Energy Companies 421 - Marcellus Drilling News

China Makes $2.2B Investment in U.S. Shale, Including Utica

January 4, 2012January 4, 2012

The Chinese government, through state-controlled Sinopec, yesterday signed a deal with Devon Energy to buy into five prospective new exploration areas in the U.S. One of those areas is the Ohio Utica Shale, where Devon has increased it’s position to 235,000 net acres. With a $2.2 billion cash infusion coming from Sinopec, Devon will have the money to develop all five plays, including the Utica.

From the Devon press release:

Energy Companies | Williams Production | WPX Energy

Williams Gives Birth to WPX Energy

January 4, 2012January 4, 2012

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.

Chesapeake Energy | Energy Companies | Total | Utica Shale

Chesapeake’s Utica Shale Mystery JV Partner Revealed

January 3, 2012January 3, 2012

curtain pulled back 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.

EPA Says Gaps Exist in Dimock, PA Water Tests

January 3, 2012January 3, 2012

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).

Energy Companies | Lease & Royalty Payments | New York | Norse Energy | Statewide NY

Norse Energy Sells Some of Its NY Acreage/Interests

January 3, 2012January 3, 2012

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.

Ohio Offers Shell Cracker Plant $1.4B in Tax Incentives

January 2, 2012January 2, 2012

moving mountains 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.

PA Town Takes Innovative Approach in Drilling Oversight

January 2, 2012January 2, 2012

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.”

Chesapeake Investing in New 70-Mile Ohio Pipeline

December 23, 2011December 23, 2011

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.

Morgantown Marcellus Wells Coming Online

December 21, 2011December 21, 2011

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.

Anadarko | Centre County | Energy Companies | Pennsylvania

SRBC Rejects Anadarko Water Request in Centre County, PA

December 21, 2011December 21, 2011

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.

Energy Companies | Southwestern Energy

Southwestern Doubling Marcellus Shale Investment in 2012

December 21, 2011December 21, 2011

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:

Chesapeake Real Estate Purchases in Ohio Signal Expansion

December 20, 2011December 20, 2011

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.

Energy Companies | EQT Corp

EQT Bets the Farm on the Marcellus Shale

December 20, 2011December 20, 2011

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 Marcellus Wells: Strong Production, Lots of Liquids

December 20, 2011December 20, 2011

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:

Gas Drillers and Townships Working Together Resolve Issues

December 19, 2011December 19, 2011

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:

New Report Says No Health Threats from Spills in Dimock PA

December 15, 2011December 15, 2011

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.