Natural Gas News – June 4, 2018
Natural Gas News – June 4, 2018
The Rise of U.S. Associated Natural Gas
Forbes reported: Associated natural gas is the gas that also comes along as a basically free byproduct when crude oil (petroleum) gets produced. Especially with oil prices rising this year (which obviously encourages more drilling), associated gas continues to be an integral part of the U.S. natural gas portfolio. We have three key associated gas fields: the shale plays of Bakken in North Dakota, Eagle Ford in south Texas, and the mighty Permian in west Texas, the last one constituting over half of our associated gas. U.S. associated gas has become so important that some believe it has installed an inverse relationship for oil and natural gas prices, where higher oil prices lead to more oil drilling that leads to more associated gas production that leads to lower gas prices. Yet for now, it’s indeed worth noting that despite the latest run-up in oil prices that has just pulled back a bit, natural gas prices have been at high levels not seen since early-February, with prompt month closing in the recently elusive $3.00. For more on this story visit forbes.com or click https://bit.ly/2sEMDJZ
Fees Sought for Firefighters’ Responses to Gas Line Ruptures
US News reported: Sioux City’s fire department wants to charge companies for firefighters’ responses to ruptures of natural gas lines. The Sioux City Journal reports that a proposal headed for a City Council vote Monday would bill the company that causes the break $2,000 for the first hour of response and $250 for each additional 15 minutes. There would be more charges for additional personnel, vehicles, ambulance service or supplies. The fees would not apply to small leaks that do not require a full response, incidents lasting under 30 minutes or leaks occurring to above-ground piping inside buildings. Sioux City Fire Rescue estimates it would have received more than $640,000 for its responses to gas line breaks since 2001 if the fee structure were in place. For more on this story visit usnews.com or click https://bit.ly/2JrOAnl
This article is part of Daily Natural Gas Newsletter
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