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Marcellus Drilling News
  • CNX Resources | CONSOL Energy | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania | Sand/Proppant

    Ceramic Beads Used to Drill CONSOL’s Monster PA Utica Well

    February 4, 2016February 4, 2016

    On Monday MDN told you about CONSOL Energy’s newest Utica Shale well, a gusher with initial production of an eye-popping 61.9 million cubic feet per day per day (see CONSOL 4Q15: All About that Utica, ‘Bout that Utica, No Marcellus). The well, the GH 9, was drilled not in Ohio, but in Greene County, PA. Drillers always wonder what techniques and technologies were used in drilling such a well. How long are the laterals? What kind of choke is used? How much sand per foot? Etc. We have one bit of detail to share. Apparently CONSOL is cool with CARBO Ceramics telling the world that the GH 9 used CARBO ceramic beads in place of sand as the proppant. Here’s the details from CARBO for exactly what was used as the proppant in the GH 9…
    Read More “Ceramic Beads Used to Drill CONSOL’s Monster PA Utica Well”

  • Energy Services | Industrywide Issues | Pipelines | Rockies Express Pipeline

    New Midwest Pipeline to Tap REX’s Marcellus/Utica Gas

    February 4, 2016February 4, 2016

    An exciting new market for Marcellus and Utica Shale gas may open up in the next 2-3 years in the Midwest. On a quarterly analyst conference call yesterday, Laclede Group (St. Louis-based natural gas utility) said they plan to build a 60-mile pipeline from St. Louis through southwest Illinois and connect to the Rockies Express (REX) and Panhandle Eastern Pipeline (see the map below). That will bring low-cost Marcellus and Utica Shale gas to the utility, not only for resale to gas customers, but also potentially for new natgas-powered electric plants planned to replace retiring coal-fired plants. The project will cost $170-$200 million and take 2-3 years to complete, according to Laclede CEO Suzanne Sitherwood…
    Read More “New Midwest Pipeline to Tap REX’s Marcellus/Utica Gas”

  • Energy Services | Industrywide Issues | Marathon Petroleum | MarkWest Energy | Processing Plants

    MarkWest Completed 3 Processing Plants in ’15, 5 More Coming in ’16

    February 4, 2016February 4, 2016

    MarkWest Energy, now a subsidiary of Marathon Petroleum, reported its fourth quarter and full year 2015 results yesterday. Net income–revenue less expenses–was down for MarkWest in 2015, but at least the company is still in the black. MarkWest had $178 million in net income for 2014, and $157 million for 2015. Not too shabby considering the disastrous results many other companies have had. Net income for 4Q15 for MarkWest was a paltry $18 million, vs. $37 million in 4Q14. Among the operational highlights for MarkWest for 2015: The company commenced operation of one processing plant and two fractionation facilities in the Marcellus shale, increasing their total processing capacity by 200 million cubic feet per day and fractionation capacity by 73,000 barrels per day. Looking ahead to 2016, MarkWest says they have 10 major processing and fractionation projects currently under construction on a just-in-time basis, with five of the 10 expected to be completed in 2016. They expect to spend $1-$1.5 billion on capital expenditures in 2016. Here’s the update…
    Read More “MarkWest Completed 3 Processing Plants in ’15, 5 More Coming in ’16”

  • Industrywide Issues | M&A | Supply Chain

    2 Pipe Companies with Offices in Marcellus/Utica Merging

    February 4, 2016February 4, 2016

    Two oil country tubular goods (OCTG) companies, both with operations in the Marcellus/Utica, have announced they will merge. Bourland and Leverich Supply and Pipeco Services will merge to become B&L Pipeco Services. Both companies are subsidiaries of the Japan-based Sumitomo Corporation–one of the world’s largest general trading companies, owning some 800 companies with 70,000 people working for them. What the heck are oil country tubular goods (OCTG)? Pipe and tube products used in drilling–including drill pipe, pipe casings and oil/gas pipes. It certainly makes sense for two different companies in the same business with the same parent to combine…
    Read More “2 Pipe Companies with Offices in Marcellus/Utica Merging”

  • Anti-Drilling/Fossil Fuel | Education | Industrywide Issues | New York | Tompkins County

    Cornell University Rejects Fossil Fuel Divestment Scam

    February 4, 2016February 4, 2016

    Cornell University is home to some real loons–like Tony Ingraffea and Robert Howarth, who try to claim using natural gas is worse for the environment than burning coal (see New Cornell University Study Says Shale Gas Extraction Worse for Global Warming Than Coal). Their research has been debunked numerous times (see Howarth, Ingraffea Shale Gas Study on Global Warming Discredited by U.S. Department of Energy). But then there are some real scientists and professors at Cornell, like Lawrence M. Cathles, Larry Brown, and Andrew Hunter (see New Cornell Study Says Coal is Not Cleaner than Natural Gas). Over the years we’ve despaired that Cornell would ever pull its collective head out of its…asphalt. But then none other than the Cornell Board of Trustees does us proud. There has been a great deal of pressure from spoiled, rich, white kids to force the universities they attend to divest from fossil fuels. This is true for Cornell as well. The Cornell Board of Trustees has just voted NOT to divest their considerable endowment funds from companies that produce fossil fuels. Kudos to Cornell!…
    Read More “Cornell University Rejects Fossil Fuel Divestment Scam”

  • Energy Services | Industrywide Issues | Pipelines | Spectra Energy

    Spectra Energy Provides Update on 3 NE Pipeline Projects

    February 4, 2016February 4, 2016

    Midstream giant Spectra Energy released their fourth quarter and full year 2015 update yesterday. It was a mixed bag. Overall Spectra showed strong performance for the year, but their natural gas liquids business combined with a weak Canadian dollar worked to drag down the company’s financials. Of primary interest for us is a section in the report updating us on several important pipeline projects for the Marcellus/Utica: NEXUS, AIM and Access Northeast…
    Read More “Spectra Energy Provides Update on 3 NE Pipeline Projects”

  • Industrywide Issues | Pennsylvania | Statewide PA | Taxation

    ND vs PA – How Adults Behave When Faced with Budget Crisis

    February 4, 2016February 4, 2016

    We’d like to draw a contrast between the way the Republican governor of North Dakota is handling a budget shortfall, and the way the Democrat governor of Pennsylvania is doing so. ND is, in many ways, like PA. It saw a huge ramp-up in economic activity with shale drilling in the Bakken Shale over the past 10 years. In ND the drilling is for oil–in PA it’s largely for natural gas. Both states were favorable to the shale drilling industry during its formative years. Both states had Republican governors (ND still does), until the idiots voters in PA voted Tom Corbett out and the in-over-his-head-and-stubborn-as-a-mule Tom Wolf in. Wolf thinks he’s the candy man, promising to steal money from the drilling industry and redistribute it to teachers unions. With commodity prices for oil and gas approaching 30-year lows, both states are in trouble with their budgets. In ND, Gov. Jack Dalrymple has ordered across the board cuts–forcing the state to live within its means. In PA, Tom Wolf has ordered…tax increases. Wolf and the Democrats NEVER cut anything. They NEVER live within their means. They have a voracious appetite for other people’s money so they can redistribute it in a scheme to hold on to political power. We thought you might like to see how adults, like those in ND, behave when faced with a budget crisis…
    Read More “ND vs PA – How Adults Behave When Faced with Budget Crisis”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Feb 4, 2016

    February 4, 2016February 4, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Green groups sue crude-by-rail operator in NY; New England power generators need more long-term gas contracts; 2 southeast pipelines get FERC approval; oil cos. cutting jobs right and left; why cheap oil could be bad for global economy; Russia’s dalliance with OPEC; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Feb 4, 2016”

  • Energy Companies | Industrywide Issues | Jobs | Lycoming County | Pennsylvania | Range Resources Corp | Washington County

    Range Resources Lays off 55, including 33 in PA

    February 3, 2016February 3, 2016

    cutting jobsYesterday Range Resources, the fourth largest driller in the Marcellus, announced the company is laying off 55 people companywide, with 31 of those positions located in Washington County, PA. Another 20 positions will be eliminated in Range’s home office located in Fort Worth, TX. Two of the jobs disappearing will be in Williamsport, PA, and the final two in Oklahoma. Range CEO Ray Walker used the same identical language he’s used twice before (lazy PR department?) in saying, “Low commodity prices have created a harsh reality that everyone in our industry is facing.” Indeed. The oil and gas industry is facing the toughest market it’s had in 30 years…
    Read More “Range Resources Lays off 55, including 33 in PA”

  • Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Fayette County | Industrywide Issues | Regulation | Wastewater | West Virginia

    Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells

    February 3, 2016February 3, 2016

    An update on a developing story we’ve covered the past several months. In January, three Democrat county commissioners from Fayette County, WV, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see WV County Officially Bans Injection Wells; Children Brainwashed). In fact, the ban is intentionally written so broadly it will also ban the operation of more than 500 vertical oil and gas wells in the county. The next day EQT sued to overturn the ban (see EQT Sues WV County that Banned Injection Wells, Seeks Injunction). Not long after, a U.S. District Court judge slapped an injunction on the county preventing them from enforcing the ban at least until a hearing scheduled for later this month (see Judge Stops WV County from Enforcing Injection Well Ban, For Now). The judge says EQT “is likely to succeed” in their lawsuit to overturn the ban.” The new news is an article where one of the chief architects of the ban, from the Mountain Party, admits the ban is intended to stop all oil and gas activity in the county. Another well operator in Fayette County, Cabot Oil & Gas, is now evaluating the ban and considering joining the lawsuit against the county. We sure hope Fayette County has a LOT of money squirreled away for legal fees and fines and penalties coming their way…
    Read More “Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells”

  • Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Research

    EPA Science Advisory Board Engaging in Fraud re Fracking Study

    February 3, 2016February 3, 2016

    Last December we asked a very important question: Will EPA Whore Itself to Antis and Change Fracking Water Study?. We now know the answer: Yes. The EPA is engaging in political prostitution, having sold itself to the Democrat kook left fringe base of the party. As we stated in December, 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, that 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). So now the EPA has set about to “fix” it by changing the results of their original findings. It’s like the experiments you used to do in chemistry lab in high school. You add 5 grams of chemical compound A to 10 grams of chemical compound B and the observable result should be that the new mixture/compound turns blue. But for whatever reason it turns orange. So on your lab paper you record the result as (yes) turning blue! You receive a “100” on your lab report. The EPA, using a small group of bought-and-paid-for “scientists” called the Science Advisory Board is reviewing the earlier finding that took the EPA four years of research to produce–so the EPA has cover to say “it’s blue” and not orange. That’s what is now happening. It’s called scientific fraud…
    Read More “EPA Science Advisory Board Engaging in Fraud re Fracking Study”

  • Electrical Generation | Industrywide Issues | Pipelines | Regulation

    NJ Pinelands Commission Chairman Replaced, Pipeline Back On?

    February 3, 2016November 9, 2016

    In January 2014 MDN brought you the story that due to incessant nagging from the NJ Sierra Club and the NJ League of [Liberal Democrat] Women Voters the Pinelands Commission, which oversees a stand of scrub pines in South Jersey, nixed a plan for a new natural gas pipeline to bring cheap, clean, abundant Marcellus Shale natural gas to South Jersey for use by residents and to feed an electric plant a local utility wants to convert from burning coal to natgas (see Sierra Club, LWV Chooses Coal over NatGas in South Jersey). In May 2014, NJ Gov. Chris Christie replaced two of the “no” voters on the Pinelands Commission, much to the consternation of the antis (see Marcellus Pipeline May Come to South Jersey After All). It was our hope that the plan to build the short 22-mile pipeline to bring natural gas to South Jersey would once again reactivate. So far it hasn’t. But perhaps there is new hope. Gov. Christie has just replaced the chairman of the Pinelands Commission with his own person in that position. The former chairman, who is a Republican (but caved to pressure and voted no on the pipeline) is not saying this is political payback, but he implies such is the case. We certainly hope it is…
    Read More “NJ Pinelands Commission Chairman Replaced, Pipeline Back On?”

  • Electrical Generation | Industrywide Issues

    Builder Abandons NJ NatGas-Fired Electric Plant after Opposition

    February 3, 2016February 3, 2016

    Just a few weeks ago we told you that a fifth new natural gas-fired electric plant was coming to New Jersey. The Amwell Energy Center in Hillsborough Township (Somerset County), NJ will produce 640 megawatts, cost $1 billion to build, and provide enough electricity to power 700,000 homes during peak summer months (see 5th Marcellus Gas-Powered Electric Plant Coming to New Jersey). Oh, and it will use lots of yummy, clean-burning Marcellus Shale gas from Pennsylvania to power it. Except the plan to build the new plant is now down the crapper. Genesis Power, the builder of the project, folded like a cheap suit once ninny nanny antis started to oppose the project…
    Read More “Builder Abandons NJ NatGas-Fired Electric Plant after Opposition”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Lackawanna County | Pennsylvania

    I Put a Spell on You: Marcellus Shale Hex Signs on Display

    February 3, 2016February 3, 2016

    This is one of those stories that’s fun to write. Fun because anti-drillers are so darned kooky. Some of the kookiest are those who pass themselves off as artists and attempt to convey the “horrors” of shale energy via their “art.” To be perfectly honest, we’re not sure if that’s what is going on here, but we suspect it is (an anti-drilling exhibition). There is a new art exhibit about to open at the AFA (Artists for Art) Galley in Scranton, PA titled ‘Marcellus Shale Hex Signs: A Modern Pastiche.’ A local artist has created “hex signs” based on Marcellus Shale drilling. Hex signs, for those who don’t know, are a form of Pennsylvania Dutch folk art, most often a circle with stars, animals and other shapes in it (see the history of hex signs here). While most people don’t ascribe superstition to hex signs, as in “I’ll put a hex on you,” some do. Most often hex signs are viewed as just pretty folk art decorations, painted on barns or houses, or made into yard signs. Our Scranton-area artist decided to marry themes from the Marcellus Shale with hex signs. After viewing one, if you can make heads or tails of it, you’re doing better than us…
    Read More “I Put a Spell on You: Marcellus Shale Hex Signs on Display”

  • Energy Companies | Gulfport Energy | Industrywide Issues | Ohio | Reserves (Proved and Unproved) | Statewide OH

    Gulfport 2015 Update: Reserves Up 83%, NatGas Production Triples

    February 3, 2016February 3, 2016

    Gulfport Energy, a Utica Shale driller quite active in Ohio until mid-2015 when they began to pull back, released their fourth quarter and full year 2015 operational update yesterday. But not their financials–that comes later this month. There is no mention of drilling activity in 4Q15 (nor any guidance for 2016). We previously brought you the rumor that Gulfport was pushing the pause button on their drilling activities, back in November (see Rumor: Gulfport Energy Suspends Some (All?) Ohio Utica Drilling). However, data from the forthcoming Volume 3 of the 2015 Marcellus and Utica Shale Databook, which covers permit activity for from September through December 2015, shows that Gulfport received 30 permits in Ohio during that period of time. So it appears they have continued their program, albeit scaled back. The 4Q15 and full year 2015 update shows Gulfport’s oil and gas reserves have grown 83% for 2015 over 2014, and natural gas production tripled year over year. Production/operations-wise, 2015 was a very good year for Gulfport. What’s left to be seen is whether it was a good year for Gulfport financially too. Here’s the operations update…
    Read More “Gulfport 2015 Update: Reserves Up 83%, NatGas Production Triples”

  • Energy Companies | Exxon Mobil

    ExxonMobil 2015: 50% Decline in Earnings, Thank God for Downstream

    February 3, 2016February 3, 2016

    Yesterday ExxonMobil released its fourth quarter and full year 2015 update. Not a pretty picture. ExxonMobil is the largest oil and gas company headquartered in the U.S. It’s also the owner of XTO Energy–which is one of the major drillers in the Marcellus/Utica Shale. Everyone watches Exxon closely as a barometer for other oil “majors” as they’re called. Yesterday Exxon reported a 58% drop in quarterly profit for 4Q15 (over 4Q14), and a 50% decline in 2015 earnings over 2014 earnings. Capital and exploration spending was $31.1 billion in 2015, down 19% from 2014. Exxon anticipates more cuts in spending for 2016, with capital and exploration spending of $23.2 billion, a decrease of 25% from 2015 levels. The clear sentiment in the statement below is, “Thank God for downstream” (gas stations and chemical plants) which kept the company from falling even further…
    Read More “ExxonMobil 2015: 50% Decline in Earnings, Thank God for Downstream”

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