Energy Companies

Chevron | Energy Companies

Chevron CEO Says Marcellus Drilling Scaled Back Due to Low Price
March 12, 2014March 12, 2014

When the annual analyst teleconference for a big oil company is forecast to go 2.5-3 hours long, you know the news will not be good. It doesn’t take that long unless you have explain and re-explain yourself multiple times. Although MDN did not participate in yesterday’s annual analyst call for Chevron, by all accounts, the news was negative and the company’s stock ticked down by the end of the day by $1.33 per share (1.1%).

Chevron is a huge company–the second largest oil company in the United States based on market capitalization. The only thing MDN was interested in, aside from any mentions about the recent well fire in Greene County, PA (no mentions of the well fire in the call that we could find), is, What is Chevron up to in the Marcellus? The answer we got from looking at the slides and reading media reports of yesterday’s call is: not much. Chevron Chairman and CEO John Watson said “some” of the drilling in the PA Marcellus has been curtailed because of the low commodity price of natural gas. MDN’s Marcellus and Utica Shale Databook show Chevron’s permitting activity picked up a bit toward the end of 2013. It seems from Watson’s comments that they will continue to actively drill in the Marcellus in 2014, but likely not at the same levels seen in 2012 and 2013…
Read More “Chevron CEO Says Marcellus Drilling Scaled Back Due to Low Price”
Earthquakes | Energy Companies | Hilcorp Energy | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

2 New Earthquakes Near Youngstown, OH – Fracking Connection?
March 11, 2014March 11, 2014

A few years ago a now-shuttered injection well near Youngstown, OH was linked to a series of earthquakes in the area (see ODNR Finds Youngstown Injection Well Caused Earthquakes). The injection well was found to be located over an active fault–and when you inject a lot of liquid into a fault area, you get earthquakes.

When earthquakes happen in areas like Youngstown–an area that doesn’t usually see such activity–it’s cause for concern. Yesterday morning there were two more earthquakes big enough to be felt in the Mahoning Valley area. The first quake was a 3.0 on the Richter scale, and the second a 2.6. So, out of “an abundance of caution,” the Ohio Dept. of Natural Resources (ODNR) has asked the single drilling operation in the area–Hilcorp Energy–to suspend their drilling activity for now. There are no active injection wells in the area–only Hilcorp’s Utica Shale drilling operation of 7 wells on 2 well pads…
Read More “2 New Earthquakes Near Youngstown, OH – Fracking Connection?”
American Energy Partners | Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Aubrey McClendon: Utica Shale ‘Man in Motion’
March 11, 2014March 11, 2014

If you (foolishly) believed the stories about Aubrey McClendon and his oversight of the company he co-founded, Chesapeake Energy, you would believe that after he was bounced out of the company no one would ever again give him a dime. Under McClendon, supposedly Chessy spiraled out of control with debt and mismanagement. McClendon was cast as a maverick–a wildcatter who threw money around on $300 champagne lunches and managed to grow the company beyond his ability to run it. The problem with that view is the truth of what’s happened to Chesapeake since McClendon’s departure. Corporate raider Carl Icahn is the one controlling Chessy these days–for his own personal benefit. Icahn and his lieutenant CEO Doug Lawler have sold off key assets right and left and fired thousands–actions that don’t have squat to do with improving the financial health of the company. It only improves Icahn’s per share value.

McClendon, less than a year from being unceremoniously dumped by Icahn, has a new company with $3 billion of OPM (other people’s money) in his hip pocket to spend on drilling “at least” 1,600 Utica Shale wells in Ohio. McClendon’s new venture, called American Energy Partners, has already amassed 260,000 acres of leases in less than a year, on which to drill those 1,600+ Utica wells. McClendon right now has drilling rigs on the job in Ohio. The man does not let any grass grow under his feet (or on his drill pads). Here’s an update on Aubrey McClendon, a Utica Shale man in motion…
Read More “Aubrey McClendon: Utica Shale ‘Man in Motion’”
Alternative Energy | Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Jobs | Meetings

MDN Interviews David Holt, President of Consumer Energy Alliance
March 10, 2014March 10, 2014

MDN editor Jim Willis recently had the pleasure of speaking by phone with David Holt, president of the Consumer Energy Alliance based in Houston, TX. David was a speaker at the recent Clean Frac’ing Conference in Houston. Jim spoke to David about the mission of CEA, who belongs to it and why, David’s views on natural gas and alternative forms of energy, and about his involvement with the recent Clean Frac’ing conference (what he heard and saw at the conference). The podcast interview below runs just over 20 minutes, please give it a listen!

Below the podcast interview are notes taken by Brittany Thomas of Cabot Oil & Gas who attended and participated on a panel discussion at the Clean Frac’ing Conference. Thanks for the notes Brittany! We bring this interview with David Holt and Brittany’s notes to you as a public service to keep you informed with how the drilling industry continues to be on the cutting edge of innovation and environmental protection…
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Energy Companies | Pennsylvania | Rice Energy | Washington County

Rice Energy’s Washington, PA Town Meeting – 700 Turn Out
March 10, 2014March 10, 2014

Rice Energy and its CEO Toby Rice held a town meeting at the Bentworth High School gymnasium last Thursday evening. About 700 Washington County, PA residents showed up for the meeting which was, by all accounts, “well-mannered” and cordial–with no anti-drilling hecklers present (a minor miracle). Rice said the company will hold such meetings every six months to stay in touch with area residents and the landowners with whom they do business. Rice Energy recently went public, garnering even more money than they had hoped (see Rice Energy IPO Soars, Brings in $84M More Than Expected). The company is headquartered near Pittsburgh and is mostly focused on the Marcellus Shale. According to Toby Rice, drillers (like Rice) may turn to drilling Utica wells in the area, but only after exhausting their Marcellus options first.

Here’ more of what Toby said last week at the Bentworth High School…
Read More “Rice Energy’s Washington, PA Town Meeting – 700 Turn Out”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues | M&A

Time to Congratulate Devon & Crosstex on the Birth of EnLink
March 10, 2014March 10, 2014

As we previously told you, Devon Energy, a drilling company with some midstream assets, and Crosstex Energy, a midstream company, were due to merge (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds). It was quite a while in coming–lots of lawyers reviewing every syllable of every paper.

Last Friday the two companies announced they have finally, fully, irrevocably tied the merger knot and together they have delivered a bouncing baby…midstream company. They named the new baby EnLink. Time for a cigar…
Read More “Time to Congratulate Devon & Crosstex on the Birth of EnLink”
Anadarko | Energy Companies | Lycoming County | Pennsylvania

Syndicated Columnist’s Eyes Opened by Marcellus Shale Drilling
March 10, 2014March 10, 2014

Syndicated columnist Deroy Murdock visited an Anadarko Petroleum Marcellus Shale drilling site in Lycoming County, PA last year to see first-hand what happens when a well gets drilled. As he puts it, at the time it was a “cyclone of equipment, personnel and activity.” Four months later he returned to the same location. And what did he see? Three acres of a well pad with five wellheads sticking up a few feet and a “constant, mild hiss.” The sound of natural gas being harvested.

Here is Murdock’s first-hand account of what he experienced upon his return, and what it means for our nation at large…
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Albany County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

NY Attorney General Files to Dismiss Norse Lawsuit, More Delays
March 7, 2014March 7, 2014

The government of the State of New York–or rather certain government officials–continue to deny justice to residents in the state. The state’s supposed chief defender of the law, Attorney General Eric Schneiderman, unbelievably has filed a motion to dismiss the Article 78 case filed by Norse Energy that would compel Gov. Andrew Cuomo, DEC Commissioner Joe Martens and State Health Commissioner Nirav Shah to stop their intentional obstruction and finalize shale drilling rules. Norse, and the residents of New York, have been denied justice for 5 1/2 long years, and now Schneiderman doesn’t even want to allow those people their day in court. The attempt, if successful, would be an unimaginable miscarriage of justice by the highest officials in the state. It is, in fact, government tyranny of its residents.

Norse’s legal beagle, Tom West, has filed a counter motion to the AG’s motion that points out the arrogance and huge legal holes in the AG’s arguments. In addition to delaying a hearing that was first set in January, then moved by the court to March, and now moved again to “sometime in April,” the court that will hear the case (Albany County Supreme Court) has decided to join a similar case brought by the 70,000-member Joint Landowners Coalition of New York to the Norse Energy case. West believes the AG will try to dismiss the JLCNY case as well (Schneiderman has no shame and actively works against his own constituents). Below is an update from The West Firm along with an announcement from the JLCNY about the further delay in their case…
Read More “NY Attorney General Files to Dismiss Norse Lawsuit, More Delays”
Chesapeake Energy | Encana Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Michigan | Statewide MI

Reuters Smiles: MI Criminal Court to Charge Chesapeake & Encana
March 6, 2014March 6, 2014

In June 2012 MDN brought you the story that of possible collusion between Chesapeake Energy and Encana over lease offers in the state of Michigan. At the time we pointed out that the Reuters news service had “obtained” confidential emails that supposedly show such collusion, and we asked the question, how did Reuters come by those emails (see Did Reuters Break the Law with Latest Chesapeake Story?). It was obvious Retuers was trying to take down Aubrey McClendon and by extension Chesapeake Energy. Aubrey is now gone from Chesapeake and Reuters’ favorite corporate raider, Carl Icahn, now pulls the strings of the new CEO, Doug Lawler.

Not long after the whole story burst onto the scene, Encana did their own internal investigation and cleared themselves (see Encana Says Investigation Shows No Collusion with Chesapeake). That was Sept. 2012. Reuters is now back and announcing that the attorney general in Michigan will now file, two years later, criminal charges against both Chesapeake and Encana on March 19 in Michigan state court. We’re sure Reuters is smiling…
Read More “Reuters Smiles: MI Criminal Court to Charge Chesapeake & Encana”
Energy Companies | Halcon Resources | Ohio | Statewide OH | Trumbull County | Utica Shale

Drilling Shifts South in OH Utica Shale + More on Halcon Exit
March 6, 2014March 6, 2014

There is no doubt Utica Shale drilling in eastern Ohio has made a transition. Once upon a time Chesapeake (and a few others) looked to places like Columbiana, Mahoning and Trumbull counties. Carroll County is still quite active with drilling, but much of the new drilling has drifted south, to places like Harrison, Guernsey, Belmont, Noble and Monroe counties, as evidenced by the latest round of permits issued by the Ohio Dept. of Natural Resources. To the north in places like Trumbull? Not so hot anymore. Two days ago we told you about Halcon Resources’ decision to say adios to Trumbull County (see Halcon Resources Stops Drilling, Gives Up on the Utica Shale).

The shift southward and Halcon’s exit doesn’t seem to concern one of Halcon’s contractors, Kleese Development Associates, that hauls Halcon’s frack wastewater to area injection wells. Below are two articles: one illustrates the shift south in permits for new wells, and one that interviews Kleese, providing us with a bit more insight into Halcon’s decision to stay away from the Utica, for now…
Read More “Drilling Shifts South in OH Utica Shale + More on Halcon Exit”
Allegheny County | Energy Companies | Pennsylvania | Shell | Southwestern Energy

New Preservation Organization – Friend or Foe of PA Drilling?
March 6, 2014March 6, 2014

We’re not quite sure what to make of this, but we’ll take it at face value (for now). A new non-profit organization has sprung up in (where else?) Washington, D.C. Called the Gas and Preservation Partnership (GPP), the purpose of the new group is to form a voluntary alliance between preservationists and drillers. That is, people who are concerned that drillers may sink a well in an old Indian artifact area, would like those drillers to use seismic mapping of the site to see if anything of archaeological significance is present, and if it is, either drill somewhere else or take time to excavate the site before drilling. The fear is that once drillers start pushing dirt around to level a drilling pad, it might destroy something of historical significance. Which of course sounds to our hypercritical ear a lot like “delay in order to slow down or kill drilling.” But, according to GPP, that’s not their aim.

GPP says they do not (at this time) “plan to advocate” for regulations that will slow down drilling in PA and other shale states. Rather, GPP hopes drillers will cooperate voluntarily, apparently so they won’t have to advocate for regulations. GPP is holding a summit in Pittsburgh later this month. Shell and Southwest Energy are co-sponsoring the summit which aims to bring everyone together to the table to sing kumbaya, er, talk about how drillers can lend a hand with ensuring they don’t destroy any arrowheads buried in the dirt…
Read More “New Preservation Organization – Friend or Foe of PA Drilling?”
BP | Energy Companies | Ohio | Trumbull County | Utica Shale

BP Shifts into First Gear with Shale – Splits Offshore/Onshore
March 6, 2014March 6, 2014

BP is one of the world’s largest integrated oil and gas companies, with operations that span from exploration and production in the upstream to midstream pipelines and even downstream (one of the world’s largest energy traders). A truly huge company. They also own 84,000 acres of leases in the Ohio Utica Shale–acreage they’ve done almost nothing with since leasing in early 2012. According to Volume 3 of the Marcellus and Utica Shale Databook (published in January), we count 5 drilling permits for BP in the OH Utica Shale for all of 2013. Barely a pulse.

Our course hindsight is 20/20, but one of the problems is BP leased all of that land in the northern part of the Utica play–in Trumbull County. As we’ve noted elsewhere today on MDN, Utica drilling has decidedly shifted southward (away from Trumbull and other northern counties). But perhaps geography hasn’t been the only thing holding BP back in their Utica drilling program. Could it be an inefficient management structure in the company? Perhaps! Two days ago BP announced they are splitting offshore and US onshore drilling into separate divisions within the company. Judging from the announcement, it appears the decision to split operations is an effort to take better advantage of shale drilling. While they don’t mention the Utica specifically, we believe part of the reason BP has not drilled in the Utica is due to their own internal structure, which they’re moving to remedy…
Read More “BP Shifts into First Gear with Shale – Splits Offshore/Onshore”
Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA | Susquehanna County

NatGas in PA Water Wells w/Marcellus Fingerprint NOT Shale Gas
March 5, 2014March 5, 2014

A newly published peer reviewed study in the February Bulletin of the American Association of Petroleum Geologists (AAPG) offers new research that we believe comes close to, if not fully, exonerating Cabot Oil & Gas over the now infamous case of methane migration into water wells in a small area of Dimock, PA. The new study has no connection to Cabot. It is written by three experts and uses (gasp) actual science–you know, in the field data? The data comes from “more than 2,300 gas and water samples collected from 234 gas wells and 67 private groundwater-supply wells” in northeastern PA and is the largest such data set ever analyzed. What did the authors find? Shallow (near the surface) methane with the same identical chemical “fingerprint” as deeper Marcellus Shale gas is naturally occurring in large quantities in northeastern PA. That is, the shallow methane under the microscope looks exactly like the methane found more than a mile below the ground, but it isn’t gas from the Marcellus because the methane near the surface that looks just like Marcellus gas, with the same chemical “fingerprint,” was lurking in water wells long before there was any shale drilling in the area.

This is truly huge news, but don’t expect mainstream media outlets to cover the story because a) they like Josh Fox and prefer to prop up his fictional movie called Gasland, b) the issue requires readers to actually think and use the left brain to grapple with issues of science, c) this new, real research utterly refutes the pathetic “research” published by Duke University in two different papers that took the lazy way out and tried to hang Dimock’s stray gas methane on Cabot, and d) it doesn’t fit the “drilling is evil” narrative the mainstream media prefers to push…
Read More “NatGas in PA Water Wells w/Marcellus Fingerprint NOT Shale Gas”
Access Midstream Partners | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants
March 5, 2014March 5, 2014

Chesapeake Energy continues to sell off bits and pieces of the company, making corporate raider (and the company’s second largest investor) Carl Icahn happy. The latest ballast to go over the side are 103 “compression units” in the Marcellus/Utica region, purchased by Access Midstream (which used to be Chesapeake Midstream before it was tossed over the side too), and 334 “compression units” scattered throughout the south, southwest and west, sold to Exterran Partners. Total proceeds for Carl Icahn, er Chesapeake? $520 million.

Here’s the announcement from Chesapeake, followed by the announcement from Access Midstream about their “bolt-on” acquisition…
Read More “Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants”
Crude Oil | Economic Impact | Energy Companies | Halcon Resources | Industrywide Issues | Ohio | Trumbull County | Utica Shale

Halcon Pull Back from Utica: What about Their $70M Oil Terminal?
March 5, 2014March 5, 2014

Yesterday MDN brought you the bombshell news that Halcon Resources has shaken the dirt of their shoes in the Utica and is heading to greener (so they say) pastures in other shale plays (see Halcon Resources Stops Drilling, Gives Up on the Utica Shale). Not so long ago–last July–Halcon announced they were working on a $70 million oil storage and rail transloading terminal in Lordstown (see Halcon Resources Plans $70M Oil Terminal in Lordstown, OH). The first of three planned phases for that project were, at the time, predicted to be completed in 2014. Is that project now in jeopardy too, with Halcon taking their “wait and see” attitude in the Utica?

Lordstown area officials have no official word from Halcon on the oil terminal’s fate, but they’re nervous…
Read More “Halcon Pull Back from Utica: What about Their $70M Oil Terminal?”
Anti-Drilling/Fossil Fuel | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County

Mt. Pleasant, PA Continues to Ride Range Over Water Ponds
March 5, 2014March 5, 2014

As we told you last week, when PA towns make up their own zoning laws for oil and gas drilling, chaos and confusion reigns, as is the case in Mt. Pleasant (Washington County), PA (see Mt Pleasant Twp Shenanigans re Range Request for Water Ponds). Mt. Pleasant, one of seven townships that successfully sued the state to overturn Act 13 effectively screwing every municipality in the state out of millions of dollars of impact fee money, continues their snit fit over Range using a few water ponds to drill new shale wells in non-Mt. Pleasant locations.

The board voted to uphold their zoning violations of four such ponds so Range has filed yet another lawsuit hoping they can find an impartial judge to set the matter straight. Here’s the latest…
Read More “Mt. Pleasant, PA Continues to Ride Range Over Water Ponds”