Analyst Speculates Chesapeake May Look to Unload Marc/Utica Assets
Reuters ran a story yesterday quoting an analyst with Tudor Pickering who says he thinks Chesapeake Energy is actively considering a sale of some (most? all?) of its Marcellus and Utica Shale assets, as a way of helping raise $2-$3 billion which the company previously said it would raise from asset sales this year and next. Idle speculation? Perhaps. There’s no doubt Chesapeake has a real jewel in its Utica and Marcellus acreage–built by Aubrey McClendon back in the day. Would Chessy really consider selling it? The Tudor analyst says yes, because these days the company is concentrating on oil drilling and production more than gas. But is that really true?…
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Yesterday we brought you the “Top 10” drillers in southwestern Pennsylvania, as ranked by the number of permits issued (see 
Two serial, paid protesters, along with a landowner and her daughter have sued Sunoco Logistics and parent company Energy Transfer for breaching their constitutional rights. You may recall our story about the daughter of a Huntingdon County, PA landowner, radicalized by Big Green groups (as evidenced by her association with well known protesters previously arrested), who took to a tree on her mom’s property in March 2016 in order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see 
Last week MDN told you about a visit by Pennsylvania Gov. Tom Wolf to Wyoming and Susquehanna counties in northeastern PA (see 
The good news is that any number of severance tax proposals in Pennsylvania are still “stalled” and going nowhere fast. The bad news is that there still is not a finalized budget. Republicans have no one to blame but themselves. They passed an unbalanced, whopping $32 billion state budget plan months ago–without a way to pay for it all. Which has set up extreme pressure to adopt new taxes, including a severance tax and gross receipts tax. It appears that the GRT is dead, but the severance tax is not yet totally dead. Why? Because House Speaker Mike Turzai continues to hold the line–preventing a floor vote on the severance tax. Pin a medal on that man! Elect him as your next governor! He knows how to lead. However, since the severance tax is not totally dead (yet), we feel it’s necessary to keep talking about it. We’ve heard from some MDN readers who ask, “Why not adopt a small severance tax? It’s not all that bad, is it?” Yes! It is bad! And the Commonwealth Foundation (of PA) tells us why…
Over the past few years MDN has tracked the progress of 4 LNG export plants planned for the eastern shore of Nova Scotia. Two of those projects appear to have life–the Bear Head LNG project (
For years Hollywood celebrities and those who want to be celebrities have lied and spread fake news about fracking. Some of the more colorful attempts have come from the likes of the singularly untalented Julian Lenon and stepmom Yoko Ono “singing” (if that’s what you call it) the song “Don’t Frack My Mother” (see 
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: PA rig count steady; battle for the pipelines – the Agency strikes back; fracking an “answer to prayer” in OH; Manchin tells WV to stay in state for energy jobs; Shell cracker plant already spurring local development, loans; NC Senators urge FERC to approve Atlantic Coast Pipe; natgas boom has led to cleaner air; Farmer’s Almanac winter forecast bullish for natgas prices; Tesla’s high-priced electric cars can’t compete with fracking; fracking proof that “God…loves us,” says Sec. Interior; and more!
Last week MDN told you that Community College of Beaver County (CCBC) is operating a program in process technology that leads to an associate’s degree as preparation for a job at Shell’s $6 billion ethane cracker plant, being built now in Beaver County (see 
As enormously productive as the Marcellus/Utica wells are, did you know that the best wells only recover perhaps 20% of the available gas trapped in shale rocks? Often it’s more like 10%, or 5% recovery. The National Energy Technology Laboratory (NETL) in Morgantown, WV is trying to change those numbers. In a research program NETL calls “mastering the subsurface,” researchers are learning what happens at the smallest level of fracturing shale–so they can improve recovery rates using new processes and materials. In addition to improving recovery, they’re also looking for ways to cut down on water use. Since there’s a fair bit of water already trapped in shale, NETL is experimenting with carbon dioxide foam, as a way of using less water. (Don’t tell Al Gore. He HATES carbon dioxide, calling it a “pollutant” and saying it causes Mom Earth to toast). NETL is also using natural gas itself to frack rock. A lot of very important research is happening at NETL–research that may one day change the way we frack…
Flowback (water that comes back out of the well after fracking) and produced water (naturally occurring water from the depths that comes out the well for months and years after it’s drilled) have long been a “problem” drillers have to deal with. The choices are to: (1) haul it away to an injection well, (2) haul it to a centralized recycling facility, or (3) recycle it on location and reuse it for more drilling/fracking. That third option is really the brass ring for drillers. If only there were an economical way to recycle the water on location and reuse it. Researchers at Rice University (in Texas) believe they have made a breakthrough in option #3. Using a ceramic membrane with microscale pores, Rice researchers have found a way to clean flowback and produced water, removing 90% of hydrocarbons, bacteria and particulates in a single pass through the filter. The Rice discovery is aimed particularly at flowback–the 10-15% of fluid pumped down the hole to frack a well. Rice researchers published their research online, today, in Nature magazine’s open-access Scientific Reports. We have a copy of the paper, titled “Superhydrophilic Functionalization of Microfiltration Ceramic Membranes Enables Separation of Hydrocarbons from Frac and Produced Water,” below…
We came across an interesting press release from a law firm that won an extraordinary settlement for its client against Talisman Energy–a $100 million award. What’s interesting is that the plaintiff that sued Talisman is one of Talisman’s joint venture partners–not landowners. Matrix Petroleum invested in a deal with Talisman as a “non-operating” partner. That is, Matrix put up money, but Talisman did all the drilling and selling of the oil and gas they extracted. Matrix says over a period of five years that Talisman intentionally cooked the books–failing to accurately report how much oil was produced, thereby shorting Matrix on their share of the profits. The jury agreed and awarded Matrix the money they should have gotten if Talisman had not cooked the books. Ouch. All of this happened in Texas–the drilling and the trial. So what does it have to do with the Marcellus/Utica? Perhaps nothing. But we do recall reporting that last year Talisman took on a non-operating joint venture partner in the Marcellus from Thailand–Banpu (see 
“Loss of circulation” sounds like a terminal condition–and perhaps it is, in a human body. But that phrase applied to drilling underground to install pipelines holds a different meaning. Loss of circulation is the technical term used when drilling fluid migrates out of the hole being drilled, and into (eeks) groundwater. Thing is, drilling fluid used to drill for pipelines is non-toxic–the primary component being bentonite clay. Bentonite is the same thing used to make kitty litter, cosmetics and toothpaste. So a little bentonite clay escaping into a water supply is not a big deal–unless it’s a LOT of bentonite escaping. Then it can foul a water supply, at least until the clay settles and the water clears again. A former geologist working for the Texas Railroad Commission (the government body in charge of regulating oil and gas in Texas) has written a thoughtful column in the Harrisburg Patriot-News to talk about loss of circulation that has happened in several locations while drilling for the Mariner East 2 pipeline in PA. The former geologist knows a thing or two about drilling, about benonite, and about spilling a little mud here and there. He provides some much needed perspective on the issue–a counterbalance to the wild speculations and false claims made by anti-fossil fuelers…