Statewide OH

Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake: Next Few Years Will Separate Weak & Strong in Utica
March 18, 2015March 18, 2015

Chris Doyle is executive vice president of operations for Chesapeake Energy’s northern division. He previously held a similar position with Anadarko Petroleum. Doyle recently spoke to Columbus Business First about Chessy’s prospects, indeed everyone’s prospects, in the Ohio Utica Shale. Sounding rather Darwinian, Doyle said we’re now entering a phase in the Utica where the strong will survive, and the weak won’t. Obviously he believes Chesapeake is in the “strong” category…
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Anti-Drilling/Fossil Fuel | Cuyahoga County | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH

OH Antis Handed Crushing Defeat in Broadview Hghts Home Rule Case
March 18, 2015March 18, 2015

We’ve commented before on the lawless tendencies of anti-drillers, particularly in Ohio where, when they lose a court case, they declare the government is illegitimate (see OH Anti-Drillers on Rampage after Supreme Court Home Rule Decision). It hasn’t been a full month since the Ohio Supreme Court ruling and now a second, crushing defeat for anti-fossil fuelers. Last week a Cuyahoga County Common Pleas Court judge struck down the Cleveland suburb of Broadview Heights’ so-called community bill of rights that bans all, including shale drilling. Once again, as with the Supreme Court “Munroe Falls” case, we see what sore losers anti-drillers are. If a court case like Broadview Heights doesn’t go their way, they immediately start talking about anarchy–that the government has “ceased to be legitimate.” These are not only stupid people, they’re dangerous too…
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Ohio | Statewide OH

Ohio 4Q14 Natgas Production Up 25% Over 3Q14, Up 281% Over 4Q13
March 16, 2015March 16, 2015

We didn’t mean to ignore it, but somehow we let slide the fact that Ohio recently (end of February) released their now quarterly production numbers. We have the full list below, embedded as a spreadsheet. The really good news: Ohio’s natural gas production from shale (almost all Utica Shale) rose 25% in a single quarter over the previous third quarter. It rose an amazing 281% over fourth quarter of 2013. Oil and gas together rose 15% from 3Q14 to 4Q14. Here’s the details…
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Industrywide Issues | Ohio | Statewide OH | Taxation

More on OH Gov Kasich’s Threat to O&G Industry re Severance Tax
March 13, 2015March 13, 2015

Two days ago we told you about OH Gov. John Kasich’s threat against the oil and gas industry in Ohio: You accept my high 6.5% severance tax or else (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). His comments were made last Friday. We spotted another article about that session with reporters which contains a bit more of the context of Kasich’s threatening language…
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Industrywide Issues | Ohio | Statewide OH | Taxation

OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax
March 11, 2015March 11, 2015

Wow. We’re kind of speechless. Ohio Gov. John Kasich (RINO) sure is a sore loser. And a vicious one too. Get this: Kasich is now saying if the oil and gas industry doesn’t lay down and take the high severance tax he’s proposing, some “citizen group or aspiring politician” will probably (wink wink nod nod) push for a ballot measure in the state to create such a tax. And if that happens, his measly 6.5% severance tax will look darned good compared to the 10% or more those wild citizen groups will no doubt push for (see OH Gov. Kasich Increases Proposed Severance Tax Rate by 236%). That is, Kasich just threatened the oil and gas industry with a 10%+ severance tax if they don’t accept his tax in this year’s budget. Talk about a bully! We’re used to this from Democrats, but not from so-called Republicans…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

NE Wackos on a Rampage: Demand FERC Stop Approving Pipelines
March 11, 2015March 11, 2015

Here’s what passes for thinking in anti-drilling land: Fossil fuels, when burned, release carbon into the atmosphere. Carbon is bad (at least it is for anti-drillers), although you and all other animals breathe carbon out with every breath and plants breathe it in–it’s a requirement for all of life to exist. Still, play along, k? Because natural gas is a fossil fuel, it’s evil. By burning it you pollute Mother Earth and will cause Her to bake with mythical global warming (although we almost froze to death this winter in the northeast). So fracking is the ultimate rape of Mother Earth, as stated by none other than that towering intellect Yoko Ono when singing the song “Don’t Frack My Mother” (see Yoko Ono and Son Sean Lennon Go on Anti-Fracking Tirade). Fracked shale wells require pipelines. If you can stop pipelines, you can stop fracking. Who approves the big pipelines? The Federal Energy Regulatory Commission (FERC). So who’s the latest target of anti-drilling wackos? You got it–FERC…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | Ohio | Pipelines | Regulation | Statewide OH

OH Law Firm Asks FERC to Stop ET Rover Pipeline Eminent Domain
March 10, 2015March 10, 2015

Columbus, OH law firm has filed a motion with the Federal Energy Regulatory Commission (FERC) challenging Energy Transfer Partners’ ET Rover application before FERC. The issue at the heart of the motion is to prevent ET Rover from invoking eminent domain and steamrollering over landowners, building the pipeline without an agreement in place with each individual landowner first. When pipeline companies have the power of eminent domain, they hold all the cards. They can say, “Here’s the offer–take it or leave it–and if you leave it, we’ll build the pipeline through your land anyway at the price we want.” We’ve never been fans of eminent domain for pipelines. Far better for pipeline companies to work it out with landowners and pay them–or reroute it through someone else’s property who will play ball. We acknowledge it’s a thorny issue and not completely black and white. ET Rover is an 830-mile, $4.4 billion pipeline that will flow Marcellus and Utica Shale gas from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). The bulk of the pipeline will run diagonally from southeast to northwest across Ohio. Just yesterday we told you about ET Rover’s program to help landowners (see ET Rover Pipeline Hires Land Stewards to Protect the Land in OH). The motion filed with FERC, from what we can tell in reading the press release and the motion itself (embedded below) is not an attempt to stop ET Rover–it’s an attempt to give landowners more negotiating power and leave them firmly in control of whether, and how much, they will accept to allow the pipeline through their property…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Intl Rig Counts in Free Fall, What About Marcellus/Utica Counts?
March 9, 2015March 9, 2015

Rig counts are a closely watched measure as an indicator of future drilling and therefore future production. Over the past several years, rig counts have become a much less accurate method for predicting future production simply because so many wells have been drilled–in the Marcellus and now Utica–that connecting those wells to production will take years to complete. So if the number of rigs actively drilling goes down, it doesn’t correlate to a drop in production–not anymore. But rig counts are still important–the number of rigs actively drilling–because it’s an indicator of economic impact. When rigs are drilling, all sorts of goods and services and jobs are needed–which makes everybody happy. Baker Hughes, in the process of being gobbled up by Halliburton, has been for years the go-to source for rig counts. They issue counts on a weekly basis. MDN keeps track of rig counts in our 3x/year Marcellus and Utica Shale Databook. We decided it’s time to revisit rig counts–both globally and in the Marcellus/Utica–to see what the latest hullabaloo is all about. Are the counts going down in the northeast–and if so, where? The answer may surprise you…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH

ET Rover Pipeline Hires Land Stewards to Protect the Land in OH
March 9, 2015March 9, 2015

As we’ve been reporting for some time, Energy Transfer Partners (ETP) plans to build an 830-mile, $4.4 billion pipeline, called the ET Rover Pipeline, from PA and WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). The pipeline will flow Marcellus and Utica Shale gas to Midwestern US markets and to Canadian markets. The longest stretch of pipeline will cross OH. In an effort to ensure Ohioans have an advocate to ensure their land is impacted as minimally as is possible, ETP is paying for the services of an ombudsman, a representative who will look out for the landowner’s best interest. It is Ohio-based firm Land Stewards–“a team of certified soil scientists, agricultural engineers, agronomists and conservation planners.” Does ETP get thanked taking this extraordinary over-and-above step? No. Instead, they get criticized…
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Eclipse Resources | Energy Companies | Ohio | Statewide OH

Eclipse Resources has “Transformative” 2014, Cutting Back in 2015
March 6, 2015March 6, 2015

Eclipse Resources released their full year and fourth quarter 2014 update on Wednesday. Eclipse is a small but rapidly growing driller headquartered in State College, PA but doing most of its drilling in eastern Ohio. The company reports last year they drilled 57 gross (41 net) operated wells, completed 36 gross (27 net) operated wells and placed 28 gross (22 net) operated wells into sales. The vast majority of wells they’ve drilled are condensate producers. Last year was, as CEO Ben Hulburt said, a transformative year for the company. They went from producing an average 4.5 million cubic feet equivalent per day (Mmcfe/d) in 2013 to producing 73.5 Mmcfe/d in 2014. The company spent $809 million last year–but this year they’re whacking that, perhaps in half. In December they planned to spend $640 million in 2015, down 38% from last year. On Wednesday they didn’t put a number to it, but Eclipse said they were lowering it even more. Ouch. Here’s the low down on what happened in 2014, and what Eclipse has planned for 2015…
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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Cleveland Fed Finds PA Natgas Production Up 1000% from 2009-2014
March 5, 2015March 5, 2015

Earlier this week the Federal Reserve Bank of Cleveland published a paper titled “Trends in Energy Production and Prices” (full copy below). In the paper, Cleveland Fed researchers examine national and Fourth District (KY, OH, WV, PA) trends in energy production and prices. What did they find? OH and WV doubled their natural gas production from 2009 to 2014. However, production in PA went up 1000% during that time, thanks to the Mighty Marcellus. Because of shale gas, energy prices are generally down across the region. Coal production is also on the decline in the northeast…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | Litigation | Ohio | Regulation | Statewide OH | Wastewater

Anti Groups Sue ODNR to Stop All Frack Waste Disposal in State
March 5, 2015March 5, 2015

With seeming endless supplies of money to file frivolous lawsuits, the virulently anti-drilling and misnamed Food & Water Watch (FWW) along with the so-called FreshWater Accountability Project (FWAP) have, yes, filed yet another lawsuit. Surprise! This time to the two organizations are suing the Ohio Dept. of Natural Resources (ODNR) in a case that, if successful, would prevent the ODNR from issuing permits to allow the safe disposal of frack wastewater and drill cuttings. That is, drillers in Ohio (and Pennsylvania, which sends a lot of waste to Ohio for disposal), would have no place to safely dispose fracking wastes, which would (you guessed it) shut down drilling in the Utica and Marcellus…
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American Energy Partners | Energy Companies | Ohio | Statewide OH

McClendon Looking to Sell 29K Utica Shale Acres in Ohio
March 4, 2015March 4, 2015

Hats off to Columbus Business First and intrepid reporter Tom Knox for unearthing what we consider to be some pretty big news: Aubrey McClendon and his American Energy Partners are shopping 29,000 acres of Utica Shale leases in Ohio. At last count, McClendon has raised over $10 billion, much of it used to purchase land deals in the Utica and Marcellus (see Aubrey McClendon Raises Huge $8.7B for Shale Drilling…So Far and Aubrey Goes Shopping Again, Wants Another $2 Billion for Drilling). He’s amassed around 250,000 acres in the Ohio Utica Shale. Now he’s beginning to sell some of it. Where? We have the answer…
Read More “McClendon Looking to Sell 29K Utica Shale Acres in Ohio”
Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Rockies Express Pipeline | Statewide OH

REX Pipeline Zone 3 East-to-West Project Gets FERC Approval
March 3, 2015March 3, 2015

A big announcement yesterday from Tallgrass Energy Partners, owners of the Rockies Express Pipeline (REX). REX has received approval from the Federal Energy Regulatory Commission (FERC) to modify “certain facilities” along the REX pipeline from Monroe County, OH all the way to Moultrie County, IL–something they call the Zone 3 East-to-West Project. When complete, it means REX will flow an additional 1.2 billion cubic feet of natural gas per day from the Utica and Marcellus to Midwest markets. A second important announcement: The Seneca Lateral of the REX (Noble County, OH) is now fully operational. REX upgraded compressor stations along the Seneca Lateral which has boosted available capacity on the pipeline to 600 million cubic feet per day…
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Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Free/Accurate Online Royalty Calculator for OH Utica Wells
March 2, 2015March 2, 2015

A cool new online tool has just been released for landowners (and nosy neighbors) who want to calculate estimated royalties for any individual Utica Shale well in Ohio–with a reasonably high degree of accuracy. The tool is called the Ohio Shale Well Royalty Calculator and was created by WellRev Ohio LLC–a Canton, OH company that specializes in assisting county auditors, school districts and local governments calculate tax revenue from oil and gas wells. Below is a link to the new calculator along with MDN’s brief instruction guide for how to use it…
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Energy Companies | Halcon Resources | Ohio | Statewide OH | Utica Shale

Halcon CEO Floyd Wilson: “What’s the Utica?”
February 27, 2015February 27, 2015

In January, MDN told you the news that Halcon Resources, with with some 140,000 net acres in the Ohio Utica Shale, would not do any Utica drilling in 2015 (see Halcon Resources: Slashes Drilling Budget 50%, No Utica for 2015). Yesterday Halcon held an analyst/investor conference call to discuss the company’s 2014 results and 2015 projections. On the call was Floyd Wilson–the very straight-talking CEO of Halcon who once said he would drill no more, well, er, “substandard” wells in the Utica (see Halcon CEO Says No More S***** Wells in Northern OH Utica). The Utica came up precisely once on yesterday’s phone call. Here’s what the colorful Wilson said during a Q&A…
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