Economic Impact 55 - Marcellus Drilling News

Chesapeake Data Screw-up Means PA Production Figures Wrong

August 20, 2012August 20, 2012

Last Friday MDN reported on the increase in Pennsylvania’s natural gas production in the first half of 2012 as compared with the second half of 2011 (see this MDN story). We noted that Bradford County was displaced by Susquehanna County as producing the most natural gas for 1H12. But there’s a “little” problem.

Chesapeake Energy, due to a “technical issue,” did not report its numbers—and they’re the number one producer in the state. Oops! The lack of Chesapeake data in the numbers has two implications:

Chesapeake’s Construction Investment in Ohio Continues

August 20, 2012August 20, 2012

More jobs and more economic activity are on the way in eastern Ohio courtesy of Chesapeake Energy’s investments to build a new office complex near St. Clairsville (Belmont County) and their investment in a natural gas processing plant (Harrison/Columbiana counties). The new office complex is due to open in November while the processing plant is due to come online in 2013.

PA Shale Gas Production Goes Up Again

August 17, 2012August 17, 2012

Shale gas production in Pennsylvania, almost all of it from the Marcellus, increased 12% in the first half of 2012 over the last half of 2011 according to new data from the PA Dept. of Environmental Protection. Also during 1H12, Bradford County was displaced as producing the most shale gas in the state by…

Shell Reaffirms PA Cracker Plant Still Planned, Not Certain

August 15, 2012August 15, 2012

As MDN has previously cautioned, although the proposed ethane cracker plant Shell wants to build near Pittsburgh is looking good, it’s still not a foregone conclusion that Monaca, PA will be the location (see this MDN story). That message of caution was reaffirmed by Shell at an industry conference yesterday, as reported by the Youngstown Business Journal:

Over 36K Shale Wells in U.S. Have Produced 23 TCF of NatGas

August 15, 2012August 15, 2012

Powell Shale Digest released a research report detailing how many shale wells there are in the U.S., and how much gas and oil/condensate those wells produce (see below). The results? Across the major shale plays—minus the Utica—the U.S. now has over 36,000 wells that have produced 23 trillion cubic feet of natural gas and 682 million barrels of oil/condensate.

WV Energy Exec Says Marcellus Will Last 100+ Years

August 14, 2012August 14, 2012

David Drennon is marketing and transportation manager with H.G. Energy LLC in Parkersburg, West Virginia. He spoke yesterday at the Parkersburg Rotary Club weekly meeting about development of natural gas from Marcellus Shale deposits and oil from Utica Shale deposits. He offered these observations and predictions about shale development in WV:

Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

PA Fish & Boat Commission: Why They Lease for Gas Drilling

August 13, 2012August 13, 2012

The Pennsylvania Fish and Boat Commission recently entered into leases for drilling to occur underneath several lakes it owns. The executive director of the Commission, John Arway, said that two years ago he couldn’t imagine “siding with the natural gas industry regard drilling.” So what changed his mind?

OH Union Wins Grant for Utica/Marcellus Job Development

August 13, 2012August 14, 2012

[UPDATE BELOW] Plumbers and Pipefitters Local 396 won a competitive grant process to receive funds for job development in the Utica and Marcellus Shale plays. Local 396 craftsmen consist of plumbers, pipefitters, steamfitters, and HVAC/refrigeration fitters.

Alternative Energy | Economic Impact | Industrywide Issues

Natural Gas Benefits Renewables in the Long-Term

August 10, 2012August 10, 2012

Michael Butler, co-founder of Cascadia Capital and former managing director at Lehman Brothers responsible for global equity sales, today published his five predictions for the sustainable energy industry for the balance of 2012. His predictions #4 and #5 deal with natural gas. MDN found them interesting:

Economic Impact | Industrywide Issues

EIA: Marcellus Shale Reserves Underreported

August 9, 2012August 9, 2012

Remember all those stories about how “there really isn’t as much shale gas in the Marcellus and elsewhere as ‘industry’ wants you to believe”? Those stories got their start with an artful work of fiction by Ian Urbina in an New York Times article last year (click here to read it). Urbina supposedly quoted someone who called shale gas reserves a Ponzi scheme, a la Bernie Madoff or Enron. One of the arguments used to support that particular fiction was that the U.S. Energy Information Administration (EIA) had revised their estimates down for estimated reserves in the Marcellus Shale—down by a lot.

But what’s this? Last week EIA Administrator Adam Sieminski in testimony before Congress said with reference to Marcellus estimated reserves of natural gas, “I think it’s possible we’ll find, as production data begins to come in — Pennsylvania is a state that has significant lags in reporting of production data — we will begin to see those numbers inching up.” In the latest report from the EIA, their estimates for Marcellus Shale reserves in 2010, the latest reporting year, have gone up dramatically—based on production data just now coming in (see the EIA chart below).

How Many Jobs will Utica Shale Drilling Create in Ohio?

August 9, 2012August 9, 2012

How many jobs can Ohio expect from Utica Shale drilling? If it follows the same general path of Pennsylvania—and there’s no reason to expect it would not—for every job created in the oil and gas industry, two jobs are created in other industries to support it. It’s a 1:2 ratio.

Every new well drilled in PA created 30 jobs (in 2009) and $4 million in economic activity in the local economy. That is, shale gas drilling is hugely beneficial for both job creation and economic activity.

Commodity Price | Economic Impact | Industrywide Issues | Statewide WV | West Virginia

WV Gas Utility Lowers NatGas Rate by 11.59%

August 9, 2012August 9, 2012

Bluefield Gas, a gas utility company based in Bluefield, West Viriginia, is lowering their rates for natural gas by 11.59%, effective November 1. Why? Marcellus Shale, of course.

Economic Impact | Hydraulic Fracturing | Industrywide Issues | Pipelines

The Marcellus becomes No. 1 Shale for Natural Gas in U.S.

August 6, 2012August 6, 2012

Number 1 In four short years, the Marcellus Shale has gone from barley registering on national energy reports to becoming the number one most productive natural gas field in the United States, according to Powell Shale Digest and data from the U.S. Energy Information Administration (EIA).

Economic Impact | Industrywide Issues | Jobs | Statewide WV | West Virginia

WV Business Owner: Marcellus Drilling “Saved Our Cookies”

August 6, 2012August 6, 2012

According to the owner of a Charleston, WV construction company, Marcellus Shale drilling has “saved our cookies.” He’s referring to the economic reality that Marcellus drilling has single-handedly revived the construction industry in the Mountain State.

AP Questions OH Gov’s Mathematical Skills on Utica Shale

August 3, 2012August 3, 2012

Ohio Gov. John Kasich has stated that an energy company executive told him (in 2010) that they would eventually recover $1 trillion worth of oil and gas from Ohio’s Utica Shale. Kasich has repeated that remark many times since then—using it as a justification for his plan to increase severance taxes in the state to spread some of that wealth around to all Ohioans.

The Associated Press takes aim at the $1 trillion claim (and at Kasich) with a new story saying Kasich and the unnamed energy exec are way off base:

Alcoa Enters Marcellus Drilling – Supplies Drill Pipe to PGE

August 3, 2012August 3, 2012

Alcoa (once upon a time known as the Aluminum Company of America), the world’s third largest producer of aluminum, is getting into the shale drilling industry by producing special pipe for gas drilling in the Marcellus Shale. Yesterday Alcoa announced a contract to provide driller Pennsylvania General Energy (PGE) with aluminum alloy drill pipe.

From the Aloca press release: