Marcellus Drilling News

Chesapeake Energy | Energy Companies

Chesapeake Sells Off Another 162 Compressor Plants for $135M
July 15, 2014July 15, 2014

In February of this year, Chesapeake sold off a boatload of compressor plants. They sold 103 “compression units” in the Marcellus/Utica to Access Midstream (Access is now being bought by Williams). At the time, they sold another 334 compressors to Exterran Partners. Proceeds of that fire sale were $520 million for Carl Icahn’s pocket (see Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants). Word came yesterday that Chessy isn’t done with selling off their compressor plants. They’ve now sold another 162 units for $135 million to Exterran…
Read More “Chesapeake Sells Off Another 162 Compressor Plants for $135M”
Anti-Drilling/Fossil Fuel | CNG/LNG | Crime | Exporting | Industrywide Issues

24 Anti-Drilling Protesters Arrested by Homeland Security in DC
July 15, 2014July 15, 2014

MDN reported yesterday on the massive flop of a protest in Washington, DC against the Cove Point, Maryland LNG export facility (see Anti-Cove Point LNG Protest in DC Flops Bigtime). The so-called protest literally got no coverage from the media–except for the terrorist-loving Al Jazeera America network. What to do? Some of the more virulent protesters desperately craved some media attention, so they did what they often do–break the law. More than 30 anti-drilling “protesters” locked arms and blocked the entrance to the Federal Energy Regulatory Commission building in downtown DC yesterday. Homeland Security arrested 24 of them…
Read More “24 Anti-Drilling Protesters Arrested by Homeland Security in DC”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Dominion to Begin Cove Point LNG Construction in Next 2 Mos
July 15, 2014July 15, 2014

Despite the best protest efforts by anti-drillers against the Cove Point, Maryland LNG export facility in Washington (see our stories from yesterday and today), Dominion waits for final approval from the Federal Energy Regulatory commission (FERC) to begin construction. Dominion previously got a green light from the Dept. of Energy last September (see Celebrate! Dominion Wins DOE Approval for MD LNG Export Facility). Dominion also got an initial green light from FERC (see FERC Final EIS: Cove Point Won’t Hurt Environment). However, Dominion needs a final approval from FERC before they can begin construction. They expect that approval very soon…
Read More “Dominion to Begin Cove Point LNG Construction in Next 2 Mos”
CONSOL Energy | Energy Companies | Utica Shale

CONSOL Update: Gas Production Up 34%, New Utica Wells Online
July 15, 2014July 15, 2014

CONSOL Energy reports today results for a number of their Utica wells in Noble County, OH. Their “much anticipated” 3-well NBL19 pad went online last week and initial production for each of the three wells averaged 23 million cubic feet per day or more–very impressive indeed! A CONSOL well near the NBL 19, the NBL16A, is averaging 12 million cubic feet of natural gas per day. However, the 16A is also producing 768 barrels of oil per day! CONSOL’s aggressive program has helped drive production up 34% in second quarter 2014 over 2Q13. Below is CONSOL’s operations update issued this morning…
Read More “CONSOL Update: Gas Production Up 34%, New Utica Wells Online”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Pipelines | Wastewater | West Virginia

GreenHunter’s Unidentified Barge Facility Pipeline Destination
July 15, 2014July 15, 2014

John Jack, VP of business operations for GreenHunter Water, is being a bit cagey. Two weeks ago GreenHunter announced they will build three new, short pipelines for different purposes: one for frack wastewater/brine, one for fresh water, and one for condensate (see 3 New (Short) Pipelines from GreenHunter in Tri-state Area). Two of the pipelines will originate in southwestern PA and one in WV. All of them will connect with one of GreenHunter’s barge terminals on the Ohio River. That’s what Jack is being cagey about: where will the three pipelines connect? Which barge terminal?…
Read More “GreenHunter’s Unidentified Barge Facility Pipeline Destination”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Industrywide Issues | Reserves (Proved and Unproved)

Magnum Hunter Proved Reserves Up 10.7%, Marcellus/Utica Tops
July 15, 2014July 15, 2014

Magnum Hunter Resources (MHR) provided a mid-year update yesterday that shows the company’s proved reserves increased an impressive 10.7%–just since December 2013. The Marcellus/Utica has also become more important for MHR. As NGI’s Shale Daily points out in a story published yesterday, “Magnum Hunter Resources Corp. said Monday the Appalachian Basin now accounts for approximately 80% of its total proved reserves, up from 70% at the end of last year as it continues to divest non-core assets to focus on developing nearly 200,000 net Marcellus/Utica acres.” Translation: MHR is inching ever closer to becoming a “pure-play” driller. Here’s yesterday’s update from MHR:
Read More “Magnum Hunter Proved Reserves Up 10.7%, Marcellus/Utica Tops”
Hydraulic Fracturing | Industrywide Issues | Research

July DPR: Marcellus Production Up 28%, No End in Sight
July 15, 2014July 15, 2014

The Marcellus Shale continues to be a monster for production. Yesterday the Energy Information Administration released their latest monthly Drilling Productivity Report (DPR) and it shows the Marcellus will average 15.235 billion cubic feet a day this month, up 28 percent from a year earlier. The Marcellus now produces 16% of all natural gas in the United States. Below is the full DPR issued yesterday, along with a couple of charts not in the DPR that MDN finds useful…
Read More “July DPR: Marcellus Production Up 28%, No End in Sight”
Meetings

NE Shale Innovators: July 25 Deadline for Shale Insight Showcase
July 15, 2014July 15, 2014

One of the biggest and best Marcellus/Utica conferences will happen, once again, in September. The next edition of Shale Insight changes locations this year–moving from Philadelphia to Pittsburgh for 2014. Once again, for a third year running, MDN editor Jim Willis will be there (more on that in the near future). However, the point of today’s post is to alert suppliers of emerging technologies of an important opportunity to showcase your innovations to natural gas producers, midstreamers and the supply chain community. Like previous years, a Technology Showcase session will be held on the day before the regular conference begins. Here’s some important deadline dates…
Read More “NE Shale Innovators: July 25 Deadline for Shale Insight Showcase”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Jul 15, 2014
July 15, 2014July 15, 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, Jul 15, 2014”
Concord Energy | Industrywide Issues | NGLs | Trucking | West Virginia | Wood County

New Truck-to-Rail Transload Facility for Condensate/NGLs in WV
July 14, 2014July 14, 2014

Marcellus and Utica Shale drillers who are looking to sell more of their condensate and natural gas liquids (NGLs) have a new option. Concord Energy has just announced they will open a new Utica/Marcellus condensate & NGL transloading facility (truck to rail) in Parkersburg, WV. The new facility, which should be operational by mid-August of this year, will allow Concord to ship up to 150,000 barrels per month of condensate and NGLs. Here’s the particulars…
Read More “New Truck-to-Rail Transload Facility for Condensate/NGLs in WV”
New York | Tioga County (NY)

Pro-Drilling Rally to Support NY Gov Candidate Tomorrow
July 14, 2014July 14, 2014

Rob Astorino is running on the Republican ticket for governor, against Democrat Andy Cuomo. Astorino’s running mate, for Lt. Governor, is Chris Moss. Both are strongly pro-drilling and would move to immediately allow fracking in New York if elected. Of course, they don’t stand a prayer of a chance, much as we’d love to see them elected. (Sorry to be brutally honest, but you know us.) At any rate, pro-drilling landowner coalitions are urging their members to attend a rally where Astorino and Moss will speak–in Owego, NY–tomorrow night (Tuesday, July 14). The rally will be held at Hickories Park from 7:00-8:30 pm. Anti-drilling nutters are encouraging their protest brigade to turn up, so it’s important for pro-drillers to attend and and show your support for drilling in New York…
Read More “Pro-Drilling Rally to Support NY Gov Candidate Tomorrow”
Allegany County | Garrett County | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Maryland Releases 2nd Report on Shale Drilling: “Best Practices”
July 14, 2014July 14, 2014

Maryland finally released their “Internal Final Best Practices” (Part II) study on Friday. The behemoth 255-page study (full copy below) appears to be an exercise in how to stifle Marcellus Shale drilling in the two western Maryland counties where it’s found. This is the second of three reports being produced by a joint effort of the Maryland Dept. of the Environment (MDE) and the Maryland Dept. of Natural Resources (DNR), as required under an executive order from outgoing Gov. Martin O’Malley (see Maryland Marcellus Shale Commission to Have First Meeting This Week – One Meeting Down, Three More Years of Meetings to Go). There’s lots to like in this so-called best practices (more like “no practices”) report–if you’re anti-drilling…
Read More “Maryland Releases 2nd Report on Shale Drilling: “Best Practices””
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Is PA’s Act 13 Law on Last Legs with Passage of PA Budget?
July 14, 2014July 14, 2014

It’s early days yet–but here’s a developing and potentially disturbing story for drillers (and landowners, and supply chain companies) in Pennsylvania. As MDN reported, last week PA Gov. Tom Corbett signed a $29.1 billion budget bill (see PA Budget Signed by Gov. Corbett – No Severance Tax This Year). The good news is there will be no jobs-and-drilling killing severance tax–this year. The bad news is that regulations that should have been standalone–to separate conventional and unconventional drilling–were slipped into the budget bill. Why is that bad? Because, as StateImpact Pennsylvania is reporting, it may lead to the total gutting of the Act 13 law…
Read More “Is PA’s Act 13 Law on Last Legs with Passage of PA Budget?”
About MDN | MDN Resources | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Baker Hughes Announces 2Q14 Well Count – What is a Well Count?
July 14, 2014July 14, 2014

No doubt you’ve heard of the Baker Hughes rig count–the number of drilling rigs currently in use to drill oil and gas wells. Baker Hughes has provided that data for, like, forever! Used to be you could lay a ruler down and determine whether supplies of natural gas would increase or decrease based on the number of drilling rigs in use. That went out the door a few years ago with shale wells. Production numbers are no longer closely tied to the rig count. So Baker Hughes invented a new metric to help: well counts. They reported last week that well counts are up 5% in the second quarter of 2014 over 2013. Wait, what’s a well count? And why is it important?…
Read More “Baker Hughes Announces 2Q14 Well Count – What is a Well Count?”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Anti-Drilling Group Sues PA over Budget and $ from State Leases
July 14, 2014July 14, 2014

The litigious anti-drilling group Pennsylvania Environmental Defense Foundation (PEDF) waited all of about two hours after PA Gov. Tom Corbett signed the 2014 PA budget before filing a lawsuit to prevent the use of money from leasing more state forestland and parks for drilling under (not on). Gov. Corbett originally requested $75 million in new revenue from the effort. As we pointed out, that $75M represents exactly 0.00255 of the budget (see PA Dems: No Leg to Stand on Criticizing $75M Forest Drilling Plan). In other words, a rounding error. Never mind that Ed “fast Eddie” Rendell sold $444 million worth of leases that drill on as well as under, when he was governor. House and Senate Republicans upped the number to $95M and Corbett signed the budget, so the PEDF is trying to make legal mischief, once again…
Read More “Anti-Drilling Group Sues PA over Budget and $ from State Leases”
Industrywide Issues | Ohio | Statewide OH | Violence

Ohio Keeps Oil Train Shipment Timing Secret – Media Complains
July 14, 2014July 14, 2014

Last week MDN told you that eight so-called environmental groups are attempting to use a Freedom of Information Law (FOIL) request to force New York State to divulge when large shipments of oil are crossing the state by railroad–making a perfect target for terrorists (see NY Enviro Groups Seek to Use Oil Trains to Their Advantage). A number of other states are facing the same issue–whether or not to divulge the timing of rail shipments of Bakken light crude oil. One of those states is Ohio, and fortunately for Ohioans, the state has decided to keep the timing of oil shipments secret, to avoid (as MDN has pointed out) making shipments an easy target for terrorists…
Read More “Ohio Keeps Oil Train Shipment Timing Secret – Media Complains”