Ever hear of a "No Perforation Zone" (NPZ)?
Check out the article below for a quick course on the subject.
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Monday, March 21, 2011
Rule changes for drilling permits would continue practice of no-perforation zones in Barnett Sha...
Tuesday, March 15, 2011
Monday, March 07, 2011
State regulators say driller not source of Parker County water contamination | Barnett Sha...
Range Resources notched a major victory today with a favorable decision by the Texas Railroad Commission. Today's decision follows an ongoing debate over the EPA's "emergency order" on December 7th holding Range responsible for the methane contamination of two Parker county water wells.
Sunday, March 06, 2011
Warren Buffett's BNSF RR - Another Winning Investment
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| Last week, Fort Worth-based BNSF railroad reported a 20 percent increase in 2010 revenue and a 38 percent gain in operating income, topping $4.5 billion. That's the most profitable year in the company's long history. Read more: http://www.star-telegram.com/2011/03/04/2897828/bnsf-is-a-success-story-just-ask.html#ixzz1Fr8snLYK |
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| A seemingly never ending Burlington Northern freight train heads south out of Rio Vista, TX. |
Wednesday, February 23, 2011
Monday, February 21, 2011
Natural gas producers locking in prices | Barnett Shale | Dallas Business, Texas Busines...
As natural gas prices continue to drop producers see little prospect for a near term rebound. Drillers have hedged gas production for 2011 in anticipation of further declines.
Friday, February 18, 2011
Arkansas Is Shaking: 50+ Earthquakes In Past Week; 700+ In Last Six Months : The Two-Way : NPR
Theorists are examining two possibilities for the ongoing earthquakes. The "Guy Swarm", a series of mild earthquakes that have been occurring periodically since 2009, or possibly natural gas exploration taking place in the Fayetteville Shale, a prolific geological formation in north central Arkansas. Click the link below for the entire article.
Thursday, February 17, 2011
Wednesday, February 16, 2011
Two gas well pad sites in Fort Worth exceed pollution limits | Barnett Shale | Dallas Bu...
Excerpt from the article: "In all, 169 samples were collected between September and October, and more than 15,000 concentrations were measured.
In the point source testing of 66 active well sites, 31 had no detectable emissions, and of those that did, only the two sites were above minimum thresholds set by the EPA and the Texas Commission on Environmental Quality.
More detailed analysis of over 100 sites is pending, Gange said.
Seven active compressor sites and one gas-processing plant tested were also below minimum standards."
Sunday, February 13, 2011
EPA's "Yee Haw" moment in Texas
Just the facts ma'am.....
Sworn statements from key players involved in controversial EPA order shed new light on how it all went down, and why it shouldn’t have
Check out the entire Energy In Depth article by clicking the following link.
Saturday, February 12, 2011
No Credible Evidence Supports EPA Order Against Range
Mounting Evidence Raises Serious Questions about EPA’s Actions and Motives
By Gene Powell, Publisher/Editor – Powell Barnett Shale Newsletter©
In depth research conducted by the Powell Barnett Shale Newsletter finds some interesting revelations regarding water wells drilled 5 years prior to gas exploration in the Barnett Shale. These are the same water wells in which the EPA has targeted Range Resources with charges of methane contamination. The entire article (courtesy of the Powell Barnett Shale Newsletter) can be read by clicking the following direct link to the Adobe Acrobat file.
2-11-2011 No Credible Evidence Supports EPA Order Against Range
By Gene Powell, Publisher/Editor – Powell Barnett Shale Newsletter©
In depth research conducted by the Powell Barnett Shale Newsletter finds some interesting revelations regarding water wells drilled 5 years prior to gas exploration in the Barnett Shale. These are the same water wells in which the EPA has targeted Range Resources with charges of methane contamination. The entire article (courtesy of the Powell Barnett Shale Newsletter) can be read by clicking the following direct link to the Adobe Acrobat file.
2-11-2011 No Credible Evidence Supports EPA Order Against Range
Wednesday, February 09, 2011
New drilling method opens vast oil fields in US - Yahoo! News
The process used in Shale gas recovery has opened up the door to new production methods for crude oil in large fields across the U.S. The AP link to this story can be accessed below.
Chesapeake Energy plans to sell $5B in assets | Barnett Shale | Dallas Business, Texas B...
Chesapeake Energy has plans to sell all of it's Fayetteville Shale assets, as well as investments in two other energy related companies. Access the article by clicking on the following link.
Friday, February 04, 2011
Tuesday, February 01, 2011
Monday, January 31, 2011
Sunday, January 30, 2011
Wednesday, January 26, 2011
Tuesday, January 25, 2011
The Truth About Gasland - America's Natural Gas Alliance
America's Natural Gas Alliance (anga) provides it's take on the controversial Oscar nominated documentary "Gasland".
Barnett Shale: Newsletter verbally pommels EPA
The Powell Barnett Shale Newsletter's Managing Editor Will Brackett took aim this week at the U.S. Environmental Protection Agency. Brackett's comments came after the EPA's no show last week at an Austin hearing regarding orders the EPA had issued against Range Resources. Star-Telegram writer Jack Z. Smith's article can be accessed at the following link.
Sunday, January 23, 2011
Company To Invest $50 Billion In W.Va. - News, Sports, Jobs - The Intelligencer / Wheeling News-Register
The following article by AP writer Casey Junkins states that Oklahoma based Chesapeake Energy has plans to invest as much as $40 to $50 billion in West Virginia's Marcellus Shale over the next few decades. The entire article can be accessed from the following link.
Hurst, Bedford, Southlake seek to balance needs of drillers, residents | Barnett Shale |...
In an article by Star-Telegram writer Aman Batheja, "gas drilling is becoming a tougher sell in parts of Northeast Tarrant County". The full story can be accessed at the following link.
Saturday, January 22, 2011
Range appealing EPA order on gas wells | Barnett Shale | Dallas Business, Texas Business...
Star-Telegram writer Jack Z. Smith explains in the following article why attorneys for Range Resources have filed an appeal with the 5th U.S. Circuit Court of Appeals in New Orleans regarding an order issued by the EPA which sites Range's alleged contamination of two Parker County water wells.
Friday, January 21, 2011
More Methane Found in Parker County Water
Range Resources states that the methane is coming from an area just below the aquifer, and not from the Barnett Shale formation where they are drilling, over a mile below the surface. The EPA disagrees. The debate is ongoing in an Austin District Court. (Video courtesy WFAA.com)
Thursday, January 20, 2011
EPA - MIA in Austin
EPA MIA in Austin. According to Energy in Depth, "the agency's credibility comes into question as basis for it's "emergency order" against Range Resources continues to fall apart". The entire article can be accessed through the following link.
Barnett Shale: Judge says water well case nationally significant
The EPA allegation that two Parker County water wells were contaminated via gas drilling by Range Resources could prove to be "of extreme significance". A federal judge in Austin has granted lawyers for Fort Worth-based Range Resources the right to take the deposition of an EPA official regarding the contamination investigation. The investigation could prove to have "national implications" according to the U.S. District judge. The full article by Star-Telegram writer Jack Z. Smith can be accessed by clicking on the following link.
Tuesday, January 18, 2011
Feds say Range Resources hasn't complied with EPA order | Barnett Shale | Dallas Busines...
The U.S. Justice Department has stepped in and filed a complaint in a Dallas Federal court against Range Resources. The DOJ cites Range's non-compliance of the E.P.A.'s emergency order regarding the contamination of two(2) water wells in Parker County. Range Resources has denied the allegation.
Rebuttal to Mike Norman's Star-Telegram Article
A rebuttal to the Star-Telegram article by Mike Norman, posted to this blog on Friday, January 14, 2011....entitled: "Barnett Shale Tricks of the Trade Aid Gas Companies Over Homeowners."
Eagle Ford Information
The following link from the Texas Railroad Commission gives numerous stats and information about this massive natural gas field in South Texas.
Monday, January 17, 2011
Is Tarrant tops in U.S. gas production?
JANUARY 17, 2011
Is Tarrant tops in U.S. gas production?
Tarrant County not only continues to lead Texas' 254 counties in natural gas production, but might lead all counties in the nation, according to the Powell Barnett Shale Newsletter. It said in its weekly edition today that it "believes Tarrant County is also the highest natural gas producing county in the U.S. and has asked the U.S. Energy Information Administration for confirmation."
Tarrant produced 55.3 billion cubic feet of gas in October, with Johnson County, its neighbor to the south, coming in No. 2 in the state with 43.3 billion cubic feet.
See full story in Tuesday's Star-Telegram.
--Jack Z. Smith
Read more:
Is Tarrant tops in U.S. gas production?
Tarrant County not only continues to lead Texas' 254 counties in natural gas production, but might lead all counties in the nation, according to the Powell Barnett Shale Newsletter. It said in its weekly edition today that it "believes Tarrant County is also the highest natural gas producing county in the U.S. and has asked the U.S. Energy Information Administration for confirmation."
Tarrant produced 55.3 billion cubic feet of gas in October, with Johnson County, its neighbor to the south, coming in No. 2 in the state with 43.3 billion cubic feet.
See full story in Tuesday's Star-Telegram.
--Jack Z. Smith
Friday, January 14, 2011
Has Natural Gas Finally Bottomed?
Another Brick in the Wall:
Has Natural Gas Finally Bottomed?
Costas Bocelli
THE COMMODITIES SECTOR WAS ONE OF THE TOP PERFORMING ASSET CLASSES IN 2010, WITH PRICES SOARING ACROSS THE BOARD.
Precious metals were up big ...
Base metals, like copper, made record highs ...
Tight supplies and bad weather sent corn, soybeans, and wheat to the moon ...
Even soft commodities like sugar, coffee, and cotton made stellar gains.
The Thomson-Reuters/ Jefferies CRB Commodity Index was up 18% for 2010. Since the market rally in September, the index has gained 29% in 4 short months.
Yes, the Commodity sector was in a bullish feeding frenzy, except for ... Natural Gas.
Natural Gas prices have been in a dismal decline since the commodity bubble burst in mid 2008, just before the credit crisis sent the world into the great recession.
2010 was another difficult year for Natural Gas, and it was unable to ride the commodity rally with the rest of the sector. Natural Gas prices fell 35% last year, making it -- by far -- the worst performer in the space.
Although energy is in high demand in the United States and abroad, Natural Gas supply has been abundant and plentiful, putting pressure on prices. New technologies and large discoveries of proven reserves have been the main driver of lower prices.
Have a look at the Natural Gas February Futures Contract (weekly) ...
(Click on image to enlarge)
You can see that it maintained a bearish trend throughout the year, making a series of lower highs and lower lows in a downward channel.
But now, the early price action this month appears to exhibit a technical breakout from the pattern. Is this the start of a turn in Natural Gas prices, and an indicator that a floor has been put in?
Is it Finally Time to Get Bullish?
Some very smart investors think so. Hedge funds almost doubled their bullish bets that Natural Gas prices go higher -- in fact, their net long positions have increased by more than 90% since the end of 2010. According to the Commodity Futures Trading Commission (CFTC), which tracks these large positions and open interest, the surge was the largest increase in over a year.
It's hard to say what their time frame is on the bullish play. But with Natural Gas prices at historic lows, inventory levels not breaching 2009 record levels, and harsh winter snow storms hitting major cities in the United States, the bet makes perfect sense.
Longer term, Natural Gas may play a more significant role in how we deal with energy consumption. As oil prices rise, alternative resources attract greater attention. Green energy innovations such as solar and wind are still in their early stages and a small piece of the pie to a real solution. However, Natural Gas continues to grab share from Coal when it comes to electricity generation.
Chesapeake Energy (ticker: CHK) is the second largest producer of natural gas and one of the most active drillers of new wells in the U.S. They have a vast amount of proven reserves.
Their biggest shareholder, Billionaire Carl Icahn, recently doubled his equity exposure in CHK. According to an SEC filing that was released in mid December, he now controls almost 6% of the company, or 39 million shares. Obviously, Mr. Icahn thinks that the current valuation of Natural Gas is quite compelling.
The stock is up 17% since the Icahn news became public. CHK is a pure play on where Natural Gas prices are headed. Aside from their production, the company has a very large proprietary trading desk that makes them the ultimate player in Natural Gas prices.
Here's a daily Chart on CHK ...
Another way to play Natural Gas is through a very liquid and heavily traded ETF. The United States Natural Gas Fund (ticker: UNG) seeks to replicate the performance of Natural Gas Futures prices on the NYMEX.
Because of the contango effect on Natural Gas Futures, there has been some price slippage as the fund rolls over their expiring contracts. Recently, with the price of Natural Gas bottoming, some of the contango effect has lessened, which reduces the slippage. The shift in skew (contango) across contract months also indicates a bullish bias in prices, as there is more interest in near term delivery.
Here's a daily chart on UNG ...
(Click on image to enlarge)
Very similar to the Natural Gas Futures contract, UNG appears to have bottomed, and is making a bullish uptrend, putting in higher lows (green line). The longer dated downtrend line (red line) was also breached. If UNG trades higher, the 200-day moving average could be the next resistance level, or 10% higher from Wednesday's close of 6.14.
Could 2011 be the year for Natural Gas? We shale see ...
Has Natural Gas Finally Bottomed?
Costas Bocelli
THE COMMODITIES SECTOR WAS ONE OF THE TOP PERFORMING ASSET CLASSES IN 2010, WITH PRICES SOARING ACROSS THE BOARD.
Precious metals were up big ...
Base metals, like copper, made record highs ...
Tight supplies and bad weather sent corn, soybeans, and wheat to the moon ...
Even soft commodities like sugar, coffee, and cotton made stellar gains.
The Thomson-Reuters/ Jefferies CRB Commodity Index was up 18% for 2010. Since the market rally in September, the index has gained 29% in 4 short months.
Yes, the Commodity sector was in a bullish feeding frenzy, except for ... Natural Gas.
Natural Gas prices have been in a dismal decline since the commodity bubble burst in mid 2008, just before the credit crisis sent the world into the great recession.
2010 was another difficult year for Natural Gas, and it was unable to ride the commodity rally with the rest of the sector. Natural Gas prices fell 35% last year, making it -- by far -- the worst performer in the space.
Although energy is in high demand in the United States and abroad, Natural Gas supply has been abundant and plentiful, putting pressure on prices. New technologies and large discoveries of proven reserves have been the main driver of lower prices.
Have a look at the Natural Gas February Futures Contract (weekly) ...
(Click on image to enlarge)
You can see that it maintained a bearish trend throughout the year, making a series of lower highs and lower lows in a downward channel.
But now, the early price action this month appears to exhibit a technical breakout from the pattern. Is this the start of a turn in Natural Gas prices, and an indicator that a floor has been put in?
Is it Finally Time to Get Bullish?
Some very smart investors think so. Hedge funds almost doubled their bullish bets that Natural Gas prices go higher -- in fact, their net long positions have increased by more than 90% since the end of 2010. According to the Commodity Futures Trading Commission (CFTC), which tracks these large positions and open interest, the surge was the largest increase in over a year.
It's hard to say what their time frame is on the bullish play. But with Natural Gas prices at historic lows, inventory levels not breaching 2009 record levels, and harsh winter snow storms hitting major cities in the United States, the bet makes perfect sense.
Longer term, Natural Gas may play a more significant role in how we deal with energy consumption. As oil prices rise, alternative resources attract greater attention. Green energy innovations such as solar and wind are still in their early stages and a small piece of the pie to a real solution. However, Natural Gas continues to grab share from Coal when it comes to electricity generation.
Chesapeake Energy (ticker: CHK) is the second largest producer of natural gas and one of the most active drillers of new wells in the U.S. They have a vast amount of proven reserves.
Their biggest shareholder, Billionaire Carl Icahn, recently doubled his equity exposure in CHK. According to an SEC filing that was released in mid December, he now controls almost 6% of the company, or 39 million shares. Obviously, Mr. Icahn thinks that the current valuation of Natural Gas is quite compelling.
The stock is up 17% since the Icahn news became public. CHK is a pure play on where Natural Gas prices are headed. Aside from their production, the company has a very large proprietary trading desk that makes them the ultimate player in Natural Gas prices.
Here's a daily Chart on CHK ...
(Click on image to enlarge)
Another way to play Natural Gas is through a very liquid and heavily traded ETF. The United States Natural Gas Fund (ticker: UNG) seeks to replicate the performance of Natural Gas Futures prices on the NYMEX.
Because of the contango effect on Natural Gas Futures, there has been some price slippage as the fund rolls over their expiring contracts. Recently, with the price of Natural Gas bottoming, some of the contango effect has lessened, which reduces the slippage. The shift in skew (contango) across contract months also indicates a bullish bias in prices, as there is more interest in near term delivery.
Here's a daily chart on UNG ...
(Click on image to enlarge)
Very similar to the Natural Gas Futures contract, UNG appears to have bottomed, and is making a bullish uptrend, putting in higher lows (green line). The longer dated downtrend line (red line) was also breached. If UNG trades higher, the 200-day moving average could be the next resistance level, or 10% higher from Wednesday's close of 6.14.
Could 2011 be the year for Natural Gas? We shale see ...
Chesapeake's LA #1-H Tarrant County, Texas
 |
| Gas drilling continues on a cold winter's night at Chesapeake Energy's LA #1-H unit in far southern Tarrant county. |
 |
| Work continues 24/7...just happened to be passing tonight and grabbed these photos. |
Rule 37, Rule of Capture, Correlative Rights - What Does it All Mean?
Mike Norman, editorial director of the Arlington and Northeast Tarrant County Star-Telegram provides his take on this topic, and what it all means to those owning mineral rights in the Barnett Shale.
Keller P&Z rejects XTO request for Sky Creek pad site | Barnett Shale | Dallas Business,...
The zoning commission in Keller falls in step with other communities by blocking a proposed XTO Energy drilling pad site in the Barnett Shale.
Wednesday, January 05, 2011
Southlake extends discussion on first gas well until Feb. 1 | Barnett Shale | Dallas Bus...
A second public hearing on Southlake's first gas well was tabled on Wednesday, January 5, 2010. A third hearing to continue the discussion and has been rescheduled for February 1, 2010.
Arlington City Council tables vote on proposed Chesapeake gas well near Cowboys Stadium | ...
Possible heavy truck traffic through the city's entertainment district prompts decision to table a vote on Chesapeake's permit to drill near Cowboy Stadium.
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