Marcellus Drilling News

Access Midstream Partners | Blue Racer Midstream | Commodity Price | Dominion Energy | Energy Services | Ethane | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH

Live from Columbus, OH… Utica Shale Confab – Day 1
February 27, 2013February 27, 2013

MDN editor Jim Willis is in Columbus, Ohio attending the 2nd Utica Shale Development & Growth Forum. Jim is moderating a panel today (Wednesday) called “Utica from the Media’s Perspective.” On the panel with me are Bob Downing, staff writer with the Akron Beacon Journal, Rick Stouffer, editor of Platts Gas Business Briefing, and Peter Behr, reporter with EnergyWire. All top notch writers from premier publications. I feel honored to sit on a panel with them!

Yesterday (Tuesday) was the first day of the main program and speakers tackled the Utica Shale from their unique perspectives. We heard from the relatively new Access Midstream (formerly Chesapeake Midstream); a geologist; Blue Racer Midstream; and an economist who is head of the Ohio State University’s Sub Surface Energy Resource Center (“Utica Shale Center” for short). Since most MDN readers couldn’t be here, I took good notes to pass along. Below are highlights and interesting tidbits from Day One…

Read More “Live from Columbus, OH… Utica Shale Confab – Day 1”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Feb. 27: (In)Decision Day for Gov. Cuomo and Fracking in NY
February 27, 2013February 27, 2013

It’s D-Day (Decision Day) in New York. Today, Feb. 27, is the final day for the Dept. of Environmental Conservation to release new fracking rules or the process is once again delayed—by at least 45 days and likely much longer. What can we expect? Nothing. Gov. Andrew Cuomo has proven he’s indecisive and and not worthy to lead the state, let alone pursue “higher office.” The Joint Landowners Coalition of New York (JLCNY) is gearing up for a major lawsuit to sue the state for illegal de facto “takings” of its citizens’ private property. If the state is going to deny landowners the right to allow drilling amidst overwhelming evidence it’s safe, the state will have to pay them the equivalent amount of money they would have made by leasing and drilling (certainly billions, maybe trillions?). Hello bankruptcy for New York.

The only thing MDN sees that might postpone a lawsuit by the 77,000-member JLCNY is if DEC Commissioner Joe Martens were to issue a few provisional permits to drill—and issue them today—as a sign of good faith that the state really is serious about completing and adopting new fracking rules. Will that happen? “Not bloody likely” as our Brit friends say…

Read More “Feb. 27: (In)Decision Day for Gov. Cuomo and Fracking in NY”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

New York Democrats Try, Once Again, To Ban Fracking
February 27, 2013February 27, 2013

Although the evidence has always been there for all to see, it’s now abundantly clear that New York’s Democrat party wants to outright kill oil and gas drilling in the state. They prefer economic suicide to facing down the fracking extremists in their own party.

Yesterday, 30 Assembly Democrats, led by the nose by Assembly Speaker Sheldon Silver and Environmental Conservation Chairman Robert Sweeney introduced a bill that would ban high volume hydraulic fracturing in the state until 2014. You might as well say it will ban it “forever” because that’s the true intent. They have zero interest in “waiting a little longer for yet one more study.” If you believe that, I have bridge in Brooklyn I’d like to sell you…

Read More “New York Democrats Try, Once Again, To Ban Fracking”
Energy Companies | Range Resources Corp

Range Resources 2012: Production & Revenue Up, Profit Down
February 27, 2013February 27, 2013

Range Resources, the first company to drill a horizontal Marcellus Shale well (in 2004) released it’s fourth quarter and entire year results for 2012 yesterday. Among the highlights: Range reported producing an average 753 million cubic feet per day of natural gas over the entire year—36% more than 2011. By the end of 4Q12, Range was producing 844 Mmcf/d. Much of their production comes in the oil and wet gas rich area of the Marcellus play in southwestern Pennsylvania.

Range’s CEO Jeff Ventura pointed out Range has over one million Marcellus Shale acres and the Marcellus is largely what fueled its growth in 2012. Revenues were up 18% in 2012 over 2011, but profits were down 78% (from $58 million to $13 million) largely due to the low commodity price for natural gas and NGLs. Range spent $234 million to drill 64 wells in 4Q12 and $1.36 billion to drill 298 wells for the year.

Below are select portions from the Range update impacting and reporting on the Marcellus Shale:

Read More “Range Resources 2012: Production & Revenue Up, Profit Down”
Crime | Industrywide Issues | Jobs | Lycoming County | Pennsylvania | Statewide PA

GPX Gets Off Easy After Using Illegal Aliens for PA Survey Crew
February 27, 2013February 27, 2013

Last June MDN told you about GPX, a Texas-based seismic surveying company doing work in Pennsylvania for the oil and gas industry that was caught trying to sneak in illegal aliens to work on their surveying crews in PA (see Surveying Company Caught Sneaking Illegal Immigrants to PA). Those in charge faced the prospect of 100 years in prison and paying $5 million in fines. Looks like they’re going to get off easy with a slap on the wrist—a $25,000 fine:

Read More “GPX Gets Off Easy After Using Illegal Aliens for PA Survey Crew”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Feb 27, 2013
February 27, 2013February 27, 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, Feb 27, 2013”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot’s Drilling in Susquehanna County Moves Needle on U.S. Supplies
February 26, 2013February 26, 2013

Another post from energy analyst Richard Zeits on the Seeking Alpha website—this time about the tremendous amount of natural gas Cabot Oil & Gas is mining in Susquehanna County, PA. Zeits says the gas Cabot is finding and selling “may be material to the U.S. supply.” You read that right. One “little” oil and gas driller’s efforts in rural Susquehanna County, PA may well end up influencing the entire U.S. energy picture.

Full of charts and maps and oodles of great information, here’s a small portion of Zeits’ analysis, a prediction for how long Cabot will be drilling in Susquehanna County, and how many wells they’ll end up drilling there:

Read More “Cabot’s Drilling in Susquehanna County Moves Needle on U.S. Supplies”
Energy Companies | Gastar Exploration | Industrywide Issues | Marshall County | NGLs | Pipelines | West Virginia

Gastar’s 2013 Marshall County Plan: Drill More, Wait on Pipelines
February 26, 2013March 14, 2013

Gastar loves Marshall County, WV. Why? They not only find just natural gas when they drill in Marshall, they also find “wet gas” or natural gas liquids too. Gastar plans to drill another 19 new wells in Marshall this year.

However, there is a cloud with Gastar’s silver lining: Lack of pipelines will mean Gastar needs to slow their drilling later this year. Here’s a quick update on Gastar’s Marshall County plans for 2013:

Read More “Gastar’s 2013 Marshall County Plan: Drill More, Wait on Pipelines”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Big News: AP Writes Story About How NY’s Delays Hurt Landowners
February 26, 2013February 26, 2013

Wonders never cease. The Associated Press has actually written an article about the true costs of what “just a few more weeks of delay” in New York State really means to the state’s landowners—how it’s crushing them. The article looks at three struggling landowners—people who need New York to get off the dime and allow drilling to move forward. It begins this way:

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Anti-Drilling/Fossil Fuel | Industrywide Issues | Maryland | Statewide MD

Maryland Push Poll Gets the Result it Was Designed to Get
February 26, 2013February 26, 2013

A push poll (with loaded questions) commissioned by anti-fracking group Chesapeake Climate Action Network found (surprise!) 78% of Marylanders want to study fracking to death before they allow it in the state.

Does anyone really think this was a legitimate poll? Not when you see the question they asked…

Read More “Maryland Push Poll Gets the Result it Was Designed to Get”
Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Ohio | Utica Shale

Chesapeake Earnings Call Highlights Utica Results in 2 OH Counties
February 26, 2013February 26, 2013

In last week’s fourth quarter earnings call, Chesapeake Energy senior management once again singled out Columbiana and Carroll counties for special recognition and to express their ongoing commitment to the Ohio Utica Shale.

A few interesting highlights from that call:

Read More “Chesapeake Earnings Call Highlights Utica Results in 2 OH Counties”
Aqua America | Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues | Penn Virginia Corporation | Pennsylvania | Statewide PA

PVR Water Services – Now Pumping 3M Gal of Water/Day for Drilling
February 26, 2013February 26, 2013

Aqua America is one of the largest U.S.-based, publicly-traded water utilities with almost 3 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana, Virginia, Florida and Georgia. They also have a joint venture with Penn Virginia Resource Partners called PVR Water Services which provides water to Marcellus drillers in Pennsylvania. So far business is good.

A short section of Aqua America’s annual financial and operations report updates us on PVR Water Services:

Read More “PVR Water Services – Now Pumping 3M Gal of Water/Day for Drilling”
Energy Companies | Statewide WV | Stone Energy | West Virginia

Stone Energy 2012: Profits Down but Revenue & Production Up
February 26, 2013February 26, 2013

Stone Energy released fourth quarter and full year 2012 financials and an operations update yesterday. The company reported net income for 2012 totaled $149.4 million, or $3.03 per share, on revenue of $951.5 million compared with 2011 net income of $194.3 million, or $3.97 per share, on revenue of $869.9 million. CEO David Welch noted the company increased production and reserves for the third consecutive year. Welch said production and reserves are up mostly because of the Marcellus Shale.

Select portions of the Stone press release/update dealing with the Marcellus:

Read More “Stone Energy 2012: Profits Down but Revenue & Production Up”
Eclipse Resources | Energy Companies

Eclipses Resources Lands Important New Team Member
February 26, 2013February 26, 2013

MDN does not usually report on people moves (perhaps we should do it more often). However, we thought this one was noteworthy, so we’re bringing it to you. Oleg Tolmachev has just become Vice President of Drilling and Completions for Eclipse Resources. Eclipse is a driller in the Marcellus and Utica Shale. What makes this announcement noteworthy is that previously Mr. Tolmachev held a senior position with Chesapeake Energy in the Utica Shale, and before that with EnCana in the Barnett and Haynesville Shales. Eclipse has landed an important new team member as they continue to expand in the Marcellus and Utica.

Here’s the announcement from Eclipse:

Read More “Eclipses Resources Lands Important New Team Member”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Feb 26, 2013
February 26, 2013February 26, 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, Feb 26, 2013”
Industrywide Issues | Ohio | Regulation | Statewide OH | Taxation | Utica Shale

OH Budget Bill Hits Utica Drilling with $25K/Well Impact Fee
February 25, 2013February 25, 2013

If you ever (logically) thought a piece of legislation that’s meant to be a budget would only deal with money issues, you would be wrong. Budget laws for decades have been used to slip in all sorts of non-money-related measures. This year’s Ohio budget is no different. Tucked away in the proposed budget law from Gov. John Kasich are a number of non-budget items that directly affect Utica Shale drilling in Ohio. The measures include a ban on using brine as a de-icer on public roads, moving from yearly to quarterly production reports, lease transfer 30-day notifications, a $25,000 impact fee on each well drilled (surprise!), and testing of shale cuttings for radioactivity. And you thought budgets were just boring numbers.

Here’s the low-down on the non-budget items in the budget bill that will impact Utica drilling in a big way:

Read More “OH Budget Bill Hits Utica Drilling with $25K/Well Impact Fee”