Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!
[4/7/17 UPDATE: Since publishing this post, MDN has been flooded with calls and emails asking, “Where do I apply for a Rover job?” After reaching out to Rover numerous times, what we have learned is that Rover is using contractors, and union labor. There is no HR office at Rover to accept job applications. Job seekers must either find a job with a local contractor already working with Rover, or by heading down to the local union hall to see if they can help. MDN plans to publish another article next week with more details and strategies on finding a Rover Pipeline job. Stay tuned.]
Some really big news coming from the Utica Upstream conference held Wednesday at Walsh University (in North Canton, OH). As we previously reported, Rover Pipeline got permission from the Federal Energy Regulatory Commission (FERC) to begin construction on March 3rd (see FERC Green Lights Rover Pipeline Construction). And construction began, immediately. A local TV station recently did a flyover of one area where construction is happening, and the video is an awesome sight (see Video of Rover Pipeline’s Massive & Complex Construction in OH). Operating all of those bulldozers and backhoes, driving trucks, shoveling dirt, moving material from Point A to Point B–takes people. A LOT of people. So far Rover has hired 4,500 workers–but they need 15,000! And they need them NOW, as soon as possible, stat. What happens if they don’t get enough workers? They won’t make their deadline of completing the first phase of the Rover project by July 1st. What stands in the way of hiring another 10,000+ workers? In a word, drugs. Rover can’t find enough warm bodies who can pass a drug test, which is a sad commentary on society today…
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Pardon me, but may I ask, How long is your lateral? We don’t mean to ask such a personal question, but in this case, size matters. You see, the longer the lateral, the more return on investment (ROI) you get–according to top officials from Eclipse Resources. Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA that drills mostly in Ohio, fielded top officials at two different events this week to talk about the company’s drilling program–and their impressively long laterals. MDN editor Jim Willis heard Eclipse CEO Benjamin W. Hulburt at the Oil & Gas Investment Symposia (OGIS) in New York on Tuesday. On Wednesday, Eclipse’s vice president of drilling, Oleg Tolmachev, appeared at the Utica Upstream conference at Walsh University in North Canton. They both hit on a theme that struck a chord with us–namely, that by drilling longer lateral Utica wells, the company is drastically lowering the cost per foot of drilling–and by doing so, they raise the ROI, making their shale wells more profitable than their competitors’…
Isn’t it refreshing when those who oppose something, like fracking, or pipelines, are just honest about their true “heart of hearts” motivation? We’ve made the case for years that charlatans like Josh Fox (of Gasland infamy) attempt to manipulate public opinion through the use of lies–like “fracking pollutes water” and “pipelines explode.” They attempt to smear fundamentally safe practices like fracking through the use of innuendo, supposition and lies. What is their true motivation? They oppose fossil fuels. They believe, in a rather kindergartenish way, that solar and wind and so-called renewable energy sources are superior–and if you don’t want to pay the high price of those sources, well, they want to FORCE you to accept it. But we’re not Stalinist Russia–yet. They can’t just enforce their will on the public. So they have to convince enough of the public to believe their lies that politicians will follow suit and pass laws to strip away more of our freedoms (see 
Those who oppose fossil fuels try various arguments to convince the general public that extracting oil and gas is bad for the environment. They claim (without facts or proof) that drilling pollutes the water, it pollutes the air, it does permanent damage to the environment. When faced with lack of evidence, antis slip-slide into other arguments against drilling and pipelines. An undeniable benefit from the shale industry is jobs. That includes jobs building pipelines. You need an army of bulldozers, backhoes, truckers, welders and construction workers to lay a pipeline (see today’s lead story and the awesome video of the Rover Pipeline getting built in Richland County). Antis say, “But jobs building pipelines and power plants and processing plants are temporary. They’re illusory. No long-term benefit.” We’ll never forget the powerful statement given at a hearing about the proposed Constitution Pipeline from Francis Cooney, a 28-year member of the plumber and pipe-fitters union. He said this in response to the “those jobs are temporary” meme offered by antis that evening: “For 28 years every job I’ve had has been a temporary job! My temporary jobs have put two kids through Syracuse University” (see 
We spotted an article on The Motley Fool website by one of our favorite authors, Matt DiLallo. The article shines a light on the states that produce the most shale oil. Surprisingly (for us), the Marcellus/Utica was in the list. Appreciable amounts of shale oil are coming from Ohio, Pennsylvania and West Virginia, from both the Marcellus and Utica formations. Of course the amount produced in our neighborhood pales in comparison to the enormous amounts of oil coming from the Texas Permian and North Dakota Bakken. But hey, the fact that we even show up in such a list is kind of exciting…
MDN has previously highlighted the importance of last year’s Ohio Supreme Court decision with regard to the Ohio Dormant Mineral Act (DMA). In September 2016 the OH Supreme Court ruled in three DMA cases, saying all of the other cases come under those three (see 
In January 2016, the Obama Dept. of Interior posted a new rule that will make it all but impossible for oil and gas drillers to drill on federal lands (see 
We are super excited to bring you an exclusive report that has just been released by MDN subscriber 
The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the fourth quarter of 2016. The bad news is that oil production continued to slide in 4Q16, down 44% from the same quarter in 2015. The good news continues to be natural gas production, which was up 14% over the same period in 2015. The even better news: Natural gas production in Ohio for all of 2016 was 1.37 trillion cubic feet, vs. 955.61 billion cubic feet in 2015. Awesome! Ascent Resources (formerly Aubrey McClendon’s American Energy) continued to dominate in natural gas production. Ascent had the top producing well in 4Q16, as they did in 3Q16. In fact, Ascent had 9 of the top 10 producing natural gas wells in Ohio during 4Q16. Gulfport Energy was the only other producer to break the top 10, with one well. Over on the oil side of the isle, Eclipse Resources once again had the top producing oil well with their Purple Hayes well–currently the longest horizontal well drilled in the United States at 3.5 miles long (located in Guernsey County). Purple Hayes is the gift that keeps on giving, quarter after quarter! Below we have the ODNR’s high level overview of the numbers, along with MDN’s own exclusive analysis showing: the top 25 producing gas wells, the top 25 producing oil wells, and then the top 25 gas and oil wells as ranked by average production per day. There is a difference…
We find it kind of amusing. Anti-drillers and Democrats (usually one and the same) in Pennsylvania bellyache and moan and groan that PA is “the only oil and gas state without a severance tax” and how life would be SO much better if only PA had a severance…blah blah blah. They point out that Ohio has a severance tax. West Virginia has a severance tax. EVERYBODY has a severance tax. Of course they conveniently ignore (or lie about) the fact that PA has an impact fee, or an impact tax, if you will. The impact fee levies a charge on new wells for a number a years on a sliding scale. Think of the impact fee like a property tax, and a severance tax like a sales tax on goods sold. The beauty of the impact fee is that 60% of it stays in the communities where drilling actually happens. Impact fee revenue goes to local municipalities to offset the “impacts” of drilling in those communities, money used for things like fire departments, police, roads, etc. An impact fee is superior to a severance tax in many ways. While OH and WV’s severance tax revenue went over a cliff when the price of natural gas went over a cliff, PA’s impact fee was far less affected. But the point of this post is not in the relative merits in the type of taxation. The point is that legislators in Ohio want to reallocate some of their severance tax revenue to be used in communities where Utica drilling happens. That is, they want to convert some of the OH severance tax into, essentially, an impact fee. So while PA bellyaches about having an impact fee and not a severance tax, states (like OH) that actually have a severance tax, would rather have an impact fee!…
Earlier this month MDN brought you a list of the existing and/or planned natural gas-fired electric generating plants in Ohio (see 
What if a landowner leased his or her land decades ago and a driller drilled a conventional natural gas well on the property, and that well has produced commercial volumes of natural gas for years–and still does. And what if the lease gives that driller the right to drill (or not drill) in any given rock lawyer. And what if that driller is content to simply let that conventional well keep producing and not drill further down, into the now commercially viable Utica (or Marcellus) shale layer? Does the landowner, whose land is located where the Utica/Marcellus exists, have any case for taking back the rights to the deeper shale layers the conventional driller refuses to go after? That’s a case that has now worked its way all the way to the Ohio Supreme Court. The question turns on whether or not “reasonable development” in a lease includes unexplored, deep formations…
A group of approximately 250 Ohio landowners, represented by an Ohio eminent domain law firm, is doing its best to stop Energy Transfer’s Rover Pipeline project dead in its tracks. Rover is playing beat the clock to finish tree clearing following a Federal Energy Regulatory Commission (FERC) final approval of the project on Feb. 3 (see 
Last week the Ohio Oil & Gas Association (OOGA) held its 70th annual Winter Meeting in Columbus. One of the speakers was Martin Shumway, president of Shumway Resources–an engineering/geophysical consulting firm that specializes in the Appalachian Basin. Shumway shared details from the latest DeBrosse Memorial Report (full copy below). What does the report show for 2016? There were 620 oil and gas wells completed last year, of which 77% were Utica wells. Belmont Count saw the most wells drilled (120) with the most drilled footage (1.94 million vertical+lateral feet). Chesapeake Energy drilled the most wells last year in Ohio (99 wells), although that number is down 31% from 2015. The #2, #3 and #4 drillers last year were close: Ascent Resources, drilled 66 wells; Antero Resources drilled 64 wells; and Gulfport Energy drilled 62 wells. This is one of our favorite Ohio Utica reports each year, have a look…
Headquartered in Houston, Texas, Exterran Corporation (with 5,400 employees) specializes in natural gas compression production equipment and processing facilities. They design, build and operate compressor stations and natural gas processing plants. In 2012 MDN reported on a contract Exterran won to build three natural gas processing plants in West Virginia (see