Marcellus Drilling News

Industrywide Issues | Pennsylvania | Research | Statewide PA | Statewide WV | West Virginia

EIA: Marcellus Continues to Break Records – Passes 15 Bcf/d Level
August 6, 2014August 6, 2014

The U.S. Energy Information Administration (EIA) ran an article in their Today in Energy online publication yesterday stating the Marcellus Shale region produced, for the first time ever, more than 15 billion cubic feet of natural gas per day (Bcf/d) in July. The Marcellus, located in Pennsylvania and West Virginia, now accounts for a staggering 40% all U.S. shale gas production. Compare that to just four short years ago, in 2010, when the Marcellus produced 2 Bcf/d. The Marcellus is, without a doubt, the most productive shale play for natural gas in the world…
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Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy Launches Open Season on 4 Marcellus/Utica Pipelines
August 6, 2014August 6, 2014

MDN friend Tom Knox from Columbus Business First has done some expert sleuthing and found that Spectra Energy has recently launched open seasons for four new or expanded natural gas pipelines that crisscross the Utica and Marcellus region. All four open seasons end later this month. If Spectra gets signed contracts and if all four pipeline projects are approved by the Federal Energy Regulatory Commission, the four projects together represent an additional 3.5 billion cubic feet per day of additional takeaway capacity in the Marcellus/Utica. Here’s a run down of the four projects, taken from Spectra’s website:
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American Energy Partners | East Resources | Energy Companies

Aubrey McClendon’s Money Makes Purchase of Buffalo Bills Possible
August 6, 2014August 6, 2014

Two months ago MDN brought you the announcement that Aubrey McClendon’s American Energy Partners had cut a deal with East Resources to purchase 27,000 Utica Shale acres and 48,000 Marcellus Shale acres for $1.75 billion (see McClendon Buys 48K WV Marcellus Acres, 27K More OH Utica Acres). East was founded in 1983 by Terry Pegula. He sold most of East’s acreage and assets to Shell in 2010 for $4.7 billion. Pegula purchased the Buffalo Sabres NHL hockey team and with the potential sale to McClendon, would be the front runner to purchase the Buffalo Bills team, now for sale after the death of its previous owner Ralph Wilson. We believe MDN was the first to declare Aubrey was enabling the purchase the purchase of the Bills (see Fascinating Connection Between NFL & Marcellus/Utica). Yesterday Aubrey announced he was true to his word and the deal is now done and dusted–in the books. Pegula and Donald Trump have both been given permission to go to the next round in their bids to buy the Bills…
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Hydraulic Fracturing | Industrywide Issues | Public Opinion | Research

Makovsky Survey: 57% in U.S. Think Fracking a Top 3 Enviro Issue
August 6, 2014August 6, 2014

Makovsky, a public relations firm with offices in New York City and Washington, DC, on Monday released the results of a new survey they conducted nationwide on public attitudes about the issue of fracking (full copy of the survey results embedded below). We’ll analyze the survey itself and how it was conducted in a moment. However, the bombshell finding of the survey is that 57% of U.S. consumers believe that the issue of fracking is “one of the three most important environmental issues of today.” Another bombshell: in the U.S., “71% of people say they hear about fracking every week.” Some 41% hear about fracking through Internet news (MDN anyone?). And 38% hear about fracking via social media like Twitter and Facebook…
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Carrizo Oil & Gas | Energy Companies

Carrizo 2Q14: Drills 9 Marcellus Wells, Buys More Utica Acreage
August 6, 2014August 6, 2014

Carrizo Oil & Gas is a big energy company, but has relatively small operations in both the Utica and Marcellus Shales. Lately they’ve been focusing their efforts on “oily” shale plays, like the Eagle Ford in Texas (they spent 78% of their drilling budget on the Eagle Ford last quarter). However, Carrizo does maintain a steady program in both the Marcellus and Utica. Yesterday Carrizo released their second quarter 2014 financial and operational update. Below we’ve pulled out those areas that touch on their operations in the northeast…
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Cameron County | Clarion County | Clearfield County | Elk County | Endeavour International | Energy Companies | Jefferson County (PA) | Pennsylvania | SM Energy

Endeavour 2Q14: Completes 3rd PA Marcellus Well of the Year
August 6, 2014August 6, 2014

Endeavour International, a driller with operations in both the North Sea (off-shore) and the U.S. (on-shore) issued their second quarter 2014 update yesterday. Does the Endeavour name sound familiar? Three years ago MDN told you about Endeavour’s deal to buy 50,000 Marcellus Shale acres, a pipeline and three working Marcellus wells, all located in McKean and Potter counties in Pennsylvania (see Endeavour International Buys Lease for Additional 50K Marcellus Acres & Local Pipeline in PA from SM Energy). Five months later Endeavour backed out of the deal and 2 1/2 years of litigation ensued, finally settling in April of this year (see Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties). Endeavour still owns 27,200 gross Marcellus acres in Elk, Cameron, Clarion, Jefferson and Clearfield counties, and in 2Q14 they successfully completed their third frack job…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Aug 6, 2014
August 6, 2014August 6, 2014

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources

GreenHunter Resources 2Q14: Still Waiting to Launch
August 5, 2014August 5, 2014

GreenHunter Resources (i.e. GreenHunter Water) issued their second quarter 2014 update yesterday. We have the update below so you can read through it. Our quick take: GreenHunter is still “waiting to launch.” They are an important player in the freshwater/wastewater management arena for the Marcellus and Utica region. But the company is small (total revenue for the first six months of 2014 was just north of $15 million). According to GreenHunter’s COO, the projects they’re working on for the rest of this year and in 2015 will take the business “to an entirely new level.” If the Coast Guard allows them to launch barge shipments, we think he’s right. Revenue for the first six months of 2014 is up a very health 45%, and the bleeding (losses) have slowed from $0.30 per share for the first six months in 2013 to $0.14 per share for the first six months of 2014…
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Chesapeake Energy | Energy Companies | Energy Services | Seventy Seven Energy

Seventy Seven Energy’s 1st Quarterly Update: Revenue Down 6%
August 5, 2014August 5, 2014

It was a loooong labor and delivery, but finally Seventy Seven Energy was born a little over a month ago (see Long Labor & Delivery: Seventy Seven Energy Born Yesterday). Who or what is Seventy Seven Energy? It’s the old Chesapeake Oilfield Operating (COO) division of Chesapeake Energy–the services arm that competes with companies like Halliburton and Baker Hughes. Chessy’s current CEO Doug Lawler, who seems to report to corporate raider Carl Icahn, spun out COO into its own company to improve Chessy’s balance sheet and make Carl’s stock holdings worth more. Such is life in corporate raider America. Anywho, the new Seventy Seven Energy (or SSE as they call themselves), a company with operations in both the Marcellus and Utica, issued their first quarterly operational and financial update yesterday–an update that will be watched closely…
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Industrywide Issues | M&A

Downstream Calumet Buys Upstream Specialty Oilfield Services
August 5, 2014August 5, 2014

The bigger fish keep on gobbling up the smaller fish–in the Marcellus and Utica Shale supply chain. You may recall MDN first wrote about a downstream chemical manufacturing company called Calumet back in Sept. 2012 when the company announced they are building a gas-to-liquids (GTL) plant in Karns, PA to convert Marcellus Shale gas to diesel fuel (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA). Then, in March of this year, Calumet purchased Anchor Drilling Fluids outright for $235 million in cash (see Downstream Petrochemical Co Buys Upstream Frack Fluid Co). Anchor manufactures drilling mud and frack fluids used in shale drilling in the Marcellus, Utica and just about every other major shale play across the U.S. Last Friday Calumet announced they’ve purchased Specialty Oilfield Solutions (SOS), a full service solids control and drilling fluids company with operations in the Marcellus, Eagle Ford and Utica shale plays…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

Fourth Time the Charm for Youngstown Frack Ban Measure?
August 5, 2014August 5, 2014

You’ve got to hand it to those anti-drillers in Youngstown. When anti-fracking insanity takes hold–it goes deep. Anti-drillers have successfully gotten enough signatures to put a ballot measure before voters three times now. The measure would enact a ban on fracking in Youngstown. Not that anyone actually wants to drill in the City of Youngstown. However, passing such a ban would a) force some employers to relocate out of town (not an empty threat, they’ve said it many times), and b) send a signal loud and clear that Youngstown wants to drop out of the flourishing Utica Shale bonanza taking place in the state. Makes no difference to the fracking insane that they will royally screw the city with such a ban–they’ve just collected enough signatures to put the measure on the ballot a fourth time…
Read More “Fourth Time the Charm for Youngstown Frack Ban Measure?”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Will PA’s Marcellus Miracle be Snuffed Out by a Severance Tax?
August 5, 2014August 5, 2014

Every now again you need to step back and consider the big picture when it comes to the miracle of fracking and horizontal drilling. Pennsylvania has seen an economic revolution from the Marcellus Shale industry. That revolution is in danger of being snuffed out by Democrats like gubernatorial candidate Tom Wolf who, if elected, promises to implement a Marcellus-killing severance tax. And no, this is not wild speculation. If you look at recent history, such a scenario is supported by the evidence. David Spigelmyer, president of the Marcellus Shale Coalition, penned an op-ed piece that ran in the Philadelphia Inquirer yesterday to “set the record straight” on just what the Marcellus industry has meant in PA and what a severance tax would do to the industry in that state should it be implemented…
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Industrywide Issues | Regulation

US Dept of Transportation Proposes New Rules for Shale Oil Trains
August 5, 2014August 5, 2014

MDN entered the debate over whether or not the movement of shale oil trains, specifically from the Bakken Shale of North Dakota, should be revealed to the public or not, based on security concerns (see New York Caves to Anti-Drillers Again: Discloses Oil Train Movements). Our interest is based on the fact that such oil trains, loaded with Bakken light crude (which contains some NGLs or natural gas liquids like propane and ethane) move through the Utica/Marcellus region–through Ohio and New York on their way to the Port of Albany. Last week we brought you an interesting viewpoint/opinion from someone else (see Revisiting the Bakken Crude Shipment Through NY Debate). The Dept. of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has issued a draft set of new rules (see the official 65-page document below)…
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Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Regulation | Transco | Williams

Pipeline will Violate “Virgin” Land, Cross “Prized Farmland” (Gag)
August 5, 2014August 5, 2014

Did you know that if you build a natural gas pipeline through an area where previously there wasn’t a pipeline, it’s the equivalent to violating a virgin? And if the ground happens to be farm fields, the gas flowing through the pipeline would be “coursing” through that line (almost recklessly) and that farm fields are magically converted to be “most prized farmland”? Those are the pejorative adjectives and metaphors used by a liberal reporter for the Harrisburg Patriot-News as he introduces an article on the proposed Williams Atlantic Sunrise Pipeline project that extends the Transco pipeline and reverses the flow of natural gas to bring Marcellus Shale gas from PA to markets in the northeast and south…
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Uncategorized

Winners’ Yearbooks for Oil & Gas Awards Spring Events
August 5, 2014August 5, 2014

MDN editor Jim Willis was privileged to participate as a moderator for two panel sessions at the 2013 Northeast Oil & Gas Awards event, held in March 2014 in Pittsburgh (see Oil & Gas Awards – List of Winners, Bang-up Time!). In May we brought you full recordings for each session at the conference (see Oil & Gas Awards “Northeast Conference for Excellence” Now on MDN). Jim liked it so much, he’ll fly to Dallas in October to moderate a few more panel sessions at the Southwest version of the Oil and Gas Awards (sign up to attend here). But let’s take another look back at the spring. Our friends at the O&G Awards held three events this past spring to recognize the best of the best, and they’ve just released Winner’s Yearbooks for each event: Gulf Coast, Northeast & Rocky Mountain regions. Have a look (below) to see if you spot a picture of yourself or a friend/colleague!…
Read More “Winners’ Yearbooks for Oil & Gas Awards Spring Events”
Allegheny County | Industrywide Issues | Pennsylvania | Regulation

PA Congressman Rips EPA over “War on Coal” at Pittsburgh Hearing
August 5, 2014August 5, 2014

Pennsylvania Congressman Tim Murphy delivered a sterling statement at a field hearing held by the federal Environmental Protection Agency (EPA) in Pittsburgh last Friday. The EPA is doing a road show to take comments on their new, very restrictive regulations that are part of so-called climate change regulations (how stupid is it that we say the climate changes–of course it does!). Murphy’s comments address the Obama EPA’s war on coal. That what he calls it, that’s what everyone (but Obama and the EPA) calls it. We bring you his testimony before the EPA because (a) it takes aim at an out-of-control EPA, an issue near and dear to our hearts for lo these many years, and (b) because the EPA won’t stop with coal. They’re coming for natural gas next, after they’ve eliminated coal from the picture. You can bank on it…
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