Statewide OH

Carrizo Oil & Gas | Energy Companies | Guernsey County | Ohio | Statewide OH | Utica Shale

Carrizo Cuts Budget 35%, No Drilling Planned in Utica/Marcellus in 2015
January 29, 2015January 29, 2015

Carrizo Oil & Gas is the latest Marcellus/Utica driller to cut their 2015 capital expenditures (capex) budget–by 35% over 2014. According to the Carrizo announcement below, they plan to spend $450-$470 million on drilling, most of it in the Eagle Ford (Texas) where they’re running three drilling rigs. They will spend only has much as they have to on “lease maintenance” in the Utica Shale–which we take to mean they’ll only do what they must to show they still intend to drill on leases that may soon expire. In the update below we get some numbers for Carrizo’s second Utica Shale well, in Guernsey County, OH. The update also indicates Carrizo continues to throttle back production in the Marcellus. It says nothing about new drilling in the Marcellus, so we presume there isn’t any planned for 2015…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Richland County | Statewide OH

Advice to OH Landowners Approached for Pipeline Easements
January 29, 2015January 29, 2015

The Energy Transfer Partners Rover pipeline (ET Rover) is probably the biggest pipeline project currently under way in the U.S. It’s bigger than the Keystone XL pipeline! In places like Richland and Crawford counties in Ohio, ET Rover is actually two pipelines–42 inches in diameter, sitting side by side. The entire length is 820 miles and will stretch from WV and PA through OH and into Michigan and eventually to Canada. Landowners in Richland and Crawford attended a meeting sponsored by a Columbus law firm last night to hear some sobering truth: the pipeline will happen and it is coming. But that doesn’t mean landowners are helpless. The attorneys offered some good advice that all landowners approached for pipeline easements should listen to…
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Allegheny County | Lease & Royalty Payments | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Pittsburgh Private Equity Fund Looks to Lease in Marcellus/Utica
January 28, 2015January 28, 2015

Not everyone is sitting on the sidelines during the downturn in shale drilling in the northeast. And yes, there is no doubt there’s been a downturn, along with the dropping price of gas (and oil). Ridgetop Capital, located in the Pittsburgh area, has just raised it’s sixth round of private investment capital (cash from wealthy people)–a huge $200 million. Ridgetop’s owner, Brad Carpenter, is now on the prowl to snap up Marcellus and Utica Shale leases that he hopes to get at a bargain because of the slow-down…
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Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

Hess Cuts Utica Drilling Budget 42% for 2015
January 27, 2015January 27, 2015

Hess Corporation, with some 90,000 leased acres in the Ohio Utica Shale, announced yesterday they are whacking their Utica budget, reducing it by 42% for 2015. Last year Hess spent $500 million in the Utica. This year they plan to spend $290 million and drill 20-25 wells (around $11-$12 million per well). Hess will continue their joint venture with CONSOL Energy in the Ohio Utica. Here’s the announcement from yesterday:
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Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Total | Utica Shale

Total Scales Back Investment in Utica Shale, Blames Low Oil Price
January 21, 2015January 21, 2015

Total (pronounced “toe-tail”), is a French multinational integrated oil and gas company and one of the six “supermajor” oil companies in the world. Yesterday the relatively new CEO of Total, Patrick Pouyanne, announced that he’s scaling back in the North Sea fields and in U.S. shale plays. In 2012, Total plowed more than $2 billion into the Utica Shale, partnering with Chesapeake Energy (see Chesapeake Sells More of its Utica Leases to Total). In September 2014, Total sold off a smallish investment they had in Cardinal Midstream, a Utica midstream company, to South Korean investors for $400 million (see Total, EVEP Sell Interest in Cardinal Midstream to S Koreans for $612M). Patrick Pouyanne became CEO of Total last October after a freak runway accident killed Total’s colorful and long-time CEO Christophe de Margerie (see French Supermajor Total CEO Killed in Freak Runway Accident). Pouyanne is now making his mark on the company. He blames the plunge in oil prices for his action. Here’s what Pouyanne said at a conference in Davos, Switzerland earlier this morning…
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Allegheny County | Economic Impact | Energy Services | Industrywide Issues | Jobs | New York | Ohio | Pennsylvania | Pipelines | Statewide NY | Statewide OH | Statewide PA | Transco | Williams

Williams Spending $100 million Per Month in the Marcellus/Utica
January 14, 2015January 14, 2015

There’s an excellent regional television program in Pittsburgh called “Our Region’s Business” hosted by veteran reporter Bill Flannigan. On December 7, Jim Scheel, Senior Vice President for Northeast G&P for Williams, appeared in a segment on the program (video embedded below). Scheel shared some eye-popping statistics about the Marcellus/Utica, and about Williams and their commitment to the region. Scheel said, among many things in the short 7-minute segment, that in 2014 Williams spent an astonishing $100 million per month on pipeline projects in the northeast region. They currently employ 750 people in the northeast and over the next year or so expect to add another 160 people to the payroll. What an exciting, dynamic company! Here’s a few more stats Scheel mentioned…
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Energy Companies | Halcon Resources | Ohio | Statewide OH | Utica Shale

Halcon Resources: Slashes Drilling Budget 50%, No Utica for 2015
January 12, 2015January 12, 2015

As MDN chronicled in March 2014, Halcon Resources, with some 140,000 net acres in the Ohio Utica Shale, quit drilling in the Utica, at least for the balance of 2014 (see Halcon Resources Stops Drilling, Gives Up on the Utica Shale). That now holds true for 2015 as well. In a statement about their drilling program released late last week, Halcon indicated they have revised their drilling budget down by nearly 50%–from the previous $750-$800 million to $375-$425 million. They’re also reducing the number of drilling rigs from 11 rigs to 3–and none of them will be operating in the Utica Shale…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Pipelines | Statewide OH | Taxation

OH Anti-Drillers Propose Taxing Gas in Interstate Pipelines
January 12, 2015January 12, 2015

Anti-drillers looking to a) stop shale drilling in Ohio and b) barring that, slow it down by taxing the #$@% of out the industry, met with a couple of members of RINO Gov. John Kasich’s staff last Friday to present what they hoped would be a proposal Kasich’s socialist-high-taxing nature would find appealing: tax natural gas flowing through interstate pipelines in Ohio. No word from the staffers whether or not they found merit in the proposal by the Ohio division of Citizens Against the Nexus/?Spectra Pipeline…
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DTE Energy | Enbridge | Energy Services | Industrywide Issues | Ohio | Pipelines | Spectra Energy | Statewide OH

NEXUS Gas Pipeline Pre-Files with FERC, New Details Come to Light
January 9, 2015January 9, 2015

In September 2012, three companies–DTE Energy, Spectra Energy and Enbridge–formed a joint venture to build a new Utica Shale pipeline from Ohio through Michigan and eventually into Canada, delivering Utica Shale gas to Midwestern markets (see New Utica Shale Pipeline to Midwest Announced). The new pipeline, called NEXUS Gas Transmission, will cost $1.5 billion to build, begin in Columbiana County, OH and cross through 11 Ohio counties and 3 Michigan counties in total (see list below). Some of the details were revealed last year when the Akron Beacon Journal filed an open records request (see OH Route of Proposed NEXUS Gas Pipeline Revealed). On December 30, NEXUS finally filed what’s called a “pre-filing” with the Federal Energy Regulatory Commission (FERC). We have a copy of that pre-filing document below, along with extracts (new details) and a new map showing where the pipeline is due to go…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Eureka Hunter Nears 1/2 Billion Cubic Feet per Day in WV/OH
January 8, 2015January 8, 2015

Magnum Hunter announced yesterday that its pipeline/midstream subsidiary Eureka Hunter has set a new record. Eureka pumped more than 400,000 million Btus per day (MMBtu/d) in West Virginia and Ohio by the end of December, and they expect to be pumping more than 500K MMBtus by the end of this month. A half million MMBtus works out to be roughly half a billion cubic feet of natural gas per day…
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Antero Resources | Energy Companies | Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Antero Resources Lays Off 250 Landmen, Blames Low Oil Prices
January 7, 2015January 7, 2015

Antero Resources said on Monday it will lay off more than 250 contract land brokers operating in West Virginia, Ohio and Pennsylvania. The layoffs will not affect any Antero employees–only contract workers (landmen and others) who work to get leases signed, sealed and delivered for future drilling. Antero blames the low price of oil, which causes the price they get for their Marcellus/Utica natural gas liquids to be low, which means they’ll stick to drilling on the half million plus acres they already have under lease…
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Decline/Depletion Rates | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Steep Declines in Production for Some of Utica’s Top Wells
January 7, 2015January 7, 2015

An excellent article by MDN friend and ace reporter Bob Downing appearing in the Akron Beacon Journal tackles the issue of decline rates in Utica Shale wells–that is, how fast production drops off. Bob’s deep dive into the data found that some of the Utica’s top performing wells in January had decreased output by 47%-70% by September. Yikes! No word on how that compares to the decline rate of the Marcellus layer. Here’s a sample of Bob’s analysis…
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Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Production Soars in 2014, 6 Active Rigs in OH Utica
January 7, 2015January 7, 2015

On Monday Gulfport Energy, a major driller in the Utica Shale, released a high-level operational update. Gulfport CEO Michael G. Moore said the company produced more oil and gas in the fourth quarter of 2014 than they did in all of 2013. And the Gulfport production engine continues to chug away in the Ohio Utica Shale. Gulfport brought 22 new Utica wells online in 4Q14 and has six rigs currently drilling in the Utica. Gulfport is also wisely “hedged”–meaning they’re getting about $1 per Mcf more for their gas (they currently get $4.12/Mcf) than the current spot rate of ~$3.00/Mcf. Smart…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Trout Unlimited Says Lake Erie Threatened by Utica Drilling
December 30, 2014December 30, 2014

Trout Unlimited (TU) might have once been populated with reasonable people, but it long ago left behind reasonableness and became a radical “green” group, funded and controlled by anti-drilling foundations (see Trout Unlimited, Other Groups Outted as Radical Green Groups). Even though TU has been exposed as having a radical, anti-drilling agenda, they still pretend, with the help of PBS and others, to be “reasonable” on the issue of shale drilling. When a member of TU says the group isn’t anti-shale, you know you just heard a 100% lie. They ARE anti-shale–to the core. We find it repugnant when mainstream media unquestioningly reports yet another TU spin story. The latest such story says that Utica Shale drilling in the Buckeye State is a “threat” to Lake Erie. TU has just released a so-called report (PowerPoint presentation, really) called “10 Special Places” (full copy embedded below). The “report” highlights 10 areas in the Eastern U.S. that TU says are threatened by Marcellus and Utica Shale drilling–including Lake Erie…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Regulation | Statewide OH

Water Withdrawals from Creeks Next Point of Attack for Antis in OH?
December 29, 2014December 29, 2014

Are water withdrawals the next point of attack for anti-drillers in Ohio? Perhaps. We noticed an interesting story where a pair of elected Democrats (one from the Ohio House, one from the Ohio Senate) are making noise about the drilling industry’s unrestricted right to withdraw water from creeks as long as they report it to the Ohio Dept. of Natural Resources (ODNR). The Dem politicians seem to be saying they would like to slap a new law in place to limit (or disallow) water withdrawals…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

OH Anti Group Wants EPA to Suspend ODNR Injection Well Oversight
December 24, 2014December 24, 2014

Whenever anti-drillers in a given state don’t like how the state environmental authority is doing its job, they run to the federal government like a petulant child clinging to its mother’s skirt. “Mommy, mommy! Johnny hurt my feelings!” Such is the case with Ohio Citizen Action (OCA), an anti-drilling group that is accusing the Ohio Dept. of Natural Resources (ODNR) of falling down on the job when it comes to regulating injection wells–wells used to dispose of frack wastewater. OCA’s demand? That the federal EPA suspend ODNR’s oversight of the injection well program in Ohio and that the feds move in and take over. OCA used 16 untrained volunteers (activists), gave them mountains of official paperwork from the ODNR archive, and armed each of them with yellow highlighters. The 16 untrained volunteer activists found every reference they could of what they say is incompetence and malfeasance by the ODNR, stitched it all together in a “report” (full copy below), and are now calling on Mommy EPA to “do something” about it…
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