Parsley Energy will pay $280.5 million in cash to acquire mineral rights on about 30,000 acres in the Permian Basin of West Texas. The seller was not disclosed. The deal is due to close in mid-July.
Power purchase agreements with corporate buyers have created a slew of opportunities for renewable energy developers, according to Giji John, Rohit Sachdev, Les Sherman and David Spielberg, partners at Orrick, Herrington & Sutcliffe's energy and infrastructure group. The Rocky Mountain Institute said the amount of installed capacity contracted via corporate PPAs doubled annually between 2012 and 2015. Observers say that new sustainability goals and concerns over the cost of electricity are two of the factors driving this shift.
Oil and natural gas producers should view efforts to curb methane emissions as an opportunity "to reduce risk, improve trust, and gain financially, while also providing clear and immediate environmental benefits," two industry observers write. Bruce Johnson, vice president of Fisher Business Units, and Sean Wright, a manager in the Environmental Defense Fund's Corporate Partnerships Program, argue that new federal rules on methane emissions will encourage innovative thinking that will help create jobs and boost US manufacturing.
The world's populations would be driven into poverty and starvation with an all-out war on global warming, a Cambridge University professor said. M.J. Kelly, an electrical engineering professor, wrote in a peer-reviewed article that it wouldn't be possible to reduce carbon dioxide emissions enough to measurably slow global warming without devastating human populations. "A rapid decarbonization is simply impossible over the next 20 years unless the trend of a growing number who succeed to improve their lot is stalled by rich and middle class people downgrading their own standard of living," Kelly wrote.
Range Resources-Appalachia and Pennsylvania state regulators have reached an agreement to address a natural gas well that authorities said leaked methane into water supplies. The deal means the state will, for now, drop a proposed $8.95 million fine.
Chesapeake Energy and its joint venture partner Total have agreed to a $53 million deal that will settle a class-action lawsuit over royalty payments. The companies were sued by landowners in Tarrant and Johnson counties in north Texas who claimed they were underpaid on royalties due from natural gas production in the Barnett Shale.
Kinder Morgan has abandoned its planned Northeast Energy Direct pipeline, formally withdrawing its federal application for the project. The 420-mile line was intended to carry natural gas from the Marcellus Shale in Pennsylvania to New England. The company said it failed to get enough firm capacity contracts for the line.
The US was the world's top producer of oil and natural gas in 2015, the Energy Information Administration reported. Petroleum supplies rose by 1 million barrels per day despite drops in the number of producing rigs amid falling crude prices and a global glut. "US petroleum and natural gas production first surpassed Russia in 2012, and the United States has been the world's top producer of natural gas since 2011 and the world's top producer of petroleum hydrocarbons since 2013," the EIA reported.
Energy company workers are being allowed to gradually return to their work sites in Alberta's oil sands region as the threat from wildfires eases. Flames continue to rage in the area, where more than 1,900 square miles have been scorched. Voluntary re-entries were permitted this past weekend, while local authorities said they would allow "a phased re-entry" to oil sands installations.
Freeport-McMoRan will pay $215 million in cash to call off a contract with offshore driller Rowan for drillship Rowan Relentless. The ultra-deepwater drillship had been booked from June 2015 to June 2017 with a dayrate of about $582,000. The cancellation means Freeport-McMoRan has dropped all its deepwater rig commitments in the Gulf of Mexico.
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