Wednesday, June 27, 2012

West Virginia Ranked #10 Ahead Of Ohio, Pennsylvania And New York In Oil, Natural Gas Investment Survey

West Virginia ranked number 10 as the best place worldwide to invest in oil and natural gas, according to the Fraser Institute's annual Global Petroleum Survey.  The Calgary-based think tank's sixth annual survey ranked 147 jurisdictions.  Oklahoma took the top spot, with Mississippi finishing second. Ohio, which ranked second overall in 2011, fell to 14th place this year, and Pennsylvania came in at number 34. New York was the worst-ranked state, at 68th place.

The Global Petroleum Survey is administered each year to petroleum industry executives to help measure and rank the barriers to investment of oil- and natural gas-producing regions. A total of 623 respondents representing 529 companies completed the survey questionnaire this year, providing sufficient data to evaluate 147 jurisdictions. The exploration and development budgets of participating companies account for more than 50 percent of the annual spending on petroleum exploration and production among international oil companies. The survey questionnaire sought opinions on issues such as royalties and other forms of petroleum production tax, taxation in general, the cost of regulatory compliance, trade and labor regulations, legal system fairness and transparency, and political stability.

Tuesday, June 5, 2012

IEA Report Forecasts 'Low' Natural Gas Prices Will Have Benefits

A new report provides both good news and not-so good news for the region's natural gas production industry.  The report by the International Energy Agency (IEA) states that "low natural gas prices will result in gas generating almost as much electricity as coal in the United States by 2017."  The report also notes that abundant supplies and lower prices will result in North America becoming a net LNG exporter in five years.

“The Golden Age of Gas has dawned in North America, but its continued expansion worldwide depends on producing gas and bringing it to the market in a way that is friendly to investors and society as a whole,” IEA Executive Director Maria van der Hoeven said during the launch of Medium-Term Gas Market Report 2012. “As gas competes against other energy sources in all market segments, notably in the power sector, pricing conditions are a key element to keep it competitive everywhere. This medium-term report aims to facilitate investor decisions by providing a timely, in-depth analysis of the current trends and what we expect to take place over the coming five years.”

Click to read IEA's press release:
http://www.iea.org/newsroomandevents/pressreleases/2012/june/name,27383,en.html

Monday, June 4, 2012

W.Va. DEP Encourages Operators To Follow New Horizontal Well Permitting Checklist

During last week's W.Va. DEP forum for natural gas producers, the agency encouraged horizontal producers to follow a new "Checklist for Filing a Horizontal Well 6A Permit."  Operators who follow this checklist will help DEP expedite the permit review and approval process, the agency said. Provided is a link to this checklist.

The DEP also shared a "Frequently Asked Questions" document that provides information and details about the state's new Natural Gas Horizontal Well Control Act.  Here is a link to this FAQ document.

Morgantown City Council Planning To Restrict Natural Gas Drilling Activities

The city of Morgantown once again is attempting to enact laws that will restrict natural gas drilling activities.  The City Council is expected to introduce six ordinances tomorrow that would effectively limit drilling from within most of the city.  Last year a circuit court judge struck down the city's ban against horizontal drilling and hydraulic fracturing.

Click to read more:
http://www.wvgazette.com/News/Business/201206020082