Marcellus Drilling News

Accidents | Industrywide Issues | Pipelines

Marcellus/Utica – More Dangerous than Other Shale Plays?
February 2, 2015February 2, 2015

The recent ATEX Express pipeline explosion/fire in Brooke County, WV has folks asking questions (see ATEX Ethane Pipeline Explodes, Burns in Brooke County, WV). It’s not the first accident in Brooke County. In 2013 Chesapeake Energy had a hydraulic line fail at an active drilling site that ended up torching five tractor-trailers and did $8 million in damage (see Update on Chesapeake Energy Well Fire in Brooke County, WV). Over the past 4 to 5 years, since there’s been active drilling in the Marcellus/Utica, there have been 21 serious accidents/incidents in the Ohio Valley alone (and a number of others outside the Ohio Valley, see our companion article today) related to either drilling or pipelines. By comparison, there have been a handful of accidents and incidents in the North Dakota Bakken–and only one pipeline incident to speak of. Is it a fair comparison to make–safety in the Bakken vs. the Marcellus/Utica?…
Read More “Marcellus/Utica – More Dangerous than Other Shale Plays?”
Energy Companies | Seneca Resources

Seneca Resources Hits 1/2 Bcf/d Production in Previous Quarter
February 2, 2015February 2, 2015

Last week National Fuel Gas Company, parent of Marcellus Shale driller Seneca Resources, reported its quarterly update for the quarter ending Dec 31, 2014. Everyone else calls it fourth quarter 2014, but for National Fuel Gas, it’s their first quarter 2015. What does the latest report show? During the quarter Seneca produced 48.2 billion cubic feet equivalent (Bcfe), an increase of 11.1 Bcfe or 30% over the prior year’s first quarter. Seneca has hit the half billion cubic foot per day club: average daily production during the quarter was 524 million cubic feet equivalent (MMcfe) per day…
Read More “Seneca Resources Hits 1/2 Bcf/d Production in Previous Quarter”
Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

What Does Marcellus Wastewater Disposal Look Like in 10-15 Years?
February 2, 2015February 2, 2015

An interesting and well-written article appears in the Pittsburgh Tribune-Review on the topic of disposal and recycling of frack wastewater. Once upon a time drillers in Pennsylvania would send frack wastewater to the local municipal sewage treatment plant. That ended in 2011 under Dept. of Environmental Protection Secretary Michael Krancer (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). Today, some 90% of frack wastewater, which includes both flowback (the stuff that comes back out of the hole for the first couple of weeks following a frack job) and produced water (the naturally occurring water from the depths that continues to come out after the initial frack job), is recycled and used for more fracking. But according to experts quoted, that can only go on for perhaps another 15 years. What happens after that? How do Marcellus/Utica drillers dispose of wastewater when there’s more than they can reuse?…
Read More “What Does Marcellus Wastewater Disposal Look Like in 10-15 Years?”
About MDN | Calendar

Calendar of Events for Feb 2-15, 2015 [Free]
February 2, 2015February 2, 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 Feb 2-15, 2015 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Feb 2, 2015
February 2, 2015February 2, 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, Feb 2, 2015”
Blue Racer Midstream | Economic Impact | Energy Services | Industrywide Issues | Pipelines | Williams

Marcellus-Utica Midstream Conf: $30B of NE Infrastructure Needed
January 30, 2015January 30, 2015

Day two, and the concluding day at the Hart Energy Marcellus-Utica Midstream Conference in Pittsburgh, proved as interesting as the first day (for a day one recap, see Marcellus-Utica Midstream Conf: Marcellus is “Best of the Best”). One of the speakers on day two was Scott Williams, executive VP and chief commercial officer for Blue Racer Midstream, who spoke about his company’s processing plants in the northeast. Blue Racer’s Natrium, WV plant connects to Sunoco Logistics’ Mariner West ethane pipeline, which carts Blue Racer’s ethane to Sarnia, Ontario (Canada) and the Nova Chemicals Corunna ethane cracker. Blue Racer also operates the Berne processing plant in Monroe County, OH. According to Williams, “in excess of $30 billion worth of infrastructure still needs to be built” in the northeast. Wow! That should keep a variety of companies busy for a while. A VP from midstream giant Williams (which recently bought out Access Midstream) agrees…
Read More “Marcellus-Utica Midstream Conf: $30B of NE Infrastructure Needed”
CONSOL Energy | Energy Companies

CONSOL Energy 2015: E&P Budget Cut 33%, Utica Expands
January 30, 2015January 30, 2015

CONSOL Energy released its fourth quarter 2014 and plans for 2015 today. Overall CONSOL’s revenues were way down for 4Q14 over 4Q13–down 90%. But that was due to a number of coal operations they discontinued in 2014. The gas drilling division had another outstanding quarter–pumping 70.5 billion cubic feet of natural gas for the quarter, up 45% year over year. For 2015 CONSOL plans to spend $1 billion on their Marcellus drilling budget (down from $1.5 billion in 2014). Marcellus Shale costs for CONSOL were $2.83 per million cubic feet equivalent (Mcfe) in 4Q14, a $0.18 per Mcfe improvement from 4Q13 which saw costs of $3.01 per Mcfe. The company achieved “all-in cash costs” of only $1.71 per Mcfe in the Marcellus Shale. And no, we’re not sure what the difference is between costs and “all-in cash costs.” Perhaps one of our smart readers can enlighten us in the comments? The trend is obviously good–it’s costing them less and less to produce more and more gas. CONSOL says in their update that the Utica Shale continues to grow in importance for the company…
Read More “CONSOL Energy 2015: E&P Budget Cut 33%, Utica Expands”
Energy Companies | Ohio | PDC Energy | Statewide OH | Utica Shale

PDC Energy’s Interesting 2014 – “Dynamite” in the Utica
January 30, 2015January 30, 2015

PDC Energy had an interesting 2014 in the Marcellus/Utica. During the year they sold off their 131,000-acre Marcellus Shale operation to Mountaineer Keystone for $500 million (see Major New Player in the Marcellus Emerges: Mountaineer Keystone). They entered the year intending to drill 18 Utica Shale wells (they came close). Along the way they had an accident and spilled drilling mud into a creek (see PDC Accident: Drilling Mud Spills into Creek in Morgan County, OH). During the year they fired (?) reassigned (?) their CEO back to the board and promoted the COO to be CEO (see Changing Chairs at PDC Energy: New President/CEO). And at the end of last year, the company announced they will push the pause button on new Utica drilling in 2015 (see PDC Energy Pushes Pause Button on OH Utica Drilling for 2015). Yesterday PDC provided a high level overview of 2014 (none of the above items mentioned) which includes a few brief statements about the Utica and Marcellus. One of the items their most excited about? A 4-well Utica pad called (we kid you not), “Dynamite”…
Read More “PDC Energy’s Interesting 2014 – “Dynamite” in the Utica”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Trimming $15B in Spending Next 3 Years – PA Cracker?
January 30, 2015January 30, 2015

Shell released their fourth quarter 2014 results yesterday, along with comments on what’s ahead for 2015. Full year profits for Shell were up in 2014–to $19 billion (a mind-blowing number). However, the company plans to trim $15 billion worth of spending in over the next three years. Ouch. MDN wondered if the Shell ethane cracker plant planned for Monaca, PA is on the list to trim…
Read More “Shell Trimming $15B in Spending Next 3 Years – PA Cracker?”
Accidents | Brooke County | Energy Services | Enterprise Products Partners | Ethane | Industrywide Issues | Pipelines | West Virginia

PHMSA Update on ATEX Pipeline Explosion in WV – Faulty Weld?
January 30, 2015January 30, 2015

It’s been five days since a section of the Appalachia to Texas (ATEX) Express ethane pipeline ruptured/exploded and burned in Brooke County, WV (see ATEX Ethane Pipeline Explodes, Burns near Follansbee, WV). Since the pipeline is under the regulatory oversight of the Pipeline and Hazardous Materials Safety Administration (PHMSA), that organization is doing the investigation into the accident. The rupture and resulting fire burned approximately 24,000 barrels of ethane and scorched some 5 acres of woodland. What has the PHMSA learned so far? Not much. They have some theories, according to an initial report. It appears that the 20-inch pipeline ruptured near a section that had been welded together…
Read More “PHMSA Update on ATEX Pipeline Explosion in WV – Faulty Weld?”
CNG/LNG | Economic Impact | Exporting | Industrywide Issues | Pennsylvania | Processing Plants | Statewide PA

PA-Based Air Products Wins Another Gulf LNG Plant Contract
January 30, 2015January 30, 2015

Air Products is a Wilkes-Barre, PA manufacturer that builds huge rocket-looking “production trains” or “heat exchangers”–pieces of equipment that turn natural gas into liquefied natural gas, or LNG. Last September, Air Products signed a deal to produce two heat exchangers for an LNG export plant in Texas (see Air Products Wins Contract for TX LNG Plant, Marcellus Connection?). They’ve done it again! Air Products announced Wednesday they’ve signed another agreement–this one is to produce three heat exchangers for the Cameron LNG Liquefaction Project, located in Hackberry, Louisiana. As with the Texas plant, we believe there’s a connection to the Marcellus in this new sale…
Read More “PA-Based Air Products Wins Another Gulf LNG Plant Contract”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

NJ Conservation Group Opposes PennEast Pipeline – Self Interest
January 30, 2015January 30, 2015

Bet you didn’t know that if the PennEast Pipeline, a 110-mile pipeline from Wilkes-Barre, PA to Trenton, NJ is built, it will pollute the drinking water for 2.5 million people. That’s the faux claim made by the New Jersey Conservation Foundation in a resolution they’ve just passed opposing the project. It’s pretty obvious the board of the Foundation is packed with anti-fossil fuelers (all of whom use fossil fuels every day of their lives). Such is the wacky world of anti-drillers. Make reckless and false claims, have those claims picked up and amplified by a sycophantic media that NEVER challenges them on those claims, and try to bend the unthinking public’s will against a project like the PennEast. Standard play book…
Read More “NJ Conservation Group Opposes PennEast Pipeline – Self Interest”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Jan 30, 2015
January 30, 2015January 30, 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, Jan 30, 2015”
Energy Services | GASFRAC

Fire Sale for GASFRAC Waterless Fracking Co, Interim CEO Resigns
January 29, 2015January 29, 2015

Canadian oilfield services company GASFRAC continues to be a company in serious trouble. Which is sad. GASFRAC, you may recall, is one of the few companies that has a commercially viable waterless fracking technology using liquefied petroleum gas (liquid propane). GASFRAC was working on their first Utica Shale frack job late last year (see Details on GASFRAC’s Waterless Frack Test in OH Utica). But the company has been in trouble for some time. They fired the CEO and COO back in late 2012 (see Waterless LPG Fracking Company GASFRAC Fires its CEO, COO). The company filed for bankruptcy a few weeks ago (see Waterless Fracking Company GASFRAC Files for Bankruptcy). Since 2012, GASFRAC has had an “acting” CEO. As of yesterday, he’s not acting anymore–he’s now gone along with another board member. In February the company will be de-listed on the Toronto Stock Exchange. The good news is that the bankruptcy court is allowing them to proceed with either a sale of the whole company, or its pieces, post haste…
Read More “Fire Sale for GASFRAC Waterless Fracking Co, Interim CEO Resigns”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Gov Wolf Signs Exec Order to Ban Drilling Under State Land
January 29, 2015January 29, 2015

Pennsylvania Gov. Tom Wolf is, disappointingly, keeping campaign promises to his anti-drilling supporters. Today he will make a trip to Benjamin Rush State Park in northeast Philadelphia to sign an executive order to prohibit (for now) any more leases for drilling under (not on) state-owned land. The move is creating child-like excitement among far-left “environmentalist” groups like PennEnvironment–well known for rabid anti-drilling activities. You may recall two governors ago Democrat Gov. Ed Rendell was hell bent for leather in leasing state-owned land for drilling ON said land. After his voracious appetite for money was sated and his Democrat cronies in the legislature spent all $444 million of it, Rendell tried to pretend that he’s an environmentalist by slapping an executive order–a moratorium–on any more leasing of state-owned land. Hypocrite. Last year Gov. Tom Corbett lifted that moratorium with an executive order of his own so that another $75 million of badly needed revenue could be raised by leases for drilling under (not on) state land. Today, Gov. Wolf will turn down that $75 million with an executive order of his own for purely political pandering reasons. How utterly disappointing (but not surprising)…
Read More “PA Gov Wolf Signs Exec Order to Ban Drilling Under State Land”
Carrizo Oil & Gas | Energy Companies | Guernsey County | Ohio | Statewide OH | Utica Shale

Carrizo Cuts Budget 35%, No Drilling Planned in Utica/Marcellus in 2015
January 29, 2015January 29, 2015

Carrizo Oil & Gas is the latest Marcellus/Utica driller to cut their 2015 capital expenditures (capex) budget–by 35% over 2014. According to the Carrizo announcement below, they plan to spend $450-$470 million on drilling, most of it in the Eagle Ford (Texas) where they’re running three drilling rigs. They will spend only has much as they have to on “lease maintenance” in the Utica Shale–which we take to mean they’ll only do what they must to show they still intend to drill on leases that may soon expire. In the update below we get some numbers for Carrizo’s second Utica Shale well, in Guernsey County, OH. The update also indicates Carrizo continues to throttle back production in the Marcellus. It says nothing about new drilling in the Marcellus, so we presume there isn’t any planned for 2015…
Read More “Carrizo Cuts Budget 35%, No Drilling Planned in Utica/Marcellus in 2015”