Marcellus Drilling News

Allegheny County | Chesapeake Energy | Energy Companies | Pennsylvania | Statewide PA

Back from the Chesapeake Dead: David Spigelmyer Takes Helm at MSC
October 22, 2013October 22, 2013

The Marcellus Shale Coalition (MSC), the premier organization representing the Marcellus drilling industry in Pennsylvania and beyond, has named a new leader. Since the organization’s founding in late 2009 it has been led by the very talented Kathryn Klaber. In a surprise announcement in July, Katie said she would be stepping down from her post (see Kathryn Klaber Stepping Down as CEO of Marcellus Shale Coalition). She has big shoes to fill. So who will fill them?

David Spigelmyer has become the new CEO of the MSC effective this week. David’s name may be familiar. Until August of this year he was chairman of the executive board for the MSC. He was on the board representing Chesapeake Energy, one of the largest drillers in the Marcellus. Then Chessy’s new CEO Doug Lawler swung his ax…
Read More “Back from the Chesapeake Dead: David Spigelmyer Takes Helm at MSC”
Economic Impact | Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

Did Gov Tomblin Find a European Investor for a WV Cracker Plant?
October 22, 2013October 22, 2013

At the beginning of October, MDN told you that West Virginia Gov. Earl Ray Tomblin was heading out on a 13-day whirlwind European ~~vacation~~ trade mission to five different countries. One of his aims was to find someone to invest in an ethane cracker plant in West Virginia (see WV Gov Going to Europe to Find Him a Cracker). Tomblin is almost done touring Europe and said by phone from Switzerland that “he expects to make announcements within the next few days concerning deals made” as a result of his trip.

Will one of those announced deals be an investment in a cracker plant?…
Read More “Did Gov Tomblin Find a European Investor for a WV Cracker Plant?”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Cows Belch Methane Like a Fire Breathing Dragon!
October 22, 2013October 22, 2013

Anti-frackers are anti-frackers mostly because they hate fossil fuels. Natural gas, i.e. “methane,” is one of those evil, dirty fossil fuels. It’s a philosophical thing for anti-frackers. Methane from the ground is non-renewable, ya know–and we just can’t have that! Call it being energy prejudiced.

Now comes word that–unbelievably–cows also emit methane, and a lot of it. No, not from that end silly–they emit methane from burping! Cows emit something like 250-300 liters per day of methane from belching. Each cow is a mini-environmental disaster. Who knew that cows were such rude, belching polluters? But have no fear–the Argentinians have figured out a way to capture all that burped methane and purify it for use by humans (and no, this is NOT a joke). MDN does wonder: Will this new revelation about methane from cow burps and the ability to harness it spawn a new anti-burping movement? Anti-frackers might now become anti-burpers…
Read More “Cows Belch Methane Like a Fire Breathing Dragon!”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | New York County | Pipelines | Spectra Energy

Spectra NJ-NY Marcellus Gas Pipeline Goes Online Nov. 1
October 22, 2013October 22, 2013

It’s been a long road and a long time in coming, but the good news is that starting Nov. 1, residents of New York City will have another 800 million cubic feet of cheap mostly-Marcellus natural gas flowing into the city through Spectra Energy’s 16 mile, $1.2 billion pipeline from New Jersey to New York. The pipeline will flow enough gas to heat 2 million homes in NYC each year. Outgoing Mayor Michael Bloomberg has called more natgas for NYC “vital”. Most New Yorkers are in favor of the new pipeline, but that didn’t deter some from trying to stop the new pipeline.

During construction of the pipeline Spectra had to deal with a lot of nonsense, like protesters who turned into strippers (see NYC Pipeline Protesters Get Naked, Paint Themselves Green), protesters who didn’t even tell themselves they were about to spontaneously break the law (see Nutjob Protester Stops NYC Pipeline Construction for 2 Hours), and groups of protesters like the [In]Sane Energy Project that sued to stop the pipeline (see Judge Tosses Out Lawsuit Against Spectra NYC Pipeline Project). Spectra pressed on through it all and they’re about to turn on the valve Nov. 1. Success at last!…
Read More “Spectra NJ-NY Marcellus Gas Pipeline Goes Online Nov. 1”
Industrywide Issues | Research

EIA to Launch New Monthly Drilling Productivity Report
October 22, 2013October 22, 2013

If you’ve read MDN for any length of time, you know we’re generally not fans of the federal government and the bloated bureaucracy it has become. The EPA, for one, has way overstepped its Constitutional authority in our humble opinion (we call it a rogue agency). There is, however, one federal agency we like and admire and respect: the U.S. Energy Information Administration (EIA). The EIA is populated with bright people that produce helpful and insightful reports about energy production and consumption in the U.S., indeed around the world. While the EIA is not exactly prophetic, their word is about as close to energy Gospel as it gets.

With the so-called government shut-down now over, the EIA is back in business. Yesterday they announced they’re starting up a new monthly report called the Drilling Productivity Report (DPR). The report will tell us just how efficient (or not) rigs are at drilling, and how productive (or not) wells are, by region/shale play. Among the very important things to be tracked in the new DPR will be the decline rate of newly drilled wells–how quickly the gas and oil flowing out of shale wells peters out. Here’s yesterday’s EIA announcement:
Read More “EIA to Launch New Monthly Drilling Productivity Report”
Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | West Virginia

WVU Prof Tells Legislators 625′ Setback in Drilling is Not Enough
October 22, 2013October 22, 2013

A West Virginia University professor that helped prepare a report for the WV Dept. of Environmental Protection (WVDEP) continues to voice concerns about the way the WVDEP has interpreted the results of the study he helped research. In June the WVDEP released a third and final study (this one on air quality) required under WV’s 2011 Horizontal Well Control legislation. The report as issued by the WVDEP says based on the results of the research study, no new regulations are needed to control air emissions around drilling sites (see WVDEP Releases Study on Air Quality Impacts of Shale Drilling).

However, Dr. Michael McCawley, chairman of the Dept. of Occupational & Environmental Health Sciences in the School of Public Health at WVU and author of the original “raw” report, said he thinks air emissions from Marcellus and Utica shale drilling do need tweaking, particularly the amount of distance required from a well site to the nearest structure, like a home or school (called a “setback”). McCawley thinks 625 feet from the center of a well pad is not enough (see Did WVDEP Ignore It’s Own Research on Shale Well Air Pollution?). On Monday Dr. McCawley was back before WV legislators making the same argument…
Read More “WVU Prof Tells Legislators 625′ Setback in Drilling is Not Enough”
American Water Management | Energy Services | Industrywide Issues | Ohio | Trumbull County | Wastewater

Drilling Begins on Wastewater Injection Well in Trumbull County
October 22, 2013October 22, 2013

The first of what may end up being three new frack wastewater injection wells is now being drilled in Trumbull County, OH. American Water Management Services is right now drilling one of two planned injection wells in Weatherfield, OH. A second company, Kleese Development, has made application to drill a third injection well in the area.

The details:
Read More “Drilling Begins on Wastewater Injection Well in Trumbull County”
Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Mahoning County | NiSource | Ohio | Pennant Midstream | Pipelines | Processing Plants | Statewide OH

OH Hickory Bend Processing Plant Dedication in Oct, Online in Dec
October 22, 2013October 22, 2013

NiSource and Hilcorp Energy are building a natural gas processing plant in Springfield Township (Mahoning County), OH as part of a joint venture called Pennant Midstream. The Hickory Bend Processing Plant, as it’s called, will be dedicated on Oct. 28, although it won’t actually be up and running until sometime in December. The Hickory Bend project includes not only the processing plant (the first of a potential three processing plants), it also includes some 55 miles of wet gas gathering pipelines in eastern OH.

The initial investment in Hickory Bend by NiSource and Hilcorp is $375 million, but by the time it’s all done and dusted (in several years’ time with more processing plants), it could easily top $1 billion…
Read More “OH Hickory Bend Processing Plant Dedication in Oct, Online in Dec”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Josh Fox Lectures President Obama: Stop Fracking or Else
October 22, 2013October 22, 2013

Even though he’s an Obama @!$ kisser and boot-licker, frat boy and fake documentary maker Josh Fox has some words of warning for his American presidential idol: I won’t like you anymore if you keep fracking. Oooooo, we’re sure Barry is really concerned. Like he gives two flips what Josh Fox thinks…
Read More “Josh Fox Lectures President Obama: Stop Fracking or Else”
Cameron County | Elk County | Energy Companies | Forest County | Lycoming County | Pennsylvania | Seneca Resources

Seneca Resources Reports Production Up 35% Thanks to Marcellus
October 22, 2013October 22, 2013

Seneca Resources, the drilling arm of National Fuel Gas Company, issued their fiscal 4th quarter (everyone else’s calendar 3rd quarter) operations update yesterday. Seneca is one of the major drillers in the Marcellus Shale in Pennsylvania. They report production for 4Q was up a very healthy 35% over the same period last year. They credit their Marcellus drilling program in Lycoming County, PA for that success.

Because of their success, Seneca has revised up their guidance (best guess) for how much natural gas they’ll produce this fiscal year–to 145-165 billion cubic feet (Bcf). The full report from Seneca, including initial production rates from some of their recently drilled wells…
Read More “Seneca Resources Reports Production Up 35% Thanks to Marcellus”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Oct 22, 2013
October 22, 2013October 22, 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: Tue, Oct 22, 2013”
About MDN | Industrywide Issues | Research

MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects
October 21, 2013October 28, 2013

Marcellus Drilling News collaborates with the excellent ShaleNavigator service to publish a series of research reports called the Marcellus and Utica Shale Databook. MDN editor Jim Willis is super excited to announce that Volume 2 for the 2013 Databook series has just been released–and it is without question our best-ever. Among the pearls in this newest edition: Jim researched and developed a comprehensive list of 111 Marcellus/Utica Shale midstream and infrastructure projects which identifies the company building the project, a description of the project and its location, the amount of investment expected in the project and the target in-service date. Most of the midstream projects are pipeline and processing plants–no surprise there. What may surprise you is that when all of the projects are totaled, the number is a staggering $40 billion of investment coming to the northeastern U.S. in the coming years. The average project comes in at $364 million.

In addition to a comprehensive list of midstream projects, we also include (standard in each volume) maps for each county with active drilling/permitting activity in PA, OH and WV. Each map shows the location of wells with permits along with the driller’s name. In addition, Vol. 2 of the Databook contains charts showing how many permits have been issued by both driller and county from 2012 to 2013–showing the progression over the past two years. These charts are an important tool that can be used to identify the drillers and geographies where drilling is heating up, cooling down, or staying steady. It is a Databook first and the Databook is the only place where you’ll find it.

Here’s the press release we released today announcing this latest (we believe our best yet) Databook, Volume 2:
Read More “MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects”
Chesapeake Energy | Energy Companies | Ohio | Stark County

60 Chesapeake OH Employees Getting Fired Just in Time for Xmas
October 21, 2013October 21, 2013

Chesapeake Energy employees are still reeling from the announcement earlier this month that the company is firing an additional 800 employees company wide (see The Great Chesapeake Massacre: Lawler Fires 800 People in One Day). MDN speculates that Chessy may be for sale (see Chesapeake Energy Up for Sale? Maybe).

At the time of the mass(acre) firings we noted there were no firm numbers issued by Chesapeake as to how many of those lost jobs would be in the Marcellus/Utica region. We now have a bit more clarity on that. Chesapeake has filed paperwork with the federal government saying they will soon fire 60 people from their Uniontown, OH office–just in time for Christmas (Dec. 9)…
Read More “60 Chesapeake OH Employees Getting Fired Just in Time for Xmas”
Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Utica Shale

577 OH Utica Shale Wells Drilled – 0 Water Wells Contaminated
October 21, 2013

My water will be polluted! Don’t frack here! It’s the end of water as we know it!! Such are the refrains from anti-drillers–all of them not true. Want proof? Ohio has now drilled 577 Utica Shale wells over the past four years. The Ohio Dept. of Natural Resources’ Oil and Gas Resources Management division has investigated 183 water well contamination complaints related to drilling. Of those 183, six water wells were found to be adversely affected by drilling. But get this–none of them was from horizontal shale drilling–all six water well issues were caused by old vertical wells drilled in years gone by.

So let’s run those numbers: Of the 577 horizontal shale wells drilled so far in Ohio, there have been precisely zero nearby water wells adversely affected from that kind of drilling. Hmmm, sure paints a different picture than the doom-and-gloomer anti-drillers paint, doesn’t it?…
Read More “577 OH Utica Shale Wells Drilled – 0 Water Wells Contaminated”
Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | West Virginia

Electronic Permit Filing for Marcellus Drilling Coming Soon in WV
October 21, 2013October 21, 2013

In December 2011 a special session of the West Virginia legislature took up and passed a new Marcellus drilling bill in record time–four days flat–although in reality it took most of 2011 to prepare the legislation. The WV Senate passed the “Horizontal Well Act” 33-0 and the House passed it 92-5. Gov. Earl Ray Tomblin signed it immediately. (For a summary of what’s in the “new” law, see WV Has New Marcellus Drilling Law in Record Time).

It’s now been nearly two years since then, time for a status report. WV Dept. of Environmental Protection (WVDEP) spokesman Tom Aluise says the new law is paying off. Aluise talked about a new electronic permit filing system on the way, and he identifies the top five counties in WV with Marcellus wells…
Read More “Electronic Permit Filing for Marcellus Drilling Coming Soon in WV”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | Industrywide Issues | M&A | Pipelines | Processing Plants

Devon Energy & Crosstex Energy Form New Midstream Company in JV
October 21, 2013October 21, 2013

Devon Energy (driller with midstream assets) and Crosstex Energy (midstream company) announced today they are merging their midstream operations into a new company. The new midstream company, which will have assets in both the Marcellus and Utica Shale (as well as other shale basins) will be majority owned by Devon. In fact, the biggest customer for the new joint venture will be…Devon itself. The announcement says Devon will dedicate drilling from 800,000 of its leased acres to the new (and as yet unnamed) midstream company.

The boards of directors for both Devon and Crosstex have already voted to OK the merger. Here’s the extensive announcement issued today, which contains details of the somewhat complicated corporate structure of the new company:
Read More “Devon Energy & Crosstex Energy Form New Midstream Company in JV”