Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

OH Annual O&G Report: Utica 36% of All Wells Drilled in 2012
November 21, 2013November 21, 2013

On Tuesday the Ohio Dept. of Natural Resources (ODNR) published their 48th annual “McCormac Report”–the 2012 Ohio Oil & Gas Summary report chocked full of charts, maps and statistics about oil and gas drilling in Ohio (full copy embedded below). As you can imagine, a lot of the report is dedicated to Utica Shale drilling. The report covers calendar year 2012, the year when Ohio’s Utica Shale really started to blossom. However, it does not include data for 2013, which is the year when the OH Utica grew up and became a serious shale play contender. Still, there’s lots to love about the McCormac Report, so named for Mike McCormac, the guy who’s been producing it for the past 32 years.

We learn in the report that in total, $706 million worth of natural gas and oil was drilled in Ohio in 2012. We also learn the state saw it’s longest ever horizontal well drilled–16,664 feet! That’s an astonishing 3.15 miles long (drilled in Jefferson County). And we learn that 36% of all wells drilled in 2012 were Utica Shale wells. Here’s a few highlights from the report:
Read More “OH Annual O&G Report: Utica 36% of All Wells Drilled in 2012”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Utica Shale

Ironic: PA Enviro Court Forcing DEP to Rule on Forced Pooling
November 21, 2013November 21, 2013

A 51-year old forced pooling law in Pennsylvania that strangely does not apply to the Marcellus Shale layer, but does apply to the deeper Utica Shale layer, is being put to the test. In early October, MDN told you that Hilcorp had decided to take “the low road” and sue a landowner in Lawrence County, PA to force that landowner to allow his 14.6 acres to be drilled under using the old law (see Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner).

The PA Dept. of Environmental Protection balked at invoking the old law to force the landowner and instead tossed this hot potato to the Environmental Hearing Board. The Hearing Board ruled this week that it doesn’t have jurisdiction and that the matter properly does belong back at the DEP. So what will the DEP do now?…
Read More “Ironic: PA Enviro Court Forcing DEP to Rule on Forced Pooling”
Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

Forced Pooling Talk at WV Legislative Interim Meeting
November 21, 2013November 21, 2013

Like a bad penny, the issue of forced pooling (or “unitization” or whatever you want to call it) keeps turning up in West Virginia. WV legislators are in the midst of holding an interim meeting, and this week they heard from both supporters and opponents of forced pooling.

The sharp lawyers from Lewis Glasser Casey & Rollins made this observation about the session where it was discussed:
Read More “Forced Pooling Talk at WV Legislative Interim Meeting”
Chenango County | New York

Cornell “Shale Gas Team” Visits Norwich, NY
November 21, 2013November 21, 2013

Cornell was once a great university–before lazy liberal opinion started to substitute for real scientific investigation (a la Tony Ingraffea, Robert Howarth, et al). Oh there’s still a few good profs at Cornell, profs that do real research, like Larry Cathles, Larry Brown and Andrew Hunter. But by and large Cornell has just faded into the background when it comes to being a voice on shale energy and energy research. Cornell is a has been.

So we found it interesting that a group of Cornell profs and grad students calling themselves the Cornell Shale Gas Team made a visit to Norwich, NY this week (MDN editor Jim Willis’ home town) to offer an “information seminar” on current issues and research in shale. Who knew there was a “Shale Gas Team” at Cornell? Jim couldn’t be there in person (he wasn’t aware of it!), but the Norwich Evening Sun had a reporter who filed this:
Read More “Cornell “Shale Gas Team” Visits Norwich, NY”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Congressman Chides Cuomo for Continued Fracking Delay
November 21, 2013November 21, 2013

Well there’s at least one New York Congressman with a spine–willing to stand up and call Gov. Andrew “can’t make up his mind on fracking” Cuomo what he is: someone who kowtows to fringe anti-drilling, anti-business wackos. Republican Congressman Chris Collins represents the 27th district in western NY–everywhere from the edge of Buffalo to the edge of Rochester, and from Lake Ontario to halfway down the state. It’s a large district.

Collins was speaking on the floor of the house yesterday in support of H.R. 2728 (see our companion story today on the two pro-drilling House bills that passed yesterday). Here’s Collins chiding his lordship Andy:
Read More “NY Congressman Chides Cuomo for Continued Fracking Delay”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Nov 21, 2013
November 21, 2013November 21, 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, Nov 21, 2013”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

AP’s “Evidence” Shell Still Considering a PA Cracker Plant
November 20, 2013November 20, 2013

It seems that darned West Virginia ethane cracker plant is just getting too much attention, so the AP has written a “Me too! Me too! Look at me! Pick me!” article about the proposed Shell ethane cracker plant planned for Beaver County, PA. AP has “investigated” (there’s a first!) and found certain evidence that may point to Shell actually going forward with their cracker plant. As MDN pointed out tongue-in-cheek just last week, the Greater Pittsburgh area has some angst that the WV cracker may spell the end of the Shell cracker in their state–so there’s a bit of trash talking going on (see Clash of the Ethane Cracker Titans: PA vs WV Smackdown).

AP to the rescue! Here’s the evidence from the AP that yes indeed, Shell really really really is maybe considering may possibly might actually build a cracker plant near Pittsburgh after all:
Read More “AP’s “Evidence” Shell Still Considering a PA Cracker Plant”
Allegheny County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

Allegheny County (PA) Council Votes Down Drill Ban for Parks
November 20, 2013November 20, 2013

A few weeks ago MDN told you about a meeting convened by PA State Sen. Jim Ferlo (we called it Ferlo’s Follies) where Ferlo and other anti-drillers carped and complained about a proposed plan to allow drilling under (not on) some Allegheny County, PA parks. We noted that one anti-driller at the meeting offensively and shamefully shoved an 8 year-old child in front of the microphones to plea for a ban on drilling in parks (see PA Anti-Drillers Shove Their Children Before the Microphones).

We’re happy to report the anti-drilling rabble-rousers have been defeated–soundly. Last night the Allegheny County Council voted down the proposed 3-year moratorium on drilling under (not on) county parks, and they voted it down rather convincingly: 9 to 2…
Read More “Allegheny County (PA) Council Votes Down Drill Ban for Parks”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | West Virginia | Wood County

Analysis: Why Parkersburg, WV for a Cracker Plant Complex?
November 20, 2013November 20, 2013

Don Surber from the Charleston Daily Mail writes a good analysis article in today’s edition that attempts to answer the question, “Why would Brazilian company Odebrecht pick Parkersburg, WV to build an ethane cracker plant?” Surber argues the selection of Parkersburg as the location vaults it into potentially being the most important city in the entire state of WV. He’s right.

Surber’s main point: Don’t focus on the ethane cracker, as nice as that will be. Instead, it’s the three polyethylene plants Odebrecht is going to build that are the real story, the real diamond, if (still a big if) the ethane cracker gets built. Why? It is the polyethylene (plastics) plants that will create a renaissance in manufacturing (i.e. jobs) in the region…
Read More “Analysis: Why Parkersburg, WV for a Cracker Plant Complex?”
Pennsylvania | Utica Shale | Warren County

Penn State Gives Warren County Some Hard Truth, Hope re Drilling
November 20, 2013November 20, 2013

Warren County, PA, located in the northwestern part of the state, is not in the “sweet spot” for Marcellus/Utica Shale drilling. That was the blunt (but kindly delivered) message from two Penn State Marcellus Education Team educators at a meeting yesterday at the Warren Public Library.

Warren County does have a few Utica wells: 12 permitted with 5 already drilled or being drilled right now. However, widespread drilling will not come to Warren in the near future. Question: Will it ever come to Warren? Answer…
Read More “Penn State Gives Warren County Some Hard Truth, Hope re Drilling”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation | Wastewater

NJ Antis Say Delaware River May See Barged Frack Wastewater
November 20, 2013November 20, 2013

This was predictable. The radical Sierra Club (of New Jersey) and other anti-drilling organizations including the New Jersey Environmental Federation, Environment New Jersey and the always rabidly anti-drilling Delaware Riverkeeper have joined forces in a coordinated attack against the U.S. Coast Guard’s proposal to allow barges to carry frack wastewater on America’s waterways–including the mighty Delaware River.

Never mind that barges containing chemicals far more deadly than frack wastewater make their way up and down our rivers every day (including the Delaware)–right now. Anti-drillers conveniently don’t mention that little fact. They just want fracking wastewater to be banned, because they want fracking banned, because fracking leads to more drilling and use of that awful, nasty, horrible fossil fuel, natural gas…
Read More “NJ Antis Say Delaware River May See Barged Frack Wastewater”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Lackawanna County | Pennsylvania | Regulation

Scranton Area TU Chapter Hears about New Tactic to End Drilling
November 20, 2013November 20, 2013

As MDN pointed out a few days ago, anti-drilling members of the anti-drilling Trout Unlimited (TU) have changed tactics (see TU: If You Can’t Beat Shale Drillers, Try a New Lie). Instead of calling for an outright ban on Marcellus Shale drilling in Pennsylvania, they’ve decided to call for over-regulation–attempting to make their requests sound reasonable and fair. The intent is still the same: stop drilling any way you can.

TU community ~~agitator~~ organizer Paula Piatt traveled from Mifflin County (central PA) to Lackawanna County (northeast PA) to spread the “let’s regulate them to death” message yesterday…
Read More “Scranton Area TU Chapter Hears about New Tactic to End Drilling”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Nov 20, 2013
November 20, 2013November 20, 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: Wed, Nov 20, 2013”
Hydraulic Fracturing | Industrywide Issues | Public Opinion

Nationwide Poll Finds Majority of Americans Support Fracking
November 19, 2013November 19, 2013

A new nationwide poll by Robert Morris University (RMU) finds a big majority of Americans support fracking. Here are the numbers: 42.3% strongly support fracking; 32.8% somewhat or strongly oppose fracking; and 24.9% are unsure. And get this: 40% of all respondents support fracking in their own hometown! You certainly won’t read these poll results in mainstream media outlets like Bloomberg, Reuters or AP. Even the company that paid for the poll–the Pittsburgh Tribune-Review–only gives it a small mention in a “roundup” article with a bunch of other news (see it here).

The FACT that most Americans support fracking is simply not the narrative the liberal media is willing to report–once again showing that the mainstream news you consume is extremely biased. The media silence on this poll illustrates the lie of so-called impartial reporting…
Read More “Nationwide Poll Finds Majority of Americans Support Fracking”
BP | Energy Companies | Ohio | Statewide OH | Trumbull County | Utica Shale

Decision Point: Will BP Drill Their Utica Acreage? Or Pass?
November 19, 2013November 19, 2013

In March 2012, BP leased 84,000 Utica Shale acres in Trumbull County, OH for $3,900 per acre and 17.5% royalties (see BP’s Big Utica Shale Deal, Leases 84K Acres in Ohio). They now have a total of 104,000 acres under least in northeast Ohio. But it’s been hurry up and wait. For an entire year we heard nothing from BP about drilling. A year later, in March 2013, BP obtained their first permit to drill in the OH Utica (see Better Late than Never: BP Gets First Permit for OH Utica). The original plan was to drill 10 test wells. So far they’ve drilled four, one of which is actually producing and online. Which seems like an awfully slow start for one of the world’s largest oil & gas companies. Landowners are frustrated at BP’s lack of drilling.

BP’s problem is, of course, that the more profitable “wet gas” zone for Utica drilling is well south of the acreage they’ve leased. So the question becomes, how much wet gas is there in the BP acreage? And if there’s not much, how productive (and cost effective) is the methane or “dry gas” they’re able to extract from the acreage? The jury is still out. NGI’s Shale Daily reports BP will make a decision “early next year” about whether or not they’ll commit to drilling on their OH Utica acreage…
Read More “Decision Point: Will BP Drill Their Utica Acreage? Or Pass?”
Accidents | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Blue Racer’s Natrium Plant to Remain Offline Until Jan 2014
November 19, 2013November 19, 2013

Blue Racer Midstream, a joint venture between Dominion Resources and Caiman Energy II, had an explosion and fire at its Natrium, WV processing plant/fractionation facility in September (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). Since then, at least two Blue Racer customers have found alternatives to using the Natrium facility: Rex Energy and Atlas Resources. More drillers adversely affected by the facility being offline (some of whom complained about the plant closure last week at the DUG East conference in Pittsburgh) may also be in the hunt for alternatives, especially with the announcement the plant will remain offline until “at least January” of 2014. That’s bad news for drillers and for Blue Racer, although they obviously have to repair the facility and ensure whatever caused the explosion/fire does not happen again.

As part of upgrades at the facility, Blue Racer is installing an emergency siren system in the neighboring community of Kent–to warn them of any problems at the plant. The latest on the closed facility and its prospects for re-opening:

Read More “Blue Racer’s Natrium Plant to Remain Offline Until Jan 2014”