Marcellus Drilling News

CONSOL Energy | Energy Companies | Industrywide Issues | Jobs

CONSOL Energy Swings the Ax Again – New Round of Layoffs
July 14, 2015July 14, 2015

In April MDN was the first source to break the news that CONSOL Energy was laying off nearly 5% of its workforce, including 170 lost jobs in its CNX gas division (see CONSOL Energy Lays Off Workers in CNX Gas Division in WV/PA). Barley three months later and CONSOL has swung the ax again. We don’t know how many layoffs there have been (CONSOL won’t say), but according to the Pittsburgh Business Times, a new round of layoffs has begun…
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Axiall | Energy Services | Ethane | Industrywide Issues | Processing Plants

4th World Class Marcellus/Utica Ethane Cracker…in Louisiana??
July 14, 2015July 14, 2015

According to the The Intelligencer/Wheeling News-Register, yet another new ethane cracker project is being planned that will be fed by Marcellus and Utica Shale ethane. Currently there is one serious proposal that increasingly seems like it will happen (Shell’s cracker plant in Beaver County, PA), one somewhat serious proposal (joint venture between Korean company PTT Global Chemical and Japanese financier Marubeni for a plant in Belmont County, OH), and one not-so-serious proposal (Brazilian company Odebrecht building a plant near Parkersburg, WV). This would be the fourth “world class” ethane cracker plant to be fed by Marcellus/Utica ethane–if it gets built. And where would it be built? Louisiana. Which doesn’t create jobs or improve the economy in the Marcellus/Utica region–hence our less-than-enthusiastic response to the news. Atlanta-based Axiall Corporation is partnering with Korean company Lotte Chemical Corporation to potentially build a new ethane cracker in the Lake Charles, LA area. Anticipated start-up would be the end of 2018, if the project goes forward…
Read More “4th World Class Marcellus/Utica Ethane Cracker…in Louisiana??”
Industrywide Issues | Research | Utica Shale

July EIA DPR – Utica Stands Alone with Higher Natgas Production
July 14, 2015July 14, 2015

MDN’s favorite government agency, the U.S. Energy Information Administration, published the latest monthly Drilling Productivity Report (DPR) yesterday. Once again, like the June report, this latest report shows that over the next month natural gas production (and oil production) from the country’s seven largest shale plays will decrease. Last month was a milestone/first: Marcellus Shale production slipped (see A Sad First: EIA’s June DPR Reports Marcellus Production Slips). That trend continued and accelerated in the July report (which forecasts production over the next 30 days). Last month Marcellus production decreased by 28 million cubic feet per day (Mmcf/d). This month? It will decrease by 41 Mmcf/d. Natgas production from all seven shale plays together will take their deepest dive yet–down 260 Mmcf/d from the previous month. However, to put it in perspective, that’s down just 6/10ths of one percent, or 0.6%. It’s hardly a bloodbath. There is one bright spot with respect to natural gas production. Utica Shale natgas production was, once again, higher in this month’s report than in last month’s report. Natgas production in the Utica was up 42 Mmcf/d in June, and up 22 Mmcf/d in July. The Utica is newer and contains natural gas liquids, typically making it more profitable to drill than the Marcellus. Also, a number of new pipelines already in the works have continued to come online in the Utica. For those two reasons the little Utica continues to rock on while all of the other shale plays, including the mighty Marcellus, tapper off…
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Industrywide Issues | Landfills | Research | Statewide WV | West Virginia

WV DEP Study Finds Drilling Cuttings in Landfills are Safe
July 14, 2015July 14, 2015

In 2014 the West Virginia legislature enacted a law that requires the WV Dept. of Environmental Protection (WVDEP) to conduct a study of the impact from disposing drill cuttings and drilling waste (leftover rock and dirt) from natural gas well sites in landfills. Anti-drillers spin tales of glowing in the dark from irradiation and horrible, cancer-causing, death-inducing chemicals leaking from landfills that accept drill cuttings and drilling waste. So members of the WVDEP and a number of outside researchers from several WV universities worked on this important research project that would, once and for all, evaluate the risk from landfills that accept drill cuttings. In early July the WVDEP released the completed study (full copy below). There have been a precious few media reports about the findings from this momentous research project. Why? Because the study “found little concern” regarding leachate associated with “drill cuttings that were placed in approved and permitted landfills, once that leachate was processed through a correctly operated treatment facility.” That is, there is no issue with accepting drill cuttings in WV landfills–contrary to the blathering of anti-drillers…
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Economic Impact | Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH | Supply Chain

ET Rover Spending $85M with 7 OH Companies to Help Build Pipeline
July 14, 2015July 14, 2015

One of the arguments often used to incite opposition to pipelines is “all of the pain, none of the gain”–as in landowners and other members of the community must put up with pipeline construction for a short period of time, and then live with a pipeline in the ground for decades, without seeing any real benefit. Except that argument is patently not true. Take the ET Rover pipeline project, for example. ET Rover is a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers and will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. Some 570 of the 711 miles of ET Rover will run through the state of Ohio. How do Ohioans benefit? First, the pipeline will generate $91 million in tax revenues for local schools–in it’s first year (see For the Children: ET Rover Pipeline $91M in School Taxes 1st Year). Second, it will mean cheaper natural gas all along the pipeline’s route. Third, Energy Transfer, the company building Rover, is investing a staggering $3.7 billion to build it. Do you know the kind of economic ripples that makes throughout an economy? For example, ET just announced a list of seven Ohio companies they are set and ready to spend $85 million with to help build the pipeline. Below is a list of those companies and the products/services they will provide to ET Rover. A few million dollars here and a few million dollars there adds up to company expansions, new jobs, more tax revenue for local communities–the good times just keep on a rollin’ thanks to a pipeline that “doesn’t benefit anyone” except a vile, nasty fossil fuel company…
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Energy Companies | Greene County (PA) | Pennsylvania | Vantage Energy

Vantage Energy Cuts $30M Deal to Expand Water Plant in Greene Co.
July 14, 2015July 14, 2015

An interesting story from southwestern Pennsylvania. Vantage Energy has signed a $30 million deal with the Southwestern Pennsylvania Water Authority (SPWA) in Greene County to expand the SPWA’s water plant. The expansion will allow the plant to increase water deliveries from 9.2 million gallons per day to 16.1 million gallons. The expansion will also mean new water pipelines will be run to areas not previously covered by SPWA. Vantage will get access to water for its active drilling program in the county (they own 48,000 net acres in Greene County) along with some revenue from a surcharge that will be levied to other oil and gas drillers who want to purchase water from SPWA. The SPWA will get a major expansion and new pipelines to service residents in the county not currently served–along with a new revenue source in selling more water to drillers. The SPWA gets its water from the Monongahela River. Sounds like a good deal with winners all around–except last month Vantage Energy put itself up for sale (see Marcellus Driller Vantage Energy Puts Itself Up for Sale). So how does spending $30 million square with a company attempting to sell itself?…
Read More “Vantage Energy Cuts $30M Deal to Expand Water Plant in Greene Co.”
Energy Companies | Rex Energy

Rex Energy Reshuffles the Top Management Deck after COO Departs
July 14, 2015July 14, 2015

A reshuffling of senior management has taken place at Rex Energy. The current president and chief operating officer (COO), Pat McKinney, is leaving the company “to pursue an opportunity in the investment banking industry.” Rex’s CEO, Tom Stabley, will assume the role of president and will henceforth become president & CEO. Robert Ovitz, senior vice president for operations at Rex since only last fall, will become the new COO. Ovitz previously worked for Noble Energy for 13 years and was the guy who established Noble’s presence in the Marcellus Shale in PA and WV…
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Anti-Drilling/Fossil Fuel | Crude Oil | Industrywide Issues | Pennsylvania | Statewide PA

Director of Philly’s Emergency Mgmt to Dela. Riverkeeper: Stuff It
July 14, 2015July 14, 2015

The director of Philadelphia’s Office of Emergency Management, Samantha Phillips, has told anti-drilling zealots to (in our words) “stuff it” with respect to their demands to know the city’s emergency plans in case a trainload of oil derails in or near the city. Phillips will not disclose detailed emergency plans–rightly so–for fear that terrorists could potentially use the information should such a disaster ever occur. Of course public safety is the last thing on the minds of anti-drillers like those in THE Delaware Riverkeeper–a group attempting to incite unrest in Philly by sponsoring “scare them to death” rallies. Phillips is holding firm and will not release details to Riverkeeper to sleazily use in furthering their own twisted agenda…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Drought Watch Lifted – Marcellus Drillers can Restart Withdrawals
July 14, 2015July 14, 2015

In May MDN brought you the news that drought conditions in Pennsylvania were beginning to take a bite out of Marcellus drilling activities–at least in the northeast part of the state (see PA Drought Conditions Begin to Affect Marcellus Drilling). On May 26, the PA Dept. of Environmental Protection (DEP) issued a drought watch for 27 counties in the state, including large natgas producers like Susquehanna, Bradford, Tioga and Lackawanna, all counties in northeast PA. On June 17 the DEP expanded the drought watch to 37 counties. However, we have good news. The DEP has just lifted the drought watch for all 37 counties–which means Marcellus drillers previously affected can return to normal operations…
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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Jul 14, 2015
July 14, 2015July 14, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Tue, Jul 14, 2015”
Accidents | Energy Companies | Industrywide Issues | Jay-Bee Oil & Gas | Pipelines | Tyler County | West Virginia

Pipeline Ruptures & Burns at Jay-Bee Well Pad in Tyler County, WV
July 13, 2015July 13, 2015

There was a rupture of a gas pipeline at a Jay-Bee Oil and Gas drill pad in the Big Run area of Tyler County, WV early Friday morning. There was no explosion, and no one was injured–but there was a fire and the fire could be seen for miles in the dark early morning. The fire from the ruptured pipe (cause still being investigated) burned for an hour before it was extinguished. The wells on the pad are currently shut-in while the WV Dept. of Environmental Protection investigates. This is not the first Jay-Bee accident in the Big Run area…
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Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY | Tioga County (NY)

Update on LPG Fracking in New York – What Comes Next?
July 13, 2015July 13, 2015

As MDN noted last Thursday, taking a break from being on break in breathtakingly beautiful Ogunquit, Maine, a group of Tioga County, NY landowners have painted Andrew Cuomo and his Dept. of Environmental Conservation (DEC) in a corner with respect to fracking in the Empire State (see NY Landowners File to Frack Horizontal Well w/Waterless Tech). Much of the case against fracking for the DEC is that it uses large amounts of water. The Tioga landowners aim to test LPG, or liquefied petroleum gas, fracking–which uses no water. According to the recently adopted Final Supplemental Environmental Generic Impact Statement (FSGEIS) in New York, “Well applications that specify and propose the use of LPG as the primary carrier fluid will be reviewed and permitted pursuant to the 1992 GEIS and Findings Statement”(FSGEIS 2015, pages 9-10). The Tioga landowners mean to use that exception to drill a small well–covering just 53 acres–to prove that fracking is safe. It’s a brilliant move…
Read More “Update on LPG Fracking in New York – What Comes Next?”
Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Rex Energy

ACLU Bullies Threaten Butler County Landowners over Martian Lawsuit
July 13, 2015July 13, 2015

The most anti-American group on the planet that we know of, aside from ISIS/ISIL/Al-Qaeda, is the American Civil Liberties Union (ACLU). So we find it truly rich that the ACLU–always on the lookout to squash anything to do with the American way and freedom and apple pie–has now involved itself in what we loving call “the Martian controversy.” A small group of rabidly anti-drilling (and liberal) parents in the Mars School District in Middlesex Township (Butler County), PA want to prevent the legal, legitimate, and now fully permitted right of Rex Energy to drill a few Marcellus Shale wells three-fourths of a mile away from the Mars School. We’ve long chronicled this battle (see MDN’s list of Mars School stories). Four local residents used two non-profits backed by Big Green money and from the opposite side of Pennsylvania–THE Delaware Riverkeeper and the Philadelphia-based Clean Air Council–to file a lawsuit against the little town of Middlesex to stop any kind of drilling, a move that has so far cost local taxpayers over $35,000 in legal defense fees (see Dela. RiverKeeper, Clean Air Council Cost Middlesex Residents $35K+). So a group of 12 Middlesex landowners and a business launched their own lawsuit against the two Big Green groups and the four local residents claiming (rightly) that they are being economically harmed (see Shoe Now on Other Foot: Landowners Sue Martian Anti-Drillers). What do the anti-drilling, liberal, wacko parents and Big Green groups do? They go crying like little girls to the ACLU and now the Big Bully ACLU has ridden into town to tell the 12 landowners and local business they have no right to file a lawsuit! In America!!!…
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Energy Companies | Lawrence County | Pennsylvania | Rex Energy | Utica Shale

Rex Energy Drilling 1st Utica Shale Well in Lawrence County, PA
July 13, 2015July 13, 2015

Exciting news from “the little drilling company that could…and does,” as MDN likes to call Rex Energy. Last week Rex released an operational update with the big news that they will drill their very first dry gas Utica Shale well in Lawrence County, PA (near the Ohio border) in the third quarter of 2015. Rex also brought online another two Marcellus Shale wells in Butler County, PA…
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Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A

Halliburton & Baker Hughes Announce a December Wedding Date
July 13, 2015July 13, 2015

Whatever happened to the shotgun wedding between Halliburton and Baker Hughes–two of the largest oilfield services companies in the United States? After all, the boards for both companies approved the “blissful union” back in March (see Halliburton & Baker Hughes Vote to Approve Shotgun Wedding). What happened is, it’s complicated. Such large buyouts between competitors–when it removes competition from the marketplace–involve approvals from the federal government as well as from governments in other countries where the two companies operate. In the U.S. it is the Dept. of Justice that must approve the merger and the DOJ is a) taking it’s sweet time, and b) forcing Halliburton to sell off some of its assets before they will approve the merger (see Halliburton Shotgun Divorce – Forced to Sell Certain Divisions). In a brief update last week, Halliburton and Baker Hughes announced they’re still mired in getting approvals but hope to officially tie the knot on December 1st…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter Dodges Another Bullet, Banks Relax Cash Requirement
July 13, 2015July 13, 2015

In June MDN told you that Magnum Hunter Resources (MHR) was being told by its big bank creditors to get $65 million cash in hand by July 10th, or else (see Magnum Hunter’s Bankers Say Get $65M in Cash by July 10, Or Else). Or else what? Guess we’ll never know. Last week MHR announced they had gotten $55.6 million in hand and the bankers said aaaah, good ‘nuf. Whew. MHR dodged another bullet and can keep the doors open for a while longer…
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