Updated Aug 22, 2024
8/22/24
Two big U.S. independents took too different paths in the second quarter, one showing solid natural gas gains -- mostly in the Marcellus Shale -- while the other saw climbing oil and liquids output from from its onshore plays, and in particular, the Eagle Ford Shale.
U.S. oil and natural gas exploration and production companies added 31.2 Tcf of wet natural gas proved reserves and almost 3.8 billion bbl of crude oil and lease condensate proved reserves in 2011, the Energy Information Administration (EIA) said in a reportissued Thursday.
Princeton, NJ-based NRG Energy Inc. said Friday it has begun commercial operations of its repowered 550 MW natural gas-fired combined-cycle generating plant at El Segundo, CA. The El Segundo Energy Center includes fast-start capability, allowing the plant to deliver more than half of its capacity in 10 minutes of start-up time and the balance in less than an hour. The new facility meets the state's and the South Coast Air Quality Management District's air quality standards, and it will use 30% less gas per megawatt than the original steam boilers at the site.
This year's unseasonably cool summer in parts of the eastern United States and a natural gas supply glut brought on by the country's shale production boom are continuing to put downward pressure on natural gas prices, as evidenced by NGI's August Bidweek Survey. The national spot gas average for the month dropped 21 cents from July to average $3.45/MMBtu.
With screen prices at a three-month low it's no surprise that July bidweek came in a bit soft. NGI's National Spot Gas Average for July bidweek came in at $3.66, a 48-cent decline from June 2013, but 94 cents higher than the July 2012 bidweek average.
NGI Daily Price Index reported last week that Potomac ElectricPower Co. hoped to sell nearly all of its power generationfacilities --- with an estimated capacity of at about 6,055 MW ---for an "upside price" of about $3 million. Pepco later correctedthe figure to $3 billion. Pepco further said it hoped to narrow thefield of serious bidders to between six and a dozen by March.
In NGI's story, "El Paso Pulls Off FTC-Required Sellathon" inthe previous issue (see NGI, Jan. 10), it is erroneously statedthat CMS Energy Corp. purchased both the Sea Robin pipeline and ashare of the Destin Pipeline from El Paso Energy. CMS onlypurchased Sea Robin whereas the Destin Pipeline was sold to anundisclosed party. NGI regrets the error.