Marcellus & Utica Shale Story Links: Tue, Mar 5, 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, Mar 5, 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, Mar 5, 2013”
The truth came out over the weekend from, of all places, the Associated Press (see below). New York Gov. Andrew (“Andy”) Cuomo’s former brother-in-law, Robert F. Kennedy, Jr. (we’ll call him “Junior”), couldn’t resist his “the whole world revolves around me” narcissistic tendencies to let the media know that he, Junior, is the real reason fracking in New York is now dead.
Andy was all set to approve up to 40 test wells for fracking just last month, then Andy (a 1-percenter) talked with Junior (another 1-percenter) and that sealed the fate of 77,000 New York landowners (99-percenters) who want to lease their land for drilling.
Read More “The Andy & Junior Show: Why NY Fracking is Delayed Yet Again”
The ongoing moratorium against the miracle of fracking in New York State for horizontal wells has had a devastating effect on the state’s conventional (vertical) natural gas drilling. The moratorium is, in effect, killing all drilling in the state, according to the Independent Oil & Gas Association of New York (IOGA of NY). It’s also killing thousands of jobs supported by the conventional drilling industry.
Commenting on the “rumor” (blabbed by ex-brother-in-law RFK “Jr”) that Gov. Cuomo will delay a fracking decision until a health study just begun in PA is completed, IOGA of NY said the following:
It’s official: President Obama will nominate MIT physicist Ernest “Hair” Moniz to be the next Secretary of Energy, and Gina McCarthy to head the Environmental Protection Agency. We call Dr. Moniz “Hair” because of his “wavy mop” of gray hair—you’ll know what we mean when you see his picture.
Details on Dr. Moniz:
Read More “Obama to Nominate Moniz for Energy, McCarthy for EPA”
In September of last year, EV Energy Partners/EnerVest put 539,000 Ohio Utica Shale acres on the auction block, thinking they would get around $6 billion for it (see EnerVest Puts 539,000 Utica Shale Acres on Auction Block). In November, the company said they should complete the sale of the Utica acreage by the end of 2012 (see EV Energy Selling 539K Utica Shale Acres by Dec 31). That turned out to be a tad optimistic. EnerVest still does not have a deal for their Utica acreage.
An update on the company’s strategy from EV Energy Partners Chairman John Walker and EnerVest President Mark Houser, from Friday’s analyst call:
Read More “EnerVest Strategy: Sell Utica, Drill Vertical, Expand Midstream”
Houston-based Halcón Resources Corporation issued their fourth quarter and full year 2012 financials and operational update last week. As MDN has been reporting, Halcón is ramping up in the Utica Shale (see Location of Second Halcon Utica Well in Trumbull County, OH). Their 2012 update further confirms that they are making a big push in the Utica for 2013.
In the extract below discussing Halcón’s Utica plans for 2013, we learn they have 130,000 acres, plan to drill 20-25 new wells and will spend $200 million on their Utica drilling program for the year. Interestingly, both of their completed Utica wells are located in the Pennsylvania Utica—not in Ohio…
Read More “Halcón Resources: Full Speed Ahead in Utica Shale for 2013”
About 120 West Virginia landowners are suing Magnum Land Services and Belmont Resources with the claim the company’s representatives hoodwinked them into signing leases to allow shale drilling for as little as $5 per acre when, at the time (in 2007), other West Virginian’s were getting as much as $5,000 per acre. The case is headed to federal court.
The (few) details as we know them:
Read More “Lawsuit: WV Landowners Want Out of $5/Acre Leases”
A pair of Marcellus Shale wells drilled by Shell are the first two horizontal wells in Lawrence County, PA to be hooked up to pipelines and selling gas commercially, according a spokesman for Shell.
Details on which two wells are now in production, along with Shell’s 2013 plans for Lawrence County…
Read More “Lawrence County, PA: Shell Continues Marcellus Drilling”
Although Richland County, Ohio is near the outer edge of the Utica Shale and has had no permits issued for Utica Shale drilling, and although drilling close to Richland (in Ashland County) has had “disappointing” results for companies like Devon Energy, the Ohio Farm Bureau reports there’s still a lot of leasing activity in Richland County, with some really nice signing bonuses…
Read More “Richland County, OH: No Permits to Drill, but Lots of Leasing”
The anti-drilling Park Foundation—the organization that funds such luminaries as the husband and wife lawyer team David and Helen Slottje (see Slottje Alert: Lebanon, NY About to be Fleeced)—is hedging their bets just in case Gov. Cuomo suddenly grows a spine and allows safe fracking to go forward. How? They’re funding 100 volunteers to test New York waterways on a regular basis with the thought the testing could be used in court to prove fracking is causing damage to groundwater supplies—when and if fracking ever comes to New York.
The misleadingly-named Community Science Institute provides so-called “volunteers” to do the testing:
Read More “Park Foundation Funds Army of Water Testing Volunteers in NY”
Penn State University loves the Marcellus Shale. In addition to operating the Marcellus Center for Outreach & Research and the Shale Education and Training Center (ShaleTEC), Penn State is offering two new Marcellus-related services: a shale energy seminar and supply chain services for businesses:
Read More “Penn State Launches 2 More Marcellus Initiatives for Businesses”
Below are upcoming events for this week and next.
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: Mon, Mar 4, 2013”
Last week energy analyst Richard Zeits posted a terrific piece on Cabot Oil & Gas on the Seeking Alpha website (see Cabot’s Drilling in Susquehanna County Moves Needle on U.S. Supplies). Zeits turns in a “part 2” on the Cabot story yesterday—and if anything, it’s even better. In his latest post, Zeits talks about the uber-productive wells Cabot has drilled in Susquehanna County, PA. Cabot had 30 wells in the fourth quarter of last year that turned in initial 24-hour flow rates of 20 million cubic feet of natural gas, settling back to a 30-day average rate of 16.6 Mmcf/d.
Even more astonishing? One well they drilled—with 35 frack stages—had a 24-hour initial rate of 41.4 Mmcf/d and settled back to a 30-day average of 35.9 Mmcf/d. Superlatives are not enough to express how big this news is. These are the highest numbers we’ve ever seen—higher than the Gulfport wells in the Ohio Utica Shale (although this is dry gas only, so it’s not a true apples to apples comparison). This is big news not only for Cabot and Pennsylvania…these wells are relatively close to the border of New York State. Hello Gov. Ditherer!
Wednesday was the conclusion of the two-day 2nd Utica Shale Development & Growth Forum in Columbus, Ohio. MDN Editor Jim Willis moderated a panel of shale industry media reporters. It was fun! (See my presentation slides below.) We also heard speakers from MarkWest, Penn State’s Marcellus Center, and from Cabot Oil & Gas. Jim’s conference notes from Day 2, including a slip about new numbers coming Gulfport in the Utica…
Read More “Live from Columbus, OH… Utica Shale Confab – Day 2”
One of the arguments launched by anti-drillers is that “shale gas supplies won’t last”—supplies will run out quite quickly, in less than ten years (OMG!). This particular meme started with a pair of articles in the New York Times in June 2011 (see New York Times: Nightmare on Shale Gas Street). The Times articles call shale drilling a Ponzi scheme with very little actual gas (or “proved reserves”) in the ground. It’s just a head fake by energy companies to get investors to part with big money. Then we found out the main anonymous government source quoted in the Times articles was a lowly intern with ties to the anti-drilling Natural Resources Defense Council (see Unnamed Source in New York Times Anti-Gas Articles was…an Intern?!).
Leaving behind the fiction we so often find in the pages of the NYT, there’s at least two books being published this year by supposed industry insiders who pick up on the same meme (see Energy Industry Expert Says Shale Gas Will Last <10 Years). Let’s inject a little science into this discussion, shall we? The University of Texas is about to publicly release a new study on shale supplies in the Barnett Shale. The Barnett was the first shale play to be commercially developed in this country. The study’s conclusion? The Barnett will still be producing natural gas until 2050—and beyond. Although production will decline over time, the Barnett is a powerhouse—the country’s second-most productive formation. But you wouldn’t know that by reading stories about the new UT study from Bloomberg…
Read More “University of Texas Study: 1st Shale Play Good til 2050 & Beyond”