PDC Energy 2Q16: Utica Program Active Again, Neff Well Online
PDC Energy, a driller in the Wattenberg Field in Colorado and the Utica in Ohio, paused their Utica drilling program in 2015 (see PDC Energy Pushes Pause Button on OH Utica Drilling for 2015). In December the company announced they would restart Utica drilling in 2016 with plans to drill five wells (see PDC Energy to Restart OH Drilling in 2016, Drilling 5 Utica Wells). Last week PDC released their second quarter 2016 update. There are a few mentions of the Utica in the update. It appears the Utica program is once again up and running. In fact, one of the Utica wells they’ve drilled, the PDC “Neff” well, has come online earlier than expected and began producing in 2Q16…
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The Center for Sustainable Shale Development (CSSD) has fought stiff headwinds from the beginning. The organization was founded by a group of Pennsylvania shale industry people and environmentalists reaching across the isle to forge strict new standards both sides can live with. Environmental leftists, like Mamma Teresa Heinz Kerry and her Heniz Endowments, pulled support and have actively worked against the CSSD (see
With the low low price of natural gas and oil currently in place–and not letting up any time soon–the frenzy of shale drilling has slowed. So fossil fuel haters have turned their focus from fracking and stopping it, to pipelines and stopping them. Antis understand that pipelines are critical to getting natural gas to market–and without pipelines drilling will stop. So money and time and effort is being poured into the effort to stop pipeline projects. Enough! The Consumer Energy Alliance (CEA), a national consumer advocacy group, has just launched a national campaign called “Pipelines for America” to counter the lies and smears coming from fossil fuel haters. The campaign is aimed at educating American consumers about the vital importance of our pipeline infrastructure–and that more pipelines are needed to keep energy prices low AND to protect the environment. Here’s the CEA announcement of this important new initiative…
Black & Veatch, a ginormous engineering, consulting and construction company, recently released their “2016 Strategic Directions: Electric Industry Report” (full copy below). The report captures Black & Veatch’s global engineering and thought leadership to examine how distributed electric generation, the low price of natural gas and modern customer information systems represent growth opportunities for the electric industry–even as security concerns are on the rise and legacy power generation sources (i.e. coal powered plants) are fading away, being replaced by new natgas technology. One trend MDN editor Jim Willis did not foresee when he started writing about the Marcellus industry back in January 2009 was the rise of natgas-fired electric generating plants–and the critically important role they would play in the Marcellus/Utica region. This B&V report provides useful insights into how natgas and electric generation are increasing “joined at the hip”…
Pennsylvania residents: It’s time to (once again) show your support for the Atlantic Sunrise Pipeline project, a $3 billion, 198-mile project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. It is a much-needed pipeline to move more Marcellus gas south, to new markets. In the past MDN has asked you to sign letters going to the Federal Energy Regulatory Commission (FERC) and to the PA Dept. of Environmental Protection (DEP). And you, our dear readers, have been the most responsive audience to get behind the effort to support this project. Thank you! We’re coming to you again with a new request. 
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Utica rigs drop by 2; PA AG Kane resigns; DEP holds Mariner East 2 hearing in Harrisburg; Dakota pipeline reveals split in Democrat Party; big oil tries to frack again; DOE Sec. Moniz loves fracking – good for the environment; LNG exports impacting US natgas supplies; and more!
We’ve sat through our fair share of public hearings and open houses for pipelines–from Federal Energy Regulatory Commission (FERC) hearings to state agency hearings to open houses sponsored by midstream companies (see
Last December Pennsylvania’s felony-indicted Attorney General, Kathleen Kane, brought a lawsuit against Chesapeake Energy, Anadarko and Williams accusing them of, among other things, royalty fraud (see 
All the way back in February MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see
Yesterday Chesapeake Energy, the secon largest natural gas producer in the United States (and the largest Marcellus producer, by far) issued three press releases. The first release said the company is working to obtain a five-year bank loan for a staggering $1 billion. The second two releases outlined what they will do with that money: pay off older IOUs. We also spotted commentary on the company’s $1B plan. One analyst predicts Chesapeake is heading for a pre-packaged bankruptcy, similar to what other o&g companies have done, and this massive loan/debt repayment is proof. Another analyst says Chessy CEO Doug Lawler is brilliant and that this move will strengthen Chessy’s stock in the long-term and make the company more solvent. Which one is right? They both can’t be right…
Yesterday 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. The EIA projects natural gas production cumulatively across all shale plays will once again fall in September–the seventh consecutive month it will have fallen. However, as was the case in last month’s report, the Utica stands alone and against the trend by showing an increase in production month over month. Last month the EIA predicted the Utica would increase production by 5 million cubic feet per day, or MMcf/d (see
The New York Stock Exchange (NYSE) has certain minimum standards if a company wants to continue trading stocks on the exchange: The company’s stock price must be trading for at least $1 per share, and the company’s market capitalization must be at least $50 million. Market cap is pretty easy to calculate: it’s the number of outstanding shares times the per-share price. If you have 50 million shares of stock and the price is trading for $1/share, you’re there. You meet the NYSE’s requirements. Various companies with operations in the Marcellus/Utica have fallen short and have been warned by the NYSE that unless they get their act together, they would be de-listed. Some turned it around (see
The big news in the midstream world over the past year was the attempted merger/takeover of Williams by Energy Transfer Equity. That deal finally fell apart in June (see