Statewide OH

Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Harrison County | Ohio | Statewide OH | Utica Shale

Chesapeake’s Current Thinking on their Utica Shale Program
August 12, 2013August 12, 2013

At a meeting in Mahoning County, OH, a Chesapeake Energy representative tackled the question of how long Ohio residents will see drilling in their midst. The rep then spoke about the next phase after drilling–production and piping product to market. The answers given were not anything we haven’t heard before. Still, some of the Chesapeake rep’s comments did give us insight into the company’s current thinking about the Utica Shale and the counties where they intend to concentrate their efforts…
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Economic Impact | Industrywide Issues | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Muskingum Watershed District: $77M in Utica Lease Revenue, So Far
August 12, 2013August 12, 2013

There’s no doubt a change has happened at the board of the Muskingum Watershed Conservancy District (MWCD). Last year they self-imposed a moratorium on selling water to Ohio Utica Shale drillers (Muskingum Watershed Reverses Decision to Sell Water to Drillers). This year, they can’t wait to lease MWCD land to Utica Shale drillers and sell them the water to frack it (MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling). Why the change?

An MWCD official talked about the change in thinking for the MWCD board at a meeting last week of the Guernsey (County) Energy Coalition…
Read More “Muskingum Watershed District: $77M in Utica Lease Revenue, So Far”
Industrywide Issues | Ohio | Pipelines | Statewide OH

Ohio’s Abandoned Railroad Lines Become Hot Commodity
August 9, 2013August 9, 2013

Yes, we’re suckers for a good railroad story–always have been, always will be. Especially railroad stories tied to shale drilling.

Here’s a railroad/drilling story with a twist: In Ohio, abandoned right-of-ways from railroads long gone are suddenly a hot commodity. Why? Midstream (pipeline and processing plant) companies are snapping them up to run pipelines along them…
Read More “Ohio’s Abandoned Railroad Lines Become Hot Commodity”
Economic Impact | EMG | Energy Services | Industrywide Issues | Kinder Morgan | MarkWest Energy | Ohio | Pipelines | Processing Plants | Statewide OH | Tuscarawas County

2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf
August 8, 2013August 8, 2013

Looks like the Williams/Boardwalk Bluegrass NGL pipeline is about to get some competition. Yesterday, Kinder Morgan, MarkWest and The Energy and Minerals Group (EMG) announced a new joint venture on two projects aimed at the Marcellus/Utica Shale region. The first project is a 400 Mmcf/d cryogenic processing plant in Tuscarawas County, OH to separate raw natural gas into methane and natural gas liquids (NGLs). The second project is a new NGL pipeline that will, like the Bluegrass, run from Ohio all the way to the Gulf Coast. There’s no mention of how much the partners will invest in the two projects, but we believe it could easily approach $1 billion of new investment in the northeast.

This announcement is great economic news for Ohio (Tuscarawas County in particular), and great economic news for Marcellus/Utica drillers who need extra takeaway capacity for the NGLs they’re currently producing. The press release from Kinder Morgan with details about the two new projects:
Read More “2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf”
Dominion Energy | Energy Companies | Energy Services | Gulfport Energy | Harrison County | Industrywide Issues | Ohio | Pipelines | Statewide OH | Utica Shale

Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market
August 8, 2013August 8, 2013

Straight off a conference call yesterday comes the news that Gulfport Energy has just signed a 10-year contract with Dominion Transmission to transport the natural gas Gulfport produces in the Ohio Utica Shale to the Midwest–using Dominion’s pipelines. The agreement is to ship 100 million cubic feet per day of gas (100 Mmcf/d), ramping up to 150 Mmcf/d by late 2014. Gulfport’s CEO James Palm made the announcement yesterday.

Palm also said on the conference call that Gulfport continues to lease acreage in Ohio and plans to drill “at least” 70 new wells next year in the Utica. More from yesterday’s call:
Read More “Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market”
Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Energy 2Q13: “All in” for the Utica Shale
August 7, 2013August 7, 2013

Gulfport Energy is definitely “all in” when it comes to drilling in the Utica Shale. The Oklahoma City-based company released its second quarter update yesterday, an update that shows that of the nine active rigs Gulfport is operating across three different shale plays, seven of those rigs are operating in the Ohio Utica Shale. Need we say more?

The operational update section of yesterday’s Gulfport update, outlining some of the outstanding results they’re getting in the Utica:
Read More “Gulfport Energy 2Q13: “All in” for the Utica Shale”
Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Statewide OH

Some OH Landowners Get “Take it or Leave it” Pipeline Offers
August 6, 2013August 6, 2013

Apparently, some heavy-handed tactics are being used by some (not all) landmen in Ohio who are telling property owners to “take it or leave it” when it comes to offers on the table to allow pipelines to cross their land. Landowners beware: a landman may tell you the company will run the pipeline anyway by using the power of eminent domain. Very few of the pipelines now being constructed in eastern Ohio right now have eminent domain power.

If you hear such a statement from a landman, ask to see a certificate from FERC or the Ohio Public Utilities Commission stating that particular pipeline has eminent domain authority. If they can’t produce such a certificate, you know they’re blowing smoke…
Read More “Some OH Landowners Get “Take it or Leave it” Pipeline Offers”
Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

USGS Finally Issues Report for Selling Water from 3 OH Reserviors
August 5, 2013August 5, 2013

In June 2012, the Muskingum Watershed Conservancy District (MWCD) board flip-flopped on a decision to make water sales from their considerable inventory of lakes and reservoirs to Marcellus and Utica Shale drillers. At first they voted to move forward with water sales, then a few days later, reversed their decision pending a full-blown study by the U.S. Geological Survey (see Muskingum Watershed Reverses Decision to Sell Water to Drillers). Thankfully, the MWCD didn’t wait for the USGS study, which was supposed to be issued by the end of last year, before they went ahead with more water sales in September (see Muskingum Watershed Moves Forward with Water Sales to Drillers).

Perhaps the reason the MWCD moved forward before getting the results of the USGS study was a premonition about how long the study would take. The 33-page USGS report, titled “An analysis of potential water availability from the Atwood, Leesville, and Tappan Lakes in the Muskingum River Watershed, Ohio” was just released today (full copy embedded below)–seven months later than anticipated. Although the study offers analysis only and no conclusions or recommendations, the MWCD says the data in the study is “helpful”…
Read More “USGS Finally Issues Report for Selling Water from 3 OH Reserviors”
Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake’s Latest Thinking about the OH Utica Shale
August 5, 2013August 5, 2013

More analysis of last Thursday’s investor/analyst phone call with Chesapeake Energy officials. Specifically, this article looks at the comments made by new CEO Doug Lawler and long-time COO Steve Dixon comments about the Ohio Utica Shale:
Read More “Chesapeake’s Latest Thinking about the OH Utica Shale”
Energy Companies | Halcon Resources | Mahoning County | Ohio | Statewide OH | Trumbull County | Utica Shale

Halcón Resources: Will Drill Up to 500 Wells in the Utica
August 2, 2013August 2, 2013

Halcón Resources Corporation, increasingly an important driller in the Utica Shale, released their second quarter update yesterday. Halcón CEO Floyd Wilson also held a conference call for analysts. On that call, Wilson boasted about Halcón’s Utica Shale program–in particular the Kibler 1H well in Trumbull County which has been producing 2,233 barrels of oil equivalent per day–75% of it liquids. Halcón, which concentrates its drilling in “oily” plays like the Bakken and Utica, is currently operating 2 drilling rigs in Ohio/Pennsylvania. They’ve drilled nine Utica wells and are now evaluating the results. Halcón has 142,000 acres leased in the Utica Shale (primarily in Ohio).

Remarks about Halcón’s Utica program from the conference call, and the Utica portion of yesterday’s 2Q13 report:
Read More “Halcón Resources: Will Drill Up to 500 Wells in the Utica”
Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC
August 2, 2013August 2, 2013

More than 1 1/2 years ago MDN told you about a planned new 70-mile pipeline and compressor station to connect Utica and Marcellus wells in eastern Ohio to Spectra Energy’s Texas Eastern pipeline system (see Chesapeake Investing in New 70-Mile Ohio Pipeline). Called the Ohio Pipeline Energy Network (OPEN), the project is a $500 million joint venture between Chesapeake Energy, American Electric Power and Spectra Energy. Not since December 2011 have we heard any news about the project–until now.

Even though there’s been no media coverage, Spectra has been hard at work planning and holding public meetings for feedback on eight different proposed pipeline routes. The Federal Energy Regulatory Commission (FERC) has given Spectra until Sept. 20 to tell them which alternative is their preferred route. FERC will then make a decision and (presumably) issue a permit that will allow Spectra to begin construction. An update on the OPEN project…
Read More “Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake’s Lawler Excited about OH Utica, Calls it “Outstanding”
August 2, 2013August 2, 2013

Chesapeake Energy’s new CEO, Doug Lawler, like Chessy’s founder and first CEO Aubrey McClendon, positively gushes when it comes to the Utica Shale. On a conference call with analysts yesterday, Lawler said, “The Utica is outstanding,” and he sees the Utica as “…a very strong asset going forward.”

More details on Chessy’s Utica Shale drilling program in Ohio from Lawler:
Read More “Chesapeake’s Lawler Excited about OH Utica, Calls it “Outstanding””
Ohio | Statewide OH | Utica Shale

Latest OH Utica Numbers: 819 Permits, 460 Wells Drilled
August 1, 2013August 1, 2013

The latest numbers of permits and wells drilled in the Ohio Utica Shale, courtesy the Akron Beacon Journal:
Read More “Latest OH Utica Numbers: 819 Permits, 460 Wells Drilled”
Belmont County | Energy Companies | Harrison County | Hess | Ohio | Statewide OH | Utica Shale

Hess Drills 10 Wells in OH Utica Shale in 2Q13
August 1, 2013August 1, 2013

As part of their 2Q13 update, Hess reports the following details about their Utica Shale drilling program in Ohio for the past three month period:
Read More “Hess Drills 10 Wells in OH Utica Shale in 2Q13”
Access Midstream Partners | Columbiana County | Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M3 Midstream | NGLs | Ohio | Processing Plants | Statewide OH | Utica Shale

M3’s Kensington, OH NGL Plant Now Live & Processing
July 30, 2013July 30, 2013

A new $400 million natural gas liquids (NGL) processing plant in Kensington (near Hanoverton, OH) has went online Sunday. The Utica East Ohio Midstream (UEO) plant, a joint venture owned by M3 Midstream, Access Midstream (formerly Chesapeake Energy) and EV Energy Partners, was originally supposed to be online in May. That date slipped. In June, MDN picked up on a bit of news that indicated the plant would go live “by the end of July” (see M3 Midstream’s Kensington, OH NGL Plant Launch Date Slips). The July rumored date proved correct.

Yesterday, M3 issued the following press release announcing that the UEO plant is now operating and processing NGLs. It is the first plant of its kind to go online in the Utica Shale:
Read More “M3’s Kensington, OH NGL Plant Now Live & Processing”
Energy Companies | Ohio | Oxford Oil Company | Statewide OH | Upper Devonian Shale

Ohio Drillers Not So Excited About Upper Devonian Shale
July 29, 2013July 29, 2013

It seems some drillers have become excited about the Upper Devonian Shale in southwestern Pennsylvania and West Virginia (see today’s companion story: 5th Upper Devonian Driller + Maps of Best UD Spots to Drill). However, it also seems that the UD isn’t all peaches and cream–especially for drillers in eastern Ohio. Akron Beacon Journal reporter Bob Downing reports the UD in Ohio has so far been pretty lackluster.

Surprisingly, there have already been 125 UD wells drilled in Ohio over the past two years, most of them vertical-only wells. An update on UD drilling in Ohio:
Read More “Ohio Drillers Not So Excited About Upper Devonian Shale”