Marcellus -- Cabot to hike Pennsylvania program
By OGJ editors HOUSTON, Dec. 9
Cabot Oil & Gas Corp., Houston, plans to boost production from
Devonian Marcellus shale in northeastern Pennsylvania in the next few
weeks from the current 13 MMcfd as it hooks up six vertical and three
horizontal wells. Meanwhile, the company expects to expand to
eight rigs in 2009 from the five currently working.
Cabot's first horizontal Marcellus well came on line at 6.4 MMcfd after
a six-stage frac in its 2,000-ft lateral. Measured total depth is 8,925
ft. Marcellus drilling totals 18 wells, 4 of them horizontal. The
2009 program calls for 16 vertical and 7 horizontal wells. Four
vertical and 3 horizontal wells remain to be drilled in 2008.
Typical costs are $1.3-1.5 million for a vertical well and $2.6-2.9
million for a horizontal well. Average footage is 7,200 vertically and
2,200 ft laterally.
The company has laid 10 miles of pipeline and started up one compressor
with a second unit standing by as produced volumes warrant
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Natural Gas Fuel Oil executives show support
Paula Dittrick Senior Staff WriterTHE WOODLANDS, Dec. 10
Many executives believe hydrocarbon-based energy
remains the best
source for long-term transportation purposes, and more than half said
they expect natural gas to figure more in the future as a
transportation fuel.
Most senior oil and gas professionals participating in
a recent survey said they are thinking increasingly about how their
companies can participate in a US transition to renewable energy and
alternative fuels. Deloitte's oil and gas group released the
survey results Dec. 10 during the management consultant's energy
conference in the Woodlands, just north of Houston.
"More than half of the executives in our study felt that petroleum
companies should work toward helping America transition to the use of
more renewables and other alternative fuels," Gary Adams,
vice-chairman, oil and gas, Deloitte LLP, told reporters at a news
conference.
The telephone survey involved more than 50 oil and gas professionals at
petroleum companies with annual revenues of $100 million or more. The
survey was conducted Nov. 5-7.
Three in four executives in Deloitte's survey believe transitioning
away from the nation's reliance on fossil fuels for transportation is
an appropriate US goal, and 56% believe this is an appropriate goal for
oil and gas companies, Adams said.
Energy costs
Adams said 53% of the oil executives interviewed "believe that the US
could run out of reasonably priced oil within the next 25 years and 56%
think the world will run out of reasonably priced oil in the next 50
years."
He stopped short of listing a figure for what executives considered to
be reasonably priced. In the survey, 71% said oil and gas is today's
most affordable energy source, but only 23% forecast that it will
remain the cheapest source 25 years from now.
Of oil executives surveyed, 17% believe oil and gas will be the most
sustainable source of energy for another 25 years, 54% believe
renewable energy will be highly sustainable in the future, and 37% also
see renewables as an affordable source of energy in 25 years.
In a separate survey of 1,000 registered voters, Deloitte said the four
biggest issues voters believe President-elect Barack Obama and Congress
should tackle are: the nation's economy, the wars in Iraq and
Afghanistan, health care, and energy. Adams said he believed the energy
would have been the top issue if the survey had been done before the
economic downturn. The voter survey was done online Nov. 5-12.
Regarding renewable energy, 38% said they would be willing to pay an
additional 10% for environmentally friendly energy, and only 16% said
oil and gas currently is a cheap energy source.
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Altech-Eco EPA
approval natural gas Ford models
Dale Neal • DNeal@CITIZEN-TIMES.com • published December 9, 2008
ARDEN – Altech-Eco Corporation announced today that they have obtained
an EPA Certificate of Conformity for converting 2008 Ford Focus models
with 2.0 liter engines to run on compressed natural gas.
“With more than 8 million natural gas vehicles worldwide on the road
today Altech-Eco is proud to be a part of the industry growth and is
committed o support the NGV industry in every aspect and issue
requiring action necessary for reaching this target,” said Altech-Eco
President, Alexander Kovalchuk. “The need for the development of
clean energy technologies is in high demand globally. We are grateful
to Altech-Eco for being a part of the clean energy solution and are
glad that Asheville is playing a part in this emerging industry
movement," said Bob Roberts, Chairman of the Economic Development
Coalition of Asheville-Buncombe County.
This EPA approved CNG Ford Focus runs on cng or gasoline with a driving
range of 218 - 318 miles with an average 35 mpg on highway and 24 in
the city.
The Ford Focus with CNG option is now available at participating Ford
dealerships and approved aftermarket conversion facilities. Ford Motor
Credit has approved the financing for the incremental cost of cng
conversion on vehicle. Any Ford dealership interested in becoming an
approved CNG converter, please call 828-654-8300 or visit
www.altecheco.com.
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Kurdish natural gas
production
Dana and Crescent start 06-10-08 Source: http://www.ogj.com
Dana Gas and equal partner Crescent Petroleum have
started natural gas production in Iraq's northern Kurdistan region
after commissioning the first stage of a $ 650 mm project. The two
companies said they have started production of 75 mm cfpd of gas from
Khor Mor field. Output is expected to gradually reach 300 mm cfpd in
first half 2009.
Gas produced will feed a electric power plant in Erbil province, while
in a later stage the project would feed another power plant under
construction in Suleimaniya province. The total power generation of the
two plants would be 1,250 MW.
Gas from Khor Mor field will be transported by a 180-km pipeline to
feed the two plants.
In April 2007 the Kurdistan regional government awarded the two
companies a service contract to develop, process, and transport gas
from Khor Mor field on a fast-track basis, and to appraise and develop
the nearby Chemchamal gas field. Khor Mor field has never been fully
developed and has not operated since 1991.
The field has estimated gas reserves of 1.4 tcf. Chemchamal, which has
never been appraised or developed, has estimated reserves of 2.2 tcf.
Crescent and Dana also are developing a "Gas City" business park in the
area using gas as a feedstock for industries such as petrochemicals,
steel, building materials, fertilizers and manufacturing.
Kurdistan Gas City, which will include industrial, residential, and
commercial components in an integrated city, has a targeted initial
basic infrastructure investment of $ 3 bn.
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Marcellus Shale could
hold 1,100 tcf
Source: http://www.platts.com 29-10-08
The gas potential of the Marcellus Shale may be as high as 1,100 tcf,
well above the 50 tcf previously forecast, the US's top academic
authority on the play said. "There's something really big in the
Marcellus," Pennsylvania State University professor Terry Engelder told
an audience of oil and gas executives at Platts' Appalachian Gas
conference in Pittsburgh. "The Marcellus is much bigger than the
Barnett," Engelder said, adding that he based his projection on early
reports from Range Resources and Chesapeake Energy's initial wells in
the play. Engelder earlier estimated that the shale contained about 50
tcf of recoverable gas.
While he called Chesapeake's numbers "mildly optimistic," Engelder said
Range's numbers buttress his new forecast of more than 1 tcf of
recoverable gas from the shale play which extends from New York south
through Pennsylvania and into West Virginia. "It's bigger than the
Barnett, Fayetteville, and Woodford shales combined," he said. Getting
that gas to market is another problem, Engelder said. "The cost of land
is going to scale to the price of gas," he said.
Already, Pennsylvania landowners are reporting lower priced leasing
deals from exploration and production companies as the price of gas has
fallen nearly by half since June. Overlapping regulatory agencies
present a further problem for E&P companies, Tudor Pickering Holt
Managing Director David Pursell said. "There are guys who aren't
entering this play because of regulation," he said.
The biggest regulatory uncertainty is the Susquehanna River Basin
Commission, a federal agency that controls water use in much of eastern
Pennsylvania, Pursell said. The commission only meets quarterly, and
Pursell said that isn't often enough to keep pace with the gas rush
that's occurring in the state. "Ultimately, the Marcellus will be
developed, the economics are just too large to ignore," Pursell said.
He said the cost to buy that gas in the ground was about $ 4/mm cf and
with the forward strip calling for gas at $ 10/mm cf, the profit
potential of the Marcellus is just too large for E&P companies to
ignore.
"The Marcellus has all the economies of shale plays," he added. "Easy
to find, hard to produce." He said Tudor Pickering Holt is forecasting
2.6 bn cfpd of production from the play by 2023.
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EU
fights for Nabucco's future
Source: http://pipeliners.blogspot.com / Radio Free
Europe 05-11-08
The fate of the Nabucco pipeline project appears to be hanging by a
thread. No EU official would publicly admit this, but the signs tell
their own story. First, as a senior EU official told in Brussels
on November 4, transit talks with Turkey have stalled. Second,
Azerbaijan is dithering between competing Russian and EU bids for its
gas exports, which are crucial to bringing Nabucco on line in 2012 as
planned. Third, in the long term, Azerbaijani gas alone will not be
sufficient.
The EU official said that "other countries in the region" must supply
most of the 31 bn cm of gas Nabucco is expected to carry by 2020. But
Iran, with the world's second-largest reserves, remains off-limits as
long as it continues to enrich uranium. And Turkmenistan, with its
enormous export potential, has yet to decide whether to invest in a
trans-Caspian pipeline linking it to Azerbaijan -- and Nabucco.
The common thread for all these countries, and the EU as the ultimate
beneficiary of the 3,300-km-long pipeline, is the question of intent
and commitment.
EU makes its case
EU Energy Commissioner Andris Piebalgs will visit Turkey and Azerbaijan
to demonstrate the block's continued commitment to Nabucco.
"The first objective of this trip is to show the political commitment
of the European Commission to the Nabucco project and to reaffirm once
more that we are convinced that it is going to be online according to
the planned timetable," says Piebalgs' spokesman, Ferran Tarradellas.
The Russian-Georgian conflict sent shock waves through the region and
among potential investors. But official Brussels remains steadfast in
the belief that Nabucco is safe from Moscow's interference.
"Russia would jeopardize its reputation as a reliable supplier" to the
EU if it acted in any way to damage Nabucco, said one official.
However, none of Nabucco's essential building blocks is currently in
place. Turkey continues to hold out for a better transit deal while
Azerbaijan has yet to formally commit its gas exports to the project.
Tarradellas says that while Piebalgs' visit is a sign that the EU is
upping the ante in its talks with the two countries.
"We're going to discuss also the remaining differences with the Turks
and the question of the transit of the gas through Turkey," he says,
"and then we're going to be visiting Azerbaijan, which will be probably
be the first supplier of gas for the Nabucco pipeline."
The senior EU official said that, apart from charging a transit fee,
Turkey wants to divert 15 % of Nabucco's gas for cheap domestic use. As
Azerbaijan is insisting on selling its gas at European market rates
minus transit costs, the Nabucco consortium and its subsidiaries in
Turkey, Bulgaria, Romania, Hungary, and Austria would be left to pick
up the tab.
Piebalgs is keen to break the deadlock before the end of the year. In
Turkey he will meet with the country's president, prime minister,
foreign minister, and economy minister.
Where will gas come from?
Azerbaijan, meanwhile, has yet to decide to whom to sell the estimated
7-9 bn cm of gas it is able to export annually in the early years of
Nabucco's operations. The senior Brussels official said EU companies
are pitted against Russian competitors. There are fears in the EU that
Russian political pressure could clinch the deal for Russian bidders. A
decision is expected sometime in 2009.
EU officials say that the fact that Piebalgs has secured a meeting with
Azerbaijani President Ilham Aliyev is a sign of "interest" on the part
of Baku in doing business with the EU. But Azerbaijan's gas reserves,
even if supplemented by the planned expansion of the Shah Deniz field,
will not be sufficient to keep Nabucco in business. And this is where
Nabucco currently hits a wall.
Iran will remain untouchable in trade terms as long as it refuses to
cease uranium enrichment. Like Azerbaijan, Turkmenistan and Kazakhstan
can be swayed by Moscow's cash -- or outright pressure. And even if
Turkmenistan, which recently confirmed reserves of 14 tn cm, dwarfs
Russia's own transit capacity, Moscow will be seeking to deny the EU a
piece of the pie.
Piebalgs is hoping to soon visit Turkmenistan and Kazakhstan, his aides
say. This leaves Iraq and Egypt as the only other viable regional
suppliers for Nabucco -- with one extremely unstable and the other
rather remote.
Meanwhile, EU officials reject suggestions Nabucco could eventually
carry Russian gas diverted south. This, they say, would defeat the
purpose of Nabucco -- which is to diversify supplies. (Competing
Russian projects, such as South Stream, are not seen as a problem,
however. The EU's growing demand for gas will make sure it has a market
and the diversification of transport routes is a good in itself).
If the degree of insecurity associated with the EUR 8 bn ($ 10.3 bn)
project coupled with the global financial crisis is making potential
investors nervous, officials in Brussels remain serene. When pressed,
they do point out, however, that should private investors balk, public
lenders such as the European Investment Bank and the World Bank stand
ready to step in.
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LNG trucks Daimler delivers 132: 325 later
12/10/08
Owner-operators contracted to drayage company California Cartage are
gaining access to new liquefied natural gas-powered trucks from Daimler
Trucks North America under a program to clear the air and reduce
pollution at the ports of Los Angeles and Long Beach. Cal Cartage
is taking delivery of 132 Sterling Set-back 113-inch, 320-hp daycabs by
the end of the year as part of a long-term plan to make trucks under
its control greener. The company is exchanging the 2010-compliant LNG
trucks for the oldest, most heavily polluting trucks driven by its
owner-operators.
Another drayage company at the port, Total
Transportation
Services, is operating Kenworth T800 combination diesel and LNG-powered
trucks.
Most of the cost of the trucks is being provided by about $12 million
in U.S. Environmental Protection Agency grants and a state program.
Owner-operators will pay about $500 a month under a seven-year lease
before gaining ownership of the vehicles.
“We have a program with a bank that takes the balance of the payments
and leases the truck to the drivers,” said Bob Lively, vice president
of strategic planning for Cal Cartage, which contracts with about 1,200
owner-operators.
In return the bank obtains
a federal tax credit for purchasing alternative fuel equipment.
After the LNG trucks are distributed, Lively said, the company plans to
purchase about an additional 300 Daimler trucks that will be either LNG
or compressed natural gas-powered. The Daimler trucks, scheduled for
delivery beginning in the second quarter of 2009, might include
Sterlings, Freightliner Model M2-112 trucks, or the Freightliner
Columbia, as Lively prefers for its larger cab. The company also hopes
to deploy another 25 Sterling trucks for its operations at the Port of
Oakland.
Cal Cartage and other companies are moving from Sterling to
Freightliner because Daimler is dropping the Sterling brand and ending
manufacturing in March. Daimler is gearing up to transfer the NG
technology to Freightliner.
“We really like the
Sterling because it stepped up with the [Westport] ISL G engines when
nobody else did,” Lively said.
Lively said owner-operators will have a choice of the
Freightliner NG model or a diesel truck, although he will try to
convince them to choose the near-zero emission NG truck. Operator
payments will be greater with the diesel truck because less government
funding will be available for it. He said he didn’t know how much the
operator share of the cost will be with the Freightliner trucks.
Owner-operators who buy
into the NG program go to the head of the line for load assignments.
Other drayage companies at the California ports and elsewhere will be
watching Cal Cartage’s experience with NG-powered vehicles, Lively
said. “We stepped up and took the lead,” he said.
The future probably will be with CNG because of the lower fuel cost,
the availability of more fueling stations than LNG and the ability to
process CNG locally.
Lively said only one LNG
station with two nozzles is available at the ports.
The Daimler-Cal Cartage program, introduced at a media demonstration
Monday at the Long Beach port, is part of a $1 billion ports of Los
Angeles-Long Beach Clean Trucks program to get older trucks
transporting containers off the road. Pre-1989 trucks were banned Oct.
1, while pre-1993 and un-retrofitted 1994 to 2003 trucks will be
eliminated by Jan. 1, 2010. By 2012, all 2006 and older trucks working
the ports will be shut down.
Daimler aims to be a major player in the green truck movement. The
manufacturer plans to spend $20 billion in research and development by
2010, said Chris Patterson, president and CEO of Daimler Trucks NA. The
company is developing Class 3 through Class 8 NG-powered vehicles,
Freightliner diesel hybrids and fuel cell and battery-drive systems.
“We believe one way to reduce emissions may be a mixed fleet approach
that adopts hybridization, as well as natural gas and clean drive
diesel along the path to zero-emission mobility,” he said.
Daimler also is delivering another 100 NG trucks to be used by licensed
motor carriers and owner-operators working directly with the ports.
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Natural Gas Trucks PACCAR Australia -Westport Produce
VANCOUVER, BRITISH COLUMBIA, Dec 10, 2008 (MARKET WIRE via
COMTEX)
Westport Innovations Inc and PACCAR Australia Pty Ltd. ("PACCAR")
announced today the companies will develop and commercialise liquefied
natural gas (LNG) Kenworth trucks for the Australian market.
Australia's Kenworth Trucks, a division of PACCAR, plan to begin
factory-installed production in mid-2009 beginning with the T908, K108
and T408SAR truck chassis and roll out across additional models into
the future.
The LNG trucks, featuring the Westport high pressure direct injection
(HPDI) LNG engine and fuel system, will be produced at the Kenworth
Bayswater plant outside Melbourne, Australia.
"Australia's unique operating conditions and need for high-power
outputs are a good fit for Westport's HPDI technology and Kenworth's
leading truck models," said Joe Rizzo, Managing Director of PACCAR
Australia. "Our customers have been seeking economic greenhouse gas
reductions that work in their operations, and Kenworth is proud to be
able to offer that combination in a factory-built product in Australia."
"With an abundant, low-cost, domestic natural gas supply, Australia
makes an excellent market for Westport's high-performance heavy-duty
LNG engine and fuel system," added Michael Gallagher, President and
Chief Operating Officer of Westport. "Our demonstrated greenhouse gas
reductions of 20-25% relative to diesel engines, 95% diesel
substitution levels, and power output up to 580 horsepower are clear
advantages of Westport technology. PACCAR's leadership in providing
factory-built LNG Kenworth trucks on two continents shows their
commitment to the environment and the economic concerns of their
customers."
Westport's ISX G and LNG System for Heavy Duty Trucks in Australia
Westport's engine and liquefied natural gas (LNG) fuel system for
heavy-duty trucks allows trucking fleets to move to lower-cost,
domestically available natural gas and/or biogas while offering
significant greenhouse gas reductions compared with similar diesel
engines. Based on the industry-leading Cummins ISX diesel engine with
cooled EGR, Westport's direct-injection LNG version of the engine
offers the same horsepower, torque, and efficiency as the base diesel
engine it is replacing, with ratings in the Australian market of up to
1850 lb-ft torque and 580 peak horsepower.
The Westport LNG fuel system comprises LNG fuel tanks, proprietary
Westport fuel injectors, cryogenic fuel pumps and associated electronic
components to facilitate robust performance and reliable operation. The
Westport engine is fuelled with vaporized LNG-a safe, cost effective,
low carbon, and low emissions fuel. LNG fuel tanks can be configured to
suit customer range requirements.
The Westport LNG system for the Cummins ISX is certified to 2008
Australian Design Rules (ADR 80/02 and ADR 30/01).
The Australian Government has been supportive of the introduction of
Westport's LNG fuel system into the Australian market with
demonstration funding. As early adopters of Westport's technology under
the demonstration program, transport organizations including Mitchell
Corp., Sands Fridge Lines and Murray Goulburn Cooperative have
established their commitment and leadership in the reduction of
greenhouse gases in Australia.
About Kenworth Trucks, a division of PACCAR Australia Pty Ltd.
Kenworth trucks are designed and manufactured in Australia to meet the
world's toughest applications. Kenworth, a division of PACCAR
Australia, is market leader in heavy duty trucks in Australia. Its
trucks are also exported to Papua New Guinea and New Zealand. PACCAR
Inc. is a worldwide manufacturer of heavy and medium duty trucks under
the Kenworth, Peterbilt and DAF nameplates. It also provides financial
services and distributes truck parts related to its principal business.
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