MD Marcellus Shale Commission’s First Report Issued

Alice in Wonderland

The first of three reports due from the Maryland Marcellus Shale Safe Drilling Initiative Advisory Commission has just been issued. A copy of the 46-page report—about how to tax and sue the drilling industry—is embedded below. It’s interesting reading.

On June 6, 2011, Maryland Gov. Martin O’Malley signed an Executive Order establishing the Marcellus Shale Safe Drilling Initiative, which includes an Advisory Commission with 13 members to assist the Maryland Department of the Environment (MDE) and the Department of Natural Resources (DNR) in a multi-year study of potential Marcellus Shale drilling in the state. “In the state” actually means just two western counties where there is Marcellus Shale: Allegany and Garrett.

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CONSOL Increases 2012 Capital Spending in Marcellus/Utica

CONSOL Energy is increasing its capital projects budget by 21 percent in 2012, including a ramp-up in their commitment to both the Marcellus and Utica Shale plays. CONSOL says they will spend $395 million to drill 122 new Marcellus Shale wells in 2012 (their portion of a joint venture with Noble Energy), 39 of those wells will be in the liquids-rich portion of the Marcellus. They will invest $50 million in Utica Shale drilling for the year.

From the CONSOL press release:

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Talisman to Reduce Spending, Rig Count in Marcellus for 2012

Talisman Energy announced yesterday that it plans to spend 11 percent less on capital projects in 2012 than it did in 2011. They also announced they would reduce the number of Marcellus drilling rigs from 11 in use during 2011 down to between five and seven for 2012.The reason? Low natural gas prices. Talisman expects natural gas prices in North America to remain low for the foreseeable future. Although they are decreasing overall spending, Talisman will increase spending, and shifting their focus, to shale gas liquids.

From the Talisman press release:

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