Statewide OH

Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Utica Shale | Williams

Williams/Chesapeake Ohio Utica Deal Adds 50K Acres & 20 Years
September 8, 2015September 8, 2015

Midstream giant Williams and drilling giant Chesapeake Energy are cuddling a little bit closer in the Ohio Utica Shale. Williams announced today they have signed an agreement with Chesapeake to run gathering pipelines in a new area of the dry gas Utica for Chesapeake in return for signing a contract that binds Chessy to using Williams until 2035. Williams was already gathering natural gas for Chessy on 140,000 acres of Utica Shale land in Ohio. This agreement extends the time on that 140,000 acres by adding another 20 years, and adds another 50,000 acres to the mix…
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Industrywide Issues | Ohio | Statewide OH | Supply Chain

Ohio Construction Company VEC Consolidates O&G Operation
September 4, 2015September 4, 2015

Two sister companies based in Ohio–Valley Electrical Consolidated Inc. and Evets Oil & Gas Construction Services–will be merged together under parent company VEC, Inc. starting January 1, 2016. VEC/Evets has done construction and steel fabrication work for many Utica/Marcellus companies in Ohio and neighboring states. According to VEC’s president and owner, Rex Ferry, the realignment and merging of the two into one will allow them to better serve customers. Along with the merger of the two companies comes a few promotions, including a promotion for an MDN subscriber…
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Ohio | Statewide OH | Utica Shale

Major Milestone: More than 1,000 Utica Shale Wells Now Online
September 2, 2015September 2, 2015

The Ohio Utica Shale has just passed a major milestone on its way into the history books. There are now more than 1,000 producing Utica Shale wells in Ohio, with nearly another 1,000 permitted (with half of those already drilled). Although the pace of drilling has slowed, the Utica is turning out to be a worthy rival to the Marcellus. It’s not there yet! But keep a close eye on the Utica. The Utica may one day surpass the Marcellus in production, given the incredible volumes of gas that come from Utica wells…
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Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

FERC Approves Important Utica-to-Gulf Coast Pipeline Reversal
September 2, 2015September 2, 2015

Last October MDN told you about an exciting project from Boardwalk Pipeline Partners’ Texas Gas Transmission pipeline that will reverse the flow from the Louisiana Gulf Coast all the way to Ohio (see Texas Gas Seeks to Reverse Flow of Pipeline from OH to LA). The $110 million project, called the Ohio-Louisiana Access Project, would turn Texas Gas Transmission’s pipeline bidirectional and will not involve any new pipeline construction. It will provide an important new way for Utica and Marcellus drillers to get their gas to markets in the Midwest, South, and even to other countries via exports of LNG. As is typical, anti-fossil fuelers flooded the Federal Energy Regulatory Commission (FERC) with negative comments about the project because it will encouraging more fracking. Undeterred, FERC approved the project last week, responding to antis (as they have before) by telling them FERC’s charter does not allow it to consider the source of gas or “climate change” or any of the other cockamamie things antis are worry about. FERC decides on projects based on how a project will affect the people and environment where the project gets built… Read More “FERC Approves Important Utica-to-Gulf Coast Pipeline Reversal”
Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

Ohio EPA Seeks “Pre-Comments” on Compressor Station Permit Plan
September 2, 2015September 2, 2015

Compressor stations in Ohio, needed to flow natural gas through numerous new pipelines being built, require a permit from the Ohio Environmental Protection Agency (EPA) in order to get built. The Ohio EPA considers each application independently, a laborious and long process. In an effort to streamline that process, the Ohio EPA is accepting comments during a “pre-comment” period from now until September 18 on a plan to issue general permits for compressor stations. A general permit is, essentially, a cookie cutter approach. If midstream companies agree to the provisions in the general permit, they will use certain types of equipment and certain standards, allowing the permit process to speed along much faster. Once the pre-comment (in essence, give us your feedback) period is over, the EPA will issue draft “final” general permits for full public comment, which will run for 30 days…
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Industrywide Issues | Jobs | Ohio | Statewide OH | Statewide WV | West Virginia

Ohio Valley Unions: Employ Locals First Before Importing Workers
August 31, 2015August 31, 2015

Once again the issue of “foreigners” taking jobs away from “locals” is rearing its ugly head. Over the past few years the pace of drilling and the construction of infrastructure like pipelines and compressor stations has been so rapid, the fact that companies import experienced workers from other states like Texas, Oklahoma and Louisiana didn’t seem to bother anyone. Now that drilling rigs are being laid down and pipeline construction is slowing, local union workers who are out of work are questioning why they don’t get the remaining jobs first, ahead of the out-of-towners…
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Industrywide Issues | Ohio | Research | Statewide OH

OH Utica Production for 2Q15 Breaks Record – Highest in 100 Years!
August 28, 2015August 28, 2015

Yesterday the Ohio Dept. of Natural Resources (ODNR) released quarterly production numbers for second quarter 2015 for OH’s Utica oil and gas wells. The report shows 5.6 million barrels of oil and 221 billion cubic feet of natural gas were produced in 2Q15. According to the ODNR, these numbers break all previous production reporting records for the last 100 years! Numbers for 1Q15, by comparison, were 4.4 million barrels of oil and 183.6 billion cubic feet of natural gas. Below we have the ODNR’s high level overview of the numbers, along with our own 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! The longer an oil or gas well is online, the less it produces. Newer wells produce more. So we show you which wells are not just producing the most quantity overall, but which wells are producing at the fastest (most productive) rates–even if they haven’t yet been online a full three months (91 days). We also include a link to the complete list of 1,020 wells that had at least some Utica oil or gas production in 2Q15 in a more usable format than that provided by the ODNR…
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Anti-Drilling/Fossil Fuel | Athens County | Fulton County | Industrywide Issues | Litigation | Medina County | Ohio | Statewide OH

OH Anti Groups File Lawsuit in Supreme Court re Home Rule Ballots
August 21, 2015August 21, 2015

Insanity: Doing the same thing over and over and expecting a different result. Example: Ohio anti-fossil fuelers repeatedly suing to achieve the right to ban drilling and pipelines in local municipalities. Earlier this year the Ohio Supreme Court struck down so-called home rule laws in the state (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). Anti-drillers, being manipulated by the out-of-state Community Environmental Legal Defense Fund (CELDF) attempted to get the very same measures on the November ballot in three counties, but those efforts were correctly struck down last week by Ohio’s Secretary of State John Husted as a waste of taxpayer time and money, because if they passed, they would be illegal (see OH Anti-Drilling November Ballot Measures Tossed in 3 Counties). What do the anti-drillers do? They file a lawsuit against Husted’s decision–in Ohio Supreme Court. The very same court that previously struck down “home rule” in February of this year. Yes, they ARE insane!…
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Education | Industrywide Issues | Ohio | Statewide OH

300 Ohio Boy Scouts Earn Oil & Gas Engineering Merit Badge
August 20, 2015August 20, 2015

This goes under the “How cool is that?” department. More than 300 Boy Scouts, attending a special summer camp in Ohio, have earned their oil and gas engineering merit badge over the past three years. The latest batch of 100 have just completed earning their badges. Scouts learn about the key role engineering and science plays in the Ohio oil and gas industry. Scouts visit working oil and gas wells as part of the program and put their learning to use by building scale models of pipelines and drilling rigs. No doubt some of them, as a result of their experiences, will decide to go to work in the greatest industry on the planet…
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American Water Management | Earthquakes | Energy Services | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH | Trumbull County | Wastewater

OH Minority Report: Shut Down Wells Before They Cause Earthquakes
August 14, 2015August 14, 2015

The Chief of the Division of Oil and Gas Resources Management for the Ohio Dept. of Natural Resources (currently Rick Simmers) is a man with a lot of power. He has the power, according to a ruling just handed down on August 12, to make his own decisions about suspending permits to operate in the absence of specific violations of a law or regulation. In September 2014 Simmers suspended permits for two wastewater injection wells in Trumbull County, OH after a very low level earthquake was detected close to those wells (an earthquake that couldn’t be felt at the surface and caused no damage of any kind). American Water Management Services sued saying they hadn’t violated any laws or regulations on the books and their permits could not just be arbitrarily revoked like that. But the Ohio Oil and Gas Commission said nope–Tom Cruise, er, a, Mr. Simmers can arbitrarily do what he wants when there is no specific rule or guideline or law–because he has the best interests of the people at heart…
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Baker Hughes | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Baker Hughes July Rig Counts – U.S. May have Bottomed, but Not NE
August 10, 2015August 10, 2015

On Friday Baker Hughes, which is being forced into a merger with Halliburton by the end of this year/early next year, issued a summary of rig counts last Friday. At first blush it appears to be good news, but when you dig under the surface, it’s not–at least for the Marcellus/Utica. The international rig count was 1,118, down 28 from the 1,146 counted in June 2015. However, the average U.S. rig count for July 2015 was 866, up 5 from the 861 counted in June 2015. It appears we’ve turned the corner on how low rig counts will go–we’ve bottomed and are either holding steady (in the U.S.), or perhaps every so slightly gaining ground again. But then we ran the numbers for the Marcellus/Utica and found rig counts continue to decline month over month…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

World Oil’s Drilling Forecast for Marcellus/Utica Balance of 2015
August 10, 2015August 10, 2015

World Oil is out with a wide ranging forecast for what will happen for the balance of 2015 in the upstream (drilling) sector of the oil and gas industry. Using surveys of both major and smaller drillers, World Oil confirms what we already knew: driller will spend less in 2015 than they did in 2014 on drilling new wells–on average 34.2% less (because of low commodity prices). World Oil takes a look at the regional impact and offers the following insight into what’s coming for both Pennsylvania and Ohio for the balance of 2015 (hint: PA drilling won’t feel the affects as much as OH)…
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Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH | Summit County

NEXUS Pipeline Sends Armed Guards with Surveyors to Protect Them
August 5, 2015August 5, 2015

The City of Green (Summit County), OH is proudly working to prevent a much-needed pipeline, the NEXUS pipeline, from crossing through any of its residents’ properties. Proudly ignorant, we’d day. It’s a shame, but these days workers doing their job–surveying for a pipeline–are sometimes threatened (see FBI Investigates Death Threats Against PennEast Pipeline Workers and Medina, OH Landowner Says He’ll Meet NEXUS Surveyors Packing Heat). So some pipeline companies, like NEXUS, now send armed security guards out with surveyors and pipeline workers–to protect them. City of Green officials seem to imply the armed guards are there to intimidate residents who don’t want to allow a survey of their property. Not true. The guards are there to protect the surveyors who feel threatened for simply taking measurements for a pipeline. What has this world come to?…
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Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

Pipeline Case: OH Judge Finds Public Right to Free Flow of Energy
July 27, 2015July 27, 2015

There are a number of pipeline battles currently going on. While residents in New England tend to be more unreasonable than most when it comes to pipelines, landowners in other regions also oppose new pipeline construction. Some of their opposition stems from nutty opposition to fossil fuels. But some opposition is legitimate–concerns over where the pipeline will go through a property. Or concerns about lease terms/compensation. One thing that doesn’t hurt anyone is to allow a survey of a property. We would encourage landowners to begin their dialog about a potential pipeline with the surveyors–to make companies aware of your concerns about the routing of a pipeline across your land. But some holdout landowners unreasonably resist even a survey–and they’re consistently losing in Ohio courts. Specifically we’re talking about the NEXUS Gas Transmission pipeline–a $1.5-$2.0 billion natural gas pipeline that will carry Utica and Marcellus Shale gas spanning 11 counties in Ohio, 3 counties in Michigan, and eventually connect to the Dawn Energy Hub in Canada. We recently told you that in most cases when landowners refuse access to surveyors, they lose (see NEXUS Pipeline Sues for Survey Access, Wins Most of the Time). Below we have news of a court decision from Fulton County, OH in which the judge outlines his reasons for ruling in favor of NEXUS to allow surveys to commence on properties for 15 hold-out landowners. The judge’s ruling is instructive. In it, the judge says the general public has a “right” to expect a “free flow” of energy products…
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Economic Impact | Industrywide Issues | Ohio | Statewide OH | Utica Shale

New Reality in the Utica: Producers Hurting, Midstreamers Flush
July 24, 2015July 24, 2015

According to the president of the Ohio Oil and Gas Association (OOGA) David Hill, oil and gas producers–the ones who find, drill for and pump out of the ground oil and gas, are hurting bad and “concerned” about the future. On the other hand, if you’re in the midstream (pipelines) part of the industry, things are humming along. Welcome to the new reality in the Marcellus/Utica…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Statewide OH

PA’s CELDF Unmasked as Troublemakers in Ohio Utica Shale
July 23, 2015August 14, 2015

Energy in Depth is out with a dynamite expose that rips the face off the Pennsylvania-based anti-drilling organization behind much of the anti-drilling mischief happening in Ohio. The Community Environmental Legal Defense Fund (CELDF) seeks to ban fracking and anything to do with it, like pipelines, in every community with a sympathetic (and undiscerning) ear. CELDF founder, Thomas Linzey, is a real piece of work. EID’s expose shines the light on the unapologetic Linzey and his outrageous assertions–like instead of humans having rights he thinks nature should have rights. In fact, the potty-mouthed Linzey says, on camera (watch the video) that there should be a ballot initiative that bans all finance companies in New York City from funding new projects “that exasperate climate change.” Talk about a Cuckoo Bird. The worst part is Linzey’s arrogance and smugness–he really believes this stuff, and he believes he’s better (and smarter) than you and me. He’s on a mission to tear apart this country and our Constitution from the inside out to further his radical environmental agenda. Here, read and listen for yourself…
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