Marcellus Drilling News

Energy Companies | Halcon Resources | Ohio | Statewide OH | Utica Shale

Halcon Resources Stops Drilling, Gives Up on the Utica Shale
March 4, 2014March 4, 2014

Just last November in response to a question from an analyst about Halcon Resources’ plans for the Utica, CEO Floyd Wilson said, “Well, we won’t drill any more wells near the shitty ones we drilled already. That’s one major initiative.” (See Halcon CEO Says No More S***** Wells in Northern OH Utica.)

Not only will Halcon not drill any s***ty wells in the Utica, they’re not going to drill any more Utica wells–at least in 2014…
Read More “Halcon Resources Stops Drilling, Gives Up on the Utica Shale”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Political Opposites Unite to Form Pro-Fracking Group in NY
March 4, 2014March 4, 2014

The 70,000-member Joint Landowners Coalition of New York (JLCNY), along with the Broome County Farm Bureau and several Southern Tier labor unions formed a new group (perhaps confederation is a better word) yesterday called Southern Tier Residents for Economic Independence. The new group illustrates how the fracking issue unites groups of people that often are on opposite sides of the political spectrum. Many labor unions are pro-fracking, a little-known secret anti-drilling “environmentalist” groups like to hide since labor unions usually swing Democrat/Liberal with their voting block. The fact that unions are defecting to “the other side” on this issue is causing heartburn inside anti-fracking central–places like Citizen Action of New York and the Park Foundation. Such anti-drilling groups haughtily believe they “own” the labor unions. Problem is, rank and file union members didn’t get that particular memo.

Here’s the story of people with different political philosophies reaching across the isle for a righteous cause–shale drilling in NY…
Read More “Political Opposites Unite to Form Pro-Fracking Group in NY”
Energy Services | Pennsylvania | Statewide PA | UIL Holdings

Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys
March 4, 2014March 4, 2014

With an eye on its proximity to abundant and cheap natural gas from the Marcellus and Utica Shale, UIL Holdings Corporation, a Connecticut-based investor-owned gas and electric utility holding company, yesterday announced that it has reached an agreement to to buy Philadelphia Gas Works (PGW), currently owned by the City of Philadelphia, for $1.86 billion in cash. PGW is the nation’s largest municipally-owned natural gas utility. Last summer MDN told you that PGW was up for sale and that the Marcellus may well be the key to a sale (see Phila. Gas Works Goes on Auction Block – Marcellus Key in Sale?). Looks like our words ended up being prophetic, because UIL says the Marcellus/Utica is part of the reason why they want to buy PGW.

There had been talk that one PGW’s facilities could be turned into an LNG export terminal, but that idea seemed to be shot down later and hasn’t been mentioned since (see Consultant: Retooling PGW LNG Terminal for Exports Problematic). Still, this is a great day for PGW and its future. But the sale won’t happen without a fight. Even though UIL says they will honor labor union contracts already in place, the unions are staking out a position against the sale and intend to exert influence on Philadelphia City Council members who must approve such a sale. Here’s the announcement from UIL, and an update from the Philly Inquirer about opposition to the sale…
Read More “Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

OH Anti-Drillers Call for ODNR Chief’s Resignation Over PR Plan
March 4, 2014March 4, 2014

A few weeks ago we told you about the Ohio Dept. of Natural Resources’ brilliant communications plan to counter the wackos in their state on the issue of drilling under (not on) one state forest and two state parks (see ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan). We also told you that this issue won’t go away for a while, and that Gov. John “foreigner hunter” Kasich has already backed down (see The Disgusting PR Mess in Ohio – No One Smells Pretty). As we predicted, the wacko contingent in Ohio never lets a good manufactured crisis go to waste, and so now a group of the nuttiest of the nuts is calling for the resignation of ODNR chief James Zehringer.

The only problem is, Kasich & co seem to be so intimidated by these kooks, you have to wonder if he’ll cave and make Zehringer a sacrificial lamb on the green altar…
Read More “OH Anti-Drillers Call for ODNR Chief’s Resignation Over PR Plan”
Energy Companies | Enerplus | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EVEP 2014 – Still Shifting from E&P to Midstream in the Utica
March 4, 2014March 4, 2014

Quick: Which company holds the most combined Utica Shale acreage in OH & PA? Is it Chesapeake? Range? Chevron? Nope. It may surprise you that the #1 acreage holder, according to NGI’s Shale Play Factbook, is EV Energy Partners (EVEP). They own outright, or as part of joint ventures, interest in 903,000 Utica Shale acres (747,000 in OH and 156,000 in PA). MDN has long chronicled how this “accidental” Utica kingpin has been trying to unload their Utica acreage, first in big deals, later in smaller deals (see our EVEP category of stories here).

EVEP is certainly not leaving the Utica. They just want to unload the E&P part of their operation (drilling) and instead concentrate on the midstream (pipelines & processing plants). Yesterday the company issued their fourth quarter and full year 2013 update and management conducted the ubiquitous analyst phone call to explain where the company has been in 2013 and where they are heading in 2014. We have both the update and a portion of the phone call transcript below. Bottom line: More emphasis on midstream in 2014, continued Utica drilling (via jv partners like Chesapeake and EQT), and more sales of Utica acreage when/if buyers come along…
Read More “EVEP 2014 – Still Shifting from E&P to Midstream in the Utica”
Industrywide Issues | Research

Morningstar Report on Marcellus Pegs Production & More Thru 2015
March 4, 2014March 4, 2014

The brains at investment research service Morningstar the February 2014 issue of their Energy Observer publication. The title of that issue? “Shale Shock—How the Marcellus Shale Transformed the Domestic Natural Gas Landscape and What It Means for Supply in the Years Ahead” (see a full copy embedded below). This is one seriously excellent analysis report–one that we highly recommend. Included in the report is narrative and charts that discuss the challenges forecasters have and continue to face when attempting to predict where shale gas production is headed. Also in the report is Morningstar’s best thinking on how much natural gas the Marcellus will produce as we exit 2015 (low-ball scenario, around 14 trillion cubic feet, rosy scenario, nearly 20 Tcf).

The authors address the interplay of supply and demand and provide forecasts for demand. They also compare the Marcellus to other major plays to see how it stacks up. Full of charts and graphs and clear explanations, this report is a keeper. Below is Morningstar’s press release announcing the report, followed by a copy of the report itself…
Read More “Morningstar Report on Marcellus Pegs Production & More Thru 2015”
Antero Resources | Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Antero Resources & Gulfport Energy’s Utica Shale High Notes
March 4, 2014March 4, 2014

In recent weeks as part of a flurry of year end and fourth quarter financial and operational reports, MDN brought you the latest news from Marcellus and Utica Shale powerhouse driller Antero Resources (see Antero Resources Keeps up the Pace in the Marcellus/Utica). We also told you the latest from Gulfport Energy, including our “takeaways” (see Gulfport Production & Profits Jump in 2013 Thanks to Utica Shale).

The Intelligencer/Wheeling News-Register reporter Casey Junkins has done a great job of summarizing the highlights from both companies–hitting the “high notes” as it were, particularly with respect to the Utica Shale–in the following update:
Read More “Antero Resources & Gulfport Energy’s Utica Shale High Notes”
Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Williams

Williams Happy with FERC Progress on NE Pipeline Expansions
March 4, 2014March 4, 2014

Yesterday Williams issued a press release touting last Friday’s Federal Energy Regulatory Commission (FERC) issuance of a final environmental review for the Transco Pipeline’s Rockaway Lateral and Northeast Connector expansions. The final review is prelude to a final decision by FERC to green light the projects, something Williams (the owner of Transco) clearly believes will happen. The final FERC decision will be issued this spring. When it is, and when Williams builds those expansions, it means more gas will flow to New York City by next winter–in time for the winter heating season.

The irony is, of course, that none of the gas flowing through the Transco to NY will be from New York State itself but instead will come mostly from the Marcellus Shale in Pennsylvania. Keep an eye out for the loonies who are bound to come out of the woodwork to oppose the expansion. Perhaps we’ll see more nutjobs like those that opposed the now-functioning Spectra Energy pipeline to Manhattan (see NYC Pipeline Protesters Get Naked, Paint Themselves Green). Here is yesterday’s “attaboy FERC” announcement from Williams:
Read More “Williams Happy with FERC Progress on NE Pipeline Expansions”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Public Opinion | Regulation | Statewide NY

Binghamton Newspaper’s Informal Fracking Poll – Cast Your Vote Now
March 4, 2014March 4, 2014

Just a quick word of encouragement to participate in an informal poll on the Binghamton Press & Sun-Bulletin website that asks the question: “Should New York approve natural gas drilling?” This poll has been active since late last week, so we expect them to shut it down at any time–be sure to vote right away (if that’s your pleasure). As of this morning, some 18,133 people had voted. Here was how the results stood…
Read More “Binghamton Newspaper’s Informal Fracking Poll – Cast Your Vote Now”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Mar 4, 2014
March 4, 2014March 4, 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, Mar 4, 2014”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Public Opinion | Regulation | Statewide NY | Statewide PA | Williams

Constitution Pipeline Payments to Groups – Donations or Payola?
March 3, 2014March 3, 2014

What do you call it when a company pays money to local organizations and agencies before the project has been fully approved by federal, state and local agencies? These payments, mind you, are not fees for permits or licenses, but voluntary chunks of money offered to groups that may be affected by the project if it’s built–in this case a pipeline. Is it called, Good corporate citizenship? Being a responsible member of the local community? Or perhaps, payola?

Regardless of what you call it, the Constitution Pipeline, a desperately needed natural gas pipeline that will run from the gas fields of Susquehanna County, PA to central New York where it will connect to two major interstate pipelines, has now paid out more than $1 million in “community grants” to help build support for the pipeline. Is that a good thing, or bad? We think it’s time to have that discussion…
Read More “Constitution Pipeline Payments to Groups – Donations or Payola?”
Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia

Will WV Lawmakers Have Guts to Tackle Cuttings in Landfills Bill?
March 3, 2014March 3, 2014

Two weeks ago MDN told you about a House Bill (HB) 4411, actively under consideration by the West Virginia state legislature, that would codify into law the right for landfills in the state to accept Marcellus and Utica Shale drill cuttings (see WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition). At the time a parade of speakers spoke against the bill with one speaker (from the Independent Oil and Gas Association of West Virginia) speaking in favor. The bill would codify into law the right for landfills to accept larger amounts of cuttings, which anti-drillers object to because it encourages more drilling.

What we didn’t know at the time is why the WV Dept. of Environmental Protection is supporting the bill: because it will codify into law the protections they drafted as a temporary measure (now in place). Yes, protections, like separating the cuttings into their own cell within a landfill, the use of special liners, and lechate monitoring. The DEP is keeping a close eye on this issue and believes the proper place to have the debate about it, along with a resolution to the debate, is in the state legislature–if they have the intestinal fortitude to address it…
Read More “Will WV Lawmakers Have Guts to Tackle Cuttings in Landfills Bill?”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Ethane Cracker – Cautious Optimism in the Mountain State
March 3, 2014March 3, 2014

The editors at the Charleston Gazette have penned an editorial about their “cautious hope” that the ethane cracker plant announced by Odebrecht for Parkersburg, WV will become a reality. As they note, coal is descending in the state, and natural gas is ascending. If the cracker plant is built–complete with environmental safeguards–it will be a huge economic bonanza for the state. Although the editors are a tad skeptical about the “drill drill drill” attitude from Gov. Earl Ray Tomblin and his administration (a Democrat, which is noteworthy), they’re willing to suspend the usual knee-jerk reaction against such projects and allow hope to bloom on the editorial page. A good sign!

From the Gazette:
Read More “WV Ethane Cracker – Cautious Optimism in the Mountain State”
Energy Companies | Southwestern Energy

Southwestern Energy – Full Speed Ahead in Marcellus for 2014
March 3, 2014March 3, 2014

Southwestern Energy is a large Marcellus Shale driller. According to NGI’s Shale Play Factbook, Southwestern leases 337,300 acres in the Marcellus. In 2013 Southwestern invested $872 million into their Marcellus drilling operations, drilling 108 wells. Their proved reserves in the Marcellus grew by 141% in 2013 to 1.9 trillion cubic feet. More interesting facts from Southwestern: their average completed Marcellus well cost was $7.0 million per well; the average horizontal lateral length was 4,982 feet and they used an average of 18 fracture stimulation stages per well in 2013.

Below is Southwestern’s fourth quarter and full year 2013 financial and operational update. Below the update is a portion of a recent analyst call with Southwestern’s top management. The call transcript, unsurprisingly, mentions the Marcellus Shale–a lot…
Read More “Southwestern Energy – Full Speed Ahead in Marcellus for 2014”
Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Hundreds of Thousands of Marcellus Drilling Jobs in PA
March 3, 2014March 3, 2014

Over the past six years hundreds of thousands of jobs have been created in Pennsylvania that are either directly or indirectly tied to the Marcellus Shale drilling industry. Of that there is no dispute. It is provable and has been proven, over and over, by government agencies that count such things. Yet, when a new jobs report is issued that shows another 15,000 direct jobs have been added over the past few years, those opposed to drilling jump on the number and say, “See! See! It doesn’t create all that many jobs. They’re a lyin’ to ya–all them pro-drillers.”

Meanwhile, anti-drillers ignore the total number of 240,000 people working directly in the Marcellus Shale industry, or for companies that serve the industry (“supply chain”), in Pennsylvania. And so the anti-drilling spin machine keeps whirling around and around and around…
Read More “Hundreds of Thousands of Marcellus Drilling Jobs in PA”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

The Radicals Behind Efforts to Stop Cove Point, MD LNG Plant
March 3, 2014March 3, 2014

The group 350.org, a rabidly anti-drilling group that has adopted the same tactics used by the Ku Klux Klan complete with face masks and burning torches (see Wackadoodle 350.org protesters disappear their KKK moment), is behind the movement to stop the XL Keystone oil pipeline from Canada to the Gulf Coast. They are also behind an effort to stop the LNG (liquefied natural gas) export terminal in Cove Point, MD. The Chesapeake Climate Action Network has enlisted the help of 350.org in their effort to stop Cove Point. We wonder, are torches and bed sheets coming to Maryland now? Shame on the Climate Action Network for hooking up with these radicals–but then, perhaps they’re just as radical?

Here’s an update on the ongoing effort to stop what, frankly, can’t be stopped: the permitting of a new export facility in Cove Point that will liquefy and send some of our cheap, abundant Marcellus Shale gas to India and Japan where they need it badly…
Read More “The Radicals Behind Efforts to Stop Cove Point, MD LNG Plant”