Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Regulation | Statewide NY

LNG Storage/Fueling Stations Latest Anti-Drilling Target in NY
October 31, 2013October 31, 2013

New York State is first in all of the things you don’t want to be first in–like having the highest unemployment and taxes of any state in the union–and dead last in all the things you don’t want to be last in. Example: New York is the only state that does not allow liquefied natural gas (LNG) storage and LNG fueling stations. Translation: All of those new trucking fleets being purchased by UPS and other companies can’t operate in New York because there’s no place to fuel up.

LNG fueling stations have nothing to do with whether or not NY decides to allow fracking, but anti-drillers are attempting to make a connection anyway. A group of more than 100 anti-drillers piled into a hearing room in Albany yesterday to tell the state Dept. of Environmental Conservation they oppose the DEC’s plan to allow LNG storage and fueling stations. The usual crowd of hippie retreads from groups like Catskill Mountainkeeper and NY Public Interest Research Group showed up to mouth off–then they piled back into buses powered by dirty diesel fuel to head back to New York City from whence they came. Rank hypocrites, the lot of them…
Read More “LNG Storage/Fueling Stations Latest Anti-Drilling Target in NY”
Ethane | Industrywide Issues | Pipelines

2 Ethane Pipelines May Cause Marcellus/Utica Production to Jump
October 31, 2013October 31, 2013

Is production in the Marcellus and Utica Shale about to increase–dramatically? It may, and not because of a flurry of new wells coming online. Production may soon increase because of two new ethane pipelines due to go online in the next few months–the Mariner West pipeline to Sarnia, Canada, and the ATEX pipeline to the Gulf Coast. When those pipelines become fully operational, drillers that had been scaling back production because of no markets for their ethane will likely turn the valves wide open and let it flow.

An excellent bit of analysis about the impact of these two new pipelines from Platts…
Read More “2 Ethane Pipelines May Cause Marcellus/Utica Production to Jump”
Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range Resources 3Q13 Investor Call: Bull’s-eye in the Marcellus
October 31, 2013October 31, 2013

Range Resources, the very first driller to sink a well into the Marcellus, is also perhaps the biggest cheerleader and booster of the Marcellus. And why not? The Marcellus has been very good to Range.

Most of Range Resources’ wells and acreage is located in southwestern PA, in the “wet gas” area of the play. On a call with analysts yesterday discussing third quarter results, Range officials, including CEO Jeff Ventura, effused about the Marcellus, saying Range has enough acreage and opportunity in the Marcellus to allow them to continue drilling new wells for at least another 20 years. That is, they’ve hit the bull’s-eye (our words) in the Marcellus…
Read More “Range Resources 3Q13 Investor Call: Bull’s-eye in the Marcellus”
Anti-Drilling/Fossil Fuel | Centre County | Electrical Generation | Industrywide Issues | Pennsylvania | Pipelines

Deniers Would Rather Penn State Keep Burning Coal than Use NatGas
October 31, 2013October 31, 2013

Witnessing the psychology of those who are anti-drilling, and the reasons for being anti-drilling, is instructive. Some people are honestly afraid that fracking and an increased use of natural gas will lead to an environmental holocaust. We’ll call them lazily ignorant. They don’t bother to investigate or think through the information being spoon fed to them with a critical, logical mind. They just accept the fantastical yarns they hear as the truth. Then there are the true believer fanatics who have gone on over the edge, believing mythical “renewables” can power the planet–now–if only we had the political spine to man-up and change. Bring back the horse and buggies! We’ll call them dangerously stupid.

Regardless of whether you’re lazily ignorant or dangerously stupid (i.e. regardless of why you believe), what you believe does matter. Case in point: A “few dozen” residents and students who live near Penn State in State College, PA want the university to forget about their plan to convert their electric generation plant from being powered by coal to being powered by cheaper, clean-burning natural gas…
Read More “Deniers Would Rather Penn State Keep Burning Coal than Use NatGas”
Access Midstream Partners | Cardinal Gas Services | Economic Impact | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | Utica East Ohio Midstream | West Virginia

Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015
October 31, 2013October 31, 2013

Access Midstream Partners is heavily involved with the pipeline/processing plant infrastructure buildout happening in both the Marcellus and Utica Shale region. Access is the lead company in the joint venture known as Cardinal Gas Services (the other partners being TOTAL and EnerVest), and an important partner in Utica East Ohio Buckeye (along with M3 Midstream and EnerVest). According to Access CEO Mike Stice on an investors call yesterday, his company’s total investment in the Marcellus Shale by the end of 2015 will be $1.8 billion, and the total investment in the Utica will be $2 billion.

A combined $3.8 billion investment in the northeast spanning 2012-2015–from one company. Simply astonishing! Here’s a few highlights from Stice’s talk yesterday…
Read More “Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015”
Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

Hess Officials Talks About the Utica on 3Q13 Earnings Call
October 31, 2013October 31, 2013

Yesterday the parade of third quarter earnings calls continued. One of them was held by Hess, continues to be a major player in the Utica Shale.

MDN has slogged through the transcript from yesterday’s call and selected out those portions where Hess officials talk about the Utica, their recent accomplishments and their plans going forward…
Read More “Hess Officials Talks About the Utica on 3Q13 Earnings Call”
Hydraulic Fracturing | Industrywide Issues | Regulation

House Dems Want OMB/EPA Tag Team to Ban Diesel in Fracking Fluid
October 31, 2013October 31, 2013

More federal interference in fracking appears to be on the way. Two House Democrats–Henry Waxman and Diana DeGette–have “asked” (demanded?) the Office of Management and Budget (OMB) to finalize a permitting guidance rule from the federal Environmental Protection Agency (EPA) that disallows using diesel fuel in fracking fluids. Waxman and DeGette say the current rule in place is not specific enough and that some drillers continue to use diesel in fracking fluids. Accusing drillers of using diesel fuel in fracking fluid gives politicians a talking point to stoke their radical green supporters (and increase campaign contributions).

MDN asks: Is the OMB/EPA rule a good thing, or a bad thing?…
Read More “House Dems Want OMB/EPA Tag Team to Ban Diesel in Fracking Fluid”
Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Statewide WV | West Virginia

WVU & OSU Score $2M from NSF for Shale Energy Research
October 31, 2013October 31, 2013

The Marcellus and Utica Shale is not only good for landowners (big bonuses, lucrative royalties), for drillers (can’t drill fast enough, making boatloads of money), and of course the rest of us (all that money ripples throughout local economies and gets reinvested). The Marcellus/Utica is also good for academic types too. West Virginia University and Ohio State University together have just been awarded an eye-popping $2 million grant by the National Science Foundation (NSF) for shale energy research.

Some of that money will go to a researcher MDN previously highlighted back in 2011–Dr. Shikha Sharma, an assistant professor at WVU. At the time Dr. Sharma delivered what was bad news for anti-drillers: methane found in water samples she analyzed was not from shale drilling but is naturally occurring (see WVU Prof: Methane in Water Supplies is Not from Fracking). Dr. Sharma has been awarded $351K from the NSF grant to “probe the chemical and isotopic biomarkers that microorganisms leave behind during their growth and respiration process.” Er, right. A bit beyond our comprehension, but we’re sure it’s valuable research nonetheless! Here’s the announcement from WVU about the grant and what researchers will be doing with the money (if you understand it)…
Read More “WVU & OSU Score $2M from NSF for Shale Energy Research”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Susquehanna County

PA Anti-Driller Claims She was Disrespected at County Meeeting
October 31, 2013October 31, 2013

A few days ago MDN told you about Susquehanna County, PA’s minor anti-fracking celebrity Vera Scoggins (see NE PA Anti-Driller Slapped with Trespassing Injunction). We’ve recounted a number of instances of Vera’s bad behavior. Being slapped with a court order hasn’t slowed her down. Vera showed up at the recent Susquehanna County Commissioner’s meeting to continue her antics.

The following story is self-explanatory. Here’s the real laugh line: Vera says she was disrespected at the meeting! That’s after she refused to stand for the Pledge of Allegiance…
Read More “PA Anti-Driller Claims She was Disrespected at County Meeeting”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 31, 2013
October 31, 2013October 31, 2013

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: Thu, Oct 31, 2013”
Energy Companies | Ethane | Exporting | Hydraulic Fracturing | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Processing Plants | Range Resources Corp | Statewide PA | Washington County

Range Resources’ Top 10 Wet Gas Wells, New Company Presentation
October 30, 2013October 30, 2013

Yesterday Range Resources released their financial and operations update for third quarter 2013 (see our companion story from today). Nestled in that update is reference to a new company presentation released yesterday as well, available on the Range website. MDN downloaded it (full copy embedded below) and wow! What a presentation it is. This sucker is loaded with useful charts, maps, bullet points and more. Range has done the industry (and their investors) a great service with this presentation.

Below we will highlight some of our favorite “don’t miss it” slides from the presentation, so you know which ones to zero in on right away. However, the one slide many will want to view first is the list of Range’s Top 10 Liquids Rich (“wet gas”) wells. That slide lists the wells and their locations (hint: they’re all found in a single PA county), initial production levels, production mix (how much oil, NGLs, gas), lateral length, and number of frac stages. With lots of maps and lots of charts, here are some of our favorites, including the Top 10 Wells slide:
Read More “Range Resources’ Top 10 Wet Gas Wells, New Company Presentation”
Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA

Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%
October 30, 2013October 30, 2013

Range Resources, the heavyweight Marcellus driller that was the very first company to drill a Marcellus well (back in 2004), continues the flurry of third quarter updates with their own yesterday. Range reports that revenues (or cash flow) were up 29% vs one year ago, costs were down 12% vs one year ago, and the Marcellus was their date to the ball and they’re still dancing with her. They also report record production of 960 million cubic feet per day (Mmcf/d)–getting close the one billion cubic feet per day (Bcf/d) mark.

Range’s most interesting comments (to MDN) are about the Mariner West Project, an ethane pipeline that runs from the Marcellus all the way to Sarnia, Canada. Range is one of the main customers for Mariner West which is due to be “fully operational” in November. However, Range said in early September their first delivery of ethane had already reached Sarnia, which made us scratch our heads (see Sunoco Says Mariner West Opening Soon, but Range Already Using??). After reading Range’s statements below, we now understand that Sunoco Logistics has been testing the new pipeline and it will be fully up to speed sometime in November…
Read More “Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%”
Industrywide Issues | Litigation | Pennsylvania | Regulation | Warren County | Wastewater

Waste Treatment, PA DEP Respond to CWA Lawsuit
October 30, 2013October 30, 2013

Yesterday MDN told you about a wastewater treatment plant in Warren, PA that has been sued by Clean Water Action with claims the plant continues to receive, process and dump frack wastewater into the Allegheny River (see CWA Sues/Accuses Waste Treatment Corp of Continued Shale Pollution). Waste Treatment Corporation’s Warren operation was supposed to have stopped that practice in May 2011. The lawsuit says it’s still happening, based on the results of tests from last year by the state Dept. of Environmental Protection (DEP).

Both Waste Treatment Corp. and the PA DEP have responded with statements addressing the CWA allegations and lawsuit. Waste Treatment says they did stop processing Marcellus Shale wastewater in 2011. The PA DEP says the agency filed its own lawsuit against Waste Treatment in September of this year. Frankly, it’s not at all clear to MDN what the real facts are in this case–yet. After reading the responses, we have more questions than answers…
Read More “Waste Treatment, PA DEP Respond to CWA Lawsuit”
Beck Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Monroe County | Ohio | Utica Shale

Beck Energy Sues OH Attorneys for Lease “Interference”
October 30, 2013October 30, 2013

An interesting court case that landowners in Monroe County, OH with old (30 year-old) non-Utica gas leases will be interested in following. Beck Energy holds many of those old leases (originally signed for an average $50/acre) which allows them to drill vertically into the Clinton sandstone for natural gas. However, the old leases prevent landowners from signing new leases (at much higher signing bonuses) to allow Utica Shale drilling. Apparently some enterprising attorneys have taken up the cause by shopping (i.e. advertising) for plaintiffs and Beck is none to happy about it. Beck has filed a lawsuit against the attorneys and their law firms to stop them from making mischief with “their” leases.

After reading the details of whose done what to whom (below), it seems to MDN no one will come out of this one smelling clean…
Read More “Beck Energy Sues OH Attorneys for Lease “Interference””
Access Midstream Partners | Energy Companies | Energy Services | EnerVest | Harrison County | Industrywide Issues | M3 Midstream | Ohio | Processing Plants | Utica East Ohio Midstream | Utica Shale

Gov. Kasich “Turns the Valves” at Scio Fractionation Plant
October 30, 2013October 30, 2013

MDN told you that Ohio Gov. John Kasich went foreigner-hunting on Monday and was glad to find no “foreigners” (i.e. out-of-state workers) lurking around the Hickory Bend processing plant in Mahoning County that he was visiting for a dedication ceremony (see OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). While he was in the general neighborhood, Gov. Kasich also slipped over to Harrison County on Monday to check out the Scio fractionation plant (now being called the Harrison Hub), to see if there were any foreigners hiding there. Nope! A banner day for Gov. Kasich!

The Scio plant, built by the Utica East Ohio Buckeye joint venture (M3 Midstream, Access Midstream and EnerVest) held a “turn the valves” dedication on Monday to take advantage of Kasich being in the area. Phase 2 of the plant went online in July adding an additional 45,000 barrels per day of NGL processing capacity. Phase 3 is now being build and due to go online in early 2014. Highlights from the Kasich visit and more details about the plant from UEO officials…
Read More “Gov. Kasich “Turns the Valves” at Scio Fractionation Plant”
Energy Services | Enterprise Products Partners | Ethane | Industrywide Issues | Pipelines

ATEX Ethane Pipeline to Begin Pumping Dec 2013, Ahead of Schedule
October 30, 2013October 30, 2013

Good news for drillers in the Marcellus and Utica Shale “wet gas” areas. The Appalachia to Texas (or ATEX) Express $1.3 billion ethane pipeline being built by Enterprise Products Partners from the Marcellus and Utica Shale region to the U.S. Gulf Coast, will begin flowing ethane this December, way ahead of schedule.

Speaking at the Platts Appalachian Oil and Gas Conference in Pittsburgh yesterday, an ATEX official said the ATEX is “nearly ready to go”…
Read More “ATEX Ethane Pipeline to Begin Pumping Dec 2013, Ahead of Schedule”