Natural Gas News – February 16, 2018
West Virginia House Votes to Boost Natural Gas Drilling
Idaho Statesman reported: he West Virginia House voted 60-40 on Thursday to allow drilling for natural gas beneath property where 75 percent of owners of its royalty interests agree. Supporters said the bill enables a supermajority of a property’s owners to make money from West Virginia’s large underground gas re-serves and would give the state more tax revenues and an economic boost. Under current law, a single co-owner can block drilling, though a developer can sue to partition the property and proceed. The bill deals only with co-owners of a single tract, said Judiciary Committee Chairman John Shott. Developers wouldn’t be able to use the properties of non-consenting co-owners for gas storage, injection wells or disposal wells for fracking waste. Gas companies wouldn’t be able to place drilling pads and build roads without the written consent of the owners of the surface property, he said. Horizontal drilling enables reaching underground mineral formations from drilling pads a mile away, Shott said. “If you’re a non-consenting co-tenant, they cannot use your surface without your consent.”
Natural Gas Price Ticks Up as Inventory Dips More Than Expected
24/7 Wall St. reported: The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 194 billion cubic feet for the week ending February 9. Analysts were expecting a storage withdrawal of around 183 billion cubic feet. The five-year average for the week is a withdrawal of 154 billion cubic feet, and last year’s storage withdrawal for the week totaled 114 billion cubic feet. Natural gas inventories fell by 119 billion cubic feet in the week ending February 2. Natural gas futures for March delivery traded up about 0.6% in advance of the EIA’s report, at around $2.59 per million BTUs, and rose shortly afterward to $2.60.