In February of last year, Williams, one of the 10 largest natural gas producers in the U.S., announced that it would split the company and spin out the exploration & production (E&P) business into a new company (see this MDN story). True to their word, the split is now complete, and yesterday WPX Energy, the new company formed to take on the E&P division, began trading on the New York Stock Exchange.
In early November, Chesapeake Energy announced a major cash infusion into their Utica Shale exploration and production would come from a new joint venture with a mystery/unnamed “international major energy company” to the tune of $2.14 billion (see this MDN story). The amount turned out to be even higher: $2.32 billion, and we now know who the mystery company is: Total E&P USA, Inc., a subsidiary of Total S.A.
Read More “Chesapeake’s Utica Shale Mystery JV Partner Revealed”
The federal Environmental Protection Agency (EPA) is once again stirring up trouble in Dimock, PA by “reopening” a review of Dimock Township water supplies after recent tests from a private testing service hired by Cabot Oil & Gas turned up “gaps” in the data that the EPA wants to explore. This is less than a month after the EPA sent a letter to residents, on Dec. 2, telling them the same test results showed well water in the area “does not present an immediate health threat to users” (see this MDN story for a copy of the letter).
Norwegian gas driller Norse Energy has sold off some of its leased acreage in Central New York State, along with a slice of future royalties in acreage for which it retains control. The complicated deal to an unnamed buyer for $26.7 million is to sell all interests in 22,700 acres, and various rates of royalty interests on other leases that Norse retains (see the press release below).
Norse will retain control of 160,000 leased acres in New York, of which 110,000 acres are located in the Marcellus and Utica Shale play areas, in the hope that New York will soon release final drilling rules that will allow it to tap into shale gas in the state.
Read More “Norse Energy Sells Some of Its NY Acreage/Interests”
Competition to attract an ethane cracker plant is heating up. West Virginia has made no bones that they intend to be the winners of the investment that will be made to build an ethane cracker plant to be built by Shell. The plant will cost upward of $2 billion and will create thousands of jobs to build the plant, operate the plant, and just as importantly, in the industries that will locate near the plant once it’s operational. It’s an economic jackpot worth $5 billion or more, and those who are in the game to attract it are in it to win.
Read More “Ohio Offers Shell Cracker Plant $1.4B in Tax Incentives”
Instead of trying to regulate Marcellus drilling inside municipal borders, Benton Township (Lackawanna County), PA took a different approach when Southwestern Energy recently drilled an exploratory well. Benton hired an independent engineer to monitor drilling and construction of the well. According to township officials, the process has been “an ‘unequivocal’ success.”
Read More “PA Town Takes Innovative Approach in Drilling Oversight”
Chesapeake Energy, American Electric Power and Spectra Energy are joining forces to build 70 miles of new pipeline in Ohio that will connect Utica and Marcellus gas wells in eastern Ohio to Spectra’s Texas Eastern pipeline system, which runs from Texas to New York. The new joint project is called the Ohio Pipeline Energy Network (OPEN). The estimated cost for the project is $500 million according to Spectra Energy.
Read More “Chesapeake Investing in New 70-Mile Ohio Pipeline”
MDN chronicled the battle earlier this year between Northeast Natural Energy and the city of Morgantown, WV over Northeast’s plan to drill two Marcellus Shale gas wells near the city. In short, the Morgantown City Council tried to ban drilling both inside and outside city limits—up to one mile outside—which would have prevented Northeast from drilling the two wells.
Morgantown attempted to use a state law which indicates cities can take such actions outside their borders if they believe there is an imminent threat to residents of the city. The ban went to court, and a judge overturned it, clearing the way for Northeast to drill.
At the the Dec. 15 meeting of the Susquehanna River Basin Commission (SRBC) held in Wilkes-Barre, PA, commissioners voted to reject a request from Anadarko Petroleum to withdraw up to 715,000 gallons of water per day from a well near Council Run in Snow Shoe Township (Centre County), PA. The rejection is rare because the SRBC informs requestors ahead of time that a request is likely to be voted down. Apparently Anadarko wanted to move forward with the request despite a warning from the SRBC.
Read More “SRBC Rejects Anadarko Water Request in Centre County, PA”
On Monday, Southwestern Energy announced it will spend $2 billion in 2012 on exploration and production, with plans to double their investment in the Marcellus Shale.
From the Southwestern press release:
Read More “Southwestern Doubling Marcellus Shale Investment in 2012”
Chesapeake Energy has just paid $630,000 for two pieces of real estate in Belmont County, Ohio—ground zero for Utica Shale drilling in eastern Ohio. Chesapeake will not officially comment on the purchases, but there’s little doubt they will build a new satellite office at one location for their Ohio drilling operations, and perhaps use the other parcel (land and warehouse) for storage and operations. It shows the serious commitment Chesapeake is making in Ohio and signals their further expansion in the area.
Read More “Chesapeake Real Estate Purchases in Ohio Signal Expansion”
EQT is betting big on the Marcellus for 2012 and will spend 80 percent of its upstream budget on Marcellus Shale development in 2012.
Gastar Exploration gives the following operational update on their drilling activities in the Marcellus Shale in Marshall and Preston counties in West Virginia, and Butler County in Pennsylvania. Most of Gastar’s Marcellus activity is concentrated in Marshall County, WV, where they plan to complete 24 horizontal wells by the end of 2012.
From the Gastar press release:
Read More “Gastar Marcellus Wells: Strong Production, Lots of Liquids”
A recent example from western Pennsylvania illustrates how drilling companies and residents in PA are working together to resolve thorny issues and move forward with gas drilling in a way that everyone can live with:
Read More “Gas Drillers and Townships Working Together Resolve Issues”
In December 2009, Dimock Township (PA) resident Scott Ely, an employee of Cabot Oil & Gas drilling subsidiary GasSearch Drilling Services, made claims of hidden or ignored spills, leaking pits and shoddy practices to both state environmental regulators and Cabot officials. Ely identified 11 sites where he said such problems had occurred. Cabot contracted with URS Corp. to investigate the claims and either prove or disprove them. A final URS report has just been issued which says it found nothing in the streams, ponds and soil it sampled at levels that would pose a risk to human health.
The report (a copy is embedded below) says URS did find some substances which may indicate past spills from natural gas drilling operations, but that the substances they found do not have state-mandated limits for soil and water.
Read More “New Report Says No Health Threats from Spills in Dimock PA”
Yesterday, U.S. oil and gas exploration firm Endeavour International Corp announced they were bailing out of a deal to buy the Marcellus holdings of SM Energy (no stated reason for abandoning the deal). This was the single-sentence press release they issued:
Read More “Endeavour Leaves SM Energy at the Altar, SM Ready to Sue”