Marcellus Drilling News

Energy Services | Halliburton | Industrywide Issues | Muskingum County | Ohio | Statewide OH | Supply Chain

Small Businesses Learn about Selling to Utica Shale Drillers
December 13, 2012December 13, 2012

Do you work for or own a company interested in providing products or services to the drilling industry industry in eastern Ohio—specifically in and around Muskingum County? People in your shoes attended an Oil & Gas Seminar at the Muskingum County Business Incubator yesterday and heard about how to start selling to the industry.

Some sage advice for businesses wanting to sell into the industry from Halliburton Procurement Manager Daniel Etter:

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Energy Services | Industrywide Issues | MarkWest Energy | Processing Plants | West Virginia | Wetzel County

MarkWest’s Mobley, WV Wet Gas Processing Plant Goes Online
December 13, 2012December 13, 2012

MarkWest Energy today announced the first of it’s three planned Mobley processing plants, located in Wetzel County, WV, is now online and producing. The plant is currently operating at 60% of capacity.

MarkWest’s announcement:

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Economic Impact | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Jobs | Mahoning County | NiSource | Ohio | Pipelines | Processing Plants

Mahoning Utica Pipeline/Processing Plant “Moving Forward”
December 13, 2012December 13, 2012

Back in July, MDN told you about a new joint venture between Hilcorp and NiSource to build a wet gas pipeline and processing plant in the Youngstown, Ohio area (see this MDN story). There is still no official location (yet) for the new project, which will cost between $300 and $500 million to build, but we now have a name for it: the Hickory Bend Pipeline System.

According to a NiSource spokesperson, Hickory Bend (the pipeline and the processing plant) is “moving forward.” What does that mean? It means the Mahoning Valley will soon see a big boost in jobs for construction workers and welders:

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Where to Submit Your Comments on NY’s Revised Fracking Regs
December 13, 2012December 13, 2012

The New York State Dept. of Environmental Conservation (DEC) is now accepting comments on proposed revised new rules (click here to view the revised new rules). They will accept comments through Jan. 11, 2013.

The DEC is accepting comments both online and through mail. Here’s how to submit your comments:

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Accidents | Columbia Pipeline Group | Energy Services | Industrywide Issues | Kanawha County | NiSource | Pipelines | West Virginia

Update on WV Pipeline Explosion Near Charleston
December 13, 2012December 13, 2012

On Tuesday, the 20-inch Columbia Gas Transmission natural gas pipeline exploded near Sissonville, WV—about 10 miles from Charleston (see this MDN story). Yesterday, NiSource, the parent company Columbia Gas, issued this update on the explosion:

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Energy Companies | Range Resources Corp

Range Resources Selling Permian to Concentrate on Marcellus
December 13, 2012December 13, 2012

Range Resources issued their 2013 plans yesterday. Range plans to spend $1.3 billion next year, 85% of which will be spent on drilling in the Marcellus and Mississippian Shale plays. Range owns 500,000 acres of leases between the Marcellus and Mississippian. The focus in 2013 will be on wet gas, which means Range will reduce the rigs they use in northeastern Pennsylvania from the current four to five rigs down to one rig next year.

Range is selling some of its Permian Basin assets in New Mexico and Texas to help fund next year’s drilling budget.

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

WSJ Devastating Critique of “Promised Land” Movie
December 13, 2012December 13, 2012

There is a must-read opinion piece in yesterday’s Wall Street Journal (free access for the article), titled, “Good Will Fracking.” It is, of course, about the upcoming January release of the anti-fracking movie “Promised Land,” starring Matt Damon. Apparently the movie is (thankfully) a stinker, according to early reviews, so it likely won’t be seen by many people.

Here’s how the WSJ piece begins:

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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Dec 13, 2012
December 13, 2012December 13, 2012

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

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Access Midstream Partners | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | NGLs | Pipelines | Processing Plants | Williams

Chesapeake, Access & Williams in Complex 3-Way Midstream Deal
December 12, 2012December 12, 2012

Chesapeake Energy has sold off its remaining midstream operations (pipelines, compressors and processing plants) to Access Midstream Partners for $2.16 billion. The sale includes Chesapeake’s midstream assets in the Marcellus and Utica Shale region, along with assets in the Eagle Ford, Haynesville and Niobrara shale plays.

At the same time (keep your eye on the bouncing ball here), midstream giant Williams paid $2.4 billion to buy a 50% stake in Access Midstream. That is, the two deals are connected—Chesapeake to Access, Access to Williams. On paper, Chesapeake sold its midstream properties to Access, but it practice it seems the sale was actually to Williams via Access Midstream. In addition, Williams announced that Chesapeake is “supporting” their effort to build a natural gas liquids (NGL) pipeline from the Marcellus/Utica area to the Gulf Coast.

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BP | Columbiana County | Energy Companies | Ohio | Utica Shale

BP Continues to Expand in Ohio’s Utica Shale
December 12, 2012December 12, 2012

BP continues to expand its footprint in Ohio’s Utica Shale. Lately, the company has been purchasing leases in Columbiana County:

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Air Quality | Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Statewide NY

7 States Threaten EPA Lawsuit over Methane Emissions
December 12, 2012December 12, 2012

An out-of-control New York Attorney General Eric Schneiderman is the ring leader for seven northeastern states who say they plan to sue the federal Environmental Protection Agency (EPA) to force the EPA to enforce even stricter air emissions rules (if such a thing is possible) to reduce methane emissions from oil and gas drilling. Earlier this year the EPA introduced far stricter rules that require drillers to install expensive new equipment to trap leaking (so-called “fugitive”) methane—perhaps driving some of them out of business in two years when the new rules are fully implemented.

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Energy Companies | Guernsey County | Ohio | PDC Energy | PDC Mountaineer | Statewide OH | Utica Shale

PDC Energy: Production from 1st Utica Well, 2013 Forecast
December 12, 2012December 12, 2012

PDC Energy issued their 2013 forecast yesterday, along with an impressive production report on their first Utica Shale well, drilled in Guernsey County, OH. They plan to spend $53 million next year to drill and complete five horizontal Utica Shale wells in Ohio. Part of that budget will also be spent on additional acreage to lease—acreage contiguous to their existing leased acreage. (Landowners who are not yet leased, here’s an opportunity for you.)

PDC also has a joint venture in the Marcellus Shale and plans to allocate $48 million for its 50% share toward drilling and completing 14 wells and certain midstream infrastructure projects (pipelines/processing) .

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Hydraulic Fracturing | Industrywide Issues | Regulation

Feds ‘Hope’ States will Use BLM Rules for ALL Fracking
December 12, 2012December 12, 2012

We are on a very dangerous and slippery slope. The federal government, under Barack H. Obama, has its sights set on usurping individual states’ rights (guaranteed under the U.S. Constitution) to regulate oil and gas drilling. MDN has pointed out for more than two years that the EPA wants to regulate fracking—an illegal act in our considered opinion. More recently the Bureau of Land Management (BLM) at the Dept. of Interior has gotten in on the act by issuing draft rules for fracking on federal lands. Word came yesterday from the Obama administration that the new BLM rules slated to be finalized this year will now be delayed until early 2013.

In addition to the delay from BLM comes word (an edict?) from the Obamadroids that they “hope” the states will use BLM’s finalized rules as a “template” to regulate all fracking and shale drilling—even on private land. It’s an awfully short step from “hope” to “demand” when it comes to Washington politicians and an out-of-control federal government.

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Chenango County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Oxford, NY Tables Consideration of Fracking Moratorium
December 12, 2012December 12, 2012

Village leaders for Oxford (Chenango County, NY) tabled consideration of a fracking moratorium at a contentious meeting last night:

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Accidents | Columbia Pipeline Group | Energy Services | Industrywide Issues | Kanawha County | NiSource | Pipelines | West Virginia

Columbia NatGas Pipeline Explodes Near Charleston, WV
December 12, 2012December 12, 2012

This is big news because it’s so extremely rare: A 20-inch natural gas transmission pipeline—the Columbia Gas Transmission pipeline (owned by Nisource)—exploded near Sissonville, WV, 10 miles north of Charleston. The resulting fire burned for more than an hour and has shut down a portion of nearby Interstate 77 for at least two days.

The explosion happened not far from the Lanham Compressor Station, although there is no indication the compressor station had anything to do with the explosion. An investigation into the explosion is just beginning and there are few known facts. The (rather thin) details as we know them:

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Alternative Energy | Energy Companies | Exxon Mobil | Industrywide Issues | Research

ExxonMobil Predicts World Fossil Fuel Usage Up 5% by 2040
December 12, 2012December 12, 2012

ExxonMobil, not only the world’s largest energy company but the world’s largest company period by revenue, publishes an annual Outlook for Energy. Yesterday they issued the 2013 edition (embedded below). The annual publication is an inside look at how some of the world’s keenest minds in energy view what’s coming down the road for energy over the next 30 years.

A few (very interesting) highlights from this year’s edition:

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