RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2021-02-01 12:10:00

U.S. GAS MORATORIUM

U.S. GAS MORATORIUM

PLATTS - 29 Jan 2021  - If the recent moratorium on the issuance of federal drilling leases holds, most US production losses would occur in New Mexico, where up to 3 Bcf/d of new natural gas supply could be at risk over the next three years.

Following the recent issuance of a 60-day moratorium on new drilling permits and land leases on federal land, President Joe Biden Jan. 27 signed an executive order that would suspend all new federal oil and gas leases, both onshore and offshore, while the Department of the Interior reviews all existing leasing and permitting practices.

The executive order avoids an outright ban on federal land drilling permits. However, it does pose longer-term risks for production growth in some producing basins, specifically the New Mexico portion of the Delaware Basin of the Permian, which is expected to see the largest impact from any legislation that limits drilling activity on federal lands.

In a scenario developed by S&P Global Platts Analytics, a ban on federal drilling permits could place as much 3.7 Bcf/d of US gas production at risk by the end of 2024, with roughly 3 Bcf/d of those losses coming solely from the New Mexico Delaware Basin.

Operators have been preparing for Biden to make good on his campaign promise by stockpiling permits that they can drill over the course of the next couple years.

US Bureau of Land Management permits for onshore drilling last for two years, with an option to extend them a further two years, though the commonplace extension could also be at risk. Operators have stockpiled nearly 4,000 permits on federal lands, over 60% of which are in New Mexico's portion of the Delaware Basin. In any scenario that does not include an outright ban on drilling, which is unlikely from a legal perspective, operators will be able to continue to drill over the course of the next two to four years.

"A federal leasing moratorium is effectively a blockade around New Mexico's economy, impacting our state more than any other in the country," said Ryan Flynn, president of the New Mexico Oil and Gas Association. "We share the new administration's commitment to reducing emissions and combating climate change, but we do not make progress by sacrificing New Mexico communities like Carlsbad, Farmington or Hobbs."

Platts Analytics believes a surge of drilling and completion activity on federal lands is likely in the coming months as operators attempt to drill as many existing permits as possible before expiration. Overall Permian production is forecast to grow to an average of 19.4 Bcf/d by 2025, an increase of 7.5 Bcf/d from current levels, with 3 Bcf/d of that growth expected to come from the New Mexico Delaware.

Because drilling permits are valid for at least two years, initially there is likely to be a pop in production out of the Delaware as operators execute on the previously approved permits. But as natural declines start to take hold, production out of that portion of the basin is expected to flatten and steadily decline.

The potential for 3 Bcf/d less production from the Permian would cause the US Southwest and Southern California markets to see significant price premiums as the region's two main supply sources, the Permian and the Rockies, stand to lose the most following a federal permitting ban.

-----


Earlier:

U.S. GAS MORATORIUM
2021, January, 26, 12:10:00
U.S. ENERGY TRANSITION STRATEGY
Some of the country's largest energy customers, including Amazon, Facebook, General Motors, McDonald's, PepsiCo, Target and Walmart have called on the federal government to implement "strong and specific national policies" to accelerate the transition to a zero-carbon dioxide emissions power sector
U.S. GAS MORATORIUM
2021, January, 22, 11:20:00
U.S. GAS PRICES WILL UP
The annual natural gas spot price at the Henry Hub will rise 98¢ per million British thermal units (MMBtu) to average $3.01/MMBtu in 2021.
U.S. GAS MORATORIUM
2021, January, 19, 13:45:00
U.S. FOSSIL FUEL WILL UP
U.S. production of all fossil fuels—crude oil, coal, dry natural gas, and natural gas plant liquids (NGPL)—to increase in 2022, but forecast fossil fuel production will remain lower than the 2019 peak.
U.S. GAS MORATORIUM
2021, January, 15, 11:40:00
U.S. GAS PRODUCTION UPDOWN
U.S. marketed gas production for 2021 will fall 2% and average 96.2 billion cubic feet per day (Bcf/d).
U.S. GAS MORATORIUM
2021, January, 12, 11:30:00
U.S. INDUSTRIAL GAS DEMAND UP
Over the past six weeks, the growth in US industrial gas demand has been fueled in large part by industries in the Northeast, Texas and the Southeast, which together account for over 60% of US industrial gas consumption.
U.S. GAS MORATORIUM
2020, December, 1, 13:20:00
U.S. GAS PRODUCTION DOWN ANEW
The preliminary level for dry natural gas production in September 2020 was 2,678 billion cubic feet (Bcf), or 89.3 Bcf/d. This level was 5.4 Bcf/d (-5.7%) lower than the September 2019 level of 94.7 Bcf/d.
U.S. GAS MORATORIUM
2020, November, 13, 13:15:00
U.S. GAS PRICES UP TO $3
the natural gas spot price at the Henry Hub reached $3.00 per million British thermal units (MMBtu), its highest value since March 2019,
All Publications »
Tags: USA, GAS, PRODUCTION
Chronicle:
U.S. GAS MORATORIUM
2021, September, 17, 11:47:00
ENERGY TRANSITION TO CARBON NEUTRALITY AS A FACTOR OF UNPRECEDENTED ACCELERATION OF GLOBAL WARMING
The article reveals the reasons for the unprecedented acceleration of global warming, which was reported by the IPCC in the report "Climate Change 2021", offers proposals for their elimination, as well as for eliminating their consequences.
U.S. GAS MORATORIUM
2021, September, 17, 11:45:00
NO NUCLEAR FOR SPAIN
Under Spain's nuclear phase-out policy, its nuclear fleet is scheduled to shut down by 2035.
U.S. GAS MORATORIUM
2021, September, 17, 11:40:00
WIND ENERGY FOE CHILE 980 MW
The US$700m project, which is expected to generate 2 TWh/year, will include 140 turbines with a maximum power of 7 MW.
U.S. GAS MORATORIUM
2021, September, 17, 11:35:00
U.S. OIL INVENTORIES DOWN BY 6.4 MB TO 417.4 MB
U.S. commercial crude oil inventories decreased by 6.4 million barrels from the previous week to 417.4 million barrels.
U.S. GAS MORATORIUM
2021, September, 16, 14:00:00
OIL PRICE: ABOVE $75
Brent was up 11 cents, or 0.2%, to $75.57 a barrel, WTI was up 11 cents, or 0.2%, to $75.57 a barrel.
U.S. GAS MORATORIUM
2021, September, 16, 13:50:00
EUROPEAN CLIMATE ADAPTATION
Adaptation measures include flood prevention measures and renovating buildings to make them more resilient to extreme temperature. The changes required vary across the continent, but recent events have shown that climate change poses a threat to Europe’s cities.
U.S. GAS MORATORIUM
2021, September, 16, 13:45:00
GAS IS A KEY
Despite adaptations of new fuels and technologies to help achieve the net-zero goal, natural gas will continue to play a vital function for the foreseeable future.
All Publications »