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Sunday, March 13, 2016

US Will Increase Natural Gas Exports To Canada -- Huge Story; OIl Drilling Technology -- March 13, 2016



From Rigzone:
A Calgary-based company is demonstrating a prototype of its new, proprietary robotic racking board pipe handler for land-based drilling rigs. SCARA (Selective Compliance Articulated Robotic Arm) – designed to improve safety and efficiency by replacing the derrick men who work at the top of the drilling rig – can move a triple pipe stand in less than 25 seconds, according to RigArm Inc.’s website.
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US Natural Gas To Canada
From Bloomberg:
U.S. gas drillers battered by the lowest prices in 17 years have found another release valve for their output: Canada.
Over the past five years, the shale boom that unlocked vast supplies of natural gas across North America has tripled pipeline shipments from the U.S. to Mexico, and spurred the first seaborne exports from the lower 48 states. Now, pipeline companies led by Spectra Energy Corp., TransCanada Corp. and Energy Transfer Partners LP are gearing up to more than double the flow into Canada by 2027.
The push begins next year, with plans to open or expand at least three major pipelines and reverse the flow northward on a fourth. Meanwhile, TransCanada may be going a step further, engaging in acquisition talks with Columbia Pipeline Group Inc., a company with a direct route into the U.S.’s prolific Marcellus shale play. The efforts come as gas stockpiles have reached historic highs, prices have fallen almost 40 percent since the end of 2011 and the fuel has established itself as the Bloomberg Commodity Index’s worst performer. All of that has spurred a desperate drive by drillers to expand their markets.
“There’s so much supply growth in the eastern U.S. that producers are seeking any and all outlets to get the gas to market,” Martin King, an analyst at FirstEnergy Capital Corp. in Calgary, said in a phone interview. “It’s another obstacle for Canadian producers.”
Home-grown Canadian drillers such as Calgary-based Birchcliff Energy Ltd. and Encana Corp., are already feeling the heat. Nine years ago, supplies piped from Canada met 16 percent of U.S. demand for natural gas.
By 2014, as U.S. output rose to a record for a fourth straight year, Canadian supplies had slipped under 10 percent. Some Canadian producers will hurt more than others. Those who keep their costs down and sell to markets that don’t vie with supplies from the eastern U.S. will remain competitive, said Jeff Tonken, Birchcliff’s chief executive officer. Meanwhile Encana, one of Canada’s largest gas producers, has said it was cutting spending this year by 55 percent amid the slide in oil and gas prices. The company is also reducing its workforce another 20 percent, which means that Encana will have more than halved its number of employees and contractors since 2013.
I wonder if Trudeau spoke about these issues when he met with President Obama?

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