Marcellus Drilling News

NY DEC Com. Martens Gives Update on SGEIS Health Review

October 22, 2012October 22, 2012

Joe Martens, NYS DEC Commissioner We now know a bit more about where things stand with the “health review” taking place of New York’s proposed new drilling regulations (called the SGEIS). When Dept. of Environmental Conservation (DEC) Commissioner Joe Martens announced he was asking NYS Health Commissioner Nirav Shah to conduct a review of the SGEIS’ handling of potential health impacts of fracking on residents, he said that Shah would assemble a panel of “outside experts” to advise him.

It appears the outside experts have been identified but haven’t agreed (yet) to the money being offered by the DEC and Health Department to do the work. Meanwhile, the clock is ticking on a Nov. 29 deadline. Martens says it’s still possible to make that deadline. Here’s what he said on Friday to reporters:

Reuters Says Utica Shale Boom is Really a Secret Bust

October 22, 2012October 22, 2012

The mighty Reuters news agency, no friend of shale gas drilling, is taking aim at the Utica Shale in Ohio. A new article by Reuters attempts to sow the seeds of doubt about the size and potential of the Utica Shale. Their article opens by quoting drilling “bad boy” Aubrey McClendon, CEO of Chesapeake who famously said last year the Utica contains $500 billion worth of hydrocarbons. Reuters’ contention? Don’t believe it.

A key point of the article is that Ohio is only reporting oil and gas production numbers annually, not monthly as other states typically do. That irks Reuters, so they’re spinning it as an industry cover-up to conceal the “real truth” that the Utica is not as productive as McClendon and “the industry” is leading people to believe. It’s the old “it really ain’t all that big, it’s just a Ponzi scheme” meme started by The New York Times last year (see this MDN story).

NYT Now Says There’s Too Much Natural Gas, Drillers to Blame

October 22, 2012October 22, 2012

The New York Times is a bit schizophrenic these days. It’s hard to keep track of which alternate reality they operate in. For the longest time, we’ve heard from the Times how shale drilling is just a Ponzi scheme a la Bernie Madoff—a fraud to get investors to dump billions into energy companies but with only a teeny tiny bit of gas in the ground (“proven reserves”) to get out (see this MDN story). Of course that contention is patently false as proven by the overwhelming production and inventories we now have from shale gas.

Economic Impact | Industrywide Issues | Research

EIA Backpedals on Lowball Estimates of Marcellus Reserves

October 22, 2012October 22, 2012

An AP story actually sets the record straight and says, in essence, “Yes, the Marcellus really is ‘that big’ after all.” The AP article quotes research from two recently completed independent reports, one from Standard & Poor’s (see this MDN story) and one from ITG Research (see this MDN story), in “correcting” a lowered Marcellus proven reserves estimate from the Energy Information Administration (EIA).

The article quotes the EIA backpedalling on their lowered estimate from earlier this year and says in part:

Weirton, WV Slaps 6% Tax on Shale Drilling

October 22, 2012October 22, 2012

Somehow this one slipped by the MDN radar a few weeks ago. On Oct. 9, the city of Weirton, WV voted to slap a 6% business and occupation (B&O) tax on natural gas drilling in the city:

Chesapeake Pulls Request to Drill Near Wheeling Park High

October 22, 2012October 22, 2012

In September MDN asked if it’s a good idea for Chesapeake Energy to move forward with a plan to drill 1,300 feet from Wheeling Park High School in Ohio County, WV (see this MDN story). Looks like it’s a moot point now.

Late last week Chesapeake withdrew its permit application and now says they’ll look elsewhere to drill:

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Calendar of Events for Oct 22-Nov 4, 2012 [Free]

October 22, 2012October 22, 2012

Below are upcoming events for this week and next.

Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Oct 22, 2012

October 22, 2012October 22, 2012

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading: