Fuel to Burn: Now What?

By JAD MOUAWAD April 10, 2012

THE reversal of fortune in America’s energy supplies in recent years holds the promise of abundant and cheaper fuel, and it could have profound effects on what people drive, domestic manufacturing and America’s foreign policy.

Cheaper fuel produced domestically could reduce the cost of shipping and manufacturing, trim heating and cooling bills, improve the auto market and provide tens of thousands of new jobs.

It might also pose new environmental challenges, both predictable and unforeseen, by damping enthusiasm for clean forms of energy and derailing efforts to wean the nation from its wasteful energy habits.

But for Americans battered by rising gasoline prices, frustrated by the dependence on foreign oil, skeptical of the benefits or practicality of renewable fuels and afraid of nuclear power, the appeal of plentiful domestic oil and gas could far outweigh the costs.

Just a few years ago, the dominant theme in discussions about energy was of declining production and the fear of running out of oil. Even today, political tensions in the Middle East, particularly in the Persian Gulf, have fanned fears of supply disruptions that are keeping prices high.

But a new boom in energy production in recent years has upended these expectations in record time. High energy prices led to a wave of successful oil and gas exploration in North America, including in fields that were deemed uneconomical only a few years ago. Using techniques like horizontal drilling and hydraulic fracturing, oil companies are tapping into deeply buried reserves in shale rocks and in the ocean’s depths.

To read the entire article go to: http://www.nytimes.com/2012/04/11/business/energy-environment/energy-boom-in-us-upends-expectations.html?_r=1&ref=businessspecial2&ref=energy-environment

ICF says $4 natural gas could occur within a year

04/10/2012 By Wayne Barber

Natural gas prices just north of $2/mmBtu are not sustainable and consultants for ICF International (ICF) expect to see gas prices in the “$4 ballpark” within a year.

To read the entire article go to: http://generationhub.com/2012/04/10/icf-says-4-natural-gas-could-occur-within-a-year

Energy Sector Deals Keep Coming, as Chesapeake Strikes 3

By BEN PROTESS and MICHAEL J. DE LA MERCED April 10, 2012, 9:56 am

Struggling amid a surplus of natural gas and depressed demand, energy companies continue to look to deal-making to bolster their financial positions.

In the latest, the Chesapeake Energy Corporation has announced three deals that will raise $2.6 billion in cash for the natural gas giant, moves that will help it cope with low  prices.

It has been a tough environment for Chesapeake and other energy companies, which have been dealing with the effects of a warm winter and a sputtering economy. Natural gas prices are about half what they were a year ago, putting pressure on producers.

To read the entire article go to: http://dealbook.nytimes.com/2012/04/10/chesapeake-strikes-a-flurry-of-deals/?ref=energy-environment

Chesapeake Energy Loses Its Magic M&A Touch

Written by: Eric Rosenbaum 04/10/12 - 2:33 PM EDT

Tickers in this article: CHK

NEW YORK (TheStreet) -- It looks like the M&A tricks worked by Chesapeake Energy's(CHK) CEO Aubrey McClendon in the past may have lost their magic ability.

Some trends in the energy stock trade have a history of consistency, and ones of those trades has been Chesapeake's proven ability to generate positive trading momentum for its shares by announcing deals that raise cash to work off the mountain of debt it has amassed -- the oft-quoted twice the level of debt of Exxon Mobil(XOM) for a company 27 times smaller than the world's largest oil company.

It looks like the low natural gas price environment and the ceaseless talk of a "one handle" futures quote (down into the $1s on the one-month futures contract) as being fated in the energy market, may now hold the trump card when it comes to Chesapeake's lack of market momentum.

Natural gas was down another 3% on Tuesday to just above the $2 mark, a day after Chesapeake announced $2.6 billion in asset deals on the way to the $10 billion to $12 billion that the company plans to raise this year to put to rest concerns that its funding gap is too large to bridge.

To read the entire article go to: http://business-news.thestreet.com/denver-post-energy/story/chesapeake-energy-loses-its-magic-ma-touch/11490109

Pumping Up Pressure on Chesapeake’s Funding

By LIAM DENNING April 10, 2012, 4:42 p.m. ET

The great Chesapeake Energy funding machine rolls on. But one business could throw some sand in the gears: oil-field services.

Apart from low prices for natural gas, Chesapeake's stock is weighed down by concerns about its heavy spending. Late Monday, it announced financing deals and disposals worth $2.6 billion. Overall, Chesapeake aims to raise between $10 billion and $12 billion in this way to fund capital expenditure and debt repayments in 2012. Of this, $2 billion is expected to come from selling parts of Chesapeake's pipelines and oil-field-services businesses.

The latter may prove problematic. Oil-field-services giant Baker Hughes recently sharply cut guidance for its North American profit margin. In part, this reflects exploration and production companies such as Chesapeake scaling back drilling for natural gas.

To read the entire article go to: http://online.wsj.com/article/SB10001424052702304587704577336070919987202.html?mod=WSJ_Energy_leftHeadlines

Penn Virginia to Pay $1 Billion for Pipeline Operator

By KRISTIN JONES And NATHALIE TADENA April 10, 2012, 5:33 p.m. ET

Penn Virginia Resource Partners LP PVR +10.38% has agreed to acquire pipeline company Chief Gathering LLC in a $1 billion deal that would expand the energy-exploration company's pipeline system in the natural gas-rich Marcellus Shale region.

The move is the latest in a string of pipeline transactions aimed at capitalizing on the North American energy boom by providing key infrastructure to move all the new production to market. It comes despite low natural-gas prices, which recently fell to a decade-low below $2.40 per million British thermal units.

The Marcellus Shale formation, which stretches beneath parts of Pennsylvania, New York, and Ohio and most of West Virginia, is one of a handful of areas in North America that have helped spark a boom in the oil and gas industry in recent years. In March, Williams Partners LP WPZ -0.86% agreed to acquire gas handler Caiman Eastern Midstream LLC for about $2.5 billion, which helped to expand William's footprint in Marcellus Shale.

To read the entire article go to: http://online.wsj.com/article/SB10001424052702303815404577336163731171028.html?mod=WSJ_Energy_leftHeadlines

Fracking bill moves forward in California Legislature

April 10, 2012 |  7:35 pm

With oil companies touting the potential of hydraulic fracturing in California, state lawmakers considered the first of several bills Tuesday to address the controversial oil extraction method commonly known as "fracking."

The Senate Natural Resources Committee passed a measure that would require energy firms to notify property owners before using the procedure near their land.

Fracking, which involves injecting chemical-laced water and sand into the ground to break apart rock and release natural gas and oil, has drawn the greatest attention in the Rocky Mountain West and Northeast, where states have debated moratoriums to develop regulations after toxic chemicals were found in nearby drinking water.

While fracking is widely used in California to tap oil deposits, state regulators have yet to develop rules or reporting requirements, causing growing anxiety in communities across the state.

To read the entire article go to: http://latimesblogs.latimes.com/california-politics/2012/04/fracking-bill-moves-forward-in-california-legislature.html

Ohio fracking is latest target for anti-Keystone activists

By Grist staff

Original source: http://grist.org/natural-gas/ohio-fracking-is-latest-target-for-anti-keystone-activists/

"Don't frack Ohio!"

The folks who brought you the blockbuster protests against the Keystone XL pipeline have a new dirty-energy target: fracking in Ohio.

Bill McKibben, his 350.org cohorts, Gasland director Josh Fox, and a handful of Ohio environmental activists and groups are aiming to assemble the largest demonstration against natural-gas fracking in U.S. history. The action will happen in Columbus June 14–17, culminating on the last day with a takeover of the statehouse for “a people’s assembly,” the organizers explain in an invitation letter.

Ohio Gov. John Kasich (R) wants to dramatically increase fracking in his state. Never mind that Ohio experienced a dozen earthquakes last year that scientists blame on fracking-related activities, including a 4.0-magnitude quake on Dec. 31. Never mind that new research by the U.S. Geological Survey connects earthquakes throughout the American heartland to fracking. Never mind that fracking is linked to water pollution, air pollution, and health problems for nearby residents. Never mind that fracking worsens climate change and dampens the market for clean energy. And never mind that 72 percent of Ohioans want to halt fracking until its impacts are further studied, according to a recent Quinnipiac poll.

Detroit Edison defends refined coal accounting from critics

04/10/2012 By Barry Cassell

The Michigan Public Service Commission should disallow Detroit Edison’s efforts to include its costs for Reduced Emission Fuel (REF), which is coal treated with chemicals to reduce power plant emissions, within its Power Supply Cost Recovery (PSCR) plan for 2012, said a witness for the state Attorney General.

To read the entire article go to: http://generationhub.com/2012/04/10/detroit-edison-defends-refined-coal-accounting-fro?utm_medium=eNL&utm_campaign=GHUB_DAILY&utm_term=Original-Member

Sierra Club does a deal to kill Ben Hill coal project

04/10/2012 By Barry Cassell

The Sierra Club said April 10 that Power4Georgians, made up of electric membership cooperatives in Georgia, has agreed to cancel the proposed Ben Hill coal-fired power plant.

To read the entire article go to: http://generationhub.com/2012/04/10/sierra-club-does-a-deal-to-kill-ben-hill-coal-proj?utm_medium=eNL&utm_campaign=GHUB_DAILY&utm_term=Original-Member

Progress Energy Carolinas plans to retire Lee coal plant by 2013

04/09/2012 By Barry Cassell

Progress Energy Carolinas (PEC) plans to retire the coal-fired Lee power plant by 2013 in order to comply with 2013 restrictions under the state of North Carolina’s 2002 Clean Smokestacks Act.

To read the entire article go to: http://generationhub.com/2012/04/09/progress-energy-carolinas-plans-to-retire-lee-coal

Coal-fired units at Montrose, Sibley targeted for possible shutdown

04/10/2012 By Barry Cassell

Great Plains Energy (NYSE: GXP) companies are signing renewable energy deals and studying retirement of certain coal units in the near future, according to plans filed with the state of Missouri.

To read the entire article go to: http://generationhub.com/2012/04/10/coal-fired-units-at-montrose-sibley-targeted-for-p

Coal plants’ permits draw challenge

Apr 10 - McClatchy-Tribune Regional News - Jennifer Reeger Tribune-Review, Greensburg, Pa.

Conservation and clean air groups filed an appeal late last week with the Pennsylvania Environmental Hearing Board in an attempt to force the state Department of Environmental Protection to review outdated air-quality permit renewals for coal plants across the state, most of which are in Southwestern Pennsylvania.

To read the entire article go to: http://www.energycentral.com/functional/news/news_detail.cfm?did=24162431