Ohio

Energy Companies | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EVEP CEO Mark Houser Discusses Utica Shale Strategy, Future
October 1, 2013October 1, 2013

Mark Houser, president and CEO of EV Energy Partners, presented at the IPAA Oil and Gas Investment Symposium yesterday in San Francisco. Below are portions of his talk dealing with EVEP’s Utica Shale assets and strategy. Also below is the PowerPoint presentation he used, which contains some great maps and charts dealing with the Utica. In particular take a look at slides #8 through #18. Don’t miss the close-up pictures of UEO’s Kensington and Harrison plants.

If we could “net net” summarize what Houser said about the Utica and the role it will play in the company’s future, it’s in line with our previous observations, which is…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Ohio | Pennsylvania | Statewide OH | Statewide PA

Magnum Hunter CEO Gary Evans Charts a Marcellus/Utica Future
October 1, 2013October 1, 2013

Gary Evans, CEO of Magnum Hunter, presented at the IPAA Oil and Gas Investment Symposium yesterday in San Francisco. He did a deep dive into MH’s Marcellus and Utica Shale operations and plans moving forward. Evans said the company now owns 490,000 net acres in the northeast (Appalachia) with 81,000 net acres in the Marcellus Shale and 80,000 net acres in the Utica Shale. They have investments and operations in both drilling and in the midstream (pipelines) segment via subsidiary Eureka Hunter.

Below are Evans’ comments from yesterday along with a PowerPoint presentation which we believe is likely the one he used (or very similar to the one he used). Slides #13-#27 cover the Marcellus and Utica–well worth your time to review, some great maps and charts. Also included, a nifty picture of MH’s new robotic drilling rig (slide #26)…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

OH Antis Force Change in Chemical Reporting, Everyone Less Safe
September 30, 2013September 30, 2013

Ohio’s anti-drillers, in their zeal to needle the drilling industry, have just put everyone who lives near active drill sites at more risk than they once were. Following state law, drillers (until now) have filed a list of the chemicals they store and use for fracking with the Ohio Department of Environmental Resources (ODNR). Local first responders–police and firefighters–could then electronically retrieve that information from the ODNR website for any given well if an incident occurred, like a fire. But anti-drillers asked the federal government to intervene and that has now happened. The feds have said drillers must file paperwork listing the chemicals stored and used directly with local counties and municipalities.

Now, firefighters will have to haul out a paper file from some filing cabinet and rifle through it if there’s any kind of emergency–instead of using the much faster online version from ODNR. Congratulations Ohio anti-drillers! You’ve just made everyone in Ohio more unsafe…
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Anti-Drilling/Fossil Fuel | Energy Services | Ethane | Industrywide Issues | Medina County | NGLs | Ohio | Pipelines | Sunoco Logistics

Handful of Medina, OH Anti-Drillers Oppose Ethane Pipeline
September 30, 2013September 30, 2013

A handful of residents in Medina, OH are opposing an update to a pumping station that sits on the Mariner West pipeline. Sunoco Logistics owns and operates the pipeline which they are converting to handle ethane, a natural gas liquid. The plan is to pipe ethane from the Marcellus and Utica Shale region all the way to Sarnia (Ontario), Canada to an ethane cracker plant located there.

Local anti-drillers in Medina don’t like fracking (even though it’s perfectly safe) so they’ve decided to focus on stopping the pipeline as a deterrent to more fracking…
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Arrowhead Utica Pipelines | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Ohio | Trucking | Utica Shale

Utica Shale Transfer Facility Gets Road Upgrade
September 30, 2013September 30, 2013

In February, MDN brought you the news that the Columbiana County Port Authority would spend nearly $1 million to improve a stretch of road leading to the Wellsville industrial park where Arrowhead Utica Pipelines, a Hilcorp subsidiary, is building a shale gas transfer facility (see Hilcorp Subsidiary Leases Property for Utica Transfer Facility). Looks like it won’t take anywhere near that much money to get the project done.

Last Friday the Port Authority voted to accept a bid and move forward to have the work done–at a cost of $526,000…
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Crude Oil | Economic Impact | Industrywide Issues | Jobs | NGLs | Ohio | Statewide OH | Utica Shale

U.S. Chamber’s Chris Guith Talks About Ohio Utica Shale
September 30, 2013September 30, 2013

Chris Guith is vice president for policy at the U.S. Chamber of Commerce’s Institute for 21st Century Energy. He’s also very familiar with the development of Ohio’s Utica Shale play. In a recent interview, Guith had some interesting comments on Ohio’s prospects for oil, NGL pipelines, industry jobs, regulations and more…
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Industrywide Issues | Jobs | Licking County | Ohio

Pipe Welders Needed – Ohio’s C-TEC Will Train Them
September 27, 2013September 27, 2013

Want a good paying, hands-on job in the Marcellus or Utica Shale? Try welding. The Career and Technology Education Centers (C-TEC) in Licking County, OH recently launched a new 10-month-long structural and pipe welding fabrication course. Students who are willing to work hard will get an average $45/hour after they graduate…
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Ashtabula County | Ohio | Utica Shale

Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH
September 24, 2013September 23, 2013

Converting Marcellus and Utica Shale natural gas into liquids like solvents, lubricants and waxes–even diesel fuel–is starting to catch on. MDN previously told you about a “gas-to-liquids” (GTL) plant planned for the Altoona, PA area that will convert natural gas to diesel fuel (see Altoona Area Getting $200M Marcellus Gas-to-Liquids Plant). A chemical manufacturer in western PA is pursuing a GTL plant to create their own “feedstock”–raw chemical materials they need to produce other specialty chemicals (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA).

Now, word of the first GTL plant we’ve heard of planned in Ohio. The Ohio plant, if built, will also produce specialty chemicals…
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American Water Management | Energy Services | Industrywide Issues | Ohio | Trumbull County | Wastewater

New OH Injection Well to be Drilled <8 Miles from Earthquake Site
September 23, 2013September 23, 2013

American Water Management Services (of Howland, OH) is certainly braver than we are. In the “new couple months” the company plans to drill a new frack wastewater injection well in Weathersfield, OH. Where is Weathersfield? Close to (under 8 miles away from) the now shuttered injection well operated by D&L Energy–the well that caused earthquakes in the Youngstown, OH area in December 2011 (see ODNR Finds Youngstown Injection Well Caused Earthquakes).

Ohio Dept. of Natural Resources (ODNR) says the new injection well targets a different rock formation than the D&L well that caused the earthquakes around Youngstown. The ODNR has installed seismic monitoring equipment and is watching this new well very closely to ensure there are no tremors being caused. Still, you KNOW if there’s the least little tremor around Youngstown from now until eternity, everyone will blame this new well even if it’s not the cause…
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Athens County | Ohio | Utica Shale

Will Utica Shale Drilling Come to Athens County, OH Soon?
September 20, 2013

From time to time Athens County, OH pops up on the radar screen–mostly related to a misguided attempt by a few anti-drillers to ban fracking (see last month’s article Athens Election Board Votes Against Anti-Frack Ballot Measure).

However, there has been no Utica drilling in Athens County so far. Is that about to change? The Athens News says drilling is inching steadily closer. They take a close look at the prospects (and evidence) that drilling may come to this southeastern Ohio county–soon…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Trumbull County

Niles, OH Votes to Lift Frack Ban One Month After Passing It
September 20, 2013September 20, 2013

Well that didn’t last long. One month after Niles, OH City Council voted to spite its face by cutting it’s nose off (i.e., voted to ban fracking), they’ve voted to lift the ban. Why? Because the ban language also bans businesses from selling to the drilling industry–including the city itself (situated in Trumbull County), which sells a lot of water for fracking (see Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban for background).

On Wednesday, Niles City Council voted to lift the ban. Congratulations on wising up!…
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Carroll County | Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Roads | Utica Shale

Carroll County, OH Transformed by Utica Shale Drilling
September 18, 2013September 18, 2013

What’s it like when drilling comes to town? Who better to tell us than someone from “the epicenter” of drilling in eastern Ohio? Amy Rutledge is director of the Carroll County Chamber of Commerce. She spoke this week at an energy summit in Columbus sponsored by America’s Natural Gas Alliance.

Startling fact #1: According to Rutledge, Carroll County has fewer than 30,000 people living it–but when drilling came to town, 200 property owners in Carroll became instant millionaires from the bonus checks they received. Startling fact #2: Drillers have (so far) paid over $40 million to rebuild Carroll County’s roadways–that’s 80 years worth of road work completed in two years for a county with an annual budget of just $500,000 allocated for roads…
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Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

Newest Gulfport Utica Wells Disappoint with Methane Production
September 17, 2013September 17, 2013

Last week Gulfport Energy prepared the markets (i.e. investors) to receive some “bad news”–lower-than-expected third quarter production numbers for their Utica Shale wells, partially due to lack of a pipeline hookup to a single well (see Delayed Pipeline to Single Gulfport Utica Well Impacts Market). Today Gulfport released production numbers for three Utica wells. To our eye, it seems lack of infrastructure is not the only reason Gulfport lowered expectations for 3Q13 production. The newest wells coming online for Gulfport are not producing anywhere near the amount of methane their previously announced monster wells produce. For example, the Stutzman well in Belmont County well produced an initial 21 million cubic feet of natural gas per day (see Mind-blowing Earnings from a Single Utica Shale Well). That’s to be expected. Not every well you drill is a home run.

Even though Gulfport’s newest wells are under-performers vis a vis methane (2.0-9.7 million cubic feet per day), they produce more than enough condensate and natural gas liquids to make up for it. Interestingly, all three of Gulfport’s newest wells are in Harrison County, OH…
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Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

Ohio Moves to Quarterly Production Reports Starting Jan 2014
September 16, 2013September 16, 2013

Investors and those who watch the Utica Shale industry, including MDN, have long called on the Ohio Dept. of Natural Resources (ODNR) to abandon annual reporting of gas and oil production and instead move to a more frequent reporting system–quarterly would be about right. Late last year MDN prematurely told you quarterly reporting was on the way (see [Corrected] ODNR Moving to Quarterly Production Numbers for O&G). The state legislature took up the measure again earlier this year and made quarterly reporting part of the language in the 2013 Ohio budget bill (see Ohio Moves One Step Closer to Quarterly O&G Production Reports). The budget passed with quarterly reporting language intact.

Last Thursday, director of the ODNR, James Zehringer, along with the chief of the division of oil and gas operations for the ODNR, Rick Simmers, spoke at the Guernsey County Energy Coalition meeting. Simmers said starting in January 2014, Ohio drillers will be required to file quarterly production reports…
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Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Benesch Law’s Useful Quarterly Report/Overview on Utica Shale
September 16, 2013September 16, 2013

How about a handy quarterly snapshot of the Utica Shale and where various initiatives (like infrastructure investments) stand? The attorneys and researchers at Benesch Law produce just such a report every three months. The latest edition is now out. One statistic of note to give you a feel for the enormous scope and potential of the Utica Shale in Ohio: There are 133 pipeline projects–from local gathering lines to interstate natural gas liquids pipelines–either now being built or on the drawing board. It represents billions of dollars of investment in the Utica.

Below is the full Benesch Shale Industry Report – Quarterly Summary Q2 2013. Well worth the few minutes it takes to read…
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CONSOL Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

OOGA Pegs Utica Shale “Sweet Spot” at YOUNG 2013
September 13, 2013

An Ohio Oil and Gas Association (OOGA) representative told attendees at the YOUNG 2013 conference held this week in Youngstown that counties in southeastern Ohio are the “sweet spot” of the Utica Shale play because the pressure there is higher and because the shale layer includes an abundance of natural gas liquids. However, another speaker–an executive from CONSOL Energy–said counties in northeastern Ohio will continue to see successful drilling too. So don’t despair!

Executive VP of OOGA, Tom Stewart, used a map to detail the location of a “strip of highly pressurized shale containing natural gas liquids.” While we don’t have a copy of the map, we do have his identification of precisely which counties he says are in that strip–the Utica Shale sweet spot…
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