Marcellus Drilling News

Chesapeake Energy Gets New, Unsecured $2 Billion (!) Loan

November 8, 2012November 7, 2012

Holy smokes. Yesterday Chesapeake Energy, one of largest drillers in both the Marcellus and Utica Shale region, took out an unsecured (unsecured!) 5-year loan from Bank of America, Goldman Sachs and Jefferies Finance. How much? Try $2 billion (with a “b”). The loan will be syndicated or sold off to a large group of investors. Chesapeake is using the loan to pay off other previous loans. The company continues to sell off parts of the company to pay off all the loans, including this new one.

Here’s a quick statement issued by Chesapeake about the new loan:

10 New Utica Shale Permits Issued Last Week in Ohio

November 8, 2012November 7, 2012

Ten new Utica Shale wells were approved by the Ohio Dept. of Natural Resources (ODNR) for the week covering Oct. 28 through Nov. 3. Here’s a breakdown on where the permits were issued:

Economic Impact | Industrywide Issues | Research

Netherlands Research Co. Predicts Marcellus will Reach 7.7 Tcfe by 2020

November 8, 2012November 7, 2012

Netherlands-based ASDReports.com has just released a new research study focusing on the Marcellus Shale titled, Marcellus Shale in the US, 2012 – Gas Shale Market Analysis and Forecasts to 2020. The company issued a press release (below) which hits some of the highlights from the study. Among the astonishing predictions: The Marcellus Shale will produce a “massive” (their words) 7,685 billion cubic feet equivalent of gas by 2020—or said another way, 7.7 trillion cubic feet equivalent. They predict the Marcellus will be producing 4,861 bcfe (4.9 tcfe) by 2015.

Here’s the press release announcing the study with a few juicy tidbits thrown in:

Access Midstream Partners | Energy Services

Access Midstream 3Q12: 65 New Marcellus Wells Connected

November 8, 2012November 7, 2012

Access Midstream Partners, a pipeline, compressor station and processing plant (infrastructure) company with operations in the Marcellus Shale released their third quarter financial and operational update on Monday. They report a 26.9% increase in the amount of natural gas moving through their pipelines for 3Q12 compared with 3Q11 mostly from their Marcellus operations which they acquired in December 2011. Access hooked up 186 new wells to their gathering system pipelines during 3Q12 across all of the plays they service (65 in the Marcellus alone), an increase of 27.4% over the same period in 2011. In addition, 3Q12 income was plus $2 million. What’s not to like about a good midstream company?!

Here are relevant sections from the Access Midstream 3Q12 update:

Industrywide Issues | Ohio | Regulation | Richland County | Wastewater

Mansfield, OH Voters Approve “Environmental Bill of Rights”

November 8, 2012November 7, 2012

The voters of Mansfield, Ohio voted to approve an “environmental bill of rights” in yesterday’s election. The new measure will now be part of the city’s charter, enabling the city to control the location and regulation of wastewater injection wells.

A year ago Preferred Fluids Management announced they would build two 5,000 foot deep injection wells in the Mansfield industrial park. Some area residents are opposed and the new measure passed yesterday will allow them to prevent the wells from being built. It’s a dead issue anyway because the permits to build the wells have expired. The question now is: Does the new “bill of rights” extend to other types of wells, and even other business activities, besides injection wells?

Pennsylvania | Statewide PA

Will New PA AG Go After the Marcellus Drilling Industry?

November 8, 2012November 7, 2012

Will Kathleen Kane, newly elected Pennsylvania Attorney General, take aim at the Marcellus Shale drilling industry once she takes office in January? Depends on whom you ask…

Pennsylvania | Statewide PA

Shale Gas Innovation Contest is Back-This Yr (3) $25K Prizes

November 8, 2012November 7, 2012

In October 2011, the Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC) announced the first Shale Gas Innovation Competition. In May of this year they awarded two organizations from State College, PA as the winners, each receiving a $25,000 prize (see this MDN story).

The SGICC is back for round two and this time they are offering three $25,000 prizes. Here’s the low down:

Industrywide Issues | Regulation

3 Top Officials Rumored to be Leaving Obama Administration

November 8, 2012November 7, 2012

Now that Obama will be sticking around for another four years, immediate speculation has begun on who will go and who will stay in his administration. Rumor has it that three top energy/environment officials may step down in the coming months. All three are in cabinet level positions:

Hydraulic Fracturing | Industrywide Issues | Pipelines | Regulation

Reuters Predicts “Harsher Energy Regs” from Obama II

November 8, 2012November 7, 2012

MDN took some abuse for our negative comments on the re-election of B.H. Obama (see this MDN article)—comments for which we make no apology. However, you may be interested to know one day after his re-election, none other than Reuters is predicting a rough road ahead for the domestic energy industry under Obama II. The article says, in so many words, the coal industry is screwed. And of course Obama will continue to flirt with so-called renewable energy. Elections have consequences folks.

Here’s what the article says about Obama’s “nuanced” approach on domestic oil and gas drilling:

Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Nov 8, 2012

November 8, 2012November 7, 2012

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