This article examines the fact that a decade ago, market players were making large capital investments to facilitate the import to the United States of liquefied natural gas (LNG) from distant location such as the Middle East, Africa and Russia. This was predicated on the consensus at the time that U.S. domestic supply was becoming increasingly scarce. However, innovations involving hydraulic fracturing and horizontal drilling subsequently led to th dramatic growth of domestic production from shale gas. In fact, domestic production growth has been so strong that the U.S. is considered a possible exporter of LNG - an unthinkable notion just a few years ago. This new consensus is fueled by the current reality - one that features abundant supplies and low prices in North America relative to the rest of the world. Importantly, the commercial aspiration of firms that seek to seize the apparent profit opportunity offered up by exports run headlong into concerns that allowing exports from the U.S. will force prices up, thereby negatively impacting the industrial activity and household budgets. Hence, the issue of allowing LNG exports from the U.S. has entered the political realm.
March 5 article This paper examines the time series econometric relationship between the Henry Hub natural gas price and the West Texas Intermediate (WTI) crude oil price. Typically, this relationship has been approached using simple correlations and deterministic trends. When data have unit roots as in this case, such analysis is faulty and subject to spurious results. We find a cointegrating relationship relating Henry Hub prices to the WTI and trend capturing the relative demand and supply effects over the 1989-through-2005 period. The dynamics of the relationship suggest a 1-month temporary shock to the WTI of 20 percent has a 5-percent contemporaneous impact on natural gas prices, but is dissipated to 2 percent in 2 months. A permanent shock of 20 percent in the WTI leads to a 16 percent increase in the Henry Hub price 1 year out all else The Relationship between natural gas and crude oil prices.
March 5 article US Energy Policy Outlook for the 21st. Century For many decades now, the United States has been without an energy policy Americans face long-term energy delivery challenges and volatile energy prices is the failure of both Democrats and Republicans to fashion a workable energy policy. Energy policy was allowed to drift by both political parties despite its centrality to Americas domestic economy and to our nation's security. It was permitted to drift despite the fact that virtually every American recession since the late 1940s has been preceded by spikes in oil prices. The American people need to know about this situation and be told as well that there are no easy or quick solutions to today's energy problems. The president has to begin educating the public about this reality and start building a broad base of popular support for the hard policy choices ahead.
March 5 article Electricity sector demand for natural gas in the United States. The U.S. Department of Energy has publicly discussed the potential for natural gas shortages facing the nation and the significant impact that various sectors of our economy face from such shortages. Within the past few months, the nation has seen stocks of natural gas in underground storage reach unusually low levels due to a combination of cold weather in parts of the country and declines in both domestic production and net imports. Price volatility of natural gas during this past winter has also been unprecedented.
February 4 article interview in the Natural Gas Week by Energy Intelligence with Diana Chance. Known for its oil and natural gas resources, Louisiana may soon add coal-bed methane (CBM) to its list of energy reserves with a play stretching across the northern part of the state that several experts say could rival Wyoming's Powder River Basin. “We are on the verge of something very big,” said Diana Chance, one of those leading a very quiet charge to develop CBM resources — or as its known in the Bayou State, coal seam natural gas.
January 2008 article from the Oil and Gas Investor in which Diana Chance of Donner Properties discusses the new era of coalbed-methane development in Louisiana. It is clear to E&P companies that it takes time and upfront investment to develop any new play. A new coalbed-methane play is no exception, but operators in northern Louisiana are optimistic. The idea of exploring for CBM potential started with less than a handful of committed people in 1998, but CBM has suddenly caught the attention of new and serious players.
March 2007 article from The American Oil and Gas Reporter. As LOGA prepares for its 2007 annual March meeting, Diana Chance mineral manager for Donner Properties discusses Coal Seam Natural Gas in the Cotton Valley Sands, strong North Louisiana drilling tends and Act 312 with regards to legacy related issues in the state.
January 2007 article from The American Oil and Gas Reporter. There have been many highlights that stand out the past year; however, the passage of the SB 655, authored by Senator Robert Adley, D-Benton, was a major accomplishment for LOGA. Diana Chance Mineral Manager and Chairwoman of LOGA talks about the Legislative Bill in this issue of The American Oil & Gas Reporter, now ACT 312, that addresses this issue of the many lawsuits filed by a group of trial lawyers for alleging environmental damages caused by oil and gas activity from the past year.
September 24, 2006 article from the Shreveport Times. Excerpt below:
To see the effects of the local natural gas boom, look at a $160,000 house going up north of Bossier City. It is the first home Curtis Crawley will own. His job operating a crane with Mosley Wireline Service in Haughton, which works on natural gas rigs, made it possible by tripling his salary from his last job to almost a six-figure level. "I've always rented or lived with family," the 27-year-old said of his three-bedroom, 1,300-square-foot home. "This job has provided me a chance to build a house." The natural gas industry in Caddo and Bossier parishes is flourishing like no other time in recent memory. Production in Bossier Parish from January 2001 to January 2006 is up more than 206 percent, and up 187 percent in Caddo during the same period, according to the Louisiana Department of Natural Resources.
The American Oil & Gas Reporter has extensive articles by Diana Chance, Mineral Manager of Donner Properties and chairwomen of the Louisiana Oil and Gas Association.
- In the January issue, Diana discusses the Louisiana Tax Commission ruling, domestic exploration activities and recent news from the Louisiana Oil and Gas Association.
- In the February issue, Diana says the number one problem for 2006 will be dealing with oil field legacy lawsuits. LOGA estimates there are more than 100 such cases involving more than 900 defendants and 700 oil companies.
- In the May issue of The American Association of Petroleum Geologist Explorer, Donner Properties Mineral Manager, Diana Chance discusses the revved-up drilling activity targeting tight gas deposits, oil shale, coal bed methane (CBM) and the like, unconventional hydrocarbons are increasingly becoming conventional in Northern Louisiana.
Two years ago, Louisiana citizens elected Governor Kathleen Blanco, to be the first woman governor of the state of Louisiana. At the annual LOGAs meeting in the spring of 2005, LOGA members elected Diana Chance to be the new Chairman of the LOGA Board of Directors, the first woman chairman of the association and most probably the first woman chairman of any oil and gas association in the United States. See our press release for more information.
Governor elect Kathleen Blanco of Louisiana announced December 6, 2003 appointments to committees advising her transition team on hiring top administrators for the Department of Social Services and the Department of Environmental Quality. Both committees have already begun their work, transition spokesman Bob Mann said. The Social Services committee met Thursday and the DEQ committee met Friday morning, he said. The committees will recommend candidates for department secretary and other high-ranking appointed positions and will not make policy recommendations, Mann said. The Department of Social Services oversees social services such as welfare and foster care. DEQ implements laws to protect the environment.
Bill Sirmon, with Riverbirch Inc. Public Relations in Luling is chairman of the DEQ committee and vice chairman is Diana L. Chance, with Donner Properties, of Shreveport.