Marcellus Drilling News

Belmont County | Economic Impact | Industrywide Issues | Jobs | Ohio | Supply Chain | Utica Shale

Trickle Down Shale Economics Benefit Belmont County, OH
March 10, 2014March 10, 2014

A few weeks ago MDN highlighted the results of a recent survey by Ohio University of local elected officials across 17 counties experiencing the majority of shale activity and development in Ohio (see Survey Says! OU Survey of Local OH Officials on Utica’s Impacts). Two county officials in Belmont County, OH did not participate in the survey, but agree with it’s findings. That is, Utica Shale drilling is having a major impact on their county.

Here’s a closer look at how drilling in Belmont County is affecting those who live there, including beneficial “trickle down” economics that go along with an infusion of large amounts of money…
Read More “Trickle Down Shale Economics Benefit Belmont County, OH”
Economic Impact | Industrywide Issues | Jobs | Mahoning County | Ohio | Pennsylvania | Statewide OH | Supply Chain | Utica Shale | Warren County

Utica Shale Drilling Ripple Effect in Northern Part of Play
March 10, 2014March 10, 2014

Just because you don’t see a drilling rig and holes being drilled in the ground, it doesn’t mean Utica Shale drilling isn’t having enormous, positive economic benefits in a community. So says Youngstown-Warren Regional Chamber officials. They point to the hundreds of permanent new jobs at area manufacturers–jobs created and sustained directly by the drilling industry.

More on the Utica supply chain and how it’s benefiting areas that haven’t (yet) seen their own Utica wells drilled…
Read More “Utica Shale Drilling Ripple Effect in Northern Part of Play”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA | Wildlife

PA Batman, Protected Species & Marcellus Drilling
March 10, 2014March 10, 2014

The anti-drilling media in Pennsylvania continually tries to oppress and stir up sentiment against drilling any way they can. One of their favorites is to christen a species as “protected” and then accuse the drilling industry of wanting to drill right where that protected species lives–heartless jerks. So when common-sense Republican lawmakers decide to modify the rules just a bit to make it easier to drill, or build, or farm where a “protected” bat is located, the howls of protest go up. No, the proposed change is not about drilling willy nilly and causing the extinction of a truly endangered species. These species are not on the federal endangered species list–they’re simply on the PA “protected” list.

This is about libs who want to use “protection” for wildlife as an excuse to control legitimate commercial activity–whether farming or drilling or building, or whatever. Right on cue, we have a story of precious, helpless little bats. A disease (miraculously not related to drilling) is wiping out certain species of bats in PA–and has been for years, long before shale drilling arrived in the state. Some want to use the bat protection issue as an excuse to restrict drilling and other activities…
Read More “PA Batman, Protected Species & Marcellus Drilling”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues | M&A

Time to Congratulate Devon & Crosstex on the Birth of EnLink
March 10, 2014March 10, 2014

As we previously told you, Devon Energy, a drilling company with some midstream assets, and Crosstex Energy, a midstream company, were due to merge (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds). It was quite a while in coming–lots of lawyers reviewing every syllable of every paper.

Last Friday the two companies announced they have finally, fully, irrevocably tied the merger knot and together they have delivered a bouncing baby…midstream company. They named the new baby EnLink. Time for a cigar…
Read More “Time to Congratulate Devon & Crosstex on the Birth of EnLink”
Anadarko | Energy Companies | Lycoming County | Pennsylvania

Syndicated Columnist’s Eyes Opened by Marcellus Shale Drilling
March 10, 2014March 10, 2014

Syndicated columnist Deroy Murdock visited an Anadarko Petroleum Marcellus Shale drilling site in Lycoming County, PA last year to see first-hand what happens when a well gets drilled. As he puts it, at the time it was a “cyclone of equipment, personnel and activity.” Four months later he returned to the same location. And what did he see? Three acres of a well pad with five wellheads sticking up a few feet and a “constant, mild hiss.” The sound of natural gas being harvested.

Here is Murdock’s first-hand account of what he experienced upon his return, and what it means for our nation at large…
Read More “Syndicated Columnist’s Eyes Opened by Marcellus Shale Drilling”
Exporting | Industrywide Issues

The Link Between Ukraine and Marcellus Shale Gas
March 10, 2014March 10, 2014

Is there a link between Russia’s nakes aggression and invasion of Ukraine, and American shale gas, like that found in the Marcellus and Utica? You bet there is! When Russian bully Vlad Putin wants to throw his weight around, he turns off the natural gas pipeline to places like Poland and Ukraine. Keeps the peasants in line, especially during long, cold winters like this one. Just the threat of turning it off has a profound effect.

Four eastern European nations–Poland, Hungary, Slovakia and the Czech Republic sent an official letter on Friday to U.S. House of Representatives Speaker John Boehner begging him to step up U.S. efforts at exporting natural gas to Europe–so they can tell Vlad where to stick his gas. American exports would make for a much more secure Europe and would serve to marginalize Putin and his bullies. If we could just get the Obama administration to start crawling toward more export facility approvals (instead of being at a virtual standstill), it would certainly help. Exporting to Europe would help sop up some of the oversupply we have in the Marcellus Shale…
Read More “The Link Between Ukraine and Marcellus Shale Gas”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Mar 10, 2014
March 10, 2014March 10, 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, Mar 10, 2014”
About MDN | Industrywide Issues | MDN Resources | Research | Supply Chain

Where Does YOUR Business Fit in the Marcellus/Utica Supply Chain? [FREE]
March 7, 2014March 7, 2014

A little more than a year ago MDN editor Jim Willis developed a Supply Chain tutorial that was included in Vol. 3 of the 2012 Marcellus and Utica Shale Databook. The tutorial is Jim’s attempt at graphically charting how the upstream and midstream shale drilling business works, and more importantly, where various vendors/businesses plug in during that process. That is, where can your business sell its services to the industry. The shale drilling process is like an orchestra. The energy company (whom we call “the driller”) is the conductor, and all of the instruments in the orchestra that must play together at the right time, hitting the right notes, are typically businesses not owned by the driller. There is a lot of opportunity for local businesses to sell their products and services to the Marcellus and Utica Shale drilling industry. But many don’t know where to begin. That’s what the tutorial aims to address.

Jim is today releasing the MDN Supply Chain tutorial as a stand alone report. See it and download it below, for free. It’s Jim’s way of giving the industry, and faithful MDN readers, a boost.

NOTE: Jim is seriously considering a new series of workshops, either in person or online, to assist businesses with learning how to locate opportunities and sell to the Marcellus and Utica Shale industry. If such a concept sounds interesting you to, drop Jim an email at: jim@marcellusdrilling.com and let him know “I’m interested” and he’ll add you to an announcement list when/if he releases such a service. In the meantime, please download and enjoy Jim’s Supply Chain tutorial…
Read More “Where Does YOUR Business Fit in the Marcellus/Utica Supply Chain? [FREE]”
Albany County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

NY Attorney General Files to Dismiss Norse Lawsuit, More Delays
March 7, 2014March 7, 2014

The government of the State of New York–or rather certain government officials–continue to deny justice to residents in the state. The state’s supposed chief defender of the law, Attorney General Eric Schneiderman, unbelievably has filed a motion to dismiss the Article 78 case filed by Norse Energy that would compel Gov. Andrew Cuomo, DEC Commissioner Joe Martens and State Health Commissioner Nirav Shah to stop their intentional obstruction and finalize shale drilling rules. Norse, and the residents of New York, have been denied justice for 5 1/2 long years, and now Schneiderman doesn’t even want to allow those people their day in court. The attempt, if successful, would be an unimaginable miscarriage of justice by the highest officials in the state. It is, in fact, government tyranny of its residents.

Norse’s legal beagle, Tom West, has filed a counter motion to the AG’s motion that points out the arrogance and huge legal holes in the AG’s arguments. In addition to delaying a hearing that was first set in January, then moved by the court to March, and now moved again to “sometime in April,” the court that will hear the case (Albany County Supreme Court) has decided to join a similar case brought by the 70,000-member Joint Landowners Coalition of New York to the Norse Energy case. West believes the AG will try to dismiss the JLCNY case as well (Schneiderman has no shame and actively works against his own constituents). Below is an update from The West Firm along with an announcement from the JLCNY about the further delay in their case…
Read More “NY Attorney General Files to Dismiss Norse Lawsuit, More Delays”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

Research Recommends Different Radioactivity Test for Wastewater
March 7, 2014March 7, 2014

A new study has just been accepted for publication in the peer reviewed journal Environmental Science & Technology Letters titled, “Matrix Complications in the Determination of Radium Levels in Hydraulic Fracturing Flowback Water from Marcellus Shale” (full copy embedded below). It is important to understand what this highly technical article does, and does not, say–and what it does, and does not mean. The article reports research by a professor of radiology (and his colleagues) at the University of Iowa into the different ways Marcellus Shale flowback wastewater can be tested to determine the level of radioactivity in the water. There is a concern that Pennsylvania and New York have specified a method of testing put forward by the federal EPA that is fine for drinking water, but not accurate when testing Marcellus Shale wastewater. The professor and his team have determined the EPA method of testing only shows 1% of the true amount of radioactivity in some water samples, whereas there are other, more reliable tests, that catch nearly all of the radioactivity.

The purpose of the research–the “import” or “bottom line”–is that environmental regulatory agencies are using the wrong test when it comes to analyzing frack wastewater. What this research shows is that a different test is needed. However, what the research does NOT show is that the level of radioactivity found is dangerous to handle or dangerous to dispose of, either by recycling or by injection well. The only way some (not all) wastewater would be dangerous is by releasing it back into rivers and streams without proper treatment–something PA banned nearly three years ago under then-DEP Sec. Michael Krancer (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water)…
Read More “Research Recommends Different Radioactivity Test for Wastewater”
Industrywide Issues | Research

Bentek Estimates Feb Natgas Production Up 1% from 2013
March 7, 2014March 7, 2014

Platts’ Bentek Energy service released their estimates of U.S. national natural gas production for February 2014 yesterday. They estimate production was up 0.6 billion cubic feet per day (Bcf/d), or about 1% from the same level a year ago. The U.S. Energy Information Administration (EIA) doesn’t release their February estimates until the end of April. Bentek uses pipeline receipts to calculate their numbers, which are generally pretty reliable.

Here’s more about Bentek’s prediction and insights into natgas production in February:
Read More “Bentek Estimates Feb Natgas Production Up 1% from 2013”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Anti-Drillers Turn Out to Oppose TGP Pipeline Expansion Across MA
March 7, 2014March 7, 2014

As you may recall, a few weeks ago MDN was a bit dumbfounded that residents of Massachusetts were being so reasonable about the prospect of Kinder Morgan expanding the Tennessee Gas Pipeline across the state to deliver critically needed new supplies of natural gas to New England (see Reaction to TGP’s Planned Pipeline Across Massachusetts). It’s Massachusetts for heaven’s sake! Home of some of the looniest of the loons, lefties of the left. And here they were, being all reasonable. The stars were out of alignment.

It took a little time, but true to expectations, here come the MA nutters out of the woodwork to oppose the pipeline. They’re spitting and sputtering and mouthily proclaiming Kinder Morgan has “no idea who they’re dealing with.” Now THAT’S more like the wacky MA residents we know and love. The stars are now realigned in the eco-nut firmament…
Read More “Anti-Drillers Turn Out to Oppose TGP Pipeline Expansion Across MA”
Anti-Drilling/Fossil Fuel | Decline/Depletion Rates | Industrywide Issues

Peak Oil Theorist Art Berman Says Shale Gas is Peaking Too
March 7, 2014March 7, 2014

What do you call it when your theories are completely, utterly discredited, and yet you continue to put them forward in an attempt to reclaim your notoriety? Determined? Valiant? Desperate? Pig-headed? Pathetic? Perhaps all of the above. Art Berman is famous for peddling the “peak oil” theory that says, dang, the world is almost out of that black gold and ya’ll better think about what’s next cause them fossil fuels are dryin’ up. Then the shale revolution happened. Whoops. That theory went out the door. But not for Art. He’s still a peak oil true believer–a peak oil evangelist. And now he’s back, peddling (don’t laugh)…peak shale gas. Yessiree, if it weren’t for that darned Marcellus, shale gas production would already be headin’ into the crapper, according to Art.

Here’s a sample of Art’s wild yarns, part of an interview with Art posted on the appropriately named Motley Fool website:
Read More “Peak Oil Theorist Art Berman Says Shale Gas is Peaking Too”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Mar 7, 2014
March 7, 2014March 7, 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: Fri, Mar 7, 2014”
Chesapeake Energy | Encana Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Michigan | Statewide MI

Reuters Smiles: MI Criminal Court to Charge Chesapeake & Encana
March 6, 2014March 6, 2014

In June 2012 MDN brought you the story that of possible collusion between Chesapeake Energy and Encana over lease offers in the state of Michigan. At the time we pointed out that the Reuters news service had “obtained” confidential emails that supposedly show such collusion, and we asked the question, how did Reuters come by those emails (see Did Reuters Break the Law with Latest Chesapeake Story?). It was obvious Retuers was trying to take down Aubrey McClendon and by extension Chesapeake Energy. Aubrey is now gone from Chesapeake and Reuters’ favorite corporate raider, Carl Icahn, now pulls the strings of the new CEO, Doug Lawler.

Not long after the whole story burst onto the scene, Encana did their own internal investigation and cleared themselves (see Encana Says Investigation Shows No Collusion with Chesapeake). That was Sept. 2012. Reuters is now back and announcing that the attorney general in Michigan will now file, two years later, criminal charges against both Chesapeake and Encana on March 19 in Michigan state court. We’re sure Reuters is smiling…
Read More “Reuters Smiles: MI Criminal Court to Charge Chesapeake & Encana”
Energy Companies | Halcon Resources | Ohio | Statewide OH | Trumbull County | Utica Shale

Drilling Shifts South in OH Utica Shale + More on Halcon Exit
March 6, 2014March 6, 2014

There is no doubt Utica Shale drilling in eastern Ohio has made a transition. Once upon a time Chesapeake (and a few others) looked to places like Columbiana, Mahoning and Trumbull counties. Carroll County is still quite active with drilling, but much of the new drilling has drifted south, to places like Harrison, Guernsey, Belmont, Noble and Monroe counties, as evidenced by the latest round of permits issued by the Ohio Dept. of Natural Resources. To the north in places like Trumbull? Not so hot anymore. Two days ago we told you about Halcon Resources’ decision to say adios to Trumbull County (see Halcon Resources Stops Drilling, Gives Up on the Utica Shale).

The shift southward and Halcon’s exit doesn’t seem to concern one of Halcon’s contractors, Kleese Development Associates, that hauls Halcon’s frack wastewater to area injection wells. Below are two articles: one illustrates the shift south in permits for new wells, and one that interviews Kleese, providing us with a bit more insight into Halcon’s decision to stay away from the Utica, for now…
Read More “Drilling Shifts South in OH Utica Shale + More on Halcon Exit”