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Dem Judge Shuts Down Anti Effort to Block Drilling Under Ohio Parks

Sometimes, we get a miracle. A liberal Democrat judge from Franklin County, OH, ruled on Friday that anti-fossil fuel fanatics don’t have the right to appeal a decision by the Ohio Oil & Gas Land Management Commission (OGLMC) to meet and award contracts to drill under (not on) several Ohio state parks, including the 20,000-acre Salt Fork State Park in Guernsey County. The OGLMC is scheduled to meet today to make announcements awarding contracts for several tracts, including Salt Fork State Park. We expect antis will try to derail the proceedings illegally. Grab the popcorn…
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Baker Hughes U.S. Rig Count Adds 5 @ 626, M-U Loses 1 @ 43

Last week, the Baker Hughes rig count gained five rigs after losing two rigs the week before. The count went from 621 active rigs two weeks ago to 626 last week. The national count has consistently stayed between 620 and 625 (or one or two above or below that range) since last October. The Marcellus/Utica lost one rig last week. Pennsylvania actually added two rigs last week and now operates 24 rigs (the most since last June). Ohio and West Virginia each lost one rig, with Ohio now at 12 active rigs and West Virginia at seven active rigs.
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Layoffs Hitting the Gas Fields, Including Marcellus/Utica

According to Reuters, oilfield service companies and drillers have put the brakes on hiring and “further job cuts could loom” as natural gas producers respond to sliding prices by slashing spending on new wells to reduce excess production. We told you yesterday that Chesapeake Energy announced a coming rig and frac crew cut in the Marcellus (see Chesapeake Dropping 1 Rig in Marcellus as it Waits to Merge with SWN). But it’s not some far-off “maybe it will happen” thing. Layoffs in the M-U are already happening. For example, fracking company NexTier merged with Patterson-UTI last September. Because of duplication of services, Patterson recently announced it will close a facility in Mansfield, Pennsylvania, affecting some 104 employees.
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Antis Ask Court for Emergency Stop to Drilling Under OH State Parks

The money behind Big Green never stops. Where in the heck do they get it all? In November 2023, the Ohio Oil & Gas Land Management Commission (OGLMC) met in a public forum and voted to allow shale drilling under (not on top of) three different state-owned tracts of land: all 20,000 acres of Salt Fork State Park in Guernsey County, more than 300 acres of Valley Run Wildlife Area in Carroll County, and 66 acres of the Zepernick Wildlife Area in Columbiana County (see OGLMC Votes to Allow Fracking Under Ohio’s Salt Fork State Park). The vote set in motion a window for drillers to submit official proposals. The OGLMC is scheduled to meet next week to announce the winners. Antis have just filed a court motion to block that meeting.
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Baker Hughes U.S. Rig Count Loses 2 @ 621, M-U Stays Even @ 44

Last week, the Baker Hughes rig count lost two rigs after adding four rigs the week before. The count went from 623 active rigs two weeks ago to 621 last week. The national count has consistently stayed between 620-625 active rigs since last October. The Marcellus/Utica stayed even last week at 44 rigs after gaining two rigs the week before. The M-U is at the most active rigs we’ve had since last August!
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Landmen Knocking Doors in PA, OH, WV to Sign for CCS, Pore Rights

The Pittsburgh Post-Gazette has an excellent article reporting on an effort by Tenaska, one of the largest privately operated companies in the U.S., to build a carbon capture and sequestration (CCS) hub spanning tens of thousands of acres in Pennsylvania, Ohio, and West Virginia. Landmen are “knocking on doors again” in all three states, looking to sign up landowners to store carbon dioxide deep underground. We have the details below, including how much money Tenaska is paying as a signing bonus and how much is on offer (per acre) each year.
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Baker Hughes U.S. Rig Count Adds 4 @ 623, M-U Gains 2 @ 44

Last week, the Baker Hughes rig count added four rigs after losing two rigs the week before. The count went from 619 active rigs two weeks ago to 623 last week. We continue to see the national count stay roughly around 620-630 active rigs. The Marcellus/Utica gained two active rigs and now sits at 44 — the most active rigs we’ve had since last August! Two rigs were added to Pennsylvania, while Ohio and West Virginia each maintained the same count as the previous week.
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Radicals Push “Secrecy” Narrative re Drilling Under OH State Parks

Anti-fossil fuel zealots (climate catastrophists) have set their sights on blocking drilling and fracking under (not on top of) Ohio’s state-owned land, including several state parks. Their favorite tactic is to lie and smear the companies that seek to do such drilling. One tiny problem (for the zealots): they don’t know which companies are bidding to do the drilling. And that drives them even more crazy. So the zealots, with the help of mainstream media, are trying to paint the process as “secretive” — like there’s something nefarious that the fracking industry wants to hide. In reality, the identity of the winning bid is kept “secret” until the deal is officially announced because IT’S STATE LAW.
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Peregrine Energy Buys More Royalty Rights in Ohio Utica Shale

Peregrine Energy Partners, headquartered in Dallas, Texas, continues a program to buy royalty rights in the Marcellus/Utica and elsewhere. We have chronicled a number of Peregrine’s M-U purchases since 2019 (see our Peregrine stories here). Two years ago, Peregrine acquired one of its largest royalty positions in the Utica, spanning over 340,000 gross acres in 18 counties. The company has come calling again, adding royalties from more producing wells to its already large Utica portfolio.
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PA & OH Lawmakers Meet re Avoiding Grid Catastrophe from Renewables

Last Thursday, members of the Pennsylvania Senate, including PA State Sen. Gene Yaw, and members of the Ohio General Assembly met in Columbus for a hearing on energy reliability, sustainability, and affordability. The hearing consisted of two panels, one focused on state and national energy impacts and another on consumer and generational impacts. PJM, the organization that manages the mid-Atlantic power grid consisting of 13 states and the District of Columbia, testified. Indeed, the main thrust of the meeting seemed to be how to keep the growing PJM grid from crashing into blackouts because of an overreliance on unreliable renewables like solar and wind.
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Encino Gives Evolution 3-Yr Contract Extension for Utica E-Fracking

Evolution Well Services announced a three-year extension of their current electric fracturing partnership with Encino Energy after achieving operational efficiencies and milestones in 2023. Evolution uses “e-fracking” technology. Traditional fracking uses diesel-fueled engines to produce electricity to power pressure pumps for hydraulic fracturing operations. E-fracking uses natural gas from the well pad (or CNG or LNG) to power turbines to create electricity. E-fracking uses a different type of “engine” and different fuel. E-fracking fleets are roughly half the size of traditional diesel fleets — and a whole lot quieter.
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Carbon Capture & Storage Coming to Ohio’s Wayne National Forest?

Wayne National Forest

There are federal lands in the Marcellus/Utica. Did you know that? The Wayne National Forest (WNF) is a patchwork of public and private mineral rights that covers over a quarter million acres of Appalachian foothills of southeastern Ohio. For years, the Bureau of Land Management (BLM) blocked new permits and drilling in WNF. During the Trump administration, the BLM began to auction off federal leases and permits (see our stories about BLM auction in WNF here). However, a federal judge blocked drilling in WNF in 2021, after Biden had seized control of the White House (see Federal Judge Blocks Permits to Drill in OH’s Wayne Natl Forest). Although drilling in WNF is blocked, the Bidenistas are considering a rule change to allow the drilling of carbon dioxide wells in national parks, including WNF.
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Baker Hughes U.S. Rig Count Adds 1 @ 621, M-U Even @ 42

The Baker Hughes rig count gained another rig last week. The count went from 620 active rigs two weeks ago to 621 last week — up a single rig. It went up a single rig the week prior, too. And that’s about where we are. We have floated between 620 and 625 for all of December and January — dipping to 619 for one week during that period. It appears we’ve hit the bottom and are stable. The Marcellus/Utica remained constant last week with 42 active rigs, after PA added two rigs the week before.
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Antis Have No Right to Appeal Decision to Drill Under State Parks

Anti-fossil fuel fanatics in Ohio (and beyond) still can’t accept that they lost a battle to block drilling under (not on) Ohio state-owned land, including some Ohio state parks. In November, the Ohio Oil & Gas Land Management Commission (OGLMC) met in a public forum and voted to allow shale drilling under three state-owned tracts of land: (1) all 20,000 acres of Salt Fork State Park in Guernsey County, (2) more than 300 acres of Valley Run Wildlife Area in Carroll County, and (3) 66 acres of the Zepernick Wildlife Area in Columbiana County (see OGLMC Votes to Allow Fracking Under Ohio’s Salt Fork State Park). The vote precipitated a panic attack among the environment left. Earthjustice and the Ohio Environmental Council (disgusting leftwing green groups) filed a lawsuit in Franklin County Common Pleas Court appealing the OGLMC’s action (see Big Green Sues to Block Drilling Under (Not On) Ohio State Parks). One teeny, tiny problem for the wackos: The new law that empowers the OGLMC to do the leasing does not contain a provision to appeal their decisions to a court.
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Black Gold: Ascent & Encino Drill Oil Gushers in Ohio Utica

Yesterday we brought you the latest update on EOG Resources’ oil drilling program in the Utica Shale (see Black Gold: EOG Resources Drills Gushers in Ohio Utica). Today we have details about two more companies and their Utica oil drilling programs: Ascent Resources and Encino Energy. Last summer, we told you that Encino, which picked up Chesapeake Energy’s Ohio O&G assets, including 933,000 Ohio acres with 320,000 net Utica acres and 920 operated and non-operated Ohio Utica wells for $2 billion in 2018 (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B), had finally cracked the code on coaxing oil from the Utica Shale (see Oil Prod. in Northern Utica Comes Alive – Encino Cracks Oil Code). Encino is now Ohio’s top oil producer.
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Black Gold: EOG Resources Drills Gushers in Ohio Utica

Perhaps our headline is slightly misleading. EOG is not the modern equivalent of Jed Clampett walking along and seeing crude bubbling up out of the ground (as in the fictional The Beverly Hillbillies show of the 1960s with the “Ballad of Jed Clampett” that says, “Oil that is, black gold, Texas tea.”). What EOG and other Ohio drillers (like Encino Energy and Ascent Resources) have done is more like rocket science than winning a lottery. The oil has been locked away in the Utica/Point Pleasant shale layer for millennia. Aubrey McClendon, co-founder and former CEO of Chesapeake Energy, was the first to see the vision of freeing oil from the Utica.
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