West Virginia

Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Deloitte & EIA: 90,000 Marcellus Wells Drilled in Next 20 Years
November 25, 2013November 25, 2013

A new report published by consulting powerhouse Deloitte references (and affirms) U.S. Energy Information Administration’s predictions that it will take at least $5 trillion of investment in the oil and gas sector between now and 2035 to main current levels of oil and natural gas production and meet future demand as it rises. The report is titled “The challenge of renaissance: Managing an unprecedented wave of oil and gas investment.” Unfortunately we couldn’t locate a copy–but reportedly it’s full of interesting facts–like the $5 trillion number.

Another eye-popping number from the report: Current estimates are that 90,000 Marcellus Shale wells will be drilled over the next 20 years. That kind of activity will spur an unfathomable economic revival in the northeast like we haven’t seen in since, well, forever! The study says while “trillions” will be spent on upstream (drilling), “hundreds of billions” will need to be spent on midstream (pipelines & processing plants) in order to keep up with the production. More from the Deloitte study…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Research | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica States Slip in Global Petroleum Survey
November 21, 2013November 21, 2013

Each year, the Canadian-based Fraser Institute surveys petroleum industry executives and managers (864 of them for 2013) asking them their opinions on the barriers to investing in exploration and production in various geographies across the globe. That is, what makes them more likely or less likely to spend money drilling in a particular location? It’s vitally important to understand what drives investors because without money, drilling doesn’t happen.

The Global Petroleum Survey, as it’s called, tallies the survey responses and ranks each geography from most desirable place to invest, to least desirable. MDN reported the rankings last year (see Energy Execs Rank Drilling Locations Including WV, OH, PA, NY). A copy of this year’s full report/rankings is embedded below. How did Pennsylvania, Ohio, West Virginia and (yes) New York fare this year, compared to last?…
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Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

Forced Pooling Talk at WV Legislative Interim Meeting
November 21, 2013November 21, 2013

Like a bad penny, the issue of forced pooling (or “unitization” or whatever you want to call it) keeps turning up in West Virginia. WV legislators are in the midst of holding an interim meeting, and this week they heard from both supporters and opponents of forced pooling.

The sharp lawyers from Lewis Glasser Casey & Rollins made this observation about the session where it was discussed:
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Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | West Virginia | Wood County

Analysis: Why Parkersburg, WV for a Cracker Plant Complex?
November 20, 2013November 20, 2013

Don Surber from the Charleston Daily Mail writes a good analysis article in today’s edition that attempts to answer the question, “Why would Brazilian company Odebrecht pick Parkersburg, WV to build an ethane cracker plant?” Surber argues the selection of Parkersburg as the location vaults it into potentially being the most important city in the entire state of WV. He’s right.

Surber’s main point: Don’t focus on the ethane cracker, as nice as that will be. Instead, it’s the three polyethylene plants Odebrecht is going to build that are the real story, the real diamond, if (still a big if) the ethane cracker gets built. Why? It is the polyethylene (plastics) plants that will create a renaissance in manufacturing (i.e. jobs) in the region…
Read More “Analysis: Why Parkersburg, WV for a Cracker Plant Complex?”
Accidents | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Blue Racer’s Natrium Plant to Remain Offline Until Jan 2014
November 19, 2013November 19, 2013

Blue Racer Midstream, a joint venture between Dominion Resources and Caiman Energy II, had an explosion and fire at its Natrium, WV processing plant/fractionation facility in September (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). Since then, at least two Blue Racer customers have found alternatives to using the Natrium facility: Rex Energy and Atlas Resources. More drillers adversely affected by the facility being offline (some of whom complained about the plant closure last week at the DUG East conference in Pittsburgh) may also be in the hunt for alternatives, especially with the announcement the plant will remain offline until “at least January” of 2014. That’s bad news for drillers and for Blue Racer, although they obviously have to repair the facility and ensure whatever caused the explosion/fire does not happen again.

As part of upgrades at the facility, Blue Racer is installing an emergency siren system in the neighboring community of Kent–to warn them of any problems at the plant. The latest on the closed facility and its prospects for re-opening:

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Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Announces Brazilian Company to Build Ethane Cracker Complex
November 15, 2013November 15, 2013

Yesterday West Virginia Gov. Earl Ray Tomblin was flanked by representatives from Brazilian chemical company Odebrecht to announce the company has chosen a site near Parkersburg, WV (third largest city in the state) to be the potential site of an ethane cracker plant complex. The complex will have an ethane cracker, three polyethylene plants and infrastructure for water treatment and energy co-generation. Gov. Tomblin was justifiably proud to make the announcement, calling it a “game changer” for West Virginia. He’s right.

Odebrecht will build the plant, and once built, it will be operated by Braskem, another Brazilian company with operations in Pennsylvania (51% owned by Odebrecht). MDN told you about Braskem’s interest in a WV ethane cracker all the way back in March 2012 (see Second Company Interested in Building Cracker Plant IDed). So it appears Odebrecht/Braskem have been sniffing around the concept of building a cracker in WV for at least a year and a half. We have a lot of coverage of the announcement below. The key word here is: caution. Like the Shell cracker, this is very early in the process and not yet a 100% done deal…
Read More “WV Announces Brazilian Company to Build Ethane Cracker Complex”
Beaver County | Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Pennsylvania | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia | Wood County

Clash of the Ethane Cracker Titans: PA vs WV Smackdown
November 15, 2013November 15, 2013

As MDN mentions in today’s companion story about the newly announced potential ethane cracker plant complex to be built near Parkersburg, WV, there is angst in Pittsburgh about whether or not a WV cracker plant will help or harm the potential cracker plant to be built by Shell northwest of Pittsburgh in Beaver County, PA.

The Pittsburgh Business Times, a bit critical and skeptical of the WV cracker (no surprise there), tackles the question of, “Is you a friend or is you foe?”…
Read More “Clash of the Ethane Cracker Titans: PA vs WV Smackdown”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Statewide WV | West Virginia | Wood County

Officials Say Cracker Will be Truly Huge for WV Jobs & Economy
November 15, 2013November 15, 2013

One final story in MDN today about WV ethane cracker mania (see our other two stories posted today for full coverage of the announcement from yesterday). Although WV Gov. Earl Ray Tomblin and officials with the companies that would build and operate a proposed ethane cracker in WV–Odebrecht and Braskem–were careful to say this is a preliminary announcement and not a 100% done deal, it’s still just too juicy a carrot to leave alone for the Tomblin administration.

Although Tomblin says Oderbrecht is “exploring” the possibility of building an ethane cracker, he’s also shouting that this is the best thing for West Virginia since sliced bread was invented (our words, but certainly his sentiment). And sure enough, right on the heels of his announcement, Tomblin officials were talking about the thousands of new jobs this project will generate and the incredible economic impact it will have on WV. IF built, they are 100% correct, this will be an economic and jobs-generating engine like none we’ve seen in the northeast for generations–no doubt about it. The key word, though, is IF…
Read More “Officials Say Cracker Will be Truly Huge for WV Jobs & Economy”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Statewide WV | West Virginia | Wood County

BIG NEWS: West Virginia is Getting an Ethane Cracker Plant
November 14, 2013November 14, 2013

The Parkersburg News and Sentinel is reporting that WV Gov. Earl Ray Tomblin will make an announcement today that has been years in coming: West Virginia is getting its own “multi-billion-dollar ethane cracker chemical plant” and it will be located in Wood County. If this rumor, which seemingly originates with reliable sources, bears out, this is seriously good news for WV. In fact, we’re jumping up and down happy! For years MDN has been pulling/cheerleading/advocating for WV to get their own cracker–we think they deserve it.

The speculation is that Tomblin sealed a deal for a cracker plant on a recent European trade mission trip (see WV Gov Going to Europe to Find Him a Cracker). While he was in Europe, he said by phone he would have a big announcement a few days after he returned home. We speculated at the time, three weeks ago, that he might be talking about a cracker (see Did Gov Tomblin Find a European Investor for a WV Cracker Plant?). Was our speculation accurate? We will know today…
Read More “BIG NEWS: West Virginia is Getting an Ethane Cracker Plant”
About MDN | MDN Sponsor | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Northeast Oil & Gas Awards – Time to Nominate is NOW
November 13, 2013November 13, 2013

A few weeks ago MDN told you about a fast-approaching deadline to be considered for the Northeast Oil & Gas Awards (see Deadline Approaching for 2013 Northeast Oil & Gas Awards). The deadline has been extended by a few weeks. The new deadline to be nominated in one of 25 categories is now December 12–so you have a month from today. MDN is proud to be working with the great people who host the Northeast Oil & Gas Awards. In fact, MDN editor Jim Willis will be involved in a conference program and attending the award ceremony in Pittsburgh in March 2014 (more on that in coming months).

However, right now it’s time to nominate and be nominated for an award! The Oil & Gas Awards celebrate the success and excellence of companies working in the upstream and midstream oil & gas industry in the Northeast region. Below are links to the criteria used for evaluating entrants in each of the 25 different categories. Click on a link to find out what it takes to be considered for a prestigious award in that category…
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Clay County | Cunningham Energy | Energy Companies | West Virginia

The Injuns are Coming! Injun Formation Drilling, that is
November 12, 2013November 12, 2013

Sorry, but we can’t avoid using a politically incorrect term in this report: “Injun.” As in the Big Injun Formation, a layer of tightly-packed sandstone that lies above the Marcellus Shale layer in several West Virginia counties. Apparently there’s natural gas in the Big Injun in Clay County, WV, and Cunningham Energy (of Charleston) is going to drill three horizontal/fracked wells to try and get that gas. Fracking the Big Injun has been talked about for a long time (here’s a Society of Petroleum Engineers conference paper that specifically addresses that very topic from 1988!). However, combining horizontal drilling with fracking is relatively new and didn’t happen in the northeast until Range Resources drilled the first Marcellus Shale well in 2004 in western PA.

Until now, we’ve heard of the horizontal drilling/fracking combination being used in the Marcellus, the Utica and the Upper Devonian. Looks like we can now add a fourth formation to that illustrious list: the Big Injun. Good luck to Cunningham Energy as they go Big Injun hunting for natural gas…
Read More “The Injuns are Coming! Injun Formation Drilling, that is”
Industrywide Issues | Property Value | Statewide WV | West Virginia | Wetzel County

Property Values/Taxes in WV Counties with Drilling Go….Up!
November 12, 2013November 12, 2013

Landowners who lease their land, drillers and the industry that comes along to get the gas out of the ground and to market, and community members who get jobs at those companies doing the extracting/moving are not the only ones who benefit from the Marcellus and Utica Shale industry. The entire community benefits.

A false allegation (i.e. lie) trotted out frequently by anti-drillers is that property values will tank and tax revenues will go down when drilling comes to town. A study of West Virginia property tax revenues shows just the opposite happens. The state overall–and those areas with the most shale drilling in particular–have seen property tax revenues increase rather dramatically since 2005 when drilling began. An analysis (objective proof) from the West Virginia Center on Budget and Policy that drilling is good for property values and property taxes:
Read More “Property Values/Taxes in WV Counties with Drilling Go….Up!”
Energy Services | Industrywide Issues | MarkWest Energy | Marshall County | NGLs | Noble County | Ohio | Processing Plants | West Virginia

MarkWest Hits 2.2 Bcf/d in Processing, 2 New Plants Go Live
November 11, 2013November 11, 2013

Marcellus midstream (pipelines and processing plants) heavyweight MarkWest Energy issued an operations update last week to trumpet the fact that two new cryogenic processing plants–to separate wet gas compounds from methane–have now started operations in the Marcellus/Utica. With the additional capacity of these new plants, MarkWest’s total processing capacity is now 2.2 billion cubic feet per day (Bcf/d) of natural gas processing in the Marcellus/Utica. It is an impressive number and will only grow in the months and years ahead.

MarkWest announced they have begun operations at their fifth Majorsville (Marshall County), WV cryogenic processing plant and at their first Seneca (Noble County), OH cryogenic processing plant. Here’s the justifiably proud announcement from MarkWest on reaching the 2.2 Bcf/d milestone, on their way to 4 Bcf/d by the end of next year:
Read More “MarkWest Hits 2.2 Bcf/d in Processing, 2 New Plants Go Live”
Antero Resources | Energy Companies | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Antero Resources 3Q13: Stars Aligned, More Marcellus/Utica
November 8, 2013November 8, 2013

Antero Resources continues to focus on the Marcellus and increasingly the Utica Shale. Antero claims to be the most active driller in the Marcellus with 15 active drilling rigs–we don’t doubt it. Earlier this week as part of their third quarter update, Antero announced they will add a fifth drilling rig in the Ohio Utica where they’ve already drilled 12 wells (now online and producing) and with another 12 wells currently in process of being drilled. Antero loves the Utica.

The stars certainly seem to be in alignment for Antero. A month ago the company went public and their stock price soared (see Antero’s Stock Climbs 18% on First Day of Trading). The day the company went public it was valued at $11 billion. As of this morning, a month later, it’s worth $14 billion. Yow! Antero can also boast of having the Utica Shale’s #1 producing well (see Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d). Lot’s of good things happening for Antero, especially in the Utica. Here’s what they say about the last 3 months, and what they think lies ahead…
Read More “Antero Resources 3Q13: Stars Aligned, More Marcellus/Utica”
Antero Resources | Doddridge County | Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | NGLs | Processing Plants | West Virginia

MarkWest to Build 5th Cryo Plant in WV Courtesy Antero Resources
November 8, 2013November 8, 2013

MarkWest Energy continues its Marcellus/Utica infrastructure expansion. In an announcement yesterday, MarkWest said they will build a fifth (!) 200 million cubic feet per day cryogenic gas processing plant at its Sherwood (Doddridge County), WV facility. In the latest edition of the Marcellus and Utica Shale Databook (2013 Volume 2), MDN lists all of the projects announced by MarkWest and others (111 projects in all). This one is brand new and would be 112. MDN estimates this new cryogenic processing plant along with two others currently under construction at the Sherwood complex cost in the neighborhood of $200 million each to build.

Cryogenic plants separate natural gas liquids (NGLs, or “wet gas”) from methane (“dry gas”). Why a fifth plant at the same facility? It’s being built at the request of Antero Resources. MarkWest signed a deal with Antero to provide them with wet gas processing capacity at the plant. MarkWest says the new plant will be built and online by third quarter of 2014. When it goes online, the total processing capacity at the Sherwood complex will be 1 billion cubic feet of natural gas per day–a really astonishing number. Here’s the MarkWest announcement:
Read More “MarkWest to Build 5th Cryo Plant in WV Courtesy Antero Resources”
Pennsylvania | Statewide PA | Statewide WV | West Virginia

2014 Ben Franklin Shale Gas Contest – $100K in Cash Prizes!
November 7, 2013November 7, 2013

Calling all researchers, entrepreneurs and innovators working in the shale gas space in PA or WV: The Ben Franklin Shale Gas Innovation and Commercialization Center (SGICC) is back with another contest, this time with $100,000 in cash prizes to split between the four best shale gas-oriented innovations/new products/new service ideas. The “new” thing must be in development stage or recently launched to qualify. The 2014 contest will be the third year running that the SGICC has held this contest and is the largest purse so far (for the 2013 winners, see: Envelope Please: Winners of Shale Gas Innovation Contest are…).

On a personal note, MDN editor Jim Willis had the opportunity to meet Bill Hall, director of the SGICC at Shale Insight in September in Philadelphia. Bill helms a terrific organization and this contest, over the past several years, has done fabulous work in helping to shine a spotlight on worthy, up-and-coming businesses that have gone on to make a difference in shale drilling in the northeast and beyond. Think of the SGICC contest as a cross between Shark Tank and American Idol–only a whole lot easier! Here’s the details for this year’s contest…
Read More “2014 Ben Franklin Shale Gas Contest – $100K in Cash Prizes!”