Marcellus Drilling News

Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake’s New Acting CEO Says Utica Shale is a Big Deal
April 2, 2013April 2, 2013

Yesterday morning the new acting CEO of Chesapeake Energy, Steve Dixon, delivered his first investors talk as CEO. One of the primary parts of that talk—indeed we would say the centerpiece—were remarks about the Utica Shale and its importance for Chesapeake as they move forward. According to Dixon, Chesapeake’s production in the Utica for 2012 will show lower numbers than otherwise possible because of lack of pipelines and processing plants. Dixon says that will soon change, and so too will their production numbers.

Dixon began his remarks with a 10-second “so long and thanks for all the fish” acknowledgment to the departed Aubrey McClendon:

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Industrywide Issues | NGLs | Research

New Report on Important-but-Overlooked Natural Gas Liquids
April 2, 2013April 2, 2013

The Brookings Institution, one of America’s oldest Washington, D.C.-based think tanks, conducts (and shares) research on a variety of topics, mostly economics-related. Brookings recently released a new report titled: Natural Gas Liquids (full copy embedded below). The report focuses on an aspect of the shale revolution researchers at Brookings believe is often overlooked–but critically important.

From the basics of describing what NGLs are and where they are found to how they are mined and the economics and key players–this short 15-page report does an excellent job of briefing readers without becoming a data dump. Here’s a brief description of the report and a summary of its five key takeaways, from the Brookings website:
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Anti-Drilling/Fossil Fuel | Bradford County | Energy Services | Industrywide Issues | Pennsylvania | Pike County | Pipelines | Regulation | Tennessee Gas Pipeline | Wayne County

Army Corps of Engineers Approves Pipeline in Delaware River Basin
April 2, 2013April 2, 2013

Good news for drillers, landowners and consumers who want to see more low-cost Marcellus Shale gas flowing to East Coast markets. On March 22, the U.S. Army Corps of Engineers green lighted Tennessee Gas Company’s Northeast Upgrade pipeline project to cross wetlands (i.e. swamps), rivers and streams in the Delaware River watershed. Hooray! The Corps didn’t cave to eco-nut, anti-progress pressure.

The details on where the new extensions are being built:

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

What is Yoko Ono and Artists Against Fracking Hiding?
April 2, 2013April 2, 2013

Yoko Ono, who in recent years has become a pornographer (see this story about her 2012 “fashion line for men”), is a national treasure to the eco-nut left in this country. She’s trying to grab a second 15 minutes of fame by riding the coattails of the fracking issue, starting the group Artists Against Fracking (see Yoko Ono and Son Sean Lennon Go on Anti-Fracking Tirade). Ono has recruited a number of big (and clueless) celebrities to support her organization. One-percenters like Ono and Susan Sarandon are throwing a lot of money into Artists Against Fracking in hopes they can stop fracking in New York. Problem is, they’re supposed to register as lobbyists if they spend over $5,000, to keep spending transparent and above-board (and not greasing somebody’s palms). But they haven’t and don’t want to register–you know, they’re above petty things, like the law.

What’s interesting about the story of Artists Against Fracking not registering as lobbyists is how the media covers it. Most mainstream media, instead of questioning Ono about why she doesn’t want to obey the law, goes after the drilling industry instead! Unbelievable. But that’s what we’ve come to expect from “news” organizations like Associated Press:
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Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

Feds Want to Force PA (Others?) to File Monthly Production Reports
April 2, 2013April 2, 2013

Pennsylvania, Ohio and West Virginia state governments watch out—the federal government is making noise about requiring you to provide monthly production reports for oil and gas production. The AP says the feds are working on a “proposal” to have Pennsylvania in particular move to a monthly reporting system. When was the last time the federal government ever “proposed” something that wasn’t actually “required”? But we digress… Apparently, the Marcellus Shale Coalition is on board with this “proposal” as well…

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Clever Joke: PA High School to Use Frack Fluid in Swimming Pool
April 2, 2013April 2, 2013

We have no doubt the Union of Concerned Scientists (UCS) is anti-fracking. However, they do have some good writers for their The Equation blog site–and we always appreciate good writing. Yesterday, the brainiacs at UCS posted an April Fool’s story with this headline: “Pennsylvania High School to Host Bizarre Swim Meet – in Fracking Fluid.” It is a hysterically funny joke–written so well you almost believe it! The author tweaks us into thinking a PA high school is about to fill its swimming pool with fracking fluid and have young people swim in it at their next swim meet. Brilliant! It’s the kind of thing we wish we had thought of and written. No doubt some people will fall for the ruse.

Here is the faux news article from the UCS blog:
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Calling Gov. Andy: Anti-Frackers Flood Cuomo with Calls
April 2, 2013April 2, 2013

The eco-nuts (Frack Action, Sierra Club, Catskill Mountainkeeper) are attempting to whip the troops into yet another frenzy to get them to call Gov. Andrew Cuomo’s office and tell him to forget about fracking. We’re sure the switchboard operators at the governor’s mansion appreciate it…

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

Ohio Sierra Club Looks for Water Snitches
April 2, 2013April 2, 2013

The Ohio Sierra Club is looking for volunteers to join their Water Sentinel Program—a program that uses volunteers to periodically test rivers and streams. So far they have about 150 “sentinels” to do the work, but more snitches volunteers are needed:

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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Apr 2, 2013
April 2, 2013April 2, 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, Apr 2, 2013”
Chesapeake Energy | Energy Companies

McClendon Exits Chesapeake, Well-Bonused “Friends” Replace Him
April 1, 2013April 1, 2013

As of today, Monday, April 1, 2013, Chesapeake Energy has made the biggest error in its 24-year existence. Today marks the exit of Chesapeake’s co-founder and CEO, Aubrey McClendon. In his place, the company announced Friday they have created an “Office of the Chairman” which will be populated with three people: Archie Dunham, non-executive chairman of the board; Steven Dixon, who is currently COO and will take on the role of acting CEO to replace Aubrey (for now); and Dom Dell’Osso, CFO. Apparently it takes three people to replace Aubrey–that should tell you something right there.

The colossal error is in letting McClendon go in the first place, which is being done largely because of pressure from corporate raider Carl Icahn (see Breaking: Chesapeake Energy CEO Aubrey McClendon Gets Pink Slip). You might think that Steve Dixon and Dom Dell’Osso would leave with their old friend and comrade–but they’re two of three people ~~bribed~~ paid a whopping $15.4 million bonus to stick around (see Chesapeake Pays $15.4M to Prevent Exodus of Top Talent). After being showered with millions, Steve and Dom said, “Aubrey who?”…
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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Cuomo Source Spills Beans on Real Reason for NY’s Fracking Delay
April 1, 2013April 1, 2013

A highly-placed Cuomo source has confirmed to the New York Post what many of us have suspected all along: The reason fracking has been delayed in New York is because of one person—Gov. Andrew “Ditherer” Cuomo. And the delay has nothing whatever to do with science. He’s delayed his decision on whether or not to allow fracking because he perceives no political benefit either way he decides. The rules crafted by the DEC are so over-the-top strict that he’s afraid no one will bother to show up and drill if he pulls the trigger to allow fracking. Plus, if he approves it, he’d have to put up with mouthy ex-brother-in-laws (see The Andy & Junior Show: Part Deux). What a drag that would be…

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Ohio | Statewide OH | Utica Shale

Handy List of OH Utica Shale Permits, by County & Driller
April 1, 2013April 1, 2013

Our friends at Energy in Depth – Ohio have assembled an excellent report (below) for how many drilling permits have been issued in Ohio for Utica Shale drilling, both by county and then by driller, as of the end of March. This is the best list of its kind we’ve seen so far (and one we wish we had created!). Thanks EID!

If you’re a landowner or business interested in who’s drilling and whether or not there’s activity coming to your county, check out the list below. Permits are the single best indicator for where drilling will soon happen. (Shameless plug: For information like that below charted on high-quality maps making it easy to understand, check out MDN’s Marcellus and Utica Shale Databook.)
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Anadarko | Antero Resources | Blue Ridge Mtn Res/Magnum Hunter | BP | Chesapeake Energy | Chevron | Energy Companies | EnerVest | Gulfport Energy | Hess | Ohio | Shell | Statewide OH | Utica Shale

Who’s Who in Leasing & Drilling the Utica Shale?
April 1, 2013April 1, 2013

Many people eagerly await Ohio’s annual production numbers, which will (hopefully) be out sometime later this week. Drillers had to file their production numbers no later than yesterday, Mar. 31. MDN has brought you some of the recent “idle” speculation that inevitably happens while waiting. The speculation lately has been along the lines of, “Is the Utica really all it’s cracked up to be?” (see More Angst Over OH Utica’s Oil Prospects). It is natural gas liquids (NGLs) and oil that makes the Utica special. If it turns out Utica production is mostly dry gas (methane only), it will be a major disappointment.

Investor websites are famous for analyzing this stuff to death before any hard data is available. We say: Let’s see what the numbers actually say! In the meantime, yet another “idle speculation” article on one of our favorite sites, The Motley Fool, once again talks about the potential for the Utica. However, a big part of the article interests us. It’s a handy, condensed roundup of the major energy companies that are active in the Utica Shale:
Read More “Who’s Who in Leasing & Drilling the Utica Shale?”
Anti-Drilling/Fossil Fuel | Exporting | Hydraulic Fracturing | Industrywide Issues | Regulation

Democrat Left Eating Their Own, Attempt to Destroy Ernest Moniz
April 1, 2013April 1, 2013

Every now and again (doesn’t happen often), the Democrat left in our country will “eat one of their own.” It’s happening right now with Dr. Ernest “Hair” Moniz, President Obama’s choice to head up the Dept. of Energy after the resignation of Dr. Steven Chu. Dr. Moniz is a very smart guy–like Albert Einstein smart. He’s a nuclear physicist and director of the MIT Energy Initiative. Moniz believes in global warming flummery and he’s a Democrat, so you’d think the left would love him. Thing is, he also believes the best way to get to the alternative energy nirvana that the left pines for is to use clean-burning natural gas and fracking to get there. That position crosses the line for many in the whacko-eco movement.

And so, day after day we see a steady stream of articles that give Moniz the equivalent of an economic anal exam (he’s very wealthy), questioning every consulting gig and job he’s ever held, trying to tie him to “industry” so they can destroy his reputation and his chances of ascending to the top spot at Energy. Here’s just one example from (not surprisingly) Bloomberg:
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Education | Industrywide Issues | Pennsylvania | Research | Statewide PA

Penn State Establishes New Institute for Natural Gas Research
April 1, 2013April 1, 2013

Penn State is one of only 17 U.S. institutions with an accredited petroleum engineering program. As of March, it’s now one of just two with the term “natural gas” in the title of its program. In early March, Penn State announced the establishment of the Institute for Natural Gas Research (INGaR). The new program is a collaboration of the College of Earth and Mineral Sciences and the College of Engineering with professors from some other departments too.

INGaR’s aim is to keep Pennsylvania “at the forefront” of the shale gas drilling industry:
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Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Processing Plants | Statewide MD

Dominion’s Cove Point LNG Facility Achieves Important Milestones
April 1, 2013April 1, 2013

Dominion announced this morning it has achieved several major milestones for advancing its Cove Point, Maryland LNG export facility, including contracts with Japan and India to take 100% of the LNG they can produce for export. The Cove Point LNG export facility, which includes the capability to liquefy natural gas into LNG, will cost $3.4 – $3.8 billion to build–a staggering number. It will provide jobs and an economic boost to the entire East Coast, especially Maryland and Virginia.

The Dominion press release from this morning:
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