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    Ultra Petroleum 1Q17 – Holding on to 72K Marcellus Acres, for Now

    Ultra Petroleum, based in Houston, TX, is an independent exploration and production (E&P) company mainly focused on drilling in the Green River Basin of Wyoming. Ultra also drills for oil in the Uinta Basin/Three Rivers area in Utah. In addition, Ultra maintains a “non-operated” (someone else does the drilling) position in the Pennsylvania Marcellus shale with leases on 72,000 net acres–no small amount. One year ago, in April 2016, Ultra filed for Chapter 11 bankruptcy (see Ultra Petroleum (with 184K Marcellus Acres) Files for Bankruptcy). A year later, Ultra announced it has emerged from bankruptcy, raising nearly $3 billion to pay back creditors and floating 195 million shares of new stock (see Ultra Petroleum Does Bankruptcy Right, Exits with Higher Value). The company is worth more today than when it entered bankruptcy. Talk about engineering a turnaround! Ultra shows other E&Ps how to do a bankruptcy “right.” A few weeks back Ultra issued its first quarter 2017 update. While the official update itself doesn’t mention Ultra’s Marcellus acreage, the earnings call did. We learn more about Ultra’s attitude and future plans for their Marcellus holdings from comments made by Ultra CEO Michael Watford. We also get more details about the company’s Marcellus holdings from the accompanying slide deck used during the earnings call…
    Read More “Ultra Petroleum 1Q17 – Holding on to 72K Marcellus Acres, for Now”

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    Digital H2O Comes to the Marcellus/Utica

    Digital H2O is a “digital oilfield water management solutions company.” What the heck does that mean? Water is not only the key ingredient in life, it’s also the key ingredient in the shale industry. It takes a lot of water to drill and frack a shale well. Locating sources for that water, getting it shipped to and then from a well pad, and disposing of it, is a logistical challenge. Digital H2O helps helps drillers source water, transport it, and dispose of it–at a cheaper cost than they otherwise could have. Digital H2O accomplishes this magic with a sophisticated computer software program–populated with all sorts of information (i.e. data). Until now, Digital H2O has concentrated its service on the Permian and Bakken shale regions in Texas, North Dakota, and New Mexico. The company has now turned its attention to the Pennsylvania Marcellus and now offers it service in our neck of the woods… Read More “Digital H2O Comes to the Marcellus/Utica”

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    Dela. Riverkeeper Asks Senate to Delay FERC Nomination Hearings

    Maya van Rossum – THE Delaware Riverkeeper

    President Trump, who will not be impeached, regardless of what press whores on fake news outlets like CNN say, recently nominated two extremely qualified people to be Federal Energy Regulatory commissioners (see Trump Nominates 2 New FERC Commissioners – Powelson & Chatterjee). As we pointed out in a story yesterday, liberal Democrats have been hounding Trump for months to nominate new commissioners–so they could begin grandstanding against them (see Now We Know: Lib Dems Wanted FERC Nominees for Grandstanding). Washington is sick. Radical environmentalists have NOT wanted any new nominees, because they want FERC neutered and unable to vote on new pipeline projects. One of the worst of the worst in the campaign to keep FERC in a quorumless state is THE Delaware Riverkeeper–Maya van Rossum. Riverkeeper is a front organization for the William Penn Foundation–created to shield William Penn from losing its nonprofit status for engaging in outright political activities like its opposition to fracking and fossil fuels (see Dela. Riverkeeper Protects Wm. Penn Foundation’s Tax Exemption). Maya continues to do her masters’ bidding. In a letter to the U.S. Senate dated May 15, van Rossum, pretending to represent “national organizations,” asks the Senate to slow down and even block Trump’s two FERC nominees…
    Read More “Dela. Riverkeeper Asks Senate to Delay FERC Nomination Hearings”

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    Tiresome: Philly RINO Rep Gene DiGirolamo Intros Severance Tax Again

    Rep. Gene DiGirolamo

    Pennsylvania State Rep. Gene DiGirolamo, a Republican-in-Name-Only (RINO) from the Philadelphia area, has been trying to punish the Marcellus industry in the state since 2011 when he first introduced legislation to impose a Marcellus-killing severance tax. And pretty much every year since then he has re-introduced a severance tax bill. Sometimes it’s for 3.2%. Other times 4.9% (see our DiGirolamo stories here). It appears he just plucks a number out the air and goes with it. DiGirolamo is back with yet another such plan. He has just introduced House Bill (HB) 1401, which would slap a 3.2% severance tax on all shale gas production. The socialist CLEAR Coalition–which advocates theft of other people’s money to fund their favorite “public” causes–held a rally to support the thefty HB 1401. RINO DiGirolamo showed up, the only “Republican” to do so. All of the other officials present were liberal Democrats. What does that tell you about this bill and its sponsor?… Read More “Tiresome: Philly RINO Rep Gene DiGirolamo Intros Severance Tax Again”

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    New Study: 1 Million New Jobs Coming in Gas/Oil Thru 2035

    A couple of weeks ago the American Petroleum Institute (API) released a new study that shows private investment in U.S. natural gas and oil infrastructure could (and likely will) create over 1 million new U.S. jobs. That is an incredible number! The study also shows that private investment may exceed $1.3 trillion for new oil and natural gas infrastructure. Wow! Over the past five years, U.S. oil and gas infrastructure development proceeded at a rapid pace. Many have wondered whether the trend can continue. API wondered too, so they contracted the experts at ICF to undertake a study that investigates the amount of oil and gas infrastructure development possible in the U.S. through 2035. The result is the report, “U.S. Oil and Gas Infrastructure Investment Through 2035” (full copy below). The report focuses on the amount of infrastructure needed for two different scenarios, a Base Case and a High Case, each of which are plausible scenarios for future market conditions. While the Base Case represents a most likely scenario, the High Case is included to assess infrastructure development in a more robust environment that is fostered by a larger hydrocarbon resource base and more rapid advancements in technology. The study looks at capital expenditures associated with, and the resulting economic consequences of, oil and gas infrastructure development… Read More “New Study: 1 Million New Jobs Coming in Gas/Oil Thru 2035”

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    Google Needs to Crack Down on Fake Fractivist News

    Back in June 2015, MDN told you about an edgy new pro-fracking website called FrackFeed.com–designed along the lines of BuzzFeed, a news and entertainment site aimed at Millennials (see FrackFeed Site Uses Pop Culture to Spread Truth about Fracking). FrackFeed, like BuzzFeed, contains short, “pithy” articles–but in FrackFeed’s case the articles respond to and expose the lies peddled by anti-drillers, using humor. The format is meant to be easily “consumed” on a smart phone and shared with others. Of course the “cool, hipster” anti-drilling nutters are flustered that pro-drillers are turning one of their own tools against them–exposing them for the humorless mind-numbed robots they are. We love it when someone figures out how to get under their skin! The FrackFeed hipsters have done it again. On May 8, FrackFeed sent an open letter to the mighty Google, asking Google to monitor and demote fake fracktivist news. Love it! Facebook and Google have recently initiated campaigns to label so-called fake news (a VERY disturbing trend that private companies are now arbiters of what is considered authentic and what is considered fake, but that’s a topic for another post). In the well-footnoted and researched letter, FrackFeed points out some of the whopping lies about fracking told by organizations like the Sierra Club. FrackFeed totally refutes the Sierra Club’s false claims and encourages Google to demote their trash talk in search results. We’re not holding our breath… Read More “Google Needs to Crack Down on Fake Fractivist News”

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    Why does Big Oil Continue to Support Horrible Paris CO2 Treaty?

    Something has befuddled us for a long time. Why would Big Oil companies–like ExxonMobil, Shell and BP–actually support the international climate agreement that caps carbon dioxide emissions from the fuels they extract? In December 2015, then-President Barack Hussein Obama signed the Paris Agreement (otherwise known as COP21) that forfeits the national sovereignty of the United States in the name of so-called man-made global warming (see Paris Climate Treaty Signed by Obama NOT Binding on U.S.). Obama and nearly every country of the world signed the climate agreement/treaty committing the nations of the world to lower carbon dioxide emissions. You know, CO2–the stuff you exhale with every breath you take. Yeah, that stuff is supposedly warming up ole Mom Earth, catastrophically. Except it’s not. There is no empirical data that shows the earth is heating up–only doctored computer models. Satellite data shows the opposite–the average temp of Mom Earth is not heating up and hasn’t been for 20 years. Look it up. But facts aren’t what the Paris agreement was about. We can tell you what the agreement is about in two simple points: (1) transferring massive amounts of hard-earned wealth away from America to other countries, via a carbon tax; (2) banning the use of all fossil energy. On the campaign trail Donald Trump expressed the desire to opt out of the agreement (an agreement never ratified by the Senate, meaning it’s not binding). But now he’s equivocating. One reason is his Secretary of State, Rex Tillerson, former CEO of Exxon and supporter of the agreement. Again we ask, why in the world would Tillerson and others actually support this disastrous treaty?…
    Read More “Why does Big Oil Continue to Support Horrible Paris CO2 Treaty?”

  • Marcellus & Utica Shale Story Links: Thu, May 18, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Dead-end NY can’t create any jobs Upstate following frack ban; big air quality improvements coming to OH, thx to fracking; oil production in Utica shows modest increase; Air Products may shut down Luzerne County LNG manufacturing plant; Bob Huggins to highlight Shale Crescent USA event; WV nixes enviro group’s appeal of Mountain Valley pipe permit; Virginia gov targets power plant emissions; change at the top of Halliburton; former FERC attorneys say it’s time to drop NAVs; US shale oil will grow, even at $40/barrel; Trinidad production drops 8% in March; and more! Read More “Marcellus & Utica Shale Story Links: Thu, May 18, 2017”

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    Mountaineer NGL Storage Facility in OH Under Construction

    We spotted a story that makes reference to an ethane storage facility currently under construction in Monroe County, OH. That got our attention. The story said that Energy Storage Ventures has plans to begin storing ethane in the underground facility by the end of 2018. Who’s Energy Storage Ventures? We went looking and discovered it’s another name for the Mountaineer NGL Storage project that we’ve been covering. In April 2016, Mountaineer NGL Storage (aka Energy Storage Ventures) announced an open season for a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see New Company Announces Open Season for NGL Storage in Ohio Utica). The open season was a success, and in October 2016, Mountaineer completed a test well in the salt formation (see Mountaineer NGL Storage Test in OH a Success, Construction in 2017). But the last word we had on the project, in April of this year, said that construction had not yet begun due to problems with red tape (see Mountaineer NGL Storage in Monroe County, OH Caught in Red Tape). Yet this new story says, “contractors continue working to build the caverns required for storing up to 168 million gallons of ethane and other natural gas liquids more than one mile underground.” Which we take to mean there is active work going on at the site. That, for us, is new news–that the Mountaineer NGL Storage facility is *currently* under construction…
    Read More “Mountaineer NGL Storage Facility in OH Under Construction”

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    Thai Company Banpu Invests in Another 34 Marcellus Wells in NEPA

    One year ago, Banpu Pcl, Thailand’s largest coal producer, invested $112 million to purchase Range Resources’ Marcellus non-operated JV operations in Bradford County, PA (see Thai Company Buys Out Range Resources’ JV in NEPA for $112M). The “Chaffee Corners Joint Exploration Agreement” gave Banpu an ownership share in 62 producing wells and another 14 wells waiting on completion, and a share in 170+ more drilling locations. Talisman is the operator of the wells and the company that does the drilling (Banpu is just an investor). Banpu liked it so much, they did it again in January of this year (see Thai Company Banpu Makes 2nd Investment in Northeast Marcellus). The January deal gave Banpu a 10.24% stake in 10,000 acres of Marcellus leases, once again in northeastern PA, for $63 million. Chief Oil & Gas is the driller on the acreage in the second deal. Then in March, Banpu signed an agreement to invest $16 million into a venture with Tug Hill Marcellus (see Thai Company Banpu Invests Another $16M in PA Marcellus Wells). It seems that Banpu can’t get enough of the Marcellus in northeastern PA. The company just announced a fourth deal to invest in more NEPA acreage and wells. How many wells? What county is the new deal located in? And which driller is the operator of that acreage? We give you the details you won’t find elsewhere…
    Read More “Thai Company Banpu Invests in Another 34 Marcellus Wells in NEPA”

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    Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill

    While reviewing documents filed with the Federal Energy Regulatory Commission (FERC) for the Energy Transfer Rover pipeline project, we came across a letter filed by ET yesterday. The letter (full copy below) addresses the recent “inadvertent return” (i.e. major leak) of 2 million gallons of drilling mud in a swamp next to the Tuscarawas River (Stark County, OH). Following that leak and other leaks, FERC told Rover to stop any new underground drilling not already under way (see FERC Slaps Rover Pipeline with Stop Drilling Order). In yesterday’s letter, Rover says they have hired a new firm, GeoEngineers, to review all of the plans and data around drilling horizontally underground (horizontal directional drilling, or HDD) in locations where you can’t dig a trench. Rover is also posting GeoEngineers personnel at each HDD location, to help supervise HDD activities. But wait, there’s more! Rover is hiring extra watchers at each HDD location to watch for the first signs of, the first bubble, that indicate drilling mud isn’t staying underground where it belongs. Given all of what Rover is doing (there is more, read it in the letter), Rover then goes on to ask FERC, can Rover please please please drill in two spots where all of the equipment is ready to go? Those spots are Captina Creek in Belmont County, OH, where Rover wants to complete the Clarington lateral, and Middle Island Creek in Tyler County, WV, where Rover wants to complete the Sherwood lateral. Rover argues it will do more harm to the environment to pull down erosion control devices and move equipment out and back in, than if they just went ahead and did the work now. Will FERC agree?…
    Read More “Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill”

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    Private Historic Group Wants Rover to Pay $1.5M/Yr, Rover Says No

    We’re not sure we have the full, 100% story, but we have enough of it to have some righteous anger. In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). The house was not yet on the list of Historic Places, but was on a list of properties under consideration. FERC says Rover should have reported their decision to demolish the house, which landed Rover in hot water with FERC and the Advisory Council on Historic Preservation. How do you fix problems like this one? You pay–of course. Rover agreed to pay out $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office. A total of $1 million is for preservation work in the 18 counties crossed by the pipeline. The rest of the money will be used for projects across the state” (see Rover Pipeline Paying $2.3M for Knocking Down Historic OH House). So Rover didn’t pay a fine. Instead, they paid hush money. A shakedown, with the money going to a PRIVATE nonprofit organization. Yes, the Ohio History Connection Foundation is a private non-profit organization. And they got $2.3 million at the direction of the federal government. Now the history buffs want more. To be precise, they say Rover owes them $1.5 million per year for the next five years. Why? Apparently it’s not related to knocking down the “historic” house, but is some sort of agreement that Rover made with them to cover whatever other damage is done to historic locations during construction of the pipeline. We call it an elaborate shakedown. “Those pipeline companies have more money than God. Let’s grab some of it.” Ohio History Connection says Rover has missed its first payment, so they went whining to FERC. Rover is disputing Ohio History Connection’s claim that it owes them one red cent more… Read More “Private Historic Group Wants Rover to Pay $1.5M/Yr, Rover Says No”

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    Youngstown Antis Seek to Legalize Anarchy with 7th CELDF Petition

    A nation without laws is not a nation. Virulent anti-drillers in Youngstown, OH have now tried six times to pass a so-called Community Bill of Rights ballot measure–and have failed all six times, the most recent last November (see Youngstown, OH Frack Ban Ballot Measure Defeated for 6th Time). The local yokels are pawns, useful idiots, for an ultra-radical group from Pennsylvania called the Community Environmental Legal Defense Fund (CELDF). The CELDF is behind dozens of such efforts, none of which has been successful. The CELDF is also behind a number of bizarre lawsuits–like the one claiming that an ecosystem is a “person” with rights (see CELDF Loses Case to Represent Ecosystem – Turtles Disappointed). The CELDF has the local anti yokels in Youngstown amped up again–circulating a seventh petition for a ballot measure. But this time is different. In addition to the usual no fracking, no pipelines pablum, this petition has language that makes it legal to break the law. You read that right. If the ballot measure were to pass, and if an anti got it into her head to sit in front of a bulldozer that was about to clear ground for a wellpad, or dig a trench for a pipeline, the police would not be able to arrest and remove the anti. It would be within her rights to sit there and block legal, legitimate activity–all in the name of saving the planet. Apparently the brains of the locals are so fried, they don’t realize that if everyone just decides which laws they want to obey or disobey, you soon descend into Lord of the Flies. Mob rule. Anarchy…
    Read More “Youngstown Antis Seek to Legalize Anarchy with 7th CELDF Petition”

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    EIA Drilling Report: More Record Production Coming in June

    On Monday, MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Get ready to break new records–again! In June, we will once again hit the highest output of shale gas we’ve seen, ever. Output in the Marcellus/Utica region is set to once again reach new highs. In the Marcellus, output will pass 19 billion cubic feet per day (Bcf/d). Astonishing! In the Utica, output will hit 4.4 Bcf/d. Shale oil output across all seven major plays is set to hit 5.4 million barrels per day, up 122,000 barrels in just one month. Perhaps the biggest eye opener is that the shale play with the biggest uptick in natural gas production will be–the Permian. An oil play! When you drill like crazy for more oil, you also get natural gas out of the hole along with the oil. It’s called “associated gas.” And because the Permian (in Texas) is red hot with drilling, it makes sense natural gas production will spike up too. Buckle up and get ready for another wild ride in the month of June…
    Read More “EIA Drilling Report: More Record Production Coming in June”

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    Dominion Contacting First Responders re Atlantic Coast Pipeline

    Atlantic Coast Pipeline (ACP), Dominion Energy’s $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, has begun an outreach program with Local Emergency Planning Committees in several West Virginia counties. The pipeline is not yet fully approved by the Federal Energy Regulatory Commission (FERC). Dominion expects that approval sometime this fall (see Dominion CEO Says Atlantic Coast Pipeline is Full Speed Ahead). However, Dominion and ACP would not be wasting their time and the time of local first responders with meetings, if they didn’t believe the project is already in the bag. So we take these meetings as a good sign that ACP is on the way… Read More “Dominion Contacting First Responders re Atlantic Coast Pipeline”

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    Now We Know: Lib Dems Wanted FERC Nominees for Grandstanding

    Things that don’t make sense, don’t make sense for a reason. You have to keep digging until you get to the truth. We’re referring to our previous posts where we scratched our heads over calls by both House and Senate Democrats (very liberal, very anti-drilling) for President Trump to hurry up and nominate commissioners to the quorumless Federal Energy Regulatory Commission (see Anti-Drilling Democrats Ask Pres. Trump to Fill Up FERC and Senate Democrats Send Letter to Trump Requesting New FERC Members). We said at the time, this doesn’t make sense. If FERC is out of action and can’t approve new pipeline projects, that’s a good thing (for lib Dems who hate fossil fuels). So why would they want FERC back up and running? Now we know: They don’t really want it up and running. They simply wanted nominees so they could grandstand and try to stop the nominees they demanded in the first place, from actually getting confirmed. It’s sick. It’s sleazy. It’s the reason people find Washington, DC a disgusting swamp that needs to be drained–OF THEM. Now that Trump has nominated two extremely qualified people to be FERC commissioners (see Trump Nominates 2 New FERC Commissioners – Powelson & Chatterjee), the Dems are pledging to hold up the confirmation process… Read More “Now We Know: Lib Dems Wanted FERC Nominees for Grandstanding”