shale

A panel discussion was recently waged by a Canadian, an American and a Mexican talking about North America’s energy future as the new Middle East for the rest of the world. Hyperbole was cheap, but chances of the provocative scenario becoming a reality ride squarely on the shoulders of Mexico. And everyone was OK with this.

The Eagle Ford Shale, stretching from the mid-south of Texas just shy of Corpus Christi north nearly to San Antonio and west to the Mexican border, continues to attract massive investments from energy companies. It’s not hard to see why. The play contains economically recoverable light crude oil and natural gas liquids in high proportion to currently low-priced gas.

Without question, the growing abundance of natural gas and the hydraulic fracturing process that has made it available have been a “game changer” for the energy industry - and have generated increased ire from the environmental community.

Enserco Midstream, LLC, a subsidiary of Twin Eagle Resource Management, LLC, plans to build and operate a crude oil trans-loading terminal to serve producers in the Niobrara and Bakken Shale formations and Canada.

Regency Energy Partners L.P. will acquire Southern Union Gathering Co. LLC, the owner of Southern Union Gas Services Ltd. (SUGS), from Southern Union Co., a jointly owned affiliate of Energy Transfer Equity L.P. and Energy Transfer Partners L.P. The $1.5 billion acquisition will significantly expand Regency’s presence the Permian Basin.

UGI Corp. has entered into agreements with Tenaska Resources LLC to jointly develop gas resources in the Marcellus Shale region in north-central Pennsylvania.

Southcross Energy Partners, L.P. has completed its 57-mile, 20-inch Bee Line pipeline that will transport liquids rich gas from the central Eagle Ford Shale to Southcross’ Woodsboro and Bonnie View processing and fractionation complex in Refurio County. The pipeline has capacity of 320 MMcf/d.

The Crosstex Energy companies, Crosstex Energy L.P. and Crosstex Energy Inc., joined with the former management of Enerven Compression Services to form a new company (E2) that will provide services for producers in the liquids-rich window of the Utica Shale.

Some important news broke March 20 likely to have major implications for the oil and gas industry going forward. In Pittsburgh, which has become the business hub for the Marcellus Shale, a consortium of environmental organizations, energy companies and philanthropic foundations have formed the Center for Sustainable Shale Development (CSSD). The goal is to provide producers with certification of performance standards for shale development.

Williams and Boardwalk Pipeline Partners have formed a joint venture to develop a pipeline to transport NGLs from the infrastructure-constrained Marcellus and Utica Shale plays to the rapidly expanding petrochemical and export complex on the U.S. Gulf Coast as well as the developing petrochemical market in the Northeast.

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