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Marcellus Drilling News
  • Columbiana County | Ohio | Utica Shale

    Utica Drilling Still Going Strong in Northern Ohio/Columbiana County

    January 27, 2015January 27, 2015

    Although the received wisdom is that natural gas drilling in Ohio has “moved south” to places like Belmont, Harrison, Guernsey, Noble and Monroe counties, the fact remains there is still a strong and stead program of drilling in counties further north–like Carroll and Columbiana. Point in fact: Who’s drilling in Columbiana County, where are they drilling, and how much are they drilling? We have the latest stats that show a still-thriving Utica Shale industry in Columbiana…
    Read More “Utica Drilling Still Going Strong in Northern Ohio/Columbiana County”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

    Why Such Intense Opposition to Pipelines in the Northeast?

    January 27, 2015January 27, 2015

    An excellent article from the Natural Gas Intelligence’s (NGI) Daily Gas Price Index publication, sister to the excellent Shale Daily, delves into the reasons behind the widespread and ongoing opposition to pipeline projects in the northeast. Pipelines like PennEast from Wilkes-Barre, PA to Trenton, NJ, and the expansion of the mighty Tennessee Gas Pipeline across Massachusetts and New Hampshire, have raised the ire of anti-drillers. The Daily Gas Price Index article delves into the reasons why folks in the northeast are resisting new pipeline projects…
    Read More “Why Such Intense Opposition to Pipelines in the Northeast?”

  • Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    Guest Post: Bradford Co Landowner Asks Gov. Wolf to Support HB 1684

    January 27, 2015January 27, 2015

    MDN has written plenty about Pennsylvania’s HB 1684–the Guaranteed Minimum Royalty Act (see these MDN articles). In essence, some companies (cough *Chesapeake Energy* cough) have gotten creative with deducting post-production costs from royalty checks. According to the PA Guaranteed Minimum Royalty Act of 1979, royalty owners (landowners) must receive no less than 1/8, or 12.5%, by law. But when Chessy and others start deducting this and that, never spelled out in the original lease agreement, landowners are getting the shaft–way lower than 12.5%. In some cases they get royalty checks for a few dollars! Bradford County landowner John Williams is concerned, both about HB 1684 and newly elected Gov. Tom Wolf’s stand on that bill, and about Wolf’s proposed 5% severance tax. Will the severance tax be the next deduction gas companies take, further reducing royalty checks? Is the severance tax Tom Wolf proposes a tax that will be paid, in essence, by landowners? We thank John for his guest post…
    Read More “Guest Post: Bradford Co Landowner Asks Gov. Wolf to Support HB 1684”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Jan 27, 2015

    January 27, 2015January 27, 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, Jan 27, 2015”

  • Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

    Magnum Hunter CEO: No New Marcellus/Utica Drilling in 2015

    January 26, 2015January 26, 2015

    no drillingMagnum Hunter Resources (MHR), a small but growing driller in the Marcellus/Utica, gave one day’s notice and then convened a phone call with investors last Friday to declare they’re not spending a dime on new drilling in 2015–until the prices charged by oilfield services companies (the companies that do the drilling and fracking) come down–a lot. MHR CEO Gary Evans said he’s looking for a 40% discount compared to what the company paid in 2014 for the same services–and until they get it, the drill rigs for MHR will be idled. But have no fear, production for the company (meaning revenue) will continue to grow each quarter in 2015 because of wells already drilled and shut-in, waiting to be connected to pipelines…
    Read More “Magnum Hunter CEO: No New Marcellus/Utica Drilling in 2015”

  • Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Regency Energy Partners

    Energy Transfer Partners Buys Regency Energy for $25B

    January 26, 2015January 26, 2015

    Big NewsBig news in the midstream (pipelines and processing plants) world. Today, Energy Transfer Partners (ETP) announced they are merging with and buying Regency Energy Partners in a deal with a total value of $24.8 billion–$18 billion in stock and cash, and $6.8 billion in assumed Regency debts. You may recognize both names, as both companies are active in the Marcellus and Utica Shale…
    Read More “Energy Transfer Partners Buys Regency Energy for $25B”

  • Commodity Price | Industrywide Issues | Pennsylvania | Statewide PA

    MSC & PIOGA: Marcellus Drilling is Scaling Back “Significantly”

    January 26, 2015January 26, 2015

    What’s the prognosis for new drilling activity in the Marcellus Shale? Two industry leaders gave a sobering assessment to the Philadelphia Inquirer. Dave Spigelmyer, president of the Marcellus Shale Coalition (MSC) and Lou D’Amico, president of the Pennsylvania Independent Oil and Gas Association (PIOGA) spoke frankly about where drilling is scaling back (more so in the wet gas areas than the dry gas areas, but dry gas still affected too), and when the outlook is likely to improve (not any time soon)…
    Read More “MSC & PIOGA: Marcellus Drilling is Scaling Back “Significantly””

  • Industrywide Issues | Research | Statewide WV | West Virginia

    MDN Exclusive: WV Horizontal Well Production Report w/Well Names

    January 26, 2015January 26, 2015

    The West Virginia Dept. of Environmental Protection (WVDEP) requires annual reporting of production data–woefully out of step with both Ohio (quarterly reports) and Pennsylvania (monthly reports starting in March 2015). The WVDEP “requires” drillers to file reports by March of each year–but many wells did not list production data for 2013 until “recently”–in September 2014. What does the data show? Production varies widely depending on the geography. Below are some examples, along with the complete production report from 2013 for horizontal wells in WV, specially produced to show the well name (available only from MDN)…
    Read More “MDN Exclusive: WV Horizontal Well Production Report w/Well Names”

  • Energy Companies | Rice Energy

    Latest Rice Energy Investor Presentation Reveals New Info

    January 26, 2015January 26, 2015

    Last week Rice Energy posted a new PowerPoint investor presentation on their website. We like to share these concise “get to the point” presentations with the MDN audience because they’re full of maps and information that landowners, energy companies and supply chain companies find useful. This latest from Rice is no exception. Early on we learn a neat fact (slide #3): Rice Energy hit Marcellus Shale production levels of 200, 300, 400 and 500 million cubic feet per day with fewer wells than any other operator in the Marcellus. Cool. Here’s what else we notice in the latest Rice presentation…
    Read More “Latest Rice Energy Investor Presentation Reveals New Info”

  • Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

    As Maryland Gets Ready to Frack, Will New Gov Change Regs?

    January 26, 2015January 26, 2015

    Two members of the Maryland Marcellus Shale Advisory Commission, writing in the Baltimore Sun yesterday, say that with only a few weeks left before new rules to allow Marcellus Shale drilling in western Maryland go into effect, the state’s newly elected Republican governor, Larry Hogan, has “every right to thoroughly review, modify or even pull back the draft regulations.” But the two commission members–Harry Weiss, a partner at the Ballard Spahr law firm, and Jeffrey Kupfer, former deputy secretary at the U.S. Dept. of Energy–say before Hogan goes changing things, he should consider…
    Read More “As Maryland Gets Ready to Frack, Will New Gov Change Regs?”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

    Anti-Drillers Take Aim at Pat Henderson’s Move from Govt to MSC

    January 26, 2015January 26, 2015

    A new hit piece from the drive-by Democrat propagandists known as PBS StateImpact Pennsylvania. Patrick Henderson, formerly PA Gov. Tom Corbett’s Energy Executive, has had the unmitigated gall to land on his feet in a new job–now gainfully employed by the Marcellus Shale Coalition as its Director of Regulatory Affairs. StateImpact is dutifully reporting the Democrat talking points that this “proves” the Corbett administration was in bed with drillers all along. Meanwhile, John Quigley once worked for Ed Rendell and later went to work for Big Environment–an anti-drilling group known as PennFuture–after he left being Secretary of the Dept. of Natural Resources in PA. But not a peep from StateImpact on how that “proves” the Rendell administration was in bed with anti-frackers. Quigley has just been recycled by Tom Wolf (Wolf’s administration increasingly looks like the third term of the Rendell administration) to head the Dept. of Environmental Protection (DEP). No speculation from StateImpact about how Quigley may be “in bed” with the enviros as he assumes his vital-to-the-Marcellus-industry post at the DEP. Nope. Just another day slavishly regurgitating the Dem talking points…
    Read More “Anti-Drillers Take Aim at Pat Henderson’s Move from Govt to MSC”

  • About MDN | Calendar

    Calendar of Events for Jan 26-Feb 8, 2015 [Free]

    January 26, 2015January 26, 2015

    Below are upcoming events for this week and next. To see the full list of future events, visit this page: //marcellusdrilling.com/calendar/.

    NOTE: To have an item included, please email it to: calendar@marcellusdrilling.com.
    Read More “Calendar of Events for Jan 26-Feb 8, 2015 [Free]”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Mon, Jan 26, 2015

    January 26, 2015January 26, 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: Mon, Jan 26, 2015”

  • Allegheny County | Chevron | Energy Companies | Industrywide Issues | Jobs | Pennsylvania

    Chevron Laying Off 23% of their Marcellus Workforce in Pittsburgh

    January 23, 2015January 23, 2015

    cutting jobsWell, don’t say we didn’t warn you. In November MDN brought you the news that Chevron announced the are “restructuring” their northeast business until to “become more efficient” and for “long-term growth.” We pointed out at the time that kind of language doesn’t inspire confidence (see Chevron Scaling Back in the Marcellus/Utica? Maybe). We also said it was a good sign that no WARN Act notices of impending large layoffs had been issued. Oops. That’s now changed. In an emailed statement yesterday, Chevron said it plans to lay off 162 Pennsylvania workers as part of their “restructuring”–nearly a quarter of their Marcellus workforce. Ouch. It wasn’t so long ago Chevron was planning to build a massive, new 350,000 square foot regional headquarters near Pittsburgh (see Chevron Puts Moon Twp, PA Office Building Project on Hold). It seems that project is now dead–no signs of life. Here’s the disappointing info on Chevron’s coming round of layoffs…
    Read More “Chevron Laying Off 23% of their Marcellus Workforce in Pittsburgh”

  • Industrywide Issues | Jobs

    Not Every NE Driller is Laying Off Workers – Some Buck the Trend

    January 23, 2015January 23, 2015

    Lately it seems the news has been bad when it comes to layoffs and cutbacks in the northeast shale drilling industry. We recently had the bombshell that Schlumberger is cutting 9,000 jobs because of low oil prices (see Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices”). Then Baker Hughes announced layoffs of 7,000 (see Baker Hughes Announces 7,000 Layoffs Due to Low Oil Price). Both are national layoffs–we don’t know how many of those jobs are in the northeast, but the northeast is the biggest shale region in the U.S. at the moment, so it stands to reason some (many?) will come from our neck of the woods. Today Chevron announced they’re laying off 162 people in the Pittsburgh area (see our lead story today). Almost every major Marcellus/Utica driller has announced major cuts in their capital expenditure budgets for 2015–from Range Resources and Antero Resources to the much smaller firms like Rex Energy and Stone Energy. Less spending on drilling = cutbacks in jobs, at least jobs at oilfield services and other related companies. So when we saw a story that says “wait a minute, we’re not cutting jobs”–and the people saying it are the heads of big Marcellus/Utica drillers, that caught our attention…
    Read More “Not Every NE Driller is Laying Off Workers – Some Buck the Trend”

  • Air Quality | Industrywide Issues | Pennsylvania | Regulation | Research | Sand/Proppant | Wyoming County (PA)

    DEP Begins Air Study Near Proposed Frac Sand Facility in NEPA

    January 23, 2015January 23, 2015

    For some time, MDN has followed the developing story in rural Tunkhannock, PA (Wyoming County) where D&I Silica, now owned by Hi-Crush Partners, wants to build a frac sand transfer station along a rail line. D&I lacked only one thing before they could begin construction–a permit from the county. Residents in the area are concerned that the silica, or frac sand, will become airborne and create health issues–so the county resisted in granting the permit. D&I took the county to court and the case was settled last November, allowing D&I to move forward. However, the county wanted to conduct an air quality study. The state Dept. of Environmental Protection said they would conduct an air quality study, but the county a private, third party company to do the study (see Deuling Air Quality Studies for NEPA Frac Sand Transfer Station). Once the county found out the air quality study would cost them $130,000, they decided the DEP’s study will do just fine, thank you very much. The county decided to pay $7,500 instead to have their independent, third party consultant review the study done by the DEP. Yesterday the DEP showed up and started to set up equipment for the study…
    Read More “DEP Begins Air Study Near Proposed Frac Sand Facility in NEPA”

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