Marcellus Oilfield Services Cos Being Forced to Discount

Make Him an Offer He Can't RefuseMDN editor Jim Willis attended the Platts Global Energy Outlook Forum yesterday in New York City. (New York at Christmas time is truly a sight to behold.) One of the more interesting things Jim learned was from a purely off-the-cuff remark made by John Hill, vice chairman and managing director of First Reserve, one of the world’s largest energy-focused private equity and infrastructure investment firms. John was talking about the downward pressure energy companies are making on oilfield services companies–like Schulmberger and Halliburton and Baker Hughes–forcing them to discount their prices. In the case of Halliburton, which is buying Baker Hughes (see Shotgun Wedding: Halliburton Forces Baker Hughes to Sell), Hill said energy companies are telling Halliburton they WILL lower their prices (by 20%) or else. Or else the energy companies will squawk to regulators in Washington that the proposed buyout is creating an unfair monopoly. The energy companies kind of have Halliburton over the proverbial barrel…
Continue reading

OH Gov. Kasich Goes Foreigner-Hunting in Strasburg

Never mind that under Barack H. Obama illegal aliens continue to pour across an unprotected border along Texas, Arizona, New Mexico and California (new Democrat voters streaming across to assist in the next election). Ohio Gov. John Kasich has far more important work to do in personally securing Ohio’s borders by investigating “foreigners” (i.e. American citizens) from exotic locations like Louisiana, Arkansas, Oklahoma and yes, Texas who come to Ohio to operate oil and gas drilling equipment. Kasich is on a mission to keep them out! (See OH Gov. Kasich Continues Trash Talk Out-of-State Workers.)

Kasich’s latest excursion in foreigner-hunting led him to Strasburg (Tuscarawas County), Ohio, to Schlumberger–pronounced shlum-bur-zhay, kinda Frenchy soundin’ y’know. Inquiring minds want to know… Did Kasich find any foreigners working there?
Continue reading

Record-Breaking 19K New Wells to be Fracked in 2012

Hydraulic fracturing, the process used to break apart shale rock deep below the earth’s surface to allow natural gas and oil to flow, will increase in 2012 some 19 percent from last year according to Spears & Associates, a research and consulting company for the worldwide petroleum industry. Almost 19,000 new wells will be fracked in 2012, compared with 16,000 in 2011. Halliburton is the largest U.S. fracking services provider with 18 percent of the market.

Continue reading

Technology Advances Lead to “Greener” Hydraulic Fracturing

A somewhat technical, but informative article on how hydraulic fracturing technology is getting more environmentally friendly was recently published in Drilling Contractor. Halliburton, Baker Hughes, Schlumberger, Weatherford International, GasFrac Energy Services, Universal Well Services and Frac Tech Services went on the record with Drilling Contractor about the environmental aspects of hydraulic fracturing and “green” developments.

From the introduction of the article we see the critical role fracking plays in natural gas development:

Continue reading

Surprise! New York State’s Pension Fund Invests $1 Billion in Shale Gas Drilling Companies

In an interesting (some would say hypocritical) twist on New York State’s moratorium against drilling in the Marcellus Shale because of environmental concerns, it seems the state’s comptroller has no problem investing some of the state’s huge $140 billion pension fund in shale gas drilling operations, to the tune of $1 billion:

Continue reading