Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Guernsey County | Industrywide Issues | Jobs | Ohio | Pipelines

Marcellus/Utica Welder by Day, Prostitute by Night?
May 1, 2015May 1, 2015

MDN told you about the outrageous comments by Sandra Steingraber (from Ithaca College) in her address to a group of “feminists” in Pittsburgh last week (see Steingraber: Only Jobs for Women in Fracking are Maid & Prostitute). The obviously sexist Steingraber said this about jobs for women in the shale industry: “The jobs for women are ‘hotel maid’ and ‘prostitute’.” So when we spotted an article about a female welding instructor at Zane State College in Cambridge, OH–and how she trains both men AND women for welding jobs in the oil and gas industry (jobs that after a year or so on the job fetch a salary of $150,000), we thought we would share it with you. And no–the female welding instructor and her students are not a prostitutes by night. The headline was just a shameless ploy to draw you in and encourage you to read the article about these gutsy women doing hard, physical work in what Steingraber calls a “man’s world”…
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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, May 1, 2015
May 1, 2015May 1, 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: Fri, May 1, 2015”
Energy Companies | Pennsylvania | Range Resources Corp | Washington County

Range Resources Drills #1 Producing Marcellus Shale Well in 1Q15
April 30, 2015April 30, 2015

Range Resources released their first quarter 2015 results on Tuesday. We’ve spotted a several news outlets trumpeting the “news” in the release that Range has drilled the highest-ever initial producing Utica Shale well at 59 million cubic feet per day (Mmcf/d)–the Claysville Sportsman’s Club No. 1 well in Washington County, PA. Thing is, we reported that news back in December (see Range Resources Drills Highest-Ever Initial Producing Utica Well). The Claysville Utica well is not new news. However, Range did report some new news on Tuesday: Range has drilled what they claim is the highest ever initially-producing Marcellus Shale well. This Marcellus monster well is a wet gas well that produced an initial rate of 43.4 million cubic feet equivalent per day (Mmcfe/d). Range does not identify the well by name but says it, like their monster Utica well, is located in Washington County, PA. Range reports production in 1Q15 hit a record high of 1,328 Mmcfe per day–26% higher than 1Q14. On the financial side, revenues for Range were up 1% in 1Q15 vs 1Q14, but net income was down 15%…
Read More “Range Resources Drills #1 Producing Marcellus Shale Well in 1Q15”
Allegheny County | CONSOL Energy | Energy Companies | Greene County (PA) | Marshall County | Monroe County | Noble County | Ohio | Pennsylvania | Utica Shale | Washington County | West Virginia | Westmoreland County

CONSOL Energy Narrows Future Marcellus/Utica Dev to 5 Counties
April 30, 2015April 30, 2015

CONSOL Energy released its first quarter 2015 update on Tuesday. Like virtually every other Marcellus/Utica driller, CONSOL’s 1Q15 profits dropped quite a bit–in this case 32%. But there was plenty of good news in Tuesday’s update. CONSOL reports Marcellus Shale production was up an impressive 75% year over year for the first quarter. They cut their costs in the Marcellus–from $3.18 per Mcfe in 1Q14 to $2.62 per Mcfe in 1Q15–$0.56 per Mcfe improvement (18%). The company achieved all-in cash costs of only $1.67 per Mcfe in the Marcellus Shale, which “continues to be the growth engine of the company.” Meanwhile, CONSOL continues to ramp up their Utica program. The company is currently drilling Utica wells in four counties: Greene and Westmoreland counties in PA; Monroe County, OH; and Marshall County, WV. CONSOL says the Utica wells they are currently drilling will come online in the second half of this year. However, given the current low price climate and cutbacks, CONSOL streamlined both its Marcellus and Utica operations in 1Q15. They’ve narrowed future Marcellus development to primarily Greene, Washington and Allegheny counties in PA; wet Utica development to Noble County, OH; and dry Utica development to Monroe County, OH…
Read More “CONSOL Energy Narrows Future Marcellus/Utica Dev to 5 Counties”
Antero Resources | Energy Companies

Antero’s Daily Natgas Production Surpasses Range in 1Q15
April 30, 2015April 30, 2015

Antero Resources, one of the largest Marcellus/Utica drillers, issued their first quarter 2015 update yesterday. They report an incredible 89% increase in average daily production for 1Q15 over 1Q14. Antero’s average daily production for 1Q15 was 1,485 Mmcfe/d (million cubic feet equivalent per day). Compare that to Range Resources, that had 1,328 Mmcfe/d. Antero’s daily output was 12% higher! The impression one always gets is that Range is the big boy in the Marcellus. While true, it’s interesting that Antero has now eclipsed Range in daily production. Something worth noting. It’s not all good news for Antero, however. Like other drillers, net income for Antero went down 20% year over year for the first quarter. Here’s the Antero update…
Read More “Antero’s Daily Natgas Production Surpasses Range in 1Q15”
Energy Companies | EXCO Resources

EXCO Resources Continues Marcellus Drilling Moratorium in 1Q15
April 30, 2015April 30, 2015

EXCO Resources, a sizable independent driller with operations in a number of locations, has (for the time being) suspended drilling in the Marcellus Shale. EXCO has been a company in trouble. We reported earlier this month a major shakeup at the company (see Bluescape Pulls Strings Installs New CEO, COO at EXCO Resources). At the end of 2014, EXCO suspended dividend payments for shareholders (see EXCO Resources Suspends Dividend Payments to Shareholders). Also in December, the company appeared on Debtwire’s “Distressed Watchlist” (see 4 Marcellus Companies Debut on Debtwire’s Distressed Watchlist). In February, EXCO was listed on “The Oil Company Death List” (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). So it’s not all that surprising that EXCO did no new drilling, and only completed one outstanding well already drilled, in the Marcellus during the first three months of 2015. Here’s what EXCO said about Appalachia in their quarterly update from earlier this week…
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Energy Services | Williams

Williams 1Q15: Revenue Up 19%, Net Income Down Big 75%
April 30, 2015April 30, 2015

The midstream behemoth Williams issued an update for first quarter 2015 yesterday. Williams, like other large companies, is split into pieces. There is the mother ship Williams (stock ticker symbol WMB) and Williams Partners (stock ticker symbol WPZ). Since Williams Partners is the active company in the northeast, we’ll limit our focus to the report from that part of the company. Williams merged with (bought out) Access Midstream. Although that process was completed during 1Q15, the numbers reported for Williams Partners are “pre-merger” numbers, excluding the Access Midstream numbers. We expect that will change in 2Q15 when the two will have been joined throughout the entire quarter. The financials show that like drillers, Williams experienced an increase in revenue in 1Q15 compared with a year ago, but a decrease in profit, or net income. Revenue in 1Q15 was $917 million, up 19%. But net income in 1Q15 was $89 million, down a whopping 75%. Here’s the update from Williams Partners, with plenty of references to Access Midstream too…
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Utica Shale

Top 5 Utica Shale Wells by Initial 24-Hour Production Rate
April 30, 2015April 30, 2015

As part of MDN’s reporting today about Range Resources and their stellar results with Marcellus and Utica Shale wells in 1Q15, we spotted handy table listing the top 5 Utica wells (to date) based on initial productivity. We have it for you below. The top 5 (highest IP first) were drilled by: Range Resources, Magnum Hunter, Rice Energy, Magnum Hunter (again), and Gulfport Energy…
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Energy Companies | Pennsylvania | Rice Energy | Washington County

Rice Energy Signs Lease for New 150K Sq Ft HQ in Canonsburg
April 30, 2015April 30, 2015

Rice Energy is expanding their office and staff–big time. According to the Pittsburgh Business Times, Rice Energy has just signed a lease agreement to take 150,000 square feet of new office space at the Southpointe II complex in Canonsburg (Washington County), PA. The new digs mean Rice can put all of their office people together, under one roof. Right now the Rice work force numbers around 335. By the time they are done expanding, they hope to employ around 700. Get those resumes ready!…
Read More “Rice Energy Signs Lease for New 150K Sq Ft HQ in Canonsburg”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines

Wrath of Kann: Lancaster Anti-Driller Arrested/Ejected from Mtg
April 30, 2015April 30, 2015

All’s we can say is, it’s about time! A loud mouthed anti-drilling protester in Lancaster County, PA was arrested and removed from a public meeting Tuesday for disorderly conduct. That is, she wouldn’t shut her mouth. So the officials running the meeting removed her. The meeting was an educational forum about so-called home rule and what role the town can and should play when it comes to regulating things like pipelines. The Conestoga Township supervisor running the meeting asked for questions from the audience, not pontificating. The anti-driller wanted to use the forum as a platform to vomit her opinions about the Williams Atlantic Sunrise Pipeline project. The supervisor repeatedly said it is an educational forum and the audience may ASK QUESTIONS ONLY. She wouldn’t relent and she wouldn’t ask a question–and she wouldn’t shut up. So they removed her and now she’s threatening a lawsuit…
Read More “Wrath of Kann: Lancaster Anti-Driller Arrested/Ejected from Mtg”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

MDN Pays Compliment to CORNy Anti Group
April 30, 2015April 30, 2015

You won’t hear or read it often (because it’s rarely deserved), but we’d like to pay a compliment to a group of CORNy anti-drillers. MDN previously told you about CORN–the Coalition to re-Route Nexus (see CORNy Opposition to NEXUS Pipeline in Eastern Ohio). The group is encouraging people to show up at Federal Energy Regulatory Commission (FERC) scoping hearings about the NEXUS–to encourage FERC to re-route the pipeline. And therein is the genesis of our compliment. At least officially, CORN leaders don’t outright oppose building the NEXUS. Instead, they are asking for the NEXUS to be re-routed away from the Akron, OH area. There’s probably not a good reason to re-route it, but this is one of the few times (maybe the only time) an anti group has said, in essence, “hey, let’s work together and find a better route for this pipeline.” So kudos to the CORNy folks. We’ll hold you to your word that you DO want to see the pipeline built–just built along a different route…
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CNG/LNG | Exporting | Industrywide Issues

2nd LNG Export Terminal for Marcellus Gas Advances – in Maine!
April 29, 2015April 28, 2015

Click image for larger version

You may have heard about the Cove Point, Maryland LNG (liquefied natural gas) export facility along the shoreline of Maryland that Dominion is beginning to build. Although Dominion received both FERC and Dept. of Energy (DOE) approval and has begun construction, they are still waiting on a final final final final approval from the DOE (see Cove Point LNG Plant STILL Waiting for Final DOE Approval?!). Cove Point was, as far as we knew, the only LNG export project on the East Coast of the U.S. that would be fed by Marcellus Shale gas. That is, until we spotted a second LNG export project that’s making serious headway–in Maine. The Downeast LNG project began life in 2005 as an LNG import project, but last year, after getting preliminary approval for the import project from FERC, Downeast amended its application to become both an import AND export LNG terminal. And yes, the gas they plan to export is Marcellus Shale gas…
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Industrywide Issues | Research | Statewide WV | West Virginia

USGS: WV Shale Drilling has No Effect on Mon River Basin Water
April 29, 2015April 28, 2015

Hey Delaware River Basin Commission–listen up. There’s another river basin not far from you–the Monongahela River Basin in Pennsylvania and West Virginia–that has seen a LOT of Marcellus Shale fracking over the past eight years. Researchers with the U.S. Geological Survey (USGS) did some water testing, both before fracking began and recently. They compared the results. What do the results show? “No significant difference from historical water samples” between then and now. What about methane in the water. EVERYBODY knows those frackers can’t help themselves and that methane travels like an STD once you start sinking holes all over the place. Methane will spot a surface water source a mile away and make a beeline for it, right? So what about methane levels then and now? “Although methane was detected in samples, the concentrations were similar to those in samples collected prior to intensive shale gas development.” Huh. Can you imagine that? Can you imagine that it’s actually SAFE to drill in a watershed like the Monongahela–or the Delaware? The science says it is, but of course that won’t convince anti-drilling nutters…
Read More “USGS: WV Shale Drilling has No Effect on Mon River Basin Water”
CNG/LNG | Exporting | Industrywide Issues

LNG Insider Shares His List of Which Export Projects Will Get Built
April 29, 2015April 28, 2015

Yesterday MDN told you about one of the five potential LNG (liquefied natural gas) projects in Canada that would use Marcellus Shale gas, *if* it gets built (see Canadian LNG Project Woes Europeans with Promise of Marcellus Gas). Today we published a companion story about a proposed LNG export facility planned for Maine–the Downeast LNG facility (see 2nd LNG Export Terminal for Marcellus Gas Advances – in Maine!). However, there is talk in certain quarters about the unlikelihood that many (most?) of the 30 proposed projects will actually get built, including both the Canadian and the Maine projects (see Moody’s: “Vast Majority” of LNG Export Projects Will be Canceled). We have another such story–this time from an LNG insider. Freeport LNG Development CEO Michael Smith says in addition to the four import projects currently being reworked to export, there are another four facilities that might “move forward” and see the light of day. As for the rest of the 30 proposed projects–Smith says the future for the others is “cloudy.” So which four are getting built now, and which four are on Smith’s short list of the best prospects to get built?…
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Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | Lackawanna County | Pennsylvania

Fossil Fuel Hatred Run Amok: Sierra Club Against Clean Air in PA
April 29, 2015May 4, 2015

Converting from burning coal to burning natural gas to produce electricity is, according to the vast majority of Americans, a good thing to do. Coal burns much dirtier than natgas–it’s a plain and simple fact. We’re not slamming coal or saying we should stop burning coal–we’re just keepin’ it real. When Invenergy announced they planned to build Pennsylvania’s largest gas-fired electric plant near Scranton, in Jessup Borough (Lackawanna County), PA, and fire it with cheap, abundant and clean-burning Marcellus Shale gas, most folks welcomed it (see Marcellus Gas to Power Combined-Cycle Electricity Plant in NE PA). Oh, there’s always a small minority who oppose such plans (see Gas-Powered Electric Plant to be Built “on Thousands of People”). You would think so-called environmentalists would be the first in line to support such a project because it makes the air cleaner. But then, you would be wrong. A classic case in point is the Sierra Club–an organization that exists to fundraise. The Sierra Club is against the Jessup electric plant project. Why? Because it will “encourage further natural gas hydraulic fracturing in Northeast Pennsylvania”…
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Energy Companies | EQT Corp | Greene County (PA) | Industrywide Issues | Pennsylvania | Sand/Proppant | West Virginia | Wetzel County

EQT Call: Fracking 1st Utica Well in June; Changing Proppant
April 29, 2015April 28, 2015

Last week MDN brought you EQT’s report on their first quarter earnings and performance (see EQT 1Q15: Production Volume Up 37%, but Price Received Down 33%). As is often the case with publicly traded companies, EQT’s top management hopped on an analyst phone call to discuss the results. And as sometimes happens, extra details came out on the call. During last Friday’s call, EQT management revealed in prepared comments and in a series of questions and answers that: (1) the company will begin fracking its first Utica well (in Greene County, PA) in early June; (2) the second Utica well EQT plans to drill will be in Wetzel County, WV; and (3) the company is considering a change to ceramic proppant instead of using sand–a move that will cost them an average of $2.5 million more per well than what they pay now using sand…
Read More “EQT Call: Fracking 1st Utica Well in June; Changing Proppant”