Marcellus Drilling News

Carrizo Oil & Gas | Commodity Price | Energy Companies | Industrywide Issues

Carrizo Oil & Gas 2Q13: Scaling Back in the Marcellus…for Now
August 7, 2013August 7, 2013

Carrizo Oil & Gas is a Houston-based driller that concentrates on U.S. shale plays. They have active drilling operations in the Eagle Ford and Barnett (TX), the Niobrara (CO), and in both the Marcellus and Utica Shale region in the northeast (PA & OH). In reviewing today’s Carrizo 2Q13 update, it’s obvious the company has decided to scale back in the Marcellus/Utica for now, in favor of putting their effort into the other plays. Carrizo’s average daily gas production in the Marcellus decreased from 38 million cubic feet per day (Mmcf/d) in 1Q13 to 33.9 Mmcf/d in 2Q13. Why? They’ve “shut-in” a number of their wells in Wyoming County, PA, waiting for the price of Marcellus gas to go up before they sell more.

Gas prices in the very-productive Marcellus are typically some of the lowest in the country. More supply than demand at this point. For example, yesterday the average sale price for natural gas along pipelines in the northeast Marcellus was $1.89 Mmcf according to NGI’s Shale Daily. The average sale price for gas yesterday in the Barnett Shale was $3.36 Mmcf! You can see why Carrizo is cooling their heals in the Marcellus. Here’s the portion of today’s Carrizo update dealing with their drilling program in the Marcellus/Utica:
Read More “Carrizo Oil & Gas 2Q13: Scaling Back in the Marcellus…for Now”
Energy Companies | Rex Energy | Upper Devonian Shale

Rex Energy 2Q13: Revenue Up 83%, “Super Rich” Upper Devonian Well
August 7, 2013August 7, 2013

Marcellus driller Rex Energy released its second quarter update yesterday. Operating revenue was way up–83% from last year this time. Gas production was up too–38% from this time last year. Rex has drilled 11 Marcellus wells so far this year, with plans to complete 19. They’ve also drilled 8 Utica Shale wells with plans to complete 11.

Below are the details of Rex’s drilling in both the Marcellus and Utica–along with details about their newly completed “super rich” Upper Devonian well. Select portions of the Rex 2Q13 update:
Read More “Rex Energy 2Q13: Revenue Up 83%, “Super Rich” Upper Devonian Well”
Electrical Generation | Industrywide Issues | Lackawanna County | Pennsylvania

Marcellus Gas to Power Combined-Cycle Electricity Plant in NE PA
August 7, 2013August 7, 2013

A very interesting latest-and-greatest technology is slated to be used in an electricity generating power plant in Jessup Borough (Lackawanna County), PA. The project will use locally produced Marcellus Shale gas from northeastern PA to power a combined-cycle electricity plant. Here’s how combined-cycle technology works: In the first pass, natural gas is burned and the resulting combustion turns a big turbine to produce electricity. The hot exhaust from that process is captured to boil water, turning it to steam, and the steam turns a second turbine. Very efficient and far less polluting than other types of fuel.

More combined-cycle plants are planned for the greater Scranton-Wilkes-Barre area as well. As coal-fired plants continue to shut down due to strict new regulations from the federal EPA, something has to replace the lost power. Either that or turn off your smart phones and televisions. However, look for short-sighted nimby-types and anti-drillers to try and stop this bit of progress…
Read More “Marcellus Gas to Power Combined-Cycle Electricity Plant in NE PA”
Indiana County | Industrywide Issues | Pennsylvania | Regulation | Wastewater

PA Frack Wastewater Plant Closes, Loses Permit to Operate
August 7, 2013August 7, 2013

Although companies like GreenHunter Water can’t get enough fracking wastewater facilities online fast enough to meet demand from Marcellus and Utica drillers, it appears not everyone has the same level of success when it comes to operating such facilities. The PA Dept. of Environmental Protection (DEP) has pulled the operating permit for a frack wastewater treatment facility in Indiana County, PA. Seems the facility operated “sporadically” in July and August of last year before stopping operation in September. The owner, Aquatic Synthesis, ran into financial difficulties (i.e. bankruptcy).

Problem is, there’s still a million gallons of wastewater at the plant that need to be disposed of. Who will pay for that?…
Read More “PA Frack Wastewater Plant Closes, Loses Permit to Operate”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Aug 7, 2013
August 7, 2013August 7, 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, Aug 7, 2013”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium
August 6, 2013

Well well, what do you know? There are 18 brave Democrats in Pennsylvania after all. MDN was (we think) the first and one of the only sources to tell you of the insanity of the PA Democrat Party who, at their most recent statewide meeting, voted to adopt an official plank in their party platform supporting an immediate and ongoing moratorium–essentially a ban–of all Marcellus Shale drilling in the state (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). The state and national media ignored the story, knowing how toxic such a stupid move will be for Democrats at the next election (got to protect the Dem hegemony ya know).

But, we’ve just learned that 18 brave elected Democrats from the PA House of Representatives, including House Minority leader Frank Dermody, wrote a letter on July 15 to the state committee telling them the frack moratorium vote in June is not kosher with them. To which we say, three cheers! Finally, some people with ~~balls~~ intestinal fortitude inside the PA Democrat Party…
Read More “18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium”
Accidents | Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Susquehanna County

EPA’s Dimock PowerPoint Revealed – But, is it Real?
August 6, 2013August 6, 2013

Apparently the Los Angeles Times has a friend in the radically left DeSmogBlog and so has shared the famed, single EPA PowerPoint presentation that supposedly blames drilling and fracking by Cabot Oil & Gas for methane in nearby water wells. DeSmogBlog has an “exclusive” copy of said PowerPoint, so we assume they got it from the LA Times. We grabbed a copy from the DeSmogBlog website and embedded it below so you can read it and evaluate it for yourself.

The most recent hubbub about Dimock arose when the LA Times trumpeted they have in their possession a never-before-seen secret/internal “report” from the EPA–which turns out to be a PowerPoint presentation–blaming Cabot’s fracking for water problems in Dimock, PA (see LA Times Attempts New Hatchet Job on Fracking in Dimock). Is this finally the smoking gun? Is the Obama EPA now covering up evidence against evil “big oil & gas”?…
Read More “EPA’s Dimock PowerPoint Revealed – But, is it Real?”
Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Statewide OH

Some OH Landowners Get “Take it or Leave it” Pipeline Offers
August 6, 2013August 6, 2013

Apparently, some heavy-handed tactics are being used by some (not all) landmen in Ohio who are telling property owners to “take it or leave it” when it comes to offers on the table to allow pipelines to cross their land. Landowners beware: a landman may tell you the company will run the pipeline anyway by using the power of eminent domain. Very few of the pipelines now being constructed in eastern Ohio right now have eminent domain power.

If you hear such a statement from a landman, ask to see a certificate from FERC or the Ohio Public Utilities Commission stating that particular pipeline has eminent domain authority. If they can’t produce such a certificate, you know they’re blowing smoke…
Read More “Some OH Landowners Get “Take it or Leave it” Pipeline Offers”
Energy Companies | Statewide WV | Stone Energy | Upper Devonian Shale | West Virginia

Stone Energy Update: On Track to Drill 30 Marcellus Wells in 2013
August 6, 2013August 6, 2013

Stone Energy is an independent driller with operations both off- and on-shore. Last December MDN told you about Stone’s plan to start spending 33% of its $650 million exploration and production budget for 2013 on drilling in the West Virginia Marcellus Shale (see Stone Energy 2013 Plans: Spend 33% of Budget on Marcellus). Plans were to drill 28-32 new Marcellus wells this year. According to Stone’s second quarter 2013 report released yesterday, they’re right on track. So far they’ve drilled 16 wells and are on track to complete up to 30 Marcellus wells by the end of this year.

In yesterday’s update, Stone CEO David Welch reiterated the company’s strategy is to move away from drilling in the relatively shallow Continental Shelf area of the Gulf of Mexico (less than 1,000 feet of water), and drill more in both the deep water Gulf region as well as in the Marcellus. Welch said their strategy continues to benefit the company with rising production numbers, particularly from the Marcellus wells drilled. We also learn from yesterday’s update that Stone has drilled a test well in the Upper Devonian Shale and expects to bring it online later this year. Select portions of yesterday’s 2Q13 update:
Read More “Stone Energy Update: On Track to Drill 30 Marcellus Wells in 2013”
Hydraulic Fracturing | Industrywide Issues | Regulation

Hammer Falls: New EPA Edict on Storage Tanks Used in Drilling
August 6, 2013August 6, 2013

Day by day, a little more of the thing that once made America great–freedom and liberty–dies. Hey, no big deal. It’s all done in the name of health and safety. The latest example: The federal Environmental Protection Agency (EPA) has just issued more rules that trample individual states’ rights to regulate oil and gas drilling. It’s the EPA’s ongoing back-door method of one day fully regulating oil and gas drilling throughout the U.S.

The latest EPA rules have to do with oil and gas storage tanks and the emissions that come from them. Drillers and those operating such storage tanks have until either April 15, 2014 or April 15, 2015 (depending on when the tank went into service) to comply with new rules reducing volatile organic compound (VOC) emissions by 95%. The EPA’s latest edict:
Read More “Hammer Falls: New EPA Edict on Storage Tanks Used in Drilling”
Butler County | Energy Services | Industrywide Issues | Pennsylvania | Reserve Environmental Services | Wastewater

RES Breaks Ground for Wastewater Treatment Plant in Butler, PA
August 6, 2013August 6, 2013

Reserved Environmental Services, otherwise known as RES Water, is a Pennsylvania-based shale drilling wastewater treatment processor. RES’ claim to fame is that they build and operate zero liquid discharge facilities–100% of treated wastewater is returned to the field for re-use in fracking and drilling.

RES has just broken ground on its second wastewater treatment plant–in Penn Township (Butler County), PA. The new $2.5 million facility is projected to be operational later this year. According to RES president Andy Kicinski, more RES treatment plants are on the way in the Marcellus region…
Read More “RES Breaks Ground for Wastewater Treatment Plant in Butler, PA”
Energy Companies | EXCO Resources | Pennsylvania | Statewide PA

EXCO Resources 2Q13 Update: 33 Marcellus Wells Now Online
August 6, 2013August 6, 2013

EXCO Resources reported their second quarter results yesterday. EXCO is active in a number of shale plays, among them the Marcellus. EXCO reports during 2Q13 they started to drill two new Marcellus wells and completed three wells, all of them in Pennsylvania. The plan is to complete nine wells by the end of the year.

The Marcellus section of yesterday’s EXCO update:
Read More “EXCO Resources 2Q13 Update: 33 Marcellus Wells Now Online”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Aug 6, 2013
August 6, 2013August 6, 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, Aug 6, 2013”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Statewide WV | West Virginia

Marcellus Hiring Practices “Under a Microscope” by DOL
August 5, 2013August 5, 2013

Are you a driller, oilfield services or other supply chain company whose primary activity revolves around the PA or WV Marcellus Shale? If so, there’s a good chance you’re going to get audited by the U.S. Labor Department (DOL). Best to get your records (and hiring practices) in order now.

The biggest violation found by the DOL’s so-called Marcellus Shale Initiative: improperly classifying workers as independent contractors instead of salaried or hourly employees. Hiring workers as independent contractors is coming back to bite a number of companies, large and small. If the DOL finds a violation, they helpfully pass it on to the IRS, so after the DOL is done fining you, the IRS typically shows up on your doorstep for a second pound of flesh. Sweet…
Read More “Marcellus Hiring Practices “Under a Microscope” by DOL”
Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

USGS Finally Issues Report for Selling Water from 3 OH Reserviors
August 5, 2013August 5, 2013

In June 2012, the Muskingum Watershed Conservancy District (MWCD) board flip-flopped on a decision to make water sales from their considerable inventory of lakes and reservoirs to Marcellus and Utica Shale drillers. At first they voted to move forward with water sales, then a few days later, reversed their decision pending a full-blown study by the U.S. Geological Survey (see Muskingum Watershed Reverses Decision to Sell Water to Drillers). Thankfully, the MWCD didn’t wait for the USGS study, which was supposed to be issued by the end of last year, before they went ahead with more water sales in September (see Muskingum Watershed Moves Forward with Water Sales to Drillers).

Perhaps the reason the MWCD moved forward before getting the results of the USGS study was a premonition about how long the study would take. The 33-page USGS report, titled “An analysis of potential water availability from the Atwood, Leesville, and Tappan Lakes in the Muskingum River Watershed, Ohio” was just released today (full copy embedded below)–seven months later than anticipated. Although the study offers analysis only and no conclusions or recommendations, the MWCD says the data in the study is “helpful”…
Read More “USGS Finally Issues Report for Selling Water from 3 OH Reserviors”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Statewide WV | West Virginia

The Marcellus Continues to be Star Performer for Chesapeake
August 5, 2013August 5, 2013

Different media outlets have analyzed the comments made last Thursday by Chesapeake Energy officials, looking for Chessy’s “take” on their particular region. A newspaper in West Virginia published the report below that looks at Chessy’s update on the Marcellus Shale in the southwestern corner of the play–otherwise known as the “wet gas” area. Bottom line: Although everyone continues to focus on the Chesapeake’s love affair with the Utica Shale, the Marcellus Shale is the play actually contributing to the company’s bottom line–in a big way. The Marcellus is helping turn around the good ship Chesapeake.

Of particular interest to MDN in this brief article is a short paragraph that mentions the signing bonus/royalty deals landowners in the Upper Ohio Valley have recently landed with Chesapeake and other drillers–some of the highest bonus and lease terms we’ve seen to date in the Marcellus…
Read More “The Marcellus Continues to be Star Performer for Chesapeake”