December Newsreel: Keane Resigns, AGIA Releases AK Status Report and more

According to a news report, if oil prices stay above $60 a barrel and expected oil transportation projects develop, the state could producing 400,000 barrels of oil daily within five years, said Lynn Helms, director of the state Department of Mineral Resources.

North Dakota production now exceeds 230,000 bpd, which ranks the state behind only Texas, Alaska and California and supplies about 2% of the nation's domestic crude oil output. It is expected to approach 350,000 barrels next year because of a major pipeline expansion and the anticipated startup of a shipping terminal near Stanley that will be able to haul 60,000 bpd by rail to refineries near Cushing, OK. More expansion being planned by Enbridge Inc. and Kinder Morgan Energy Partners LP would allow another increase that could put production at 400,000 bpd, Helms said.

Regulators say 59 drilling rigs are working in western North Dakota's oil patch, many in the Bakken oil shale. That number could jump to 100 as more oil shipping capacity opens up this spring and summer, Helms said.

North American Energy Resources Acquires Interest In Gathering System
Austin, TX-based North American Energy Resources, Inc. has acquired a 20% interest in the Washington Gathering System in northern Oklahoma. The gathering system serves all of the production in NAEY's primary area of interest in Washington County, OK. The gathering system with the pipeline already owned by the company will have the ability to expand and carry over 10,000 Mcf/d.

"Depressed natural gas prices provide infrastructure opportunities for integrated companies," said Ross Silvey, president of North American Energy Resources, Inc. "We will continue to add to our natural gas distribution system as opportunities present themselves."

DOE-Sponsored Expedition Studies Methane’s Role In Global Climate Cycle
Increased understanding of methane’s role in the global climate cycle and the potential of methane hydrate as a future energy resource could result from a recent joint research expedition off the coast of northeastern Alaska involving the U.S. Department of Energy’s National Energy Technology Laboratory.

The Beaufort Sea expedition, which included research partners from the U.S. Naval Research Laboratory and Royal Netherlands Institute for Sea Research, gathered a wealth of data to help understand “fluxes,” or changes in the concentration of methane within and across the Beaufort shelf. The expedition, completed Sept. 26, also provided information for helping to evaluate methane hydrate as an energy resource in this region.

TPG Capital Buys Majority Stake In Valerus Compression
Valerus Compression Services and TPG Capital jointly announced that investment funds managed by TPG will purchase a majority stake in Houston-based Valerus. Valerus is a privately held provider of natural gas handling services, including natural gas compression, processing, and treating. TPG will invest $500 million in the company’s debt and equity. Proceeds from the transaction will be used to provide capital for the company’s growth plans and to refinance existing debt. Management, employees, and other current investors will retain the remaining ownership.

Chet Erwin will continue as CEO. Dan Smith will become chairman at the time of the TPG investment. He served as Chairman, President/CEO of Lyondell Chemical Co. until its acquisition by Basell in 2007.