Statewide OH

  • | | |

    The Reason United Canceled Daily Flights Between Cleveland & OKC

    A few weeks ago MDN asked the question, Can a Single Canceled Airline Route Affect Utica Shale Development? United Airlines is canceling its daily flights to and from Cleveland’s Hopkins International Airport and Oklahoma City’s Will Rogers World Airport. It’s a big deal because the Utica’s top drillers, including Chesapeake Energy and Gulfport Energy, are headquartered in OKC, and introducing longer delays in getting from here to there may put a damper on Utica development. It’s not so far-fetched that a single canceled route could have a pretty significant impact.

    When we brought you that story two weeks ago, we assumed that UA just decided to willy nilly cancel it. But such is not the case. As Midwestern icon Paul Harvey used to say, here’s “The Rest of the Story”…
    Read More “The Reason United Canceled Daily Flights Between Cleveland & OKC”

  • | | | | |

    Expect “Frackgate” to be an Issue in Ohio for a While

    Anti-drillers in Ohio, like the Sierra Club, have dubbed the “revelation” that the Ohio Dept. of Natural Resources (ODNR) once crafted a communications plan to deal with nutjobs (like them) a scandal, so they’ve take to calling it “frackgate” (see ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan). Relatedly, we also told you about Gov. John Kasich already throwing in the towel and admitting defeat on the matter of drilling in a single state forest and two state parks (see The Disgusting PR Mess in Ohio – No One Smells Pretty).

    You can expect “frackgate” to continue to be an issue in Ohio for a while because of the upcoming governor’s race. As we previously pointed out, the liberal Dems never let a good manufactured controversy (or crisis) go to waste. They’re now whispering about Kasich’s “enemies list” from the ODNR plan (even though Kasich had nothing to do with authoring the PR plan). By the way–they are enemies–of truth and common sense and reasonableness. Being good libdems, they will continue to harp on the “frackgate” issue, using a sycophantic press. Here’s the latest example of an article with absolutely no new information, the only purpose of which is to keep the story alive and in the minds of voters:
    Read More “Expect “Frackgate” to be an Issue in Ohio for a While”

  • | | | |

    Confab in Cleveland: Utica’s Best Opportunities & Biggest Fears

    Several speakers at last week’s Crain’s Cleveland Business Shale Summit 2014 predicted a major ramp-up in drilling in the Utica Shale during 2014. Of note: one speaker said based on his informal survey he believes the number of drilling rigs in the play will zoom from 40 to 60 or more by early next year. Another speaker said the Utica looks and behaves a lot like the Eagle Ford Shale play in Texas–and that’s a very good thing. The biggest fears by those in the know? Over-taxation and over-regulation–both issues very much alive in the state legislature right now.

    Here’s an excellent run-down on what happened at the Summit by intrepid reporter Bob Downing from the Akron Beacon Journal, including which counties are believed to hold the best drilling opportunities:
    Read More “Confab in Cleveland: Utica’s Best Opportunities & Biggest Fears”

  • | | | |

    The Disgusting PR Mess in Ohio – No One Smells Pretty

    You have to hand it to Democrats. As Rahm “the Godfather” Emanuel once stated, they never let a serious crisis to go to waste. And if there isn’t a serious crisis? They manufacture one, of course. And that’s what Dems are doing in Ohio. You know MDN is not a fan of RINO Gov. John Kasich and his penchant to raise severance taxes just to give it away to buy votes, and we’re certainly no fans of his jingoistic “foreigner” hunting. But Kasich is being unfairly targeted by Democrats over the recent “revelation” that the ODNR had a public relations plan cooked up to deal with nutjobs (mostly Dems) who would oppose drilling under (not on) one state forest and two state parks (see ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan). The Dems are now calling for an investigation. (Funny how they never want to investigate our lawless President, isn’t it? But we digress.)

    Kasich now says he doesn’t want any drilling under (not on) that one state forest and two state parks, and hasn’t wanted it for a year and a half–although he never publicly announced it. Translation: the Dems have already won the PR war on this issue and have made Kasich back down. Kasich should have, instead, thrown it in their faces by pushing forward with a plan. Here’s the sad story of a complicit media, hypocritical Democrats, and wimpy RINO Republicans (a disgusting mess)…
    Read More “The Disgusting PR Mess in Ohio – No One Smells Pretty”

  • | | | |

    McClendon Hauls in Another $1.2B, Utica Shopping Spree Continues

    Aubrey McClendon is a high roller kind of guy–I think we can all agree on that one. We respect a guy who can put together deals like Aubrey can. A few weeks ago he announced that he had done deals to lease another 130,000 acres in the Ohio Utica Shale (see McClendon Confirms 3 New Utica Shale Deals: Hess, XTO, Paloma). Now he has to come up with the cash to pay for the deals. The company already has some of the cash, but they need more. Yesterday Aubrey announced that his new company, American Energy Partners, has raised an eye-popping additional $1.2 billion in cash, bringing his grand total (so far) to $2.9 billion raised since last October. The man has sure got some moves!

    Here’s the latest complicated financing deals Aubrey’s been up to so he can continue snapping up Utica acreage, of which he once famously said “[the Utica] is the best thing to hit the state of Ohio economically since maybe the plow”…
    Read More “McClendon Hauls in Another $1.2B, Utica Shopping Spree Continues”

  • | | | | | | |

    2 OH Anti-Drilling Dems Miffed at Being Fingered in ODNR Memo

    Yesterday MDN told you about the Ohio Dept. of Natural Resources’ innovative strategy to deal with the issue of drilling under (not on) a state forest and two state parks. Frankly, the came up with a brilliant public relations plan (see ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan). But they decided in the end not to pursue the plan, knowing about the loud (and foul) mouthed opposition they would face. Listed by name in the list of dunderheads who oppose shale drilling in the state were none other than OH Rep. Robert Hagan, Democrat from Youngstown, and OH Rep. Nickie Antonio, Democrat from Lakewood (notice a trend here?). The two have called on the Speaker of the Ohio House to launch an investigation into what they creatively call “Frackgate”. It will never happen, but that’s not the point.

    We’d say Representatives Hagan and Antonio are up to their necks in…fracking waste. But then that would be unkind, wouldn’t it? So we’ll just say this is “more of the same” and gives the anti-drilling Hagan and Antonio an excuse to (once again) trot out the same old tired lies they’ve told a thousand times before. Here’s 1001…
    Read More “2 OH Anti-Drilling Dems Miffed at Being Fingered in ODNR Memo”

  • | | | | | | | | | | |

    ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan

    memoIn August of 2012 staffers at the Ohio Dept. of Natural Resources (ODNR) made a boo-boo. They put into writing (in the form of a 13-page memo, embedded below) a draft plan to promote Utica Shale drilling under (not on) Sunfish Creek State Forest (in Monroe County), under (not on) Barkcamp State Park (in Belmont County), and under (not on) Wolf Run State Park (Noble County). The memo begins by saying there will be a communications problem to solve: “An initiative to proactively open state park and forest land to horizontal drilling/hydraulic fracturing will be met with zealous resistance by environmental activist opponents, who are skilled propagandists. Neutral parties in particular — such as ordinary citizens concerned about their families’ health — will be vulnerable to messaging by opponents that the initiative represents dangerous and radical state policy by Gov. Kasich.” (emphasis original) The memo states later on that, “Anti-fracking activists will attempt to legally and physically disrupt or halt the drilling projects, including staging dangerous protests on state lands. (This will require sustained legal countermeasures and crisis readiness by ODNR.)”

    May we translate? Groups like the Sierra Club lie to people about the drilling issue–and they sometimes engage in bullying (and violent) behavior. Of course the Sierra Club liars are just a bit miffed at being called out as liars and bullies–by no less than a state agency charged with regulating oil and gas. So they are on the offensive. The first thing the Sierra Club and similar groups will do (are doing) is to get their buddies in the slavishly devoted mainstream media to pick up their “ODNR are scumbags” meme and run with it. The second thing is they will use the ODNR memo in fundraising letters, which is really what the shale drilling issue is for them–a big, fat fundraiser…
    Read More “ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan”

  • | | | |

    OOGA Actually Surprised at Double-cross in Severance Tax Deal

    This one is really kind of funny. The Ohio Oil & Gas Association (OOGA) made nicey nice with Ohio’s Republicans in Name Only (RINOs), and supported a small, modest, ever-so-tiny severance tax increase (that we lambasted here: OOGA Caves, Endorses New Higher Tax on OH Utica Shale).

    Even before the ink was dry and before the proposed law is brought up for a vote, those same slimy RINO politicians have done a double-cross and raised the tax rate in the bill. And OOGA is actually surprised! We hate to say we told you so (but we did)…
    Read More “OOGA Actually Surprised at Double-cross in Severance Tax Deal”

  • | | | |

    Benesch Shale Report: Chesapeake Sale Rumors Swirling

    The Ohio law firm of Benesch, Friedlander, Coplan & Aronoff are one of the northeast’s top energy law firms. Each quarter they publish a Shale Industry Report, largely focused on what’s been happening in the Ohio Utica Shale (most recent report covering fourth quarter 2013 is embedded below). It’s a great update–one that we like to read and enjoy being able to bring it to you. The top issue listed in the opening of the report is the rumor that, unsurprisingly, corporate raider Carl Icahn (Chesapeake Energy’s second largest shareholder) is shopping Chesapeake for sale to other companies. We’ve warned you about this from the beginning, when Icahn first started flexing his raider muscles and bullying the company into submission.

    Everyone yells at MDN, “Chesapeake needed fiscal discipline…Aubrey McClendon was reckless and almost bankrupted the company…a strict hand was needed at the helm and Icahn came along at the right time…etc.” We say bunk. This has always been about adding more zeros to Icahn’s bank account–from firing more than 1,200 people to selling off assets right and left in the equivalent of fire sales. There’s nothing disciplined or wholesome or good about it. It’s about fat cats getting fatter (i.e. richer). Yes it’s a free country (maybe, we need to check how many more illegal executive orders have been issued in the past 24 hours by Obama)–and in a free country this kind of thing can happen. But we don’t need to like it, and we sure as heck don’t. Icahn and his toady Doug Lawler need to go. End rant. So who’s rumored to be interested in buying Chessy?…
    Read More “Benesch Shale Report: Chesapeake Sale Rumors Swirling”

  • | |

    In the Year 2020, if the Utica Shale is Still Alive…

    Remember the classic Zager & Evans hit song from 1969, “In the Year 2525“? Yeah, brings back memories. (Our headline is a nod to that classic hit.) Let’s dial those numbers back just a bit to say, 2020. A conference organized by the Tuscarawas (OH) Oil and Gas Association, recently held on the Tuscarawas campus of Kent State University, tackled the question: What will the Utica shale region look like by the year 2020?

    Some interesting opinions were shared about Ohio’s Utica future by local and state officials along with representatives from the business sector. Energy in Depth’s Shawn Bennett served as moderator:
    Read More “In the Year 2020, if the Utica Shale is Still Alive…”

  • | | | |

    Chesapeake: My Rig’s Better than Your Rig, Cuts Capex Another 20%

    My Dog's Bigger than Your DogThe executives at Chesapeake are channeling the boastful ghost of Aubrey McClendon. Yesterday Chesapeake released its 2014 Outlook and capital program. The big news is they will spend 20% less on drilling and related activities this year. The Utica Shale remains one of the most important plays in their portfolio. Apparently in an attempt to dress up the 20% decrease in spending as a good thing, unnamed Chesapeake executives made this boast: “Chesapeake said it expects to operate seven to nine drilling rigs in its Utica shale properties this year, saying that is the equivalent of a 20-rig operation by competitors.” Which made us laugh out loud. “Hey, our 7-9 rigs are worth 20 of anybody else’s.” OK. Must be nice to have an inside track on how to repeal the laws of physics over at Chessy HQ. Maybe they should patent it! Anywho…

    Below is the Chesapeake announcement from yesterday with some fairly detailed information about where they plan to drill in 2014, and how much they think they’ll produce. Liquids (NGLs in the Utica, oil in other plays) are a big focus for Chessy this year. There’s a lot more money in liquids–and boss man Carl Icahn likes that. Below the Chesapeake announcement is a bit of analysis from the Akron Beacon Journal, from which we took the “our rigs are better than your rigs” quote…
    Read More “Chesapeake: My Rig’s Better than Your Rig, Cuts Capex Another 20%”

  • | | | |

    OSU Tech/Money Backs Ohio Start-up Bringing CNG to Everyone

    We have a chicken and egg problem with CNG (compressed natural gas) vehicles: you need vehicles with engines converted, or designed, to run on CNG, and you need a way to fuel up. Detroit is listening–they’re coming out with a flurry of new CNG vehicles this year, including the Ford F-150 pickup truck. The only thing holding it all back seems to be a way to keep the tank filled. Americans have always been of the mindset that you head on down to the local filling station or these days, convenience store, to fill ‘er up. Filling stations are slowly beginning to offer CNG (and along interstate highways, LNG for big rigs), but it’s not happening nearly fast enough.

    Since you can burn the very same natural gas in your vehicle that you use to heat your home and cook with, wouldn’t it be great if there were a box you could hang on your garage wall that enables you to compress the gas from the local utility company to be used at home–just fill ‘er up at home? Wow, that would be awesome–and that’s just what an Ohio start-up company, using technology innovated at Ohio State University, is doing. With a $1 million investment from OSU, Simple-Fill is launching a very cool solution for businesses and homeowners that will enable them to use their existing natural gas hookup to fill up their CNG vehicles. Imagine never having to stop by the convenience store again (except to pick up a lottery ticket)…
    Read More “OSU Tech/Money Backs Ohio Start-up Bringing CNG to Everyone”

  • | | | | | |

    Can a Single Canceled Airline Route Affect Utica Shale Development?

    Could a single canceled airline route have an impact on the development of one of the hottest shale plays in the U.S. (the Utica)? Maybe, is the surprising answer. United Airlines has announced they will discontinue their non-stop daily flights to and from Cleveland and Oklahoma City. OKC is the headquarters for Chesapeake Energy, and Chessy is the #1 driller (for now) in the Utica Shale. It’s also HQ for Gulfport Energy, one of the most prominent and prolific drillers in the Utica next to Chesapeake. By cutting out that direct route it will mean much longer flights with layovers “at best” according to the Oklahoma Independent Petroleum Association. They leave us to think about the “at worst” possibilities.

    “No problem!” you say. Pittsburgh is probably closer to the oil and gas fields of eastern Ohio than Cleveland anyway. Or Columbus. Ahhh, but there’s the rub. Neither of those airports go direct to OKC either. Cleveland was the only one in the entire region to do so. And so this spring when United cuts the direct routes, it will mean a major disruption for the flow of “foreigners” (as Gov. John Kasich refers to them) coming into Ohio to work in Ohio’s oil and gas fields…
    Read More “Can a Single Canceled Airline Route Affect Utica Shale Development?”

  • |

    Ohio Petroleum Council Gets a Name Change to API Ohio

    The Ohio Petroleum Council, which has always been an arm or division of the national American Petroleum Council, has officially changed it’s name. It’s no longer the OPC but is now API Ohio. The OPC decided to take on the name of its parent organization to strengthen its brand, and name, recognition. OPC (or rather API Ohio) is not to be confused with OOGA–the Ohio Oil and Gas Association. Both organizations are competitors, of a sort. OPC/API Ohio has not endorsed the Republicans’ proposed Utica Shale severance tax increase. OOGA has endorsed it and helped craft it (see The Secret Back Room Deal to Raise OH’s Utica Shale Tax).

    Here’s more about the OPC name transformation:
    Read More “Ohio Petroleum Council Gets a Name Change to API Ohio”

  • | | | | | |

    Spectra Energy Files Formal Request with FERC for OPEN Pipeline

    When it comes to building a new natural gas pipeline, it’s a loooooong process to get the route planned and approved. Once that’s done, depending on how long the pipeline is, it takes a fair bit of time to actually build it. We started telling you about a proposed new pipeline project from Spectra Energy back in December of 2011 called the Ohio Pipeline Energy Network, or OPEN (see Chesapeake Investing in New 70-Mile Ohio Pipeline). We brought you an update on this interesting project last August (see Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC).

    OPEN is an interesting project because it will build 76 miles of new pipeline that connects to the Texas Eastern Pipeline, and then reverses the flow on the Texas Eastern to carry Marcellus and Utica Shale gas from eastern Ohio to the Gulf Coast. The Texas Eastern will become a bi-directional pipeline, sometimes bringing gas north from the Gulf, other times sending it to the south to the Gulf. The new news about the OPEN project is this: Spectra Energy made their full, official filing with FERC (Federal Energy Regulatory Commission) last week seeking FERC’s blessing to go ahead build it starting the new pipeline in December of this year. Here’s the story as reported by Reuters:
    Read More “Spectra Energy Files Formal Request with FERC for OPEN Pipeline”

  • | | | | | |

    McClendon Confirms 3 New Utica Shale Deals: Hess, XTO, Paloma

    Aubrey McClendonAubrey McClendon’s American Energy continues its rapid expansion. Aubrey is raising money like crazy–and spending it like crazy too. Last week Aubrey landed another half billion dollars to spend in the Utica (see McClendon’s New Company Gets Another Half Billion $ for Utica). Then he spent it! The rumor was the mystery buyer of Hess’ 74,000 Utica Shale acres they sold for $924 million last week was McClendon (see Hess Sells 74,000 OH Utica Shale Dry Gas Acres to Mystery Buyer). It’s no longer a mystery–American Energy verified it is the buyer of the Hess acreage.

    But hey, that was last week. It’s a new week, so it’s time for a new deal for Aubrey and American Energy. And right on cue, we have one: XTO Energy has announced they’ve done a deal whereby American Energy will fund 100 percent of XTO’s near-term drilling costs in a “core area” of 55,000 Utica Shale acres. In return, American Energy will get ownership of 30,000 net acres of XTO’s holdings in three Ohio counties. Yesterday Aubrey said he’s cut three deals recently–Hess, XTO and Paloma Partners. Between the three deals, Aubrey says he’s picked up another 130,000 acres in the Utica in the past week. The man is on a tear…
    Read More “McClendon Confirms 3 New Utica Shale Deals: Hess, XTO, Paloma”