EVEP Reports Waterless Fracked OH Well is a Bust

disappointmentReading through earnings calls transcripts (hey, somebody has to do it), we discovered what we believe no one else has (yet) discovered or reported. On an earnings call yesterday, top management from EV Energy Partners, one of the largest acreage holders in the Utica Shale, shared interesting initial results from the test Utica well they drilled in Tuscarawas County, OH–a well drilled using waterless fracking technology from GASFRAC (see Details on GASFRAC’s Waterless Frack Test in OH Utica). The theory being tested by EVEP is that using water during fracking of a well targeted for oil recovery somehow damages the chances of oil recovery. GASFRAC used a mix of 75% butane and 25% mineral oil to frack EVEP’s “Nettles” well. The results? On yesterday’s earnings call EVEP Chairman John Walker revealed that after 90 days in production, the Nettles well is producing about half the production of a similar nearby well fracked using water. That is–the waterless frack job was a big disappointment…
Continue reading

Magnum Hunter’s 5-Point Plan to Raise Cash in 2015

Yesterday MDN reported on Magnum Hunter Resources’ (MHR) first quarter 2015 update yesterday (see Magnum Hunter 1Q15: Prod. Up 66%, Financials Worse Than Expected). Something slipped by our notice–the section in the update that we call “Magnum Hunter’s 5-Point Plan to Raise Cash in 2015.” Buried in the update is a section called “2015 Liquidity Events” that outlines MHR’s strategy for raising money and keeping afloat in 2015. Below we show you what MHR said, and then we break it down and tell you what it means–we interpret what they said. The standout point (#5) is MHR’s plan to sell of $450 million worth of Utica Shale acreage…
Continue reading

EIA DPR May 2015: Shale Production Slips, But Not in Marc/Utica

Our favorite government agency, the U.S. Energy Information Administration (EIA), released our favorite government report, the Drilling Productivity Report, yesterday. There is important news to report from the DPR. First, the total amount of natural gas produced across all of the seven major commercial shale plays tracked in the DPR slide backward for the second month in a row. Last month, you may recall, was the very first time in the modern shale era when production month to month was not higher than the month before (see First Time Ever: US Shale Produces Less Oil/Gas Month Over Month). That trend continued this month (forecasting for volumes in June). Last month the total volume reduced by 23 million cubic feet per day (Mmcf/d) than the month before. This month? It goes down 112 Mmcf/d. That is, the shrinkage in production is accelerating. Except in two plays. Can you guess which two shale plays are still in positive territory–producing more shale gas this month than last month, hitting new all-time highs? That’s right–the Marcellus and Utica. All other shale plays produced less natural gas this month than last with the exception of the Marcellus, hitting a new high of 16,737 Mmcf/d (or put another way, 16.737 billion cubic feet), and the Utica, hitting a new high of 2,509 Mmcf/d (2.509 Bcf/d)…
Continue reading

XTO Files Paperwork to Double Size of NGL Plant in W PA

In 2013 XTO Energy began operation at its very own natural gas liquids (NGL) cryogenic processing facility in Butler County, PA (see XTO’s New NGL Recovery Plant in Butler County, PA Now Online). Life is good in the midstream. According to the Pittsburgh Business Times, XTO has just filed paperwork with the state to build a new plant at the site, doubling capacity at the facility…
Continue reading

USGS Research – Marcellus Wastewater from 13 PA Wells Tested

The U.S. Geological Survey (USGS) has just published a new research paper on the topic of produced water–the water that comes out of a drilled hole, drilled for an oil or gas well. The paper, titled “Organic and inorganic composition and microbiology of produced waters from Pennsylvania shale gas wells” was published in the journal Applied Geochemistry and looked at produced water samples from Pennsylvania Marcellus Shale wells. The weakness in the research is that it is based on water samples from only 13 wells. Quite frankly, the research (which we think pursues a worthwhile line of inquiry) raises more questions than it answers. What can we divine from this study? In our cursory review, it appears two things stand out: (1) Although the inorganic chemistry of the produced water was pretty consistent across all 13 wells, there were big differences in the organic geochemistry and microbiology (bacteria) from well to well; and (2) volatile organic compounds (VOCs) were found in only a few samples–just 4 of the 13 wells…
Continue reading

Lunacy: NH Group Votes Against Pipeline Because of Global Warming

It’s maddening. It makes one want to scream, “You idiots! Can’t you see the utter hypocrisy?” But it happens more than we’d like to admit. A group of “volunteers” who advise the Select Board in the New Hampshire community of Wilton have unanimously voted to oppose Kinder Morgan’s proposed expansion of the Tennessee Gas Pipeline that would run through Hillsborough County. The reason they oppose it? Natural gas is not a “renewable” energy source. They don’t oppose it because pipelines are unsafe or in any way threaten the environment. Nope. They oppose it because they cling to the belief that mankind is causing catastrophic global warming by using fossil fuels. Meanwhile, everything in their lives is made possible by the very fossil fuels they profess to loathe. And they don’t see it–don’t understand it–don’t seem to comprehend it. We want to point out that, in their own words, they voted against support for the pipeline because they are prejudiced against fossil fuel energy and they seek to deny everyone else the option of using it…
Continue reading

The #1 Factor in Earth’s Temps/Weather (Hint: It’s Not Mankind)

Do you know what the single biggest factor is that governs earth’s weather and temperatures across the globe? If you guessed burning fossil fuels and the amount of carbon in the atmosphere–you would be dead wrong. The single biggest factor affecting our climate has nothing to do with mankind–it is the sun. You know, that bright yellow thing in the sky? The sun heats the earth, and when the sun has sunspots–or radiation storms–that activity causes temps on ole Mom Earth to spike up. What happens when there is an absence of sunspots? What has happened over the past 20 years that there have been fewer and fewer sunspots–the earth stops getting warmer and begins to cool. Nearly all of the opposition to natural gas drilling and pipelines comes from people with an irrational hatred of fossil fuels–people who believe we’re about to fry because of “global warming.” That’s what drives opposition to good, wholesome, beneficial use of fossil fuels. So every now and again we highlight stories on so-called climate change–because that’s at the root of why most people oppose natural gas. Paul Driessen, author of the book “Eco-Imperialism: Green Power – Black Death” and Senior Policy Analyst with the Committee For A Constructive Tomorrow has written a top shelf article on the always excellent Natural Gas Now website. We think this article does a great job of explaining why the earth warms and cools–in cycles. So we’re bringing you his article here in total…
Continue reading