By JOHN P. TRETBAR
An attorney for Nebraska landowners who oppose the Keystone XL pipeline grilled one of the project’s lead executives on Monday in a testy legal hearing before a state commission that is reviewing the proposal.
The hearing before the Nebraska Public Service Commission is the last major regulatory hurdle pipeline developer TransCanada faces in its nine-year quest to complete the $8 billion pipeline. The commission will decide whether to grant Calgary-based TransCanada’s application for route approval for the pipeline through Nebraska, allowing the company to gain access to holdout landowners’ property through eminent domain laws.
Baker Hughes reported a drop of four rigs from its weekly total. There were 954 active drilling rigs across the country last week, that’s one less oil rig and three less exploring for natural gas. Independent Oil & Gas Service reported a 16.7% drop in its weekly rig counts for Kansas. There were eight active oil and gas rigs operating east of Wichita, down five, and 22 in western Kansas, down one. They’re drilling at one site in Ellis County, and report drilling ahead at one site in Barton County.
Independent Oil & Gas Service reported 52 new well completions across the state. There were 17 new completions in eastern Kansas and 35 west of Wichita, including one in Barton County and two in Ellis County. Operators have completed 793 wells so far this year, compared to 688 a year ago, and more than 2,700 two years ago at this time.
Operators last week filed 20 permits to drill at new locations across the state, seven in eastern Kansas and 13 west of Wichita, for a year-to-date total of 819 drilling permits. That’s better than the 565 last year at this time, but well below the 1,459 new permits filed by this point in 2015. Out of 52 total completions last week, nine were dry holes, three of them in eastern Kansas and six west of Wichita.
Preliminary numbers from the Kansas Corporation Commission showed producers filed 113 intent-to-drill notices during the month of July, but the finalized tally was 103 for the month. 884 so far this year. There were three new intents filed in Barton County, two in Ellis County, and one in Russell County during the month of July.
The Web site Ozarks first reports on an oil rig in eastern Kansas that is powered entirely by solar cells. The play produces about seven barrels of oil per day for Jeff Base Ridge Enterprises, using electricity generated by solar cells. The pilot project cost about $25,000.
A Nigerian court has ordered the permanent forfeiture of $37.5 million mansion belonging to a former oil minister facing corruption charges. No one showed up in court to claim ownership of the property. This is the second major victory for Nigeria’s anti-corruption body against the former oil minister. In February, a Nigerian court ordered the seizure of more than $110 million from his bank accounts.
An industry group in Canada says light oil producers will drill more wells than previously expected this year, because investors have been quick to transfer capital out of oil sands projects in Canada. The Petroleum Services Association of Canada updated its annual drilling forecast to 7,200 wells this year, up 8% from the previous forecast.
Royal Dutch Shell said Tuesday it expects the largest refinery in Europe to remain closed until at least mid-August. The Anglo-Dutch oil major shut down its Rotterdam refinery over the weekend after a fire knocked out power at the facility. The move, which threatens to cut the supply of fuel in the region, sent prices of gasoline and diesel up globally. The Pernis refinery has the capacity to produce 404,000 barrels of fuel each day.
Devon Energy of Oklahoma City says it’s about a third of the way through a previously-announced plan to sell $1 billion in assets because of low prices. This week they agreed to sell $340 million in energy-producing resources located in the Eagle Ford shale in Lavaca County, Texas. So far the company has dispensed with properties that produced the equivalent of about 4,000 barrels of oil per day, totaling about $30 million in annual cash flow.
South Dakota has been paid for its help policing protests in North Dakota against the Dakota Access oil pipeline. South Dakota Highway Patrol troopers racked up 8,800 hours during the protests. A spokesman says the agency has been reimbursed $518,000 for hours and mileage. North Dakota’s policing tally stood at $38 million after the months long encampments were evacuated over the winter. They’ve asked for help from the feds, and Energy Transfer Partners, the company that built the pipeline, has offered to pay the cost.
A spokesman for by North Dakota Gov. Doug Borgum said that accepting the money to avoid taxpayer expense is still a possibility.