Monthly Archives: September 2015

Energy Transfer Equity (ETE) persevered in its nine-month effort to acquire fellow pipeline giant Williams, with the buyer agreeing to pay $37.7 billion for control of pipelines and plants that handle roughly 33% of U.S. natural gas demand. Williams investors will get $43.50 a share either in cash or stock in Energy Transfer Corp., an affiliate of Energy Transfer Equity, Kallanish Energy understands. Williams has canceled its May offer to buy all stock it doesn’t own in its affiliate, Williams Partners. The $43.50/share price represents a 4.6% premium to the Williams closing price on Sept. 25. The deal ends a nine-month gestation period fronted by Dallas billionaire Kelcy Warren that became public in June, when Williams rejected Energy Transfer’s first offer as too low, and began seeking other suitors for the company. Williams’ biggest asset, both literally and figuratively, is Transco, the largest U.S. gas pipeline system. It connects the Marcellus Shale/Appalachian Basin to po


I do not know how many of you know the steps being taken across the Midwest and Northeast to stop pipeline construction. Everywhere I travel I hear about it and the troubles the midstream companies are having.   There are numerous Google Alerts which identify stories about communities, organizations and individuals trying to stop pipeline construction. Pipeline construction is critical for the Marcellus and Utica to evolve to the next phase of development. The need for less expensive Marcellus and Utica natural gas in New England and the Southeastern parts of the U.S. is very important to the economic growth of these regions. I read an article yesterday about the dire situation in Boston regarding natural gas. Bostonians pay the highest natural gas prices in the U.S. In January and February, they were paying $24.09 per million BTU’s in PA the price was $3.37. In the previous winter, customers saw their monthly electric bills, already double the national average, rise a whopping 37

Salt Lake City, Utah-based Questar on Tuesday said its Wexpro subsidiary has formed a joint venture with Laramie Energy II’s Piceance Energy unit to develop natural gas-producing assets in western Colorado’s Piceance Basin. Wexpro expects to spend $60 million to $70 million on an 80-well drilling program targeting the Mesaverde formation, Kallanish Energy finds. The partners will begin drilling in the Collbran Valley in Mesa County, Colorado, in October, and continue through early 2017. The JV also provides Wexpro options to acquire development rights for deeper formations and, with mutual consent, to significantly extend and expand the drilling program up to 300 wells, depending on commodity prices. “We are excited to partner with Laramie Energy,” said Ron Jibson, Questar’s CEO. “Laramie’s extensive experience in the Piceance Basin and our historic success in exploring and developing reserves in the Mesaverde formation in other basins of the Rockies is a good match.”

Oil-related projects in North America worth roughly around $1.5 trillion are now considered uneconomic and are unlikely to be brought online, according to a report published Monday by consultant Wood Mackenzie. Oil producers are targeting cost cuts of roughly 20%-30% due to the biggest slump in oil prices since the 1980s, but they also have slashed investment programs and defer projects that remain too expensive at crude s current price level of around $50 a barrel. Spending is down by $220 billion for 2015 and 2016, compared with Wood Mackenzie’s pre-oil-price-crash projections, Kallanish Energy finds. Much of the drop in spending has been focused on projects onshore North America. Additional measures are needed to manage costs, said James Webb, Wood Mackenzie s Upstream research manager, warning that simply squeezing the service sector won t be sufficient to meet the industry s cost-reduction goals. The consultancy said most new oil projects remain uneconomic. Wood Mackenzie estim

With hopes that our politicians in Harrisburg working to approve a balanced budget (we heard we’ll see snow before a PA budget is approved) are aware of the generosity of Williams, a pipeline company now working in PA.   While it may not seem like much each recipient will now be able to fund much needed projects in community.   Thank you Cabot for sharing this information and your generous contributions throughout PA.   For more information about Cabot visit, www. Williams announces $350,000 in Atlantic Sunrise Community Grants Williams today announced the recipients of the Atlantic Sunrise Community Grant Program, awarding more than $350,000 to 49 organizations that reside in, and/or provide services to communities where the proposed Atlantic Sunrise project would be constructed and operated. Grants up to $10,000 per applicant were awarded to eligible organizations to fund projects that provide benefit to local communities or the environmental. “Th

U.S. natural gas production in August held at July levels at 72.1 Bcf/d: Bentek Natural gas production in the Lower 48 States averaged 72.1 billion cubic feet per day (Bcf/d) in August, down less than 1% compared to the July average, according to Bentek Energy. U.S. rig activity, which surged forward in late July continued to strengthen in August, topping 1,000 active rigs for the first time since April and averaging roughly 1,015 rigs, said Sami Yahya, a Bentek energy analyst. Most of the increase in active rig count came from the Permian, where the region added 21 rigs over the July number for a total of 276 rigs. Yahya noted there is a close correlation between the number of active rigs and West Texas Intermediate (WTI) spot prices, where directionally the former typically follows the latter after a two- or three-month of lag. The jump in Permian active rigs seen in August can likely be attributed to WTI prices topping the $60/Bbl mark back in May and June, said Yahya, And as inter

ConocoPhillips, the fourth-largest U.S. oil company, plans to reduce its workforce by 10%, the latest example of the impact of the ongoing impact of low crude oil prices. A majority of the 1,800 jobs being lost will come from North America, including more than 500 from Houston, Daren Beaudo, a spokesman for the Houston-based oil and gas producer, said Tuesday. “Our industry is undergoing a dramatic downturn, which has caused us to look at our future workforce needs,” he said. The announced cuts at ConocoPhillips comes only months after a first round of cuts reduced staff by 5%. The cumulative impact of the reductions, to be felt most severely in North America, will be roughly 2,810 jobs, Kallanish Energy finds. As oil prices have plunged by more than half since last year’s high, energy companies around the world have laid off more than 120,000 workers and reduced spending by more than $114 billion. ConocoPhillips’s cuts follow earlier reductions at exploration-production and s