“Prices have dropped to the lowest level in years. Pipelines are overbooked, and supplies are backing up. There is just not enough capacity to get out of the supply area and into the market area. Pipeline capacity is at a premium. The last time prices got to this level, producers shut in.”
Hydrocarbons
Wednesday, 2/08/2012
Monday, 2/06/2012
It looks like OPEC has started to figure out that this shale thing might be a problem for them. The evidence? In the latest edition of OPECs bi-monthly bulletin, there is an article about the environmental risks of shale gas drilling in the north of England. OPEC? Environmental risk? Hmmm.
Thursday, 1/05/2012
Yesterday Feb. natgas was up 10.3 cents at $3.096/MMBtu. Don’t get excited. This is just a minor blip due to weather and a little bit of crude sympathy. There is still a lot of gas out there.
Wednesday, 1/04/2012
Huge international companies are buying up all the hydrocarbon resources in North America. At least that's what it has looked like over the past few days. Total signed up with Chesapeake for a 25% interest in about 620M acres of Utica within a Cheapeake/EnerVest JV. Cost was $700MM plus a commitment to $1.6B of development (60%). Sinopec is ponying up $2.2B for an interest in 1.2MM of Devon's acreage in the Utica, Michigan Basin, the Mississippian, the Tuscaloosa marine shale and the Niobrara. Similar to Total, Sinopec will cover 70% of development costs - $1.6B by 2014. Finally PetroChina is buying the 40% of the MacKay River oil-sands prospect that it doesn't already own from Athabasca Oil Sands corp. Price is $680MM Canadian.