This Week’s Market Buzz

  • Genscape’s proprietary pipeline models indicate that natural gas production for the 48 contiguous states reached the 70 bcfd level for the first time on Monday, July 21, 2014. This unique milestone demonstrates the ongoing growth in gas production and the continued reliance on natural gas in North America. Using regional natural gas prices in combination with well economics, Genscape provides the most accurate gas production forecasts in the market, with weekly updates and detailed production forecasts for over 50 regions in the Lower 48 and Canada. Genscape has been aggressive in forecasting increasing U.S. natural gas production from shale plays across the country, with record flows in the Marcellus and Utica Shale leading the way.  

  • As many states and the federal government look toward calling for greater disclosure and regulation of the chemicals used in hydraulic fracturing, state senators in North Carolina appear to be pushing against the tide in seeking legislation to criminalize the disclosure of fracking chemicals designated as trade secrets or confidential, according to the Oil and Gas Legal blog. In late May, the North Carolina Senate passed the “Energy Modernization Act,” which designates state geologists custodians of confidential information about fracking fluids and makes releasing such information “knowingly or negligently” a misdemeanor. As drafted, the legislation permits disclosure of otherwise protected information to healthcare providers, the public safety department or the fire chief in cases of emergency, and further requires the reporting of any banned fluids to the state Mining and Energy Commission. The bill has now moved on to the state’s House of Representatives for consideration.
  • Pennsylvania’s former health secretary says the state has failed to seriously study the potential health impacts of one of the nation’s biggest natural gas drilling booms. Dr. Eli Avila also says the state’s current strategy is a disservice to people and even to the industry itself because health officials need to be proactive in protecting the public. “The lack of any action speaks volumes,” said Avila, who is now the public health commissioner for Orange County, New York. “Don’t BS the public. Their health comes first.” Avila told The Associated Press that he believes senior political advisers did a “disservice” to Republican Gov. Tom Corbett by putting a study of health effects on the back burner three years ago. That has led to a cycle of public fear and confusion, Avila said.