Ohio Utica Production 1Q17 – Oil Down Again, NatGas Up Again
The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the first quarter of 2017. The bad news is that oil production continued to slide in 1Q17, down 29% from the same quarter in 2016. However, that’s an improvement from 4Q16 when oil production was down 44% (see Ohio Utica Production 4Q16 – Oil Down, NatGas Up). So oil is down, percentage-wise, but down less than last quarter. The good news continues to be natural gas production, which was up 13% over the same period in 2016, which is in line with last quarter when it was up 14% over the same period in the previous year. Eclipse Resources dominated the top 5 spots on the natural gas production list, all of those wells drilled in Monroe County (with 3 of the top 5 being on one well pad–the Holliday pad). Ascent Resources continued to dominate oil production with 20 of the top 25 most productive wells. However, Eclipse had the #1 most productive oil well, which continues to be the record-breaking Purple Hayes (was the longest on-shore lateral well in the world, until Eclipse drilled another longer one, in Ohio). Purple Hayes is the gift that keeps on giving, quarter after quarter. Below we have the ODNR’s high level overview of the numbers, along with MDN’s own exclusive analysis showing: the top 25 producing gas wells, the top 25 producing oil wells, and then the top 25 gas and oil wells as ranked by average production per day. There is a difference…
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We’re going to take a stab at this, and we are not confident we will get it 100% right. With that as a warning, we recently reported that a case brought by landowners in northeastern PA against Chesapeake Energy over unwarranted royalty deductions suffered a bit of a setback (see
In April MDN provided an update on the Sabal Train Transmission pipeline project (see
In May MDN conveyed the news that it appears Mountaineer NGL Storage, which wants to build a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see
A group of profoundly radical “environmental” organizations filed a lawsuit in the U.S. Court of Appeals for the Fourth Circuit last Friday against the West Virginia Dept. of Environmental Protection–for doing their job. Sierra Club, West Virginia Rivers Coalition, Indian Creek Watershed Association, Appalachian Voices and Chesapeake Climate Action Network has sued the DEP because the department had the audacity to conduct a very thorough review, and then issue a stream and water-crossing permit (demanded under federal law) for the Mountain Valley Pipeline (MVP). MVP is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The project, which filed an official application with the Federal Energy Regulatory Commission in October 2015, is being built by EQT, NextEra Energy and several other partners. This is now SOP–standard operating procedure–for Big Green groups with deep pockets. Sue and keep suing in an attempt to slow and eventually kill off any project that remotely involves fossil fuels. Yes, they are RADICAL, they are EXTREME, waaaaaay outside the mainstream of American society. And they MUST BE STOPPED. When will someone launch weekly lawsuits against these Big Green organizations? Here’s the latest maddening development…
In December 2016, the Pennsylvania Dept. of Environmental Protection (DEP) unveiled new regulations to clamp down on methane emissions and other other air pollution that allegedly comes from shale drilling sites (see
On Friday, Exxon Mobil took the gloves off and went after the out-of-control New York Attorney General Eric Schneiderman. Last year Schneiderman decided he would try to shake down Exxon for billions of dollars, claiming the company wasn’t being honest with shareholders about the threat of man-made global warming, which doesn’t actually exist. He said Exxon should have done more to warn shareholders that they invest in a filthy, rotten, human-killing Big Oil company–a company whose stock will someday implode. We’ve covered Schneiderman’s witch hunt from the beginning (
Just a quick reminder that the Pennsylvania Dept. of Environmental Protection is conducting four public hearings, beginning today and running through Wednesday, for the Williams Atlantic Sunrise Pipeline project. If there is any way you can make it to one of the hearings to show your support for the project, do it! Below is the DEP announcement sharing the locations for the hearings. Today are two hearings, both from 6-9p, one in Tunkhannock and the other in Lancaster. Tomorrow the hearing is in Bloomsburg, and Wednesday in Annville. Come out to support this critical pipeline project…
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events.
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Stonewall Group receives Telly Award for Shale Crescent ad; Overheated anti-fossil fuel rhetoric fooling young people, says Blacklight researcher; Rick Perry: ‘First-ever’ natural gas exports offer hedge against Russia; The tyranny of the administrative state; Working gas in storage jumps by triple digits; Effort to crush shale producers only made them stronger; and more!
Something truly amazing is happening in rural Susquehanna County, PA, nestled in the northeastern corner of the state (shares a border with Broome County, NY, where MDN is located). At a special event yesterday held in Montrose, the county seat, Cabot Oil & Gas announced a major milestone. Cabot has, over the past ten years, paid out $1 billion in royalties and another $500 million in lease bonuses. Did you catch that? In a single decade, Susquehanna County has received a $1.5 BILLION economic stimulus in private money flooding into the county–from just one of the major drillers working in the county. And that doesn’t include $3.1 billion spent on equipment and crews to do the drilling (a number we verified with Cabot)! There are other companies drilling in Susquehanna County as well. In very real, practical terms, that means school taxes have not gone up–in years. Property taxes have actually gone DOWN. Mortgages have been paid off. Kids have gone to college–without incurring years of debt hanging over them when they graduate. Story after story was shared of how Cabot’s drilling program has resulted in radically changed (for the better) lives in Susquehanna County. Cabot has pulled some 3 trillion cubic feet of natural gas out of what Cabot rep George Stark says is “the sweetest spot to be” in the country. Little known factoid: A single company (Cabot) drilling in one county (Susquehanna) produces nearly 3% of the entire natural gas output in the United States. Amazing! You know what’s even more amazing? Binghamton media blocked all reporting about this major news….
THE Delaware Riverkeeper (i.e. Maya van Rossum) and a small group of anti-drilling parents from the Mars School District (“Martians”) in Butler County, PA, have just suffered a crushing defeat in their years-long battle to prevent Rex Energy from drilling wells “near” a local school. Backed by money and legal help from Philadelphia Big Green groups Delaware Riverkeeper and Clean Air Council, the Martians filed frivolous lawsuit after frivolous lawsuit. The effort is aimed at denying landowners in Middlesex Township revenue from legally permitted drilling. The lawsuits have cost the taxpayers of Middlesex Township over $80,000 in legal fees. Even amid the back and forth lawsuits, at least two of the wells were permitted and drilled by Rex Energy, despite the bleatings of the Martians (see
In January 2016, Kinder Morgan (KM) committed to building the UTOPIA (Utica To Ontario Pipeline Access) pipeline, a 12-inch ethane pipeline that will run ~240 miles across the state of Ohio where it will connect with another pipeline and (eventually) flow ethane all the way to a cracker plant in Canada (see
NEXUS is a $2 billion, 255-mile interstate natural gas pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. Its purpose is to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada. It is a joint venture between DTE Energy and Spectra Energy. Last December, the Federal Energy Regulatory Commission issued a positive final Environmental Impact Statement for the project (see