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Oil and Gas Roundup — Oct. 4

October 04, 2013
TOPICS: In the news
A weekly roundup of oil and natural gas news from around the state, nation and world:

Oklahoma Treasurer: Revenue collections hit new high

State Treasurer Ken Miller says 12-month collections to the state treasury topped a new high at $11.3 billion last month, an indication the economy is continuing to expand.

Miller says overall collections for personal income, sales and oil and natural gas taxes increased over the 12-month period, while corporate income and motor vehicle taxes declined. September gross collections totaled $1 billion, a 2 percent increase from September 2012.

It was the third consecutive month that 12-month collections reached a new high.

But Miller, an economist, also warned that the partial government shutdown could have a negative impact on the state's economy. He says an even greater concern is the insistence of politicians in Washington to play "Russian roulette with the nation's debt ceiling."

— Associated Press

U.S.-Canada collaboration needed to expand gas use, association exec says

The U.S. and Canada should work more collaboratively on expanding the use of natural gas across North America, Canadian Gas Association President and CEO Timothy Egan said at the North American Gas Forum in Washington, D.C.

Given the abundance of shale gas plays in North America and the integrated nature of the U.S. and Canadian natural gas markets, Egan said, the opportunity to increase natural gas consumption should be on a continental basis. "We think both governments can come together and advance in a manner that will grow demand and deliver greater economic benefits for both countries," he said.

Shale gas production is forecast to grow to 40% of the North American gas supply by 2020 from just 10% in 2009, Egan noted in his presentation. "The movement of supply is changing dramatically due to the economics of shale. Production levels from Marcellus Shale and other formations are causing all kinds of discussions of the most commercial route to move gas across the continent," he added.

The U.S. and Canada have one of the most comprehensive trading relationships in the world, with Canada serving as the largest foreign supplier of energy to the U.S. In 2012, nearly 94% of total U.S. natural gas imports came from Canada, while nearly 60% of U.S. natural gas exports went to Canada, according to the U.S. Energy Information Administration.

A key area of natural gas development that Egan suggested the U.S. and Canada could work on is transportation.

Read more:

Barclays: U.S. gas exports to Mexico will more than double by 2016

U.S. natural gas exports to Mexico will more than double in 3 years — from an average of 2 Bcf/d in 2013 to 4.5 Bcf/d in 2016, according to a report from Barclays Capital.

The expected increase comes as natural gas demand in Mexico has been strong and is poised to accelerate further, driven by new power generation and industrial use, and enabled by "a massive expansion of the country's pipeline network," said the report, issued late Tuesday.

Eight major pipelines with a total capacity of 5.6 Bcf/d are scheduled to start operations within Mexico from 2013 to 2017, the report said. Several will deliver gas to areas currently lacking sufficient distribution infrastructure, and will spur new demand. Three of these pipelines will connect directly to the U.S. pipeline grid, and are mirrored by US expansions.

Read more:

Economist: U.S. jobs climb along with oil boom

A surge in U.S. jobs has accompanied America’s new drilling boom, putting workers into the oil fields of North Dakota, Texas and other states, an economist told a Washington, D.C. energy summit on Thursday.

For nearly two decades, direct jobs tied to oil and gas extraction stayed relatively flat, noted Andrew Lyon, a principal in PwC’s National Economics and Statistics group.

But fast forward to 2005, and, suddenly, the trend line spiked up.

Direct oil and gas extraction jobs nearly doubled between 2005 and 2011, according to Lyon, speaking at the U.S. Energy Association’s 6th annual Energy Supply Forum. There were about 800,000 jobs directly tied to extraction in 2011 nationwide.

Read more:

Halliburton moving jobs to Ohio from W.Va.

West Virginia’s loss will be Ohio’s gain when it comes to an undisclosed number of jobs that Halliburton Co. will move to its Zanesville facility that serves the Utica and Marcellus shale plays.

The Houston-based company (NYSE:HAL) told me in an email it will close a facility in Weston, W.Va., and shift its cementing business-line operations to its new facility in Zanesville. Halliburton had moved another part of its Weston operations to Zanesville three months ago.

Halliburton began construction on its Zanesville oil-field services complex in April 2012, saying it plans to create 300 jobs there by 2015. Its cementing and mudding operations used in well drilling are already based there, and the company has said it will add other business lines in coming years.


The Weekly Oil & Gas Follies

Each week, Forbes and Energy In Depth columnist David Blackmon will “briefly chronicle the week’s silliness, foibles, fake news and real news related to the oil and natural gas industry.”

Check out this week’s here:

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