Marcellus Drilling News

Economic Impact | Industrywide Issues | Regulation | Taxation

API Says Obama Budget Punishes Oil & Gas Industry, Destroys Jobs
April 12, 2013April 12, 2013

The American Petroleum Institute is not impressed with the budget recently released by President Obama. They point out the way Obama (once again) attempts to punish the oil and gas industry. In typical Democrat fashion, Obama wants to slap higher taxes on oil and gas. Of course anything you tax you get less of, which is exactly the wrong thing to do in the jobless Obama economy. Some people never learn.

Since Obama trotted out a retread of last year’s budget, the API decided to simply re-issue their statement from last year too. Clever…

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Hydraulic Fracturing | Industrywide Issues | Regulation

DOI Sec. Salazaar Says New BLM Fracking Rules Release "Imminent"
April 12, 2013April 12, 2013

MDN has previously chronicled the proposed new rules from the Dept. of Interior’s Bureau of Land Management for fracking on federal lands in the past. Recently BLM floated a copy of those new rules which were roundly criticized by the drilling industry. So they pulled the new rules, revised them, and sent them to the White House for review (see BLM Sends New Draft Fracking Rules to White House for Review).

The release of the revised BLM rules, according to outgoing Secretary of Interior Ken Salazaar, is "imminent"…

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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Apr 12, 2013
April 12, 2013April 12, 2013

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

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Uncategorized

Once Again Boys & Girls, Fracking Does Not Cause Earthquakes
April 11, 2013

In cycles of about every six months, we get a new round of stories along the lines that "fracking causes earthquakes too!" Which is not true. Or mostly not true. As with all things shale-related, anti-drillers take a kernel of truth and blow it out of proportion, making it untrue. That’s the case with fracking and earthquakes.

A British scientist leading a research team at Durham University has just published new research analyzing "hundreds of thousands" of cases of fracking to see whether or not they produced earthquakes. What did the researchers find? In hundreds of thousands of cases of fracking, there have been three cases where earthquakes were caused by the fracking that could be felt–and they were extremely mild, on the low end of the Richter scale. Three. Let’s run the numbers. If we assume the sample size was 300,000, 3 divided by 300,000 is 0.00001. Your odds of getting struck by lightening standing on one foot in the middle of a snow storm in Bali are greater. Yeah, fracking does not cause earthquakes–ever. So what about the earthquakes in Youngstown last year?…

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Electrical Generation | Industrywide Issues

PJM Case Study: Changing from Coal to NatGas for Power Generation
April 11, 2013August 13, 2015

PJM is a regional transmission organization (RTO) coordinating the movement of wholesale electricity in all or parts of 13 states and the District of Columbia (essentially Appalachia or the northeastern U.S.). SNL Financial has crafted an excellent analysis of natural gas deliveries to the electrical generating plants of the PJM and has found that since 2008, natgas deliveries have doubled to PJM power plants–mostly due to their geography, sitting atop the Marcellus and Utica Shale plays.

The article beings this way:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Onondaga County | Regulation

Flags at Half-Staff Again – Another NY Town (Stupidly) Bans Fracking
April 11, 2013April 11, 2013

Lower the flags at town halls across the state to half-staff once again to mourn the fact that another small misguided group of people have destroyed any chance their neighbors will be able to lease their land and allow safe drilling for natural gas. This time it’s happened in the Town of Otisco, NY. The vote to strip away landowners’ rights was unanimous by five people–we list their names below and when their terms expire just in case you want to vote against them next time around…

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Industrywide Issues | NG Vehicles | Ohio | Summit County

Akron, OH Getting First Public Natural Gas Filling Station Soon
April 11, 2013April 11, 2013

On Monday, the Akron, OH City Council approved plans for a new natural gas filling station to be located at the corner of South Arlington Street and Palmetto Avenue. The bonus: It’s being built by a "home grown" Akron company…

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Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

Radioactive Frack Waste Regs Coming Out of the Ohio Budget Bill
April 11, 2013April 11, 2013

Three Ohio state agencies requested a change in the way the state regulates and disposes of drilling waste that contains naturally occurring radioactive materials (NORM) and technologically-enhanced naturally occurring radioactive materials (TENORM). So new provisions were added to, of all things, the Ohio budget bill. Will politicians never learn?

Looks like the radioactive waste regulations are coming out of the budget bill and will instead be combined into their own, standalone bill. But that won’t happen until sometime this fall…

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Accidents | Brooke County | Chesapeake Energy | Energy Companies | Industrywide Issues | West Virginia

Update on Chesapeake Energy Well Fire in Brooke County, WV
April 11, 2013April 11, 2013

An update on the Chesapeake Energy well fire in Brooke County, WV that on Monday torched five tractor-trailers and did $8 million in damage:

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Industrywide Issues | Jobs | NG Vehicles | Pennsylvania | Regulation | Statewide PA | Taxation

PA Republicans Introduce Marcellus Tax Credits to Create Jobs
April 11, 2013April 11, 2013

Pennsylvania Republicans want the burgeoning Marcellus Shale industry in the state to create even more jobs for Pennsylvanians–so they’ve introduced legislation that will grant tax credits (not assistance, just a break on high taxes) to companies that do things like convert fleets of vehicles from running on gasoline to running on CNG (compressed natural gas). The amounts add up to a few million dollars, a fly speck in the overall budget, but of course it makes the state’s Democrats apoplectic:

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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Apr 11, 2013
April 11, 2013April 11, 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, Apr 11, 2013”
Chesapeake Energy | Energy Companies | Ohio | Portage County | Stark County | Utica Shale

Chesapeake Puts 94K "Oily" Utica Shale Acres Up for Auction
April 10, 2013April 9, 2013

As this issue goes to press, the Wall Street Journal and Fox Business is reporting that Chesapeake Energy has put 94,205 Utica Shale acres on the auction block. That’s nearly 10% of their remaining 1 million Utica Shale acres. This is not unprecedented. Last June Chesapeake put 337,000 acres on the auction block (see Chesapeake Selling 337K Utica Shale Acres, Counties IDed). Although the company has not yet made a public statement about this sale, MDN went fishing and found the listing from the real estate site where it’s listed. We’ve embedded it below (shows a map of the acreage).

Here’s what we notice about the listing, including which counties are involved…

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Hydraulic Fracturing | Industrywide Issues | Research

Marcellus Region Contains Huge 33% of All U.S. Recoverable NatGas
April 10, 2013April 9, 2013

The Potential Gas Committee (PGC), a private non-profit organization loosely affiliated with the Colorado School of Mines, performs a comprehensive study of potential supplies of natural gas in the United States every two years. The 2012 study has just been released and it’s truly astonishing. PGC says as of the end of 2012, the U.S. has a technically recoverable resource base of 2,384 trillion cubic feet (Tcf) of natural gas—the highest number they’ve seen since they started their evaluations 48 years ago. The 2012 number is a whopping 26% increase from just two years ago, when it was 1,898 Tcf. (MDN has embedded a slide presentation below with some useful charts—be sure to check out the chart on page 7.)

Aside from the sheer increase, the other major item to note about the 2012 study is that the PGC credits the Marcellus Shale with pushing the "Atlantic region" of the country to the top as the country’s "richest resource area" with a full 33% of recoverable natural gas. PGC credits the Marcellus Shale for the Atlantic’s rise to prominence. Thank you for fracking!

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Accidents | Brooke County | Chesapeake Energy | Energy Companies | Industrywide Issues | West Virginia

Chesapeake Energy Well Fire in WV Does $8M in Damage
April 10, 2013April 9, 2013

A fire at a Chesapeake Energy well site in Brooke County, WV on Monday destroyed five tractor-trailers and caused an estimated $8 million in damage. Fortunately, no one was injured. The details as we know them:

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eCORP International | Energy Companies | Hydraulic Fracturing | Industrywide Issues

Non-Flammable Liquid Propane Used for 100% Waterless Fracking
April 10, 2013April 9, 2013

An interesting press release from eCORP Stimulation Technologies was issued last week about a new patented innovation that allows the company to manufacture a 100% nonflammable propane fracking fluid. Propane fracking has advantages because it goes down as a liquid, does it’s work in breaking apart the rock, then evaporates to a gas and comes back out the hole and is recovered.

You may recall last year eCORP had a deal with GASFRAC (another waterless fracking solution) to potentially drill and frack wells in Tioga County, NY. That deal, however, fell through (see Tioga County, NY Lease Deal with eCORP Falls Apart). After the deal fell apart, eCORP worked on developing its own waterless fracking solution. We reported in January that eCORP was testing the new technology on their first well in the U.S. (see eCORP Tests New Waterless LPG Fracking Method on First Shale Well). Apparently the tests have gone well. Here’s the latest from eCORP:

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Energy Services | GreenHunter Resources

GreenHunter 2012 Financials: Revenue Up, Net Loss Up More
April 10, 2013April 9, 2013

GreenHunter Energy, a shale and fracking wastewater treatment company, released their 2012 financials on Monday. The headline they tout is that annual revenues were up a huge 1,444% in 2012 over 2011. However, total revenues for 2012 were just $17.1 million. Hey, we’ll give GreenHunter their due that the company is growing nicely, so hat’s off to them. But the company is still relatively small. In addition to $17.1 million in revenue, they had a write-down of a project in 2012 that caused them to register a net loss to shareholders of $21.2 million for the year. Doing a little math, we find that GreenHunter went in the hole $4.1 million for the year.

You may recall that GreenHunter now owns six barge terminals in PA, WV and OH (see GreenHunter Buys Barge Terminal in Wheeling for Frack Wastewater). They have a lot riding on a decision by the U.S. Coast Guard and the Obama White House on whether or not to allow barge shipping of frack wastewater. If approval comes this year (it’s supposedly with the White House now), GreenHunter will likely see black ink on the ledger for 2013.

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