Law Firm Norton Rose Fulbright Closing Pittsburgh Marcellus Office
A couple of times we’ve highlighted the great work done by the Norton Rose Fulbright law firm, most recently just last month (see Updated List of Proposed Laws in PA-OH-WV Affecting Marcellus/Utica). Researchers at the law firm issue a quarterly legislative action update looking at bills and laws previously voted on, and new bills/laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia. Very impressive. So we were distressed to learn that Norton Rose Fulbright is closing its Marcellus/Utica office in Pittsburgh, with plans to cover the region from its other offices. It is a big firm, with more than 3800 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia. They opened their Pittsburgh office in 2011 with a eye on grabbing business from the PA Marcellus. We can only conclude that didn’t work out so well…
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Spitting and spouting about so-called renewables and nasty, evil, vile fossil fuels, the head of the extremist Natural Resources Defense Council is trash-talking the incoming Trump Administration even before it takes up residence in Washington. Typical. According to Rhea Suh, a Donald Trump presidency equals the end of a liveable earth. We invite Ms. Suh to relocated to Mars, or perhaps one of the moons of Jupiter. Here’s some of the insane ramblings from the NRDC earlier this week in declaring war on the Trump Administration…
The United States is already on the cusp of energy independence, thanks to the shale revolution. What does that mean? It means when you consider how much energy we produce and export, and how much we consume and import, at the end of the day, we are producing as much energy as we consume. But it gets complicated. We still import a lot of oil from the Middle East and elsewhere. We import (and export) oil via pipelines to Canada. We also still import natural gas. But at some point the U.S. will export more than it imports. That is, we won’t only produce as much as we consume, we’ll produce extra energy–and sell it abroad to other countries. We will become a “net exporter.” When will that happen? According our favorite government agency, the U.S. Energy Information Administration (EIA), it will happen in the next 10 years–or less. The EIA has just released its “Annual Energy Outlook 2017” (full copy below). In the report the number crunchers at EIA look at multiple scenarios and conclude that under most scenarios we are a net exporter by 2026, and in some of those scenarios, it happens even sooner. That would be the first time since 1953 that our country has exported more energy than it uses. Not surprisingly, LNG (liquefied natural gas) plays a critical role in our country becoming a net exporter. Here’s what the EIA said in releasing the 2017 annual report…
The American Petroleum Institute’s (API) president and CEO, Jack Gerard, delivered the keynote address at API’s Seventh Annual State of American Energy event in Washington, DC on Wednesday. At the same event the API released the “State of American Energy 2017” report (full copy below) highlighting the energy issues that will shape America’s economic and political news this year. Gerard says we have now fully debunked the insane ramblings of the environmental left in this country, proving that we can grow our energy use and our energy production, while at the same time creating a cleaner environment. According to the EIA, in the first six months of 2016, carbon emissions from electricity generation were at their lowest point in 25 years even as electricity demand rose–thanks to greater use of natural gas. Below are highlights of Gerard’s speech along with a copy of the newly released report…
We are speechless (and that doesn’t happen often). Get a load of this: “A new report from transparency watchdog group Open the Books documents an explosion in the number of federal agencies with gun-toting, badge-wielding law enforcement divisions. The report, called “The Militarization of America” [full copy below] details the astonishing scope of federal police power. There are now over 200,000 federal officers with arrest and firearm authority, in a whopping 67 different federal agencies….We all understand that the EPA is tasked with enforcing environmental laws. But does it really need a full-blown military-style police force? Congress granted the EPA police powers in 1988, but not with SWAT teams in mind. Even now, the agency says its Criminal Enforcement Program ‘enforces the nation’s laws by investigating cases, collecting evidence, conducting forensic analyses, and providing legal guidance to assist in the prosecution of criminal conduct that threatens people’s health and the environment.’ Well yes, but also by midnight raids with SWAT teams and attack dogs, confiscating private property, hauling people off to jail for accidentally spilling a barrel of oil, and other ‘enforcement’ horrors”…
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: NY’s renewable energy plan creating energy poor; Vallourec rebounds as rig counts rise; OH Utica rig count edges up; meet the group (that nobody knows) influencing Trump’s energy policies; court delays appeal over Obama fracking rule; Congressman says “swift action” coming to replace o&g methane rules; ExxonMobil’s new natgas deydrating tech; and more!
Rex Energy announced yesterday the company has cut a deal with Antero Resources to sell all of Rex’s “Warrior South Area” assets to Antero. Which may should like a big deal, but really isn’t. The assets sold include 4,100 net acres in perhaps the hottest part of the Ohio Utica Shale: Guernsey, Noble and Belmont counties. It also includes 14 Utica Shale wells. However, the wells are only producing 9 million cubic feet per day (MMcf/d) collectively. The sale price is $30 million–or $7,317 per acre. Rex says the acreage and wells are in a “non-core” area for the company. Rex, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), has had its share of financial challenges. In December the company was warned by the New York Stock Exchange that the per share price is too low and the stock is in danger of being delisted (see 
To say that it was a roller coaster ride for Williams in 2016 doesn’t even come close to reality. The company received no less than two takeover/merger attempts. Energy Transfer Equity’s (ETE) billionaire CEO Kelsy Warren propositioned Williams for over six months before going public with his overtures last year (see 
Ladies and gentleman: Start your drill bits! Yesterday Antero Resources, one of the biggest drillers in the Marcellus/Utica, released their road map for what lies ahead in 2017 for the company. Among the gems: The company plans to do a serious amount of drilling. They will have drilled 170 new wells, bringing them online, by the end of the year, with another 30 drilled but not completed. Antero will spend $1.3 billion to do it–with another $200 million spent on land deals. Daily production is forecast to average somewhere around 2.1 to 2.2 billion cubic feet (Bcf) per day, up 20-25% over production in 2016. Observation: Antero will spend about what it spent last year, but still goose production by nearly a quarter more than last year. Talented folks! Antero, as we’ve previously highlighted, has what we consider to be the best hedging in the business. They announced two-thirds of their production for 2017 is hedged at $3.68/Mcf (thousand cubic feet). In fact, all of their production for this year is hedged, at various price points. The spot price of natural gas today, as this was being written, was $3.27/Mcf. Here is Antero’s success road map for the next 365 days…
In 2012, the Pennsylvania Dept. of Environmental Protection (DEP) launched an “expedited” review process for erosion and sediment control general permits that it grants when drillers or pipeline companies plan to push dirt around on more than 5 acres at a time. Which means every pipeline built and every shale well pad constructed. The expedited review process shortened the time to get a permit down to as little as 14 days–provided the paperwork was filled out correctly. The DEP conducted an internal review and found that 59% of the time they didn’t get the paperwork in a form they wanted, so they disqualified those applications. Now the DEP is revising its rules for expedited review, meaning they’re pretty much doing away with it. Welcome back to long delays in getting permits to push dirt around. This action appears to be a response to stinging criticism from the PA legislature that permits, which are supposed to be issued in 14 days, are taking over 100 days–a charge leveled by PA Sen. Camera Bartolotta who is introducing legislation to put a burr under the DEP’s saddle. So the DEP is saying fine, we’ll just change it back to the way it used to be. You can now expect long permit delays from the outset. Your state government at work, serving the people…
As we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Month by month Paterson’s rig count has declined over the past year plus–until June (see 
SWEPI, formerly known as Shell Western E&P Inc., is the North American land-based drilling arm of giant Royal Dutch Shell. SWEPI has an active drilling program in the Marcellus/Utica region. Some of that active program has traditionally been in shallow, or conventional (not shale) drilling. Using a broker, SWEPI has put up a mammoth 189,000 acres of its conventional/shallow leases and wells for sale by auction. The leases and some 1,500 active oil and gas wells are located in Forest, Elk, McKean, and Warren counties in Pennsylvania, and Cattaraugus County in New York. The sale includes shallow rights (not shale rights) only. SWEPI claims there are another 10,000 potential well locations. Here’s the details…
American Water Management Services (AWMS) owns a wastewater injection well in Trumbull County that supposedly caused a low-level earthquake (that nobody could feel) in 2014. Two wells located at the site, both operated by AWMS, were “temporarily” shut down by the Ohio Dept. of Natural Resources following the quake (see 
In August of 2016 the Federal Energy Regulatory Commission (FERC) finally granted a certificate to Dominion to build its Leidy South Project, a $210 million to build and/or upgrade six compressor stations along the DTI pipeline system in Pennsylvania, Maryland and Virginia (see 
Magnum Hunter Resources Corporation (MHR), a driller 100% focused on the Marcellus/Utica emerged from bankruptcy last May, less than five months after filing (see 
In 2014 we brought you the interesting story of strippers in the Marcellus–stripper wells, that is (see