- Apache Corporation is hydraulically fracturing water flooded properties in the central basin platform of west Texas employing horizontal laterals. Fluids that have been producing for 90 years in fields such as TXL South, North McElroy and Shafter Lake are now reinvigorating the old production.
- Global Hunter Securities, analysts in a recent report on the Gulf of Mexico development say the picture is encouraging because of the improving regulatory situation and financial commitments by the majors. The main concern is that deep water rigs are not available currently and operators may have to wait until 2014 to get a rig.
- TransCanada announced it will build, own, and operate the Tamazunchale Pipeline Extension in Mexico. Construction of the pipeline is supported by the Comision Federal de Electricidad, Mexico’s state-owned power company. TransCanada expects to invest approximately USD 500 million in the pipeline and anticipates an in-service date in first-quarter 2014. The project will be 235 km long and have contracted capacity of 630 MMcf/D. The pipeline will use a combination of 30- and 36-in. diameter pipe and have 37 MW of installed compression.
- Greater Natural Buttes Project, Uintah Basin, Utah. Anadarko Petroleum Corp. proposes to drill 3,700 natural gas wells in Eastern Utah. These wells are expected to produce about one billion cubic feet of gas a day, enough to heat or cool approximately 5.5 million homes. The natural gas deposits in the Uintah Basin carry higher value liquids such as ethane, propane and butane.
- The wells will be drilled over a ten year period. This activity will not only create hundreds of new jobs but would increase producing wells in the state by more than 50%.
- McMoran Exploration of Houston found more potential hydrocarbons at the Blackbeard East ultra deep bypass well. The well is on South Timbalier Block 144 and was drilled to a depth of 33,318 feet. Hydrocarbons were encountered in the Sparta carbonate section of Eocene and Vicksburg section of Oligocene. The Sparta is 300 feet thick and appears to be a hydrocarbon bearing fractured carbonate; the new intervals do not include the 178 net feet of hydrocarbons previously announced above 25,000 feet in the Miocene and Oligocene (Frio). McMoran holds a 72% working interest in the well. Energy XXI 18% and Moncrief Offshore LLC 10%.
- There is misinformation about frac fluids being pushed into groundwater. Ernest Moniz, professor of physics at MIT has presented an extensive study of natural gas. No evidence of groundwater contamination from fracturing operations was found in thousands of well completions that MIT studied. Environmental impacts are present; however, in the MIT study about one-half of environmental complaints were due to poor well completions and one-third to issues with management of waters at the surface.
Read the quarterly Energy Newsletter in its entirety.
