There is a direct connection between lack of pipeline takeaway capacity and drillers’ willingness to either drill more–or even continue producing–gas in the Marcellus/Utica. Although we’re pretty sure this has happened with other drillers, this is the first overt announcement we’ve seen (and hope it’s not a trend) that a sizable driller in the northeast is simply shutting in (stopping) production for a major portion of their operations. Stone Energy, an independent oil and natural gas exploration and production company headquartered in Lafayette, Louisiana and with a large regional office in Morgantown, WV, has just announced they are shutting in production for their Mary Field in West Virginia. Stone drills in two geographies: the Marcellus/Utica, and the Gulf of Mexico. The GOM appears to be their primary focus at the moment. Stone’s announcement, which to us is a pretty big deal, means they will simply stop producing 100-110 million cubic feet equivalent per day (MMcfe/d) of natural gas in the western Wetzel County, WV area…
There is a direct connection between lack of pipeline takeaway capacity and drillers’ willingness to either drill more–or even continue producing–gas in the Marcellus/Utica. Although we’re pretty sure this has happened with other drillers, this is the first overt announcement we’ve seen (and hope it’s not a trend) that a sizable driller in the northeast is simply shutting in (stopping) production for a major portion of their operations. Stone Energy, an independent oil and natural gas exploration and production company headquartered in Lafayette, Louisiana and with a large regional office in Morgantown, WV, has just announced they are shutting in production for their Mary Field in West Virginia. Stone drills in two geographies: the Marcellus/Utica, and the Gulf of Mexico. The GOM appears to be their primary focus at the moment. Stone’s announcement, which to us is a pretty big deal, means they will simply stop producing 100-110 million cubic feet equivalent per day (MMcfe/d) of natural gas in the western Wetzel County, WV area…