Top News
Solo GOP FERC nomination threatens precedent of bipartisan pairings, critics say
The Trump administration's plan to nominate Republican James Danly as a Federal Energy Regulatory Commission member without also announcing a Democratic pick for the agency will threaten "decades of precedent" on paired nominations, environmental groups and U.S. Senate Democrats said.
September gas flows to US LNG plants climb despite maintenance
Total daily natural gas flows to U.S. LNG export plants spiked in September, even as the Sempra Energy-led Cameron LNG terminal worked to fix a compressor problem and Dominion Energy Inc.'s Cove Point LNG facility started scheduled maintenance late in the month.
IHS sees shale continuing to take share from conventional oil, gas drilling
A 10-year pullback in wildcat drilling has dropped conventional oil and gas discoveries to their lowest level in 70 years, and a major recovery is not expected, according to analysts with IHS Markit.
Murray Energy secures forbearance agreement after missing debt payment
Murray Energy Corp., the largest privately held coal producer in the U.S., entered into forbearance agreements to allow the company time to continue discussions with its lenders about various strategic options and hold off any consequences from an event of default resulting from not making amortization and interest payments due Sept. 30.
Quoted
"We've had hybrids out for 20 years and it still only makes up less than 3%. How long is it going take for electrification — unless you're China and you mandated every car has to be electric, well then everything changes. But without that, the people who are buying electric are taking advantage of incentives. That's not natural demand. What is natural demand? It might be zero, it might be a quarter percent, and it might be a lot more," said Jack Hollis, group vice president and general manager of Toyota Motor North America's Toyota division, on subsidy-driven demand for electric and hybrid vehicles.
Power
* As U.S. energy storage developers install ever-larger segments of their multigigawatt-sized project pipeline, the industry is stepping up
* Pennsylvania Gov. Tom Wolf is set to announce today a plan to fully participate in the Regional Greenhouse Gas Initiative, local newspaper The Patriot-News reported.
* A federal appeals court on Oct. 1 tossed out a U.S. Environmental Protection Agency rule intended to address interstate smog pollution, finding the regulation rested on a legal interpretation of the Clean Air Act that the same court rejected less than a month earlier.
* Brookfield Asset Management Inc. is weighing the sale of its 50% interest in Wind Energy Transmission Texas LLC, Bloomberg News reported, citing people familiar with the matter. The potential sale could fetch $400 million to $500 million.
* North Carolina state senators voted to advance a bill that would allow Duke Energy Corp. to seek multiyear electric rates, WRAL reported.
* The New Mexico Supreme Court denied a petition by New Energy Economy to declare parts of the Energy Transition Act unconstitutional, the Santa Fe New Mexican reported.
Natural gas
* The Environmental Defense Fund will partner with U.S. universities and tech companies to measure the scope of planet-warming methane emissions from the Permian Basin, the nation's most productive shale oil and gas region.
* The U.S. Fish and Wildlife Service concluded in a new report that NextDecade Corp.'s development of the Rio Grande LNG project would not pose a threat to the survival of the endangered ocelot and jaguarundi, the Houston Chronicle reported.
* Returning cash to shareholders through stock buybacks has failed to halt the collapse of the stock prices of Appalachia's shale gas drillers in the face of a dreary futures gas price tape, an S&P Global Market Intelligence analysis found Oct. 1.
* American Energy-Permian Basin LLC reached an out-of-court restructuring deal with its creditors to avoid a bankruptcy filing, The Wall Street Journal reported. The energy producer is backed by private equity firms OnyxPoint Global Management LP and Energy & Minerals Group.
Oil
* Holly Energy Partners LP and Plains All American Pipeline LP agreed to form a joint venture for the development of a 160,000 barrel per day common carrier crude oil pipeline and the ownership of a 1.5 million barrels of crude oil storage in Cushing, Okla.
* An ongoing decline in drilling and completion work continues to undercut U.S. oil and gas production growth — a trend that could hurt oilfield services companies into 2020 as analysts expect producers to remain prudent in their spending. However, a declining rate of production from mature wells may help boost demand for new fracking fleets farther down the road.
* In its latest round of layoffs, Devon Energy Corp. reduced its workforce by 40 employees as part of its plan to transform the company into a pure-play shale oil producer, The Oklahoman reported.
* Exxon Mobil Corp. cautioned analysts and investors that third-quarter earnings are likely to take a hit from lower crude oil prices.
* A unit of Royal Dutch Shell PLC acquired a 20% interest in the Indian solar firm Orb Energy Pvt Ltd., Bloomberg News reported.
* Separately, the U.S. Justice Department has reportedly closed its investigation into Shell over the company's $1.3 billion purchase of a Nigerian offshore oilfield, according to Reuters.
* Bellatrix Exploration Ltd. has launched a sale and investment solicitation process to identify potential strategic options to maximize value for its stakeholders.
Coal
* The U.S. Interior Department filed a limited objection to Blackjewel LLC's proposal to sell six of its Kentucky coal mines to Black Mountain Resources LLC, citing concerns about transferring the federal leases and liabilities.
* Separately, a bankruptcy court approved the sale of Blackjewel's western assets, including Belle Ayr and Eagle Butte mines, to Eagle Specialty Materials LLC, the Wyoming Public Media reported.
* A leading coal ash expert on Oct. 2 highlighted new research that could complicate a Trump administration proposal that critics argue would allow unlimited amounts of the material to be spread over the ground for structural fill projects.
* Coal India Ltd. will halt production at one of its open-pit mines for at least a month due to flooding, Reuters reported.
ChartWatch

After vaulting almost fivefold in August, wholesale power prices in the Electric Reliability Council Of Texas Inc. nearly quadrupled year over year in September, once again spurred by extreme heat.
New from RRA
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The day ahead
* The U.S. Energy Information Administration natural gas storage report is due out today.
* Early morning futures indicators pointed to a higher opening for the U.S. equity markets. To view more SNL equity market indexes, click here. To view more SNL Energy commodities prices, click here.

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