You may not realize this, but heat pumps are two-part devices. There’s the outdoor component that the majority are familiar with, and there’s an interior portion known as a fan coil which includes an evaporator coil and a fan or blower. Payne air conditioner usually advocates replacing the fan coil when buying a new heat pump simply because more than likely, it is as outdated as the outdoor unit you are changing. Replacing the fan coil will make sure the greatest convenience, the greatest efficiency and also the greatest dependability in combination with covering your entire system with new product guarantees.

Should your dilemma over ecological issues is on equal footing with your need to be relaxed in your own home, both the PH15NB and PH13NA Payne heat pump can be found with chlorine-free, R-410A refrigerant. Both are appealing, created for low effect on the World’s ozone layer and built to last. They are non-problematic-operating, energy saving cooling and heating devices. The models incorporate the EPA-accredited and industry accepted R-410A refrigerant, the eco sound alternative to R-22.

The phrase “heat pump” is to some extent deceptive to most shoppers, since it actually provides both cooling and heating in households. When heating a home, a heat-pump accumulates warmth through the ground, air, and water so as to send this heat to the home. While a heat pump is in cooling mode, it merely eliminates heat from inside of a house and sends it back outside the house.

Basically, Payne heat pump parts performs the same thing all year long, but it merely transfers warm air in a alternative course dependent upon the ambient temperature. Ac units and heat-pumps in cooling mode are each granted a seasonal power efficiency score (also known as SEER), which enables customers to know how much power every unit will use. According to the periodic energy efficiency score, a large number suggests lesser power consumption.

Article references:

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Best answer:

Answer by just wonderin
heat pumps have relays and the like to make them work. If the unit has not been service recently, consider having it done. They just have to be checked out by a certified technician to insure they are working properly and to try to prevent a failure when they are needed most

What do you think? Answer below!

Best answer:

Answer by lightpulse
First of all, there should be no need a trap for a drain for the evaporator. It’s fairly clean water so it should drain without any resistance to the water flow. Take out the trap and make the drain pipe most easiest to drain to outside. Take advantage of gravity wherever possible.

Give your answer to this question below!

Best answer:

Answer by steve w
get an ammeter on the line and see what you are running for amps. Check all terminals that they are tight.

Add your own answer in the comments!

Best answer:

Answer by Kurtis G
Check your warranty. For a unit that new, labor is usually included, but not always. Some warrantys only work if you have the installing company do the service. Other warrantys cover repairs by any authorized shop in your area.
Read your warranty!
Regarding price, yes, labor is usualy the highest portion of the repair cost, but not always.

What do you think? Answer below!

I’m looking for your advice on:

a) How good is this brand ? Is it reliable ?
b) Any experiences with Sears installing HVAC units ?

Thanks

Best answer:

Answer by Set
I would rather use other brands such as Carrier, Liebert, or Trane. Why are you using a heat pump? A gas/electric system would be more efficient.

Know better? Leave your own answer in the comments!

An unprecedented drought stretching across the southeastern United States has forced some of the region’s largest cities to declare water emergencies.

The situation has become so serious that officials in Atlanta, where rainfall totals are more than 16 inches below normal, said they could run out of drinking water in a matter of weeks.

“Without any intervention, we are likely to run out of water in less than three months,” said Carol Couch, the director of the Environmental Protection Division in Georgia.

The drought has been sucking the city and its water sources dry.

“We have actually classified it as an exceptional drought,” said David Stooksbury, a climatologist at Georgia State. “Basically [it is] the type of drought that we expect to see about once in 100 years.”

Most of Atlanta’s water supply comes from two lakes. Lake Lanier is the main source, but the drought has affected it.

The city’s second source for water is Lake Allatoona, which should be about 16 feet higher than it currently is and continues losing a foot a week. Docks used for boats sit high and dry, hundreds of feet from the water’s edge.

At the heart of the drought drama is the question of how state and federal officials ration the shrinking water supply.

Georgia officials have threatened legal action if the U.S. Army Corp of Engineers does not drastically cut the amount of water it releases from state lakes for agricultural and industrial use. Much of that released water ends up in Florida and Alabama, where officials are likely to oppose any additional decrease in the flow of water. Florida officials say low water levels already threaten the survival of endangered river mussels.

The corps already came under fire when it accidentally released 22 billion extra gallons of water from Lake Lanier last June, just as the region was sinking into a deep drought.

The dry weather has caused the state governors in the region to request that residents cut back on their water usage.

In the Atlanta area, while the conservation measures inside the home are still voluntary, the entire state is under a mandatory outdoor watering ban.

NO REAL ANSWERS

With the South in the grip of an epic drought and its largest city holding less than a 90-day supply of water, officials are scrambling to deal with the worst-case scenario: What if Atlanta’s faucets really do go dry?

So far, no real backup exists. And there are no quick fixes among suggested solutions, which include piping water in from rivers in neighboring states, building more regional reservoirs, setting up a statewide recycling system or even desalinating water from the Atlantic Ocean.

“It’s amazing that things have come to this,” said Ray Wiedman, owner of an Atlanta landscaper business. “Everybody knew the growth was coming. We haven’t had a plan for all the people coming here?”

Gov. Sonny Perdue seems to be pinning his hopes on a two-pronged approach: urging water conservation and reducing water flowing out of federally controlled lakes.

Perdue’s office was preparing Friday to ask a federal judge to force the Army Corps of Engineers to curb the amount of water draining from Georgia reservoirs into Alabama and Florida. And Georgia’s environmental protection director is drafting proposals for more water restrictions.

But that may not be enough to stave off the water crisis. More than a quarter of the Southeast is covered by an “exceptional” drought — the National Weather Service’s worst drought category. Georgia is smack in the middle of the affected area, which extends like a dark cloud over most of Tennessee, Alabama and the northern half of Georgia, as well as parts of North and South Carolina, Kentucky and Virginia.

State officials warn that Lake Lanier, a 38,000-acre north Georgia reservoir that supplies more than 3 million residents with water, is already less than three months from depletion. Smaller reservoirs are dropping even lower, forcing local governments to consider rationing.

State water managers say there is more water available in the lake’s reserves. But tapping into it would require the use of barges, emergency pumps and longer water lines. And some lawmakers fear if the lake is drained that low, it may be impossible to refill.

The Corps, which manages the water in the region, stresses there’s no reason to think Atlanta will soon run out of water.

“We’re so far away from that, nobody’s doing a contingency plan,” said Major Daren Payne, the deputy commander of the Corps’ Mobile office. “Quite frankly, there’s enough water left to last for months. We’ve got a serious drought, there’s no doubt about it, anytime you deplete your entire storage pool and tap into the reserve.”

But, he said, any calls to stockpile bottled water would be “very premature.”

Still, some academics and politicians are proposing contingency plans in case the situation worsens.

Atlanta Mayor Shirley Franklin said the region should explore piping in additional sources of water?possibly from the Tennessee or Savannah rivers. She even suggested desalinating sea water from Georgia’s Atlantic coast.

“We need to look beyond our borders,” she said.

Former Gov. Roy Barnes, a Democrat who was defeated in 2002, told reporters this week that he had planned to offer grants to fix leaks that waste millions of gallons of water each year. He also said he planned to build three new state reservoirs in north and west Georgia to help insulate the state from a future water crisis. But those plans died when he left office.

“Los Angeles added 1 million people without increasing their water supply,” he told reporters. “And if Los Angeles can do it, I’ll tell you Georgia can.”

It seems the idea of building state reservoirs is gaining steam in the Legislature as Georgia’s battle with the Corps over federal reservoirs heats up.

Lt. Gov. Casey Cagle said he favors building more regional reservoirs shared by multiple communities to harness the 50 trillion gallons of water that fall over Georgia each year.

“You can see that if we can just manage the rainfall and utilize that and make sure that we have abundant storage for it, we can take care of our needs well into the future,” said Cagle, a Republican from Gainesville, the largest city on Lake Lanier.

Some academics say Georgia should start using more “purple water” — waste water that is treated but not to a level where it is drinkable — to replenish the water system. Such measures could make Georgia “drought-proof,” said Todd Rasmussen, a professor of hydrology and water resources at the University of Georgia.

“People have got to start thinking in this direction,” said Rasmussen. “You can’t wear out water. It’s clearly an opportunity that needs to be explored.”

The drought has led to extreme conservation measures.

Virtually all outdoor watering across was banned across the northern half of the state, restaurants were asked to serve water only at a customer’s request and the governor called on Georgians to take shorter showers. Carol Couch, the state’s environmental director, said it’s “very likely” new limits on water usage are needed. Its effecting many business too. Lanscaping has stopped. According to Mission Grounds Gourmet Coffee – coffee sales are off 40%. Car wash owners business down 76 percent.

Scorching summer temperatures and a drier-than-normal hurricane season fueled the drought. State climatologist David Stooksbury, who said it will take months of above average rainfall to replenish the system, is now predicting the drought could worsen if “La Nina” conditions develop and bring little winter rainfall.

“I tell people we need 40 days and 40 nights,” he said with a sigh.

More Payne Heat Pump Articles

This publication gives you the latest information available including complete narratives, charts, graphs, data, plus questions and answers that you will find in no other publication of its kind. Get your organization up-to-speed today with our print version or searchable cd-rom version, or both!

Table of Contents :

Chapter 1
Methods and Tools for Designing Successful Hybrid Systems
Roger A. Dougal, PhD, Professor of Electrical Engineering, VTB Project Director, University of South Carolina
Design of fuel cell and battery hybrid systems entails integration of strongly interdisciplinary sub-systems involving everything from electrochemistry and power electronics to fluid and heat transfer. The design process can be simplified by the application of appropriate multidisciplinary design tools. This presentation will describe methods for hybrid system design and illustrate those methods with example systems that have been validated in hardware.

Chapter 2
Direct Borohydride Fuel Cells: A Nzovel Class of Fuel Cell – Battery Hybrid Technology
Gennadi Finkelshtain, Chief Technical Officer, Medis Technologies
Medis Technologies’ Direct Borohydride Fuel Cells (DBFC) offers a compelling alternative to the traditional fuel cell chemistries. Medis has launched its first consumer product, the Medis 24/7 Power Pack, based on a novel approach, including proprietary chemistry and assembly technologies. We will provide an overview Power Pack product, including performance, production technology and chemistry. Medis has developed a second generation hybridized version of our Power Pack and we will provide an overview of our hybridization method, including an overview of the performance benefits created by hybridization.

Chapter 3
Identification and Characterization of Near-Term Commercial Markets for PEM Fuel Cells in Portable Applications
Kathleen Judd, Senior Research Scientist, Pacific Northwest National Laboratory/ Battelle Memorial Institute
In a study for the U.S. Department of Energy, TV broadcasting video cameras were identified as a near-term opportunity for portable direct hydrogen PEM fuel cells. A technical comparison of PEM fuel cells and competing battery alternatives was performed for TV broadcasting video cameras. The comparison includes a lifecycle cost analysis of fuel cell and battery technologies (lithium ion and nickel cadmium) under different use scenarios for TV broadcasting video cameras. A sensitivity analysis was also performed to show the variability in average annual system cost as individual factors (e.g. cost, durability of the fuel cell) are varied while other factors are held constant. A value proposition was defined for this market based on the overall market, economic, and technology assessments.

Chapter 4
Durability and Design of Battery/Fuel Cell Hybrid Systems
Tom Fuller, PhD, Professor, Director of the Center for Innovative Fuel Cell and Battery Technologies, Georgia Institute of Technology
Hybrid architectures are becoming common regardless of the system scale. The principal goal of system design has been minimizing fuel consumption. Whereas it is understood that the components of the system must be evaluated and the control strategy scrutinized simultaneously, what’s missing is any consideration of the durability of the electrochemical devices. The necessity of understanding and predicting not just initial performance but life behavior is paramount to commercialization of these power systems. A system model elucidates the interactions between components and enables the response of the system as a whole to changing load demands to be determined. Their life and the associated failure mechanisms are strongly dependent on the architecture, load profile, and control strategies. This is illustrated with an example of platinum stability in a fuel-cell hybrid system.

Chapter 5
Development of a Fully-Integrated, Hybrid, High Temperature PEM Fuel Cell/Lithium Ion Battery Power Plant
Daniel A. Betts, PhD, Engineering Manager, EnerFuel, a subsidiary of Ener1, Inc.
From a business standpoint, Ener1, Inc. is well-positioned to take advantage of the upcoming demand for fuel cell/battery automotive power plants. Ener1 is the parent company of EnerDel, an automotive lithium-ion battery developer, and EnerFuel, a fuel cell company. While EnerDel is in the process of establishing itself as an important player in the automotive lithium ion battery market, EnerFuel has been developing fuel cells with substantial technical advantages over traditional automotive fuel cell technologies. EnerFuel has pioneered high temperature PEM fuel cell stacks. High temperature operation has allowed EnerFuel to pursue designs that are durable, thermally stable, compact, and relatively inexpensive. In this presentation, quantifiable benefits of EnerFuels high temperature PEM fuel cell are discussed.

Chapter 6
Fuel Cell and Battery Hybrid System for Portable Electronics Applications
Naehyuck Chang, PhD, Associate Professor, Dept of Electrical Engineering and Computer Science, Seoul National University
This talk introduces a PEM fuel cell and Li-ion battery hybrid system for use in portable microelectronic systems which are subject to high power fluctuation though their average power consumption is small. We introduce several issues in fuel cell and battery hybrid systems for such systems in view of computer engineering that includes architectures of hybrid systems, battery management, load shaping using power management techniques, and a prototype implementation.

Chapter 7
Department of Energy Polymer Electrolyte Membrane (PEM) Fuel Cell R&D Activities
Terry Payne, PhD, PE, Technology Development Manager, Hydrogen, Fuel Cell & Infrastructure Technologies Program, The U.S. Department of Energy
Though the DOE Hydrogen Program emphasizes polymer electrolyte membrane (PEM) fuel cells in passenger vehicles, the program also supports fuel cells for portable power applications where earlier market entry would assist in the development of a fuel cell manufacturing base. This talk will provide an update on the status of DOE PEM fuel cell development particularly for portable power, ongoing efforts to eliminate barriers, and the path being pursued.

Chapter 8
Direct Ethanol Fuel Cells: An Emerging Technology with Reduced Logistic Footprint for Military and Civil Applications
Carsten Cremers, PhD and Michael Krausa, PhD, Fraunhofer Institute for Chemical Technology ICT
An important goal of replacing primary batteries by hybrids of rechargeable batteries and fuel cells is to reduce the logistic effort in power supply. Fuel cells using ethanol would be beneficial as ethanol offers a higher availability and easier handling compared to methanol. However, the performance of today’s DEFCs does not compete with that of commercial DMFCs. To improve this performance two approaches are currently pursued, a multistep process in proton exchange membrane based DEFC and alkaline DEFC using anion exchange membranes. The current state of the art of both approaches will be presented and their advantages and disadvantages will be discussed.

Chapter 9
Micro Fuel Cell System for Mobile Consumer Electronic Devices
Shuji Goto, and Tadashi Senoo, Manager, Materials Laboratory, Sony Corporation
We are developing micro fuel cell systems for mobile consumer electronic devices. The system consists of series-connected direct methanol fuel cells, a fuel pump, a fuel cartridge, a Li-ion polymer battery and a power management circuit. We have achieved high power output, high energy efficiency and overall system size reduction by the combination of material development, power management algorithm development and component downsizing.

Chapter 10
Mobile DMFC: Enhancement of Stack and System Stability
Inseob Song, PhD, Principal Manager-Fuel Cell Project, Samsung SDI Co, Ltd, Samsung
Recent advancements on mobile DMFC system will be presented. Stack and system

For more information, please visit :

http://www.aarkstore.com/reports/Small-Fuel-Cells-for-Portable-Applications-9th-Edition-1729.html

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Small Fuel Cells 9th Edition
Portable & Micro Fuel Cells for Commercial & Military Applications
22 chapters and more than 450 pages of the latest research available

Based upon the Knowledge Foundation’s Small Fuel Cells conference series, the Ninth Edition is a one-of-its-kind publication and addresses the following critical issues:

– Strategies for Fuel Cell & Battery Hybridization
– DMFC for Mobile Electronics
– PEM and Hydrogen Technologies
– Real-World Commercial Success Stories
– New Membrane and Catalyst Developments

Completely updated with charts, graphs, narratives plus question and answer sessions, the Ninth Edition is available in print, on CD-ROM

Table of Contents :

Chapter 1

Methods and Tools for Designing Successful Hybrid Systems
Roger A. Dougal, PhD, Professor of Electrical Engineering, VTB Project Director, University of South Carolina
Design of fuel cell and battery hybrid systems entails integration of strongly interdisciplinary sub-systems involving everything from electrochemistry and power electronics to fluid and heat transfer. The design process can be simplified by the application of appropriate multidisciplinary design tools. This presentation will describe methods for hybrid system design and illustrate those methods with example systems that have been validated in hardware.

Chapter 2

Direct Borohydride Fuel Cells: A Novel Class of Fuel Cell – Battery Hybrid Technology
Gennadi Finkelshtain, Chief Technical Officer, Medis Technologies
Medis Technologies’ Direct Borohydride Fuel Cells (DBFC) offers a compelling alternative to the traditional fuel cell chemistries. Medis has launched its first consumer product, the Medis 24/7 Power Pack, based on a novel approach, including proprietary chemistry and assembly technologies. We will provide an overview Power Pack product, including performance, production technology and chemistry. Medis has developed a second generation hybridized version of our Power Pack and we will provide an overview of our hybridization method, including an overview of the performance benefits created by hybridization.

Chapter 3

Identification and Characterization of Near-Term Commercial Markets for PEM Fuel Cells in Portable Applications
Kathleen Judd, Senior Research Scientist, Pacific Northwest National Laboratory/ Battelle Memorial Institute
In a study for the U.S. Department of Energy, TV broadcasting video cameras were identified as a near-term opportunity for portable direct hydrogen PEM fuel cells. A technical comparison of PEM fuel cells and competing battery alternatives was performed for TV broadcasting video cameras. The comparison includes a lifecycle cost analysis of fuel cell and battery technologies (lithium ion and nickel cadmium) under different use scenarios for TV broadcasting video cameras. A sensitivity analysis was also performed to show the variability in average annual system cost as individual factors (e.g. cost, durability of the fuel cell) are varied while other factors are held constant. A value proposition was defined for this market based on the overall market, economic, and technology assessments.

Chapter 4

Durability and Design of Battery/Fuel Cell Hybrid Systems
Tom Fuller, PhD, Professor, Director of the Center for Innovative Fuel Cell and Battery Technologies, Georgia Institute of Technology
Hybrid architectures are becoming common regardless of the system scale. The principal goal of system design has been minimizing fuel consumption. Whereas it is understood that the components of the system must be evaluated and the control strategy scrutinized simultaneously, what’s missing is any consideration of the durability of the electrochemical devices. The necessity of understanding and predicting not just initial performance but life behavior is paramount to commercialization of these power systems. A system model elucidates the interactions between components and enables the response of the system as a whole to changing load demands to be determined. Their life and the associated failure mechanisms are strongly dependent on the architecture, load profile, and control strategies. This is illustrated with an example of platinum stability in a fuel-cell hybrid system.

Chapter 5

Development of a Fully-Integrated, Hybrid, High Temperature PEM Fuel Cell/Lithium Ion Battery Power Plant
Daniel A. Betts, PhD, Engineering Manager, EnerFuel, a subsidiary of Ener1, Inc.
From a business standpoint, Ener1, Inc. is well-positioned to take advantage of the upcoming demand for fuel cell/battery automotive power plants. Ener1 is the parent company of EnerDel, an automotive lithium-ion battery developer, and EnerFuel, a fuel cell company. While EnerDel is in the process of establishing itself as an important player in the automotive lithium ion battery market, EnerFuel has been developing fuel cells with substantial technical advantages over traditional automotive fuel cell technologies. EnerFuel has pioneered high temperature PEM fuel cell stacks. High temperature operation has allowed EnerFuel to pursue designs that are durable, thermally stable, compact, and relatively inexpensive. In this presentation, quantifiable benefits of EnerFuels high temperature PEM fuel cell are discussed.

Chapter 6

Fuel Cell and Battery Hybrid System for Portable Electronics Applications
Naehyuck Chang, PhD, Associate Professor, Dept of Electrical Engineering and Computer Science, Seoul National University
This talk introduces a PEM fuel cell and Li-ion battery hybrid system for use in portable microelectronic systems which are subject to high power fluctuation though their average power consumption is small. We introduce several issues in fuel cell and battery hybrid systems for such systems in view of computer engineering that includes architectures of hybrid systems, battery management, load shaping using power management techniques, and a prototype implementation.

Chapter 7

Department of Energy Polymer Electrolyte Membrane (PEM) Fuel Cell R&D Activities
Terry Payne, PhD, PE, Technology Development Manager, Hydrogen, Fuel Cell & Infrastructure Technologies Program, The U.S. Department of Energy
Though the DOE Hydrogen Program emphasizes polymer electrolyte membrane (PEM) fuel cells in passenger vehicles, the program also supports fuel cells for portable power applications where earlier market entry would assist in the development of a fuel cell manufacturing base. This talk will provide an update on the status of DOE PEM fuel cell development particularly for portable power, ongoing efforts to eliminate barriers, and the path being pursued.

Chapter 8

Direct Ethanol Fuel Cells: An Emerging Technology with Reduced Logistic Footprint for Military and Civil Applications
Carsten Cremers, PhD and Michael Krausa, PhD, Fraunhofer Institute for Chemical Technology ICT
An important goal of replacing primary batteries by hybrids of rechargeable batteries and fuel cells is to reduce the logistic effort in power supply. Fuel cells using ethanol would be beneficial as ethanol offers a higher availability and easier handling compared to methanol. However, the performance of today’s DEFCs does not compete with that of commercial DMFCs. To improve this performance two approaches are currently pursued, a multistep process in proton exchange membrane based DEFC and alkaline DEFC using anion exchange membranes. The current state of the art of both approaches will be presented and their advantages and disadvantages will be discussed.

Chapter 9

Micro Fuel Cell System for Mobile Consumer Electronic Devices
Shuji Goto, and Tadashi Senoo, Manager, Materials Laboratory, Sony Corporation
We are developing micro fuel cell systems for mobile consumer electronic devices. The system consists of series-connected direct methanol fuel cells, a fuel pump, a fuel cartridge, a Li-ion polymer battery and a power management circuit. We have achieved high power output, high energy efficiency and overall system size reduction by the combination of material development, power management algorithm development and component downsizing.

Chapter 10

Mobile DMFC: Enhancement of Stack and System Stability
Inseob Song, PhD, Principal Manager-Fuel Cell Project, Samsung SDI Co, Ltd, Samsung
Recent advancements on mobile DMFC system will be presented. Stack and system stability regarding the commercial aspects of Note PC application will

For more information, please visit :

http://www.aarkstore.com/reports/Small-Fuel-Cells-For-Portable-Applications-9th-Edition-37212.html

Related Payne Heat Pump Articles

The federal government’s Energy Information Administration (“EIA”) reported a larger-than-expected swell in natural gas supplies, reflecting an increasing onshore output. This was partially offset by soaring temperatures in the northeastern U.S. that provided a burst of demand in the electric power sector.

Stockpiles held in underground storage in the lower 48 states rose by 78 billion cubic feet (“Bcf”) for the week ended July 2, 2010. The latest build compares with last year’s net insertion of 74 Bcf and the 5-year (2005-2009) average of 80 Bcf for the reported week.

The current storage level, at 2.76 trillion cubic feet (“Tcf)”, is down 23 Bcf (0.8%) from last year’s level but remains 285 Bcf (11.5%) above the five-year average. Natural gas supplies have exceeded the 5-year average for this time of year in each of the past 14 weeks (since March 26, 2010) and are not far from last year’s record highs at that time.

Though the ongoing surge in the commodity’s demand has erased a heavy surplus over last year’s inventory level, following a high of 101 Bcf for the week ending April 23, the specter of a continued surplus in domestic gas supplies still exists, with storage levels remaining 12% above their five-year average.

Further pressurizing the commodity is the rapid rise in the number of drilling rigs working in the U.S. (the natural gas rig count has climbed 45% from a seven-year low reached last July) that signals a supply overabundance later this year in the face of slow industrial activity.

More importantly, production from dense rock formations (shale) remains robust. In fact, the share of shale gas in the country’s natural gas production has shot up from zero to 8% in the last decade. This has created a great oversupply, compelling natural gas prices to slash from per million Btu (“MMBtu”) four years ago to just around .4 per MMBtu today (referring to Henry Hub spot prices). As there are more technological breakthroughs, shale gas has become viable in some cases at just per MMBtu.

Recent forays by Reliance Industries Ltd. and BG Group into southern U.S. shale assets further point to the growth potential in this space. India’s largest publicly traded company, Reliance Industries signed a .3 billion agreement to acquire 118,000 acres in the Eagle Ford shale field owned by Pioneer Natural Resources (PXD – Analyst Report). On the other hand, U.K’s BG Group, through a joint venture with EXCO Resources (XCO – Snapshot Report), paid Houston-based Southwestern Energy Co. (SWN – Analyst Report) 5.8 million for properties in the Haynesville and Bossier shales.

There are concerns among traders that the market will be oversupplied in the short to medium term, with rig counts going up and industrial demand still struggling due to the weak economy. These factors convert into limited upside for natural gas-weighted companies and related support plays.

The break between supply and demand is expected to reverse in the coming months as natural gas producers bet on the improving U.S. economy, the forecast of an active hurricane season and continuation of the summer heat wave.

Until then, we maintain our cautious stance on natural gas-focused E&P players such as EOG Resources (EOG – Analyst Report), Anadarko Petroleum Corp. (APC – Analyst Report), Chesapeake Energy (CHK – Analyst Report), EnCana Corp. (ECA – Analyst Report) and Devon Energy Corp. (DVN – Analyst Report).

All the above-mentioned companies currently have Zacks #3 Ranks (Hold) rating, meaning that these stocks are expected to perform moderately at par with the overall market during the next 1-3 months. Therefore, investors should maintain their current positions in the stocks over this timeframe.

Additionally, we remain doubtful on land drillers such as Nabors Industries (NBR – Analyst Report) and Helmerich & Payne (HP – Analyst Report), as well as natural gas-centric service providers such as Halliburton Company (HAL – Analyst Report) – all with Zacks #3 Ranks. Although we expect the land rig count to continue with its steady rise during 2010 (currently at 1,539 rigs, up 77% year over year), the large amount of glut capacity in the sector will weigh on day rates and margins well into the year.

Within the oilfield services group, we are positive on onshore contract driller Patterson-UTI Energy (PTEN – Analyst Report). The Zacks #2 Rank (Buy) rating on the company reflects Patterson’s premium newbuild fleet and stellar financial health (free cash flow positive and a debt-free balance sheet). Investors should also be impressed with Patterson-UTI’s recent acquisition of certain assets of onshore well service rig provider Key Energy Services (KEG – Snapshot Report) for 8 million. Apart from significantly expanding its shale drilling ability, Patterson-UTI also stands to benefit by coming out of their historical stronghold in the Appalachian Basin into the pressure pumping markets in the Barnett, Eagle Ford and Permian Base.

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