Chesapeake Energy and Statoil ASA are making a major commitment to drilling in the Marcellus Shale over the next two decades:
Drilling in West Virginia is heating up, but according to state Department of Environmental Protection Secretary Randy Huffman, it’s not “out of control”—yet. Huffman and others do see a critical need for more inspectors, something they hope will soon be approved by the WV legislature.
The Bayer CropScience plant in Institute, WV is rumored to be downsizing. Currently 500 people are employed there, but the plant will soon stop making and storing the same chemical (MIC) that leaked in the Union Carbide chemical plant in Bhopal, India killing thousands back in 1984. If that happens, some 200 people will lose their jobs. But there may be hope to keep those jobs because of Marcellus Shale drilling:
Read More “Marcellus Drilling May Help Save 200 Jobs at Bayer Plant in WV”
PPG Industries, a $12 billion global supplier of paints, coatings, optical products, specialty materials, chemicals, glass and fiber glass, is about to get another $50 million from the gas beneath one of it’s chemical plants located in Marshall County, WV.
Read More “PPG Chemical Plant in Marshall County, WV Gets a $50M Marcellus Shale Payday”
A new Marcellus Shale gas pipeline is coming to Preston County, WV which will ultimately mean more drilling in the region.
Read More “New Marcellus Shale Gas Pipeline Coming to Preston County, WV”
West Virginia gets closer with new rules and regulations for drilling in the Marcellus Shale. And it looks like the forced pooling provision has been dropped:
Read More “Forced Pooling in W.Va. Taken Out of New Legislation”
Mike McCown, president of the Independent Oil and Natural Gas Association (IOGA) in West Virginia, was interviewed by the Register-Herald (Beckley, WV). IOGA represents some 600 oil and gas companies throughout WV, including those drilling in the Marcellus Shale in that state. Among Mike’s comments:
West Virginia Governor Early Ray Tomblin wants to leverage Marcellus Shale drilling in his state as much as possible, and he’s created a new task force to encourage it.
Read More “WV Gov. Tomblin Creates Task Force to Encourage Marcellus Gas Chemical Manufacturing”
A critical component in the federal Environmental Protection Agency’s (EPA) plan to study hydraulic fracturing is where they will conduct case studies. Starting on page 42 of the draft proposal, we find out.
There were 48 proposed locations suggested to the EPA, from which they will select between five and eight locations. We know five likely locations right now, and two of those are in the Marcellus Shale region—the other three are in other shale formations around the country.
Read More “Dimock, PA Among Likely Locations for EPA Study of Hydraulic Fracturing”
The West Virginia legislature is actively debating new legislation that regulates drilling in the Marcellus Shale. One of the provisions in the proposed legislation being hotly debated is the issue of forced pooling:
Read More “Forced Pooling for Marcellus Shale Drilling May be Coming to West Virginia Landowners”
At a recent meeting in Sherrard, West Virginia, senior trust officer for WesBanco Inc., Paul McKay, had some excellent advice for landowners as they get ready to sign leases. He told those at the meeting that the first lease they’re offered usually has room for negotiation, and some of the items landowners need to check for include shut-in royalties, the question of who pays taxes, and payment for natural gas liquids.
Read More “Marcellus Landowners: Check for These Important Things in Your Lease Before You Sign”
The West Virginia legislature is considering a couple of bills that deal with rules for Marcellus shale gas development in the state. One of those bills contains a provision for forced pooling, a hot-button issue to be sure among landowners and mineral rights owners. The WV legislature may adopt a pooling provision that is used in the state currently for coalbed methane drilling.
Read More “WV Legislators Consider Forced Pooling for Marcellus Shale Landowners”
An article in today’s West Virginia paper The Intelligencer / Wheeling News-Register attempts to denigrate Marcellus gas drilling in the state by focusing on some of the problems. One of those problems, according to the article, is that 13 illegal aliens (undocumented workers) that have been caught working for drilling contractors in the state “in the last few years.” But 13 illegals apprehended out of some 10,000 workers employed by the Marcellus gas drilling industry in the state is an infinitesimally small 1/10th of one percent. That is, it’s a non-story. If the statistics are to be believed that there are some 20 million illegals in the U.S., and the population of our country is around 300 million, that means an average 6 1/2 percent of the entire population are illegal aliens! Point is: the drilling industry does not seek to employ illegals—it happens, like any industry.
Triana Energy is stepping up its commitment to drilling in the Marcellus Shale by entering into a partnership with Marathon Oil. From the official press release:
East Resources, a major drilling company in the Marcellus Shale, especially in Pennsylvania, is selling itself to Royal Dutch Shell for a whopping $4.7 billion. From drilling a single horizontal Marcellus Shale gas well in 2009, East has drilled some 75 horizontal wells in the past 12 months. East did have plans to drill 6,000-7,000 wells in Tioga County, PA over the next “several years” (see this MDN story). No word on the planned drilling for Tioga County and other regions, but MDN assume Shell did not invest in East to not drill. In fact, the pace of drilling may well pick up with Shell’s investment.
From the East Resources press release:
East Resources, Inc., a Pennsylvania-based independent oil and gas producer and one of the most active explorers in the Marcellus Shale, along with its private equity investor Kohlberg Kravis Roberts & Company, signed a definitive agreement to sell the company’s principal subsidiaries to an affiliate of Royal Dutch Shell plc (“Shell”) for cash consideration of $4.7 billion. The sale includes East’s natural gas and oil exploration and production operations and most of its holdings in related businesses. With the purchase of East Resources, Shell will acquire approximately 650,000 net acres of Marcellus Shale rights in Pennsylvania, West Virginia and New York, and 1.05 million acres in total.
East Resources, founded in 1983 by Terrence M. Pegula, has been one of the Appalachian Basin’s most active exploration and production companies for more than 25 years. Since its inception, East has grown primarily through its exploration successes, several strategic acquisitions, and most recently the development of the Marcellus Shale.
East Resources employs approximately 300 office and field personnel in Pennsylvania, West Virginia, New York and Colorado. Its principal offices are located in Warrendale, PA, Broomfield, CO and Parkersburg, WV. Shell will continue to operate with East’s workforce to ensure continuing success in the growth and development of the reserves it will acquire in the purchase.
The sale of East Resources to Shell is expected to close in two phases. The first phase of the sale will be completed in mid- to late summer. The second phase of the sale, including the sale of the West Virginia business, will close later this year, pending certain regulatory approvals.
“The sale of the company to Shell will ensure that the capital needed to develop East’s significant Marcellus Shale holdings will be available,” says Mr. Pegula, East’s owner and Chief Executive Officer. “Shell’s entry into the region should benefit Pennsylvania, West Virginia and New York through significant new capital investment, new jobs and new business opportunities. I am very proud that this transaction has brought Shell into the Appalachian Basin.”
President of Shell Oil Company, Marvin Odum commented, “East Resources’ management has built an excellent organization which we are pleased to have as we enter the northeast US and specifically the Marcellus Shale play.”*
*East Resources Press Release (May 28) – East Resources Inc announces sales agreement with Royal Dutch Shell plc
Not to be outdone by MarkWest’s recent announcement about expanding their processing and fractionation facilities in the Marcellus Shale, Dominion has announced they too have big plans for expansion in the Marcellus Shale, including converting transmission pipeline TL-404—running through Ohio and West Virginia—into a “wet gas service” line. Dominion’s plans also include building new processing facilities in West Virginia.
Read More “Dominion Expands Marcellus Shale Gas Processing Capacity, Plans to Convert & Expand Ohio-WV Pipeline”