent to fully acquire the Simonette natural gas processing plant along with its related gathering assets for C$82 million (US$81.1 million).
Increased natural gas feedstock prices as well as reduced natural gas liquids (NGL) prices resulted in a mixed bag for frac spread margins with lighter NGLs experiencing reductions in their margins while some heavy NGLs saw slight upticks in their margins.
“The widening crude oil-to-natural gas ratio has really changed the game in the NGL (natural gas liquids) industry,” Michael Blum, managing director of equity research at Wells Fargo Securities said at this month’s DUG East conference in Pittsburgh, Pa.
Editor’s Note: Gas Processors Report will not be published the week of November 25 because it is a regularly scheduled skip week. Gas Processors Report will continue its regular weekly publishing scheduling Thursday, December 2.
Natural gas liquids prices once again settled down in the middle of a month after experiencing an uptick in prices at the end of the previous month and start of the current month as volatility has been dropping after the initial rush to shore up supplies.
Southcross Energy has plans to build a new Mississippi pipeline which will add capacity to the existing system and connect it to the Southeast Supply Header system. The company boasts over 2,100 miles of pipeline and gathering assets.
The International Energy Agency’s (IEA) recently released World Energy Outlook predicts that China and the Middle East will lead a “global golden age for gas” beginning later this decade.