Precise calibration and measurement play an increasingly important role in the growth of the liquefied natural gas market, Marc Buttler, Emerson Automation Solutions Director of Application Innovation for Oil & Gas, told SmartBrief in an interview. Transferability of calibration and the use of dynamic flow measurement in custody transfers are two major trends in the LNG space that are key to helping players keep up with the growing LNG economy.
As the global liquefied natural gas market continues to grow, the need to shift away from oil indexation pricing mechanisms and establish a better pricing benchmark becomes more pressing. The Henry Hub, which serves as the delivery point for US gas futures, is seen as the most likely candidate for the role of global gas benchmark as surging US LNG exports increase the influence US gas prices have on foreign markets.
Some US liquefied natural gas export projects could face delays in reviews of up to 18 months as the Federal Energy Regulatory Commission struggles to address a backlog of permit applications, according to sources. FERC is hiring private contractors and may open a regional office in Houston to speed up the permitting process.
The US government will offer a record of about 78 million acres offshore Texas, Louisiana, Mississippi, Alabama and Florida for oil and natural gas drilling at an Aug. 15 lease sale. A March lease sale generated $124.8 million, with bids covering just 1% of the 77 million acres made available.
The number of natural gas exploratory wells, mainly in the Pennsylvania shale region, has surged by 265% from the second quarter of 2017 in a sign of industry health, said American Petroleum Institute Chief Economist Dean Foreman. Well completions for both oil and gas have also risen by 60% year on year, driven by a stronger oil price environment and rising gas exports, Foreman added.
Fairfield Geotechnologies will collect seismic data for oil company BHP in the Alaminos Canyon and East Breaks areas of the western US Gulf of Mexico. Fairfield will use two vessels and ocean-bottom node technology to survey up to 2,600 square kilometers in water depths ranging from 762 to 2,210 meters.
Premier Oil plans to move ahead with its Tolmount oil and natural gas project in the UK North Sea, look at potential North Sea acquisitions and develop blocks in Mexico's Zama basin, the company says. UK-based Premier, which is reducing debt, aims to produce 50,000 barrels of oil equivalent per day from Tolmount at the project's peak.
Melbana Energy, which has stakes in several oil prospects on Cuba's northern coast, says it's working with a Cuban company to acquire a rig to drill at one of the blocks. The drilling may begin in December, but a delay is possible because the rig is due for maintenance in the third quarter.
Amni International plans in the fourth quarter to drill an exploration well at the South Tano hydrocarbon prospect in the deepwater Central Tano block off the coast of Ghana. The Nigerian company has identified 17 prospects at the 279-square-kilometer block.
Aker BP says it will increase its spending on oil exploration from $350 million to $425 million this year. The company, which has found new prospects off the coast of Norway and received licenses from Norwegian authorities, also says it will reduce spending by closing old wells at the Valhall oilfield in the North Sea.
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