Marcellus Drilling News

Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Prof. Engineers Likely Need Contractor License to Keep Working
March 26, 2015March 26, 2015

If you’re a professional engineer (PE) working in the Marcellus/Utica Shale in West Virginia, listen up. You may (probably will) be required to become a licensed contractor in the State of West Virginia. It’s a bit convoluted under what circumstance you do and do not need a contractor’s license. This is how law firm Steptoe & Johnson (who just won the “Law Firm of the Year” award at the Oil & Gas Awards for the Northeast, congrats!) explains it…
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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 26, 2015
March 26, 2015March 26, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Chevron | Crime | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

Man Confesses, Admits Why He Vandalized Chevron Well in SWPA
March 25, 2015March 25, 2015

Two weeks ago MDN told you about two men who had been indicted by a federal grand jury on felony charges of damaging a shale well (or wells) on Chevron’s Burchianti Pad in Greene County, PA in March 2014 (see 2 Men Indicted by Feds for Vandalizing Chevron Wells in SWPA). At the time we said it was too early to speculate what they were up to and why. Those words were prescient. We wondered if it was environmentalism gone amok. Or perhaps previous employees with an ax to grind. Or maybe a drunken stunt. It was none of those things. As it turns out, it was plain old, garden variety theft–of copper wire…
Read More “Man Confesses, Admits Why He Vandalized Chevron Well in SWPA”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Marcellus Industry to DEP Tech Advisory Bd: You’re Out of Order!
March 25, 2015March 25, 2015

The Marcellus industry in Pennsylvania is none too happy with the performance thus far of Acting Secretary of the Dept. of Environmental Protection, John Quigley. As MDN has noted, Quigley first fired the members of the DEP’s Oil & Gas Technical Advisory Board (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?), then he pulled a fast one, changing up revised drilling rules that were already done and ready to go under Tom Corbett’s administration (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Needless to say, Quigley isn’t impressing anyone so far. The reporters at Marcellus.com have noticed and selected out some choice comments by the industry, illustrating their frustration with the new regime. One comment even channels Al Pacino…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Maryland’s Democrat House & Senate Pass Anti-Fracking Bills
March 25, 2015March 25, 2015

On his way out the door of the governor’s mansion in Maryland, then-Gov. Martin O’Malley decided to issue new rules to allow fracking (see Maryland Gets Ready to Frack! Gov O’Malley Files New Regulations). Which at the time we thought was really odd. O’Malley is an anti-drilling Democrat who obstructed fracking for the past four years he was in office. Why the change of heart on his way out the door? Now we know. He wants to run for president–and no one can run for president on a platform of stopping shale drilling. No matter what his motivation–what counts is that Maryland is seeing movement toward using the miracle of fracking. Except now both the Maryland House and Senate have just passed anti-fracking bills, one of which would slap a new moratorium on fracking for yet another three years. The good news is that Maryland’s new governor, Republican Larry Hogan, is pro-fracking and sure to veto any such nonsense…
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CNG/LNG | Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | Millennium Stimulation

GASFRAC Bankruptcy Dims LPG Waterless Fracking; LNG Fracking Debuts
March 25, 2015March 25, 2015

In an effort to minimize the impact of shale drilling on the environment, perhaps the biggest prize of all is to figure out a viable alternative to using water in fracking. As MDN has pointed out numerous times–there’s nothing wrong with using water, as long as you recycle it and/or properly dispose of it. Water is used because it’s economical to do so, and it’s one of the best fluids to get the fracking job done. But still, there are locations, like the western part of the country, that are water-constrained. Plus, it would sure be nice to reduce all of those truck trips to the well pad. One technology that seemed to hold promise was liquefied petroleum gas (LPG) fracking, pioneered by Canadian company GASFRAC. The problem is, GASFRAC is close to the end of being sold off in bankruptcy court (see Bankrupt Waterless Fracking Co GASFRAC Sold to “Third Party”). Does the end of GASFRAC also mean the end of waterless fracking? Perhaps not. An intriguing new LNG (liquefied natural gas) fracking technology is now on the horizon…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Even with Capex Budgets/Jobs Slashed, NE Production Still Rising
March 25, 2015March 25, 2015

Capital expenditure budgets slashed 20%, 30%, 40% and more. Mass firings in the thousands by oilfield services companies. The mad dash to raise cash to keep going. Shutting in wells to slow or stop production. Some days it seems like the news is all doom and gloom. But what’s this? Even though rig counts are down, capex is slashed and jobs are dwindling, production in the Marcellus/Utica will continue to go UP in 2015. You read that right. How can that be? According to some excellent research published by NGI’s Shale Daily, production will continue to go up because “efficiencies in drilling techniques and low operating costs are overcoming the energy industry downturn.” That is, good old American ingenuity is once again figuring out how to do more with less. What did the ace reporters at Shale Daily discover when they dug down into the data?…
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Economic Impact | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Research | Statewide PA

New Study Finds PennEast Pipeline to Save PA & NJ Residents $900M
March 25, 2015March 25, 2015

Concentric Energy Advisors Inc., an independent management consulting and financial advisory firm focused on the North American energy industry, has just published a new report that shows the economic impact from the PennEast Pipeline will be huge for both Pennsylvania and New Jersey residents. The study, titled “Estimated Energy Market Savings From Additional Pipeline Infrastructure Serving Eastern Pennsylvania And New Jersey” (full copy embedded below) finds that PA electric and natural gas customers will see a combined savings of over $500 million, while NJ electric and gas customers will see a combined savings of nearly $400 million…
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CONSOL Energy | Energy Companies

CONSOL Energy Floats $650M in Senior Notes, Paying Off Old Debt
March 25, 2015March 25, 2015

Yesterday MDN told you about the mad dash to raise cash by Carrizo Oil & Gas and Rice Energy (see The Mad Dash to Raise Cash Continues: Carrizo & Rice Energy). Carrizo went the equity route, selling shares of stock, and Rice Energy went the debt route, selling IOUs or notes. It seems the mad dash is far from over. Now comes word that CONSOL Energy is also going the debt route–floating $650 million of senior notes. CONSOL will use the money to pay off older debt…
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Industrywide Issues | Research | Weather

Marcellus/Utica 3-Month Temp Forecast: Cold, Warm, Warm
March 25, 2015March 25, 2015

Every now and again we check in on the weather forecast–the long range forecast–from Weather Services International. Why? Because the weather has a great deal to do with the price of natural gas, and the price of natural gas has a great deal to do with whether or not drillers are willing to drill for it. Forthwith, here is the temperature forecast for the next three months across the U.S., by region (the Marcellus/Utica is, of course, in the Northeast)…
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Dominion Energy | Education | Energy Services | Industrywide Issues

Dominion to Issue $1.5M in Education Grants in Energy, Environment
March 25, 2015March 25, 2015

Dominion, a major natural gas utility and midstream company operating in Connecticut, Maryland, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Virginia, West Virginia and the District of Columbia is looking to give away $1.5 million. But not just to anyone. Yesterday Dominion announced they will issue grants that focus on energy, environment and workforce development in the states and areas where they operate. ThepProgram awards up to $50,000 for higher education projects and up to $10,000 for K-12. But, you have to fill out an application and the application must be filed no later than May 15. What are you waiting for! Here’s the details from Dominion…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Mar 25, 2015
March 25, 2015March 25, 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: Wed, Mar 25, 2015”
Energy Companies | Equinor/Statoil | Gastar Exploration | Lease & Royalty Payments | Marshall County | Noble Energy | Utica Shale | West Virginia | Wetzel County

Statoil Cuts Deal to Drill Under 474 Acres of the Ohio River in WV
March 24, 2015March 24, 2015

The Vikings are Coming! Er, well, at least the Norwegians are. And they’re not coming to conquer but to drill–underneath the Ohio River in West Virginia on the border of Marshall and Wetzel counties. The West Virginia Department of Commerce has cut a deal with Norway-based Statoil which allows the company to drill and frack for oil and natural gas on 474 acres thousands of feet beneath the Ohio River. What are the lease terms? An average price of $8,732 per acre with 20 percent production royalties. That translates into a signing bonus of $4.14 million. And that’s not all. WV is near to signing a deal with Noble Energy and Gastar Exploration on two other Ohio River tracts that will provide lease bonuses of $4.9 million and $749,000 (respectively) along with 20% royalties…
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Statewide PA | Washington County

Range Resource Secret to Drilling More Productive Wells for Less $
March 24, 2015March 24, 2015

Every year drillers get better at what they do. They experiment, they learn, they grow. Here’s an example from Range Resources. Range went back to a well pad they previously drilled with five wells and drilled two more. The two new wells used a different technique. Comparing the first year of production from the new wells with the first year of the original wells, the two new wells produced 53% more natural gas (per well) than the old wells did. Tell us again, peak oil/gas theorists, how the shale boom is just a flash in the pan and will be all gone by the end of this decade. Here’s more details on how Range increased production by 53%–what their “secret” is to drilling more productive wells using LESS money per well…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov Wolf Digs In Like a Chigger with Severance Tax Plan
March 24, 2015March 24, 2015

Newly elected Pennsylvania Gov. Tom Wolf, whose administration is filled with Ed Rendell retreads, remains “dug in” when it comes to a severance tax. One of the Rendell retreads (with ties to the anti-drilling PennFuture) is John Hanger, former Secretary of the Dept. of Environmental Protection under Rendell. Hanger is Wolf’s Secretary of Planning and Policy (see PA Gov-Elect Wolf Appoints John Hanger Secretary of High Taxes). Hanger ran against Wolf and Wolf’s (now) chief of staff, Katie McGinty, who is herself another Rendell retread, before dropping out of the governor race last year (see Pass One Last Joint for John Hanger). True to his far-left lib Dem roots, Hanger (as Wolf’s mouthpiece on this issue) is saying we need those high severance taxes and we need them now. Squishy RINO Republicans, like Senator Joe Scarnati, will consider adopting the severance tax–but only after ~~being bribed enough~~, er, ah, pension reform is dealt with first…
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Industrywide Issues | Pennsylvania | Research | Statewide PA

PA 2014 Top 5 Lists for: Wells Drilled / Inspections / Violations
March 24, 2015March 24, 2015

We’ve written about it before, but once again we want to highlight the excellent service provided by Marcellusgas.org. They maintain a data site filled with facts and figures on every shale well in Pennyslvania. Everything from production to how much brine/wastewater is produced to the number (and type) of violations for each well (and for each driller). It’s a true treasure trove. You can access a lot with a free membership, but it only costs $20 a year to access a whole lot more. (No, we don’t even know the guy who runs it and we don’t get paid to sing their praises!) Marcellusgas.org recently sent an email to members with some “top 5” lists for 2014: the top 5 counties with highest number of wells drilled, top 5 drillers by number of wells drilled, top 5 for number of inspections (by county and driller) and top 5 for number of violations (by county and driller). We found the lists interesting and thought you would too…
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