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Marcellus Drilling News
  • Best of the Rest

    Marcellus & Utica Shale Story Links: Fri, Dec 16, 2016

    December 16, 2016December 16, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Trump cheered in PA ‘thank you’ tour; supply chain co switches from coal to gas; estimating the econ benefits of the shale revolution; moving Midwest motor fuels East; exporting more LNG in the national interest; soil bacteria loves to eat methane; Chesapeake drills deeper for profit; and more!
    Read More “Marcellus & Utica Shale Story Links: Fri, Dec 16, 2016”

  • Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Regulation | Shell

    Potter Twp Declines to Approve Permits for Shell Cracker, For Now

    December 15, 2016December 15, 2016

    The Potter Township Board of Supervisors convened a public hearing on Tuesday afternoon at 3 pm that ended up going until 1 am Wednesday. The intent was to approve Shell’s request for permits to begin construction on the multi-billion dollar ethane cracker plant. That didn’t happen. Instead, the supervisors decided to hold another hearing Wednesday night. They did, and that hearing went for over an hour, in closed-door session. At the conclusion, the supervisors made a couple of requests from Shell, which Shell agreed to. However, the supervisors are still not ready to approve the permits and instead asked for more paperwork to be filed–by both Shell and the radical, anti-fossil fuel Big Green group Clean Air Council (from Philadelphia). It seems the antis are attempting to stop this project cold–which should have the good citizens of Beaver County (indeed the entire northeast) outraged. At any rate, we’re sure the permits will be forthcoming–but now it won’t happen until sometime in January…
    Read More “Potter Twp Declines to Approve Permits for Shell Cracker, For Now”

  • Energy Companies | Industrywide Issues | Litigation | Stone Energy

    Stone Energy Files for Bankruptcy, Largest Shareholder Opposes

    December 15, 2016December 15, 2016

    Stone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has (or rather had) a presence in the Marcellus/Utica Shale with 90,000 acres of leases. In October Stone announced (a) it is selling its Marcellus/Utica assets to Tug Hill for $350 million, and (b) the company is preparing to file for bankruptcy (see Stone Energy Enters Bankruptcy, Sells Marc/Utica Assets for $350M). Stone needs the bankruptcy court’s permission to sell the acreage. However, Stone’s bankruptcy plans are facing a challenge from it’s biggest shareholder. Investor Thomas Satterfield, who now owns 9.9% of the company’s stock, doesn’t want to see that stock turned into toilet paper by handing the keys over to debtholders, as is the typical route E&Ps have taken with bankruptcy filings over the past year or so (see Stone Energy’s Largest Shareholder Opposes Current Bankruptcy Plan). Yesterday the company announced it is pushing ahead with its plan to file for bankruptcy including seeking permission to sell its Marcellus/Utica assets, over the objections of Satterfield who now says he’ll see the company in court in a bid to stop the current filing…
    Read More “Stone Energy Files for Bankruptcy, Largest Shareholder Opposes”

  • Industrywide Issues | Supply Chain

    Oilfield Services Co. Keane Group Floats $288M IPO

    December 15, 2016December 15, 2016

    Keane Group is a Texas-based oilfield services company that provides fracking, wireline and top-hole air drilling services to oil and gas companies in the Marcellus/Utica as well as several other major basins. In January, Keane announced they were buying out Canadian-based Trican Well Service for $247 million (see Oilfield Serv. Co. Keane Group Buys Trican Well Service for $247M). The expansion tripled Keane’s fracking capacity and gave it access to proprietary new technology. Looks like the buyout, and Keane’s hard work, continues to bear fruit. Yesterday the privately-held company announced it will go public with an initial public offering (IPO) of stock. They hope to raise $287.5 million with the IPO. And get this–the stock will be traded on the New York Stock Exchange under the ticker symbol FRAC. Love it!…
    Read More “Oilfield Services Co. Keane Group Floats $288M IPO”

  • Industrywide Issues | Pennsylvania | Research | Statewide PA

    Marcellus Gas Part of “Low Carbon” Research Project at Penn State

    December 15, 2016December 15, 2016

    The Pennsylvania Dept. of Environmental Protection is using an unspecified amount of grant money from the U.S. Department of Energy to fund a Penn State pilot project that combines a natural gas-fired electric plant with solar cell and battery energy storage systems in a hybrid system to power several office buildings, a sewage pump station and several Penn State training center facilities. The hope is to prove developing “microgrids” like this one can lead to a “low-carbon footprint.” Hey, at least they wised up and are using Marcellus natural gas (a hated fossil fuel) as part of their “low carbon” research. Here’s the details on the latest big money project, using taxpayer dollars, under way at Penn State…
    Read More “Marcellus Gas Part of “Low Carbon” Research Project at Penn State”

  • Dominion Energy | Electrical Generation | Energy Services | Industrywide Issues | Statewide VA | Virginia

    VA Marcellus-Fed Electric Plant Snags “Project of the Year” Award

    December 15, 2016December 15, 2016
    Brunswick County Power Station – click for larger image

    As we reported in April, the newest member of Dominion’s power generation fleet, the 1,358 megawatt, natural gas-fired Brunswick Power Station (Brunswick County, Virginia) began producing electricity for customers on Monday, April 25 (see Dominion Brunswick NatGas-Fired Plant Begins Electric Generation). The station produces enough electricity to power 325,000 homes. The power plant will eventually be fed by Marcellus Shale gas coming from Dominion’s own $5 billion, 550-mile Atlantic Coast Pipeline. But right now it uses at least some Marcellus/Utica gas coming from the Williams Transco pipeline. There is a power generation conference going on in Orlando, FL right now (wish we were there! brutally cold today in Upstate NY). At the conference, awards have been given out by Power Engineering magazine. The Brunswick Power Station has won two prestigious awards: “Best Overall Generation Project of the Year,” and “Best Gas-Fired Project of the Year.” Congrats to Dominion!…
    Read More “VA Marcellus-Fed Electric Plant Snags “Project of the Year” Award”

  • Energy Companies | Gulfport Energy

    Gulfport Energy Expands into SCOOP, New Stock & IOUs to Pay $1.85B

    December 15, 2016December 16, 2016

    Gulfport Energy is an Oklahoma City-based independent oil and natural gas exploration and production company (“driller”) with its main operations in the Utica Shale of eastern Ohio and along the Louisiana Gulf Coast. Gulfport is considered one of the Top 5 Utica drillers (see Which 5 Drillers Dominate in the Utica Shale?). Just a week ago the company purchased another 12,600 acres in the Ohio Utica (see Gulfport Picks Up 12,600 Utica Acres in Monroe County, OH for $87M). The deal making is far from over for Gulfport. A major announcement yesterday from the company: They are entering a third play, the SCOOP (in Oklahoma) by purchasing 85,000 acres of leases with 48 horizontal wells producing 183 million cubic feet equivalent per day of natural gas. In order to help pay for it, Gulfport also announced new stock and new debt offerings of senior notes (IOUs), hoping to raise the $1.85 billion they’re paying for the SCOOP assets. No, this post has nothing directly to do with the Marcellus/Utica–except (a) we jealously wish they were investing that money here and not there, and (b) it’s yet another sign that we’ve turned the corner and drilling everywhere is once again beginning to pick up…
    Read More “Gulfport Energy Expands into SCOOP, New Stock & IOUs to Pay $1.85B”

  • Industrywide Issues | Research | Reserves (Proved and Unproved)

    EIA: US Oil & NatGas Proved Reserves Take a Dip in 2015

    December 15, 2016December 15, 2016

    Our favorite government agency, the U.S. Energy Information Administration (EIA), yesterday released their annual report of proved oil and natural gas reserves in the United States for 2015. The report, titled “U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2015” (full copy embedded below) shows proved reserves for natural gas dropped by 64.5 trillion cubic feet (Tcf), or 16.6%. U.S. crude oil and lease condensate proved reserves also decreased–from 39.9 billion barrels to 35.2 billion barrels (down 11.8%). The drop in proved reserves for gas and oil comes after last year’s record high proved reserves (see EIA: Shale Rockets U.S. Proved O&G Reserves to New Records). Is this a big deal? What the heck are “proved” reserves, anyway? Glad you asked…
    Read More “EIA: US Oil & NatGas Proved Reserves Take a Dip in 2015”

  • Energy Companies | Exxon Mobil

    T-Rex Retires as Chair/CEO from Exxon, Darren Woods Replaces Him

    December 15, 2016December 15, 2016
    Darren Woods – New Exxon CEO

    As we reported yesterday, President-Elect Trump has nominated Exxon Mobil CEO and Chairman of the Board, Rex Tillerson (T-Rex) to become the next Secretary of State (see Trumps Picks Fossil Fuel Advocates for Sec State & Dept of Energy). It was rumored that Tillerson was planning on retiring next year anyway. Trumps nomination has sped up that process. Exxon is the largest publicly traded oil company in the U.S. and the world (although there are four other state-owned, non-public companies that are bigger, revenue-wise, see Wikipedia). Exxon’s shareholders, while honored that Tillerson has been tapped for Sec State, are skittish and want to know what the plan is moving forward. That plan is now clear: Exxon yesterday announced that Darren Woods, the youthful (51 years old) current president of the company, will be elevated as Chairman of the board and CEO, to replace Tillerson…
    Read More “T-Rex Retires as Chair/CEO from Exxon, Darren Woods Replaces Him”

  • Industrywide Issues | Jobs | Research

    Job Ads for Oil & Gas Workers Up 50% Since August

    December 15, 2016December 15, 2016

    Ever use the job site called Indeed? The site aggregates job ads from everywhere it can find them from around the web–into one very useful search engine. Think of it as Google for job listings. Indeed has its own blog and employs its own economists to analyze trends. Today the site released data that shows oil and gas industry job postings have spiked up 50% since a low in August, which is a good sign that the industry is, indeed (pun intended) turning around. Here’s what the Indeed economist has to say…
    Read More “Job Ads for Oil & Gas Workers Up 50% Since August”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Dec 15, 2016

    December 15, 2016December 15, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: CONSOL focused on building Utica core; Wayne Natl Forest lease sales net $1.7M for taxpayers; proposed PA methane regs go way beyond fed standards; Mass. AG panicked over Exxon CEO becoming Sec State; protesters show up at Atlantic Coast Pipe expo–nobody notices; big non-profits corrupting America; improved drilling & completion lowers breakeven price; natgas storage whipsaws prices; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Dec 15, 2016”

  • Hydraulic Fracturing | Industrywide Issues | Research

    Obama EPA One Last Swipe at Fossil Fuels, Changes Fracking Report

    December 14, 2016December 14, 2016

    We now know that it’s possible to bribe people who work for the federal Environmental Protection Agency. That is, big money donors DO have a say in how “science” is presented by the agency. The one great, huge, towering problem that anti-drillers have is that there is no scientific evidence that supports their wild claims that fracking contaminates water–which is their favorite lie to spread. When the Environmental Protection Agency arrived at the same conclusion–fracking doesn’t pollute water–after four years of studying it, that really took the wind out of the sails of rabid fossil fuel haters (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). The EPA reviewed research from over 950 studies and even conducted nine of their own primary studies. Conclusion: fracking doesn’t pollute water supplies. What’s a good fossil fuel hater to do? Pressure the EPA to change the outcome of their study. And pressure they did. So much so that in the final version of the report just released (full copy below), the EPA slightly modified the language. In the original draft report, the language says, “hydraulic fracturing activities have not led to widespread, systemic impacts to drinking water resources.” The final report deletes that statement and provides language that says “under some circumstances” the fracking process can harm local water supplies, but because there are “gaps” in the data, the EPA can’t say how often or how much such impacts happen. In other words, all of the science is still the same. There is no evidence that fracking hurts water. The EPA simply gave their Big Green friends some headlines to play with for a few days. Perhaps it’s no coincidence the report is 666 pages long…
    Read More “Obama EPA One Last Swipe at Fossil Fuels, Changes Fracking Report”

  • Lease & Royalty Payments | Ohio | Statewide OH

    BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest

    December 14, 2016December 14, 2016

    As we mentioned in a story yesterday, the Bureau of Land Management proceeded with an online auction for BLM-controlled land in Ohio’s Wayne National Forest (see 10-Yr Wait is Over, BLM Auctions Wayne Natl Forest Leases Today). The BLM plan was to auction 33 parcels totaling 1,600 acres. As it turns out, only 17 parcels totally 719 acres actually got auctioned. At the last minute the BLM withdrew 881 acres (16 parcels) because there are remaining issues with ownership title of the mineral rights. Those other parcels may later be offered via auction, if they get everything squared away. The 719 acres was all leased by noon and brought bids ranging from $2,000 to $5,000 per acre. Let the fracking begin!…
    Read More “BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest”

  • Anti-Drilling/Fossil Fuel | Crime | Energy Services | Huntingdon County (PA) | Industrywide Issues | Pennsylvania | Pipelines | Sunoco Logistics

    Charges Dismissed Against Tree Sitting Anti in Huntingdon County

    December 14, 2016December 14, 2016

    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 order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline). It ultimately didn’t matter, because Sunoco came back and cut down the few trees they need to cut anyway (see Sunoco Tricks Radicalized Protester – Returns and Cuts More Trees). Eventually law enforcement got around to arresting the daughter, and the mom (who also trespassed during tree clearing). Law enforcement also arrested a serial criminal trespasser/anti who aided and radicalized them. Unfortunately, in a miscarriage of justice, the charges against all three have been dropped…
    Read More “Charges Dismissed Against Tree Sitting Anti in Huntingdon County”

  • Energy Services | Ohio | Rockies Express Pipeline | Statewide OH | Tallgrass Energy

    Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf

    December 14, 2016December 14, 2016

    The Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, last year reversed the flow for a large and important section of the pipeline. On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. REX has been hard at work on plans to expand capacity even more by beefing up compressor stations along portions of the pipeline. REX filed a plan with FERC to add another 800 million cubic feet per day (MMcf/d) of capacity along the same portion of the reversed pipeline. In late November, the Federal Energy Regulatory Commission (FERC) gave REX the go-ahead to start additional compressors added at three locations along the route (see REX Pipe Begins Flowing Extra 800 MMcf/d Marcellus/Utica Gas West). NGI is reporting that the first 200 MMcf of the additional 800 MMcf is now flowing along the pipeline…
    Read More “Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf”

  • Chautauqua County | Electrical Generation | Energy Services | Industrywide Issues | New York | NRG Energy

    Coal-to-Gas Plant Conversion in Western NY Back from the Dead

    December 14, 2016December 14, 2016
    NRG Dunkirk Coal Plant

    A coal-fired electric generating plant near Buffalo (in Dunkirk) was slated to be converted to burn natural gas–a win/win for everyone (see Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas). Radical environmentalists like the Sierra Club opposed it, but that’s to be expected. Crazy people do crazy things. Everything seemed to be fine until a competitor hauled NRG, the plant’s owner, into court to dispute the change from coal to natgas. They objected to the ratepayers kicking in $150 million for the project. NRG said fighting the case in court will take years, so they just closed down the plant instead (see Dunkirk, NY Coal-Fired Electric Plant Closing in January 2016). It was an economic nuclear bomb for that community. The Town of Dunkirk gets 40% of its tax revenue from the plant. NY “generously” shucked out $5.5 million so Dunkirk wouldn’t collapse economically. But doing that year after year will get old quick. Other communities can rightly demand state help too. But what’s this? The competitor who objected to converting the old coal plant to natgas (with ratepayer assistance) has dropped their objection, and NRG says the project is back on. Great news! It’s great for the people of western NY, great for Dunkirk’s taxpayers, and great for the Marcellus/Utica industry that will provide the gas…
    Read More “Coal-to-Gas Plant Conversion in Western NY Back from the Dead”

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