Marcellus Drilling News

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…
Read More “GASFRAC Bankruptcy Dims LPG Waterless Fracking; LNG Fracking Debuts”
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?…
Read More “Even with Capex Budgets/Jobs Slashed, NE Production Still Rising”
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…
Read More “New Study Finds PennEast Pipeline to Save PA & NJ Residents $900M”
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…
Read More “CONSOL Energy Floats $650M in Senior Notes, Paying Off Old Debt”
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)…
Read More “Marcellus/Utica 3-Month Temp Forecast: Cold, Warm, Warm”
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…
Read More “Statoil Cuts Deal to Drill Under 474 Acres of the Ohio River in WV”
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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Carrizo Oil & Gas | Energy Companies | Rice Energy

The Mad Dash to Raise Cash Continues: Carrizo & Rice Energy
March 24, 2015March 24, 2015

The “get cash through the door” game continues for both drillers (E&P) and midstream companies. We have two more drillers looking to get cash through the door in two different ways. Last week, Carizzo Oil & Gas, an independent oil and gas company with drilling operations in several shale plays including the Marcellus and Utica, floated a plan to use equity financing (selling more of the company via shares of stock) to raise $205 million by floating 4.5 million shares of stock for $45.50 per share. Carrizo, which has no plans to drill new wells in the northeast in 2015 (see Carrizo Cuts Budget 35%, No Drilling Planned in Utica/Marcellus in 2015), will use the money to pay down debt. Meanwhile, Rice Energy, which is a “pure play” energy company targeting the Marcellus/Utica, announced yesterday they’re going the IOU route–issuing new notes, or promises to repay loans (incurring more debt), hoping to raise $400 million to be used for “for general corporate purposes, including capital expenditures”…
Read More “The Mad Dash to Raise Cash Continues: Carrizo & Rice Energy”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Marcellus Industry Consolation Prize: DEP Conventional Board
March 24, 2015March 24, 2015

Pennsylvania Dept. of Environmental Protection Acting Sec. John Quigley packed the DEP’s Oil & Gas Technical Advisory Board with members who will rubber stamp his onerous new drilling rules (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Quigley used the excuse that the board was splitting in two, one board (the TAB) to cover unconventional/shale drilling, the other–Conventional Oil and Gas Advisory Committee (COGAC)–to cover traditional, vertical-only drilling. TAB is arguably the more important board because conventional drilling, which once was the only kind of drilling in the state, has all but shriveled up. There’s hardly any conventional drilling in PA these days. So with the TAB safely full of Quigley acolytes, it’s time to hand out the consolation prizes to the industry by giving them seats on the COGAC. Which is exactly what happened yesterday…
Read More “PA Marcellus Industry Consolation Prize: DEP Conventional Board”
Hydraulic Fracturing | Industrywide Issues | Public Opinion

Gallup Poll on Fracking Shows it to be a Partisan/Political Issue
March 24, 2015March 24, 2015

Gallup is out with a nationwide poll that asks this question: Do you favor or oppose hydraulic fracturing or “fracking” as a means of increasing the production of natural gas and oil in the U.S.? The headline that news organizations are reporting is that across all age groups and party affiliations, it’s a 40/40 split–40% favor fracking and 40% oppose it. If you dig a little deeper, you find this should be the real headline: Republicans favor fracking, Democrats oppose it. If you dig deeper still, you’ll find those who have grown a brain (50+ years old) are in favor of fracking, while inexperienced (and frankly dumber) young people oppose it. That about sums up the poll numbers (see them below). At least, those are the poll numbers shared by Gallup. They don’t bother to share the cross-tabs–the underlying details of the poll. We’d love to see it broken out by region–or by state. Did Gallup weight the poll with people from New England or California and under-represent places like Texas and North Dakota? We don’t know. Therefore we don’t know how truly reflective this poll is of “average” American opinion…
Read More “Gallup Poll on Fracking Shows it to be a Partisan/Political Issue”
Chesapeake Energy | Energy Companies

Chesapeake Slashes 2015 Budget Again, Another $500M
March 24, 2015March 24, 2015

Just a month ago Chesapeake Energy released their disastrous 2014 numbers and their stock price took a huge hit. Along with the numbers for 2014, Chessy released a projected budget for 2015 of $4-$4.5 billion, down 34% over 2014 (see Chesapeake Energy Earnings Down 60%; Cutting Budget 34% in 2015). It’s a month later and Chesapeake has just slashed the 2015 budget again–another $500 million. They blame it on the low commodity price of natural gas…
Read More “Chesapeake Slashes 2015 Budget Again, Another $500M”
Chesapeake Energy | Energy Companies

Carl Ichan Ups Ownership of Chesapeake, Continues to Lose $
March 24, 2015March 24, 2015

Corporate Raider Carl Ichan continues his stranglehold on Chesapeake Energy. Ichan, you may recall, holds the second highest number of Chesapeake shares of stock and was largely the person responsible for booting Aubrey McClendon from the company he co-founded in April 2013 (see McClendon Exits Chesapeake, Well-Bonused “Friends” Replace Him). In the lead-up to ejecting McClendon, Ichan increased his ownership in the company, starting in November 2012 (see Carl Ichan Ups Stake in Chesapeake Energy). He upped his ownership again after McClendon left, in August 2013 (see Corporate Raider Carl Ichan Ups Stake in Chesapeake – Again). How has that worked out for Carl? He’s losing money hand over fist (see Carl Icahn Has Lost $633 Million on Chesapeake Gamble…So Far). But channeling his inner Britney Spears (“Oops I Did It Again”), Carl just can’t get enough of the money-losing Chessy. He’s just increased his stake again–to 11% of the company. He remains Chessy’s #2 stockholder, behind fellow corporate raider Mason Hawkins…
Read More “Carl Ichan Ups Ownership of Chesapeake, Continues to Lose $”