Marcellus Drilling News

Energy Companies | Industrywide Issues | M&A | Talisman Energy

Rumor Mill: Repsol Once Again Interested in Buying Talisman
December 9, 2014December 9, 2014

In July MDN told you that Spanish oil company Repsol was seriously looking at buying some of, or even all of, Canadian company Talisman Energy (see Repsol Eyes Talisman Energy for “Assets” – Takeover Target?). Talisman is a major driller in the Marcellus Shale. Then, in the heat of August, came the word that those talks were off (see Talks for Repsol to Buy Some/All of Talisman Energy are “Frozen”). However, the rumor mill is buzzing again. Bloomberg is reporting the talks are back on and once again Repsol is looking at possibly a buyout of Talisman…
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Industrywide Issues | Research

Monthly DPR Shows Shale Oil & Gas Production Continue to Climb
December 9, 2014December 9, 2014

Our favorite government report from our favorite government agency was released yesterday–the Drilling Productivity Report from the U.S. Energy Information Administration (EIA). What does it show? EIA projects oil output from the top seven U.S. shale plays (the Marcellus and Utica being two of them) will increase from 5.2 to 5.3 million barrels per day by January 2015, and natural gas production will increase from 44.1 to 44.7 billion cubic feet per day by January 2015. Now, tell us again about that peak oil and peak gas. Below is the full report with MDN’s additions…
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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Dec 9, 2014
December 9, 2014December 9, 2014

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, Dec 9, 2014”
Ohio | Statewide OH | Utica Shale

Ohio’s Top 10 Producing Utica Gas & Oil Wells for 3Q14
December 8, 2014December 8, 2014

On Friday the Ohio Dept. of Natural Resources (ODNR) released their quarterly production numbers for third quarter 2014 for OH’s Utica oil and gas wells. The report shows that oil production increased 22% over the previous quarter, and natural gas increased a whopping 48% over the previous quarter. Below we have the ODNR’s high level overview of the numbers, along with our own analysis showing: the top 10 producing gas wells, the top 10 producing oil wells, and then the top 10 gas and oil wells as ranked by average production per day. There is a difference! The longer an oil or gas well is online, the less it produces. Newer wells produce more. So we show you which wells are not just producing the most quantity overall, but which wells are producing at the fastest (most productive) rates–even if they haven’t yet been online a full three months (92 days). We also include the complete list of 673 wells that had at least some Utica oil or gas production in 3Q14 in a more usable format than that provided by the ODNR…
Read More “Ohio’s Top 10 Producing Utica Gas & Oil Wells for 3Q14”
Hydraulic Fracturing | Industrywide Issues | Regulation

DRBC Uses MA Company for Water Testing, Anticipates Fracking
December 8, 2014December 8, 2014

The Delaware River Basin Commission (DRBC) has prevented, through inaction, any Marcellus Shale drilling in its jurisdictional area (the Delaware River Basin in NY, PA and NJ). In particular, shale drilling would no doubt immediately take off in Wayne and Pike counties in PA should the DRBC allow it. There’s hope that with DRBC’s new director, Steve Tambini, perhaps a change will occur to allow drilling. Even though the DRBC has not allowed drilling, that doesn’t mean they’ve been totally inactive. Over the past three years, the DRBC has used a private Massachusetts company to measure baseline water quality in rivers in anticipation that fracking will one day happen in the Basin. The DRBC wants baseline numbers to compare with post-fracking numbers–to ensure nothing has changed (or if it has changed, as evidence). We think baseline testing is a great idea, and we also think it’s great that the DRBC anticipates allowing fracking–at some point…
Read More “DRBC Uses MA Company for Water Testing, Anticipates Fracking”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov-Elect Tom Wolf’s Severance Tax Lie Exposed
December 8, 2014December 8, 2014

Gee, a politician who lied to get elected? Say it ain’t so! Ah, but it is. And the politician who lied is none other than Gov.-elect Tom Wolf. He said slapping a severance tax on Marcellus drillers would raise $1 billion or more that could then be given to schools (in any other context this would be called theft–holding up one citizen to turn the money over to another citizen). Wolf knowingly used erroneous numbers pumped out by the anti-drilling Pennsylvania Budget and Policy Center (far-left, partisan Democrat group). They said a 5% tax would haul in 1 billion big ones. The truth? At best, such a tax may haul in half that–still leaving a $500 million hole in the budget. And that’s if drillers don’t stop drilling and leave the state because they’re being bled to death with a corporate income tax on top of a severance tax (which states like TX, OK and LA don’t have). Now it’s time for mainstream media to try and cover Wolf’s lie by pretending it was a mathematics error…
Read More “PA Gov-Elect Tom Wolf’s Severance Tax Lie Exposed”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Dem Strategist Lays Out Game Plan for Selling Severance Tax
December 8, 2014December 8, 2014

Payback time for the teachers’ unions. We now know how the Democrats plan to mount a campaign to dump the impact fee and raise taxes on drillers and landowners with a severance tax, and give half of the money to “education” (i.e. teachers unions). We have their game plan courtesy top PA Democrat strategist Tony May, who wrote about it in the Harrisburg Patriot-News…
Read More “PA Dem Strategist Lays Out Game Plan for Selling Severance Tax”
Broome County | Chenango County | Delaware County | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Schoharie County | Williams

NY Landowners Get Eminent Domain Threat from Constitution Pipeline
December 8, 2014December 8, 2014

As we reported last week, it’s great news that the Constitution Pipeline has now received its final green light and construction is about to begin (see FERC Issues Final Approval for Constitution Pipeline in PA/NY). Some of the hardest work now lies ahead. Unfortunately, some landowners refuse to negotiate a right-of-way and so, just a few days after FERC gave the go-ahead, those landowners have received a “sign now or else” letter threatening the use of eminent domain, from Williams…
Read More “NY Landowners Get Eminent Domain Threat from Constitution Pipeline”
Industrywide Issues | Ohio | Pipelines | Statewide OH

OH Landowners Outside Utica Get Piece of the Action via Pipelines
December 8, 2014December 8, 2014

You’d have to be living on the planet Mars (or perhaps Mars, PA) to not know that pipeline infrastructure has virtually taken over the spotlight from shale drilling in places like Pennsylvania, Ohio and West Virginia. Contrary to the continuing tripe that “shale supplies of gas and oil will give out any day now” that we continue to hear from certain discredited sources, supplies (in the northeast) continue to increase. And along with those supplies comes a need for pipelines. The Ohio Farm Bureau is telling OH landowners that even if they aren’t in the Utica-rich eastern portion of the state, there’s still a chance they can cash in on the shale boom because of the pipelines coming their way…
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Industrywide Issues | Pipelines | Regulation

Why Does it Take So Long to Build a Pipeline in the Northeast?
December 8, 2014December 8, 2014

Blaine Lucas, a lawyer with the Pittsburgh law firm of Babst Calland (one of the northeast’s top energy law firms) gives an overview of some of the difficulties and problems faced by midstream companies (pipelines and processing plants), along with insight into why it just takes so darned long to build pipelines–pipelines which are desperately needed to get the huge and growing supply of Marcellus Shale gas to market…
Read More “Why Does it Take So Long to Build a Pipeline in the Northeast?”
Allegheny County | Industrywide Issues | M&A | Pennsylvania | Supply Chain

Marcellus Supply Chain: Pittsburgh Hydraulic Hose Supplier Sold
December 8, 2014December 8, 2014

Powertrack International, a Pittsburgh-based company that sells hydraulic hoses and fittings to the oil and gas industry, has been bought out by F.N.B. Capital Partners, a $175 million investment fund also located in Pittsburgh. This is the twelfth such SBIC (federal Small Business Investment Company program) investment this year for F.N.B. Terms of the deal were not disclosed (private transaction, private company). Edward Condon, the owner of Powertrack, is cashing in his chips. He’ll hang around for some consulting work, but essentially he’s now out the door and a “long-time” employee of the company, Andrew Kuron, will take the helm as president…
Read More “Marcellus Supply Chain: Pittsburgh Hydraulic Hose Supplier Sold”
About MDN | Calendar

Calendar of Events for Dec 8-21, 2014 [Free]
December 8, 2014December 8, 2014

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 Dec 8-21, 2014 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Dec 8, 2014
December 8, 2014December 8, 2014

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, Dec 8, 2014”
Energy Services | Pennsylvania | Statewide PA | UIL Holdings

UIL Makes it Official: $1.86B Deal to Buy Phila. Gas Works is Dead
December 5, 2014December 5, 2014

Sensing that the corrupt Philadelphia City Council will not budget–will not even talk to UIL Holdings about their proposed $1.86 BILLION offer to purchase the municipal-owned Philadelphia Gas Works (PGW)–the company has pulled the plug on the deal. It’s now officially 100% dead. Even though UIL has assured and reassured anyone who would listen that they won’t come in and fire the union workers, and that they would accelerate an already-ambitious schedule of upgrading PGW’s failing pipeline infrastructure, City Council members are stuck in the pockets of powerful unions and shadowy others in the background who opposed the deal. UIL has been more than patient. Philly’s dream of being an “energy hub” in the northeast is also dead along with the deal…
Read More “UIL Makes it Official: $1.86B Deal to Buy Phila. Gas Works is Dead”
Antero Resources | CNG/LNG | Energy Companies | Energy Services | Exporting | Industrywide Issues | WGL Holdings

WGL & Antero to Provide Marcellus Gas to India via Cove Point
December 5, 2014December 5, 2014

An exciting announcement yesterday. You know that Dominion was given the green light in September and is now building an LNG (liquefied natural gas) export facility in Cove Point, Maryland (see Dominion Gets Final Fed Approval to Build Cove Point LNG Plant). Dominion has already lined up Japan and India to purchase all of the LNG the plant can produce. The question has remained, who will ship natural gas to the plant, and where will that gas come from? Stands to reason most of it (perhaps all of it) will come from the Marcellus and Utica. We previously told you that Cabot Oil & Gas is one of the suppliers–supplying 0.35 billion cubic feet per day (Bcf/d) of gas to Japan when the plant is up and operating (see Cabot Signs Deal to Export Gas via Cove Point, MD). We now know of the first official supplier for India: WGL Midstream, using Marcellus gas supplied by Antero Resources…
Read More “WGL & Antero to Provide Marcellus Gas to India via Cove Point”
Columbiana County | Energy Services | Industrywide Issues | Monroe County | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

FERC Approves OPEN Pipeline in Eastern OH, Gas Goes to Gulf Coast
December 5, 2014December 5, 2014

Christmas continues to come a few weeks early for some of our biggest midstream (pipeline) companies. MDN told you earlier this week that the Federal Energy Regulatory Commission (FERC) had approved the Constitution Pipeline from NEPA up into NY. We now have word that FERC has approved Spectra Energy’s OPEN (Ohio Pipeline Energy Network) project in Ohio. Spectra originally announced the project in December 2011, a project that will build 76 miles of new pipeline from Columbiana County to Monroe County to connect to the Texas Eastern Pipeline, and then reverse the flow–make it bidirectional–on the Texas Eastern in order to carry Marcellus and Utica Shale gas from eastern Ohio to the Gulf Coast. Spectra finally filed a full, official application with FERC in February of this year (see Spectra Energy Files Formal Request with FERC for OPEN Pipeline). On Tuesday, FERC gave its final blessing for the OPEN project…
Read More “FERC Approves OPEN Pipeline in Eastern OH, Gas Goes to Gulf Coast”