Marcellus Drilling News

Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Law Firm Publishes Handy Utica Highlights Report for 4Q12
February 25, 2013February 25, 2013

Law firm Benesch Friedlander Coplan & Aronoff LLP (offices in Columbus and Cleveland) has just published a quarterly summary close-up on the Ohio Utica Shale for fourth quarter 2012. It’s full of interesting highlights and bits and bobs you’ve already read on MDN. However, the report pulls a lot of overview material together in an easy to scan format—and it’s just 12 pages (full report embedded below).

The report opens with what it considers the top issues and useful information. It then highlights some of the major industry moves, looks at the midstream and infrastructure projects, government regulation, and closes with training programs available to help those who want jobs in the gas and oil fields. A nice report—worth your time to review it.

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Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | Taxation | West Virginia

Closer Look at Shale Bills Before WV Legislature
February 25, 2013February 25, 2013

The West Virginia legislature only meets for 60 calendar days each year, so when they convene, a flurry of new bills are introduced. MDN recently told you this year legislators have already introduced some 60 bills dealing with energy issues in the state—22 of those bills were introduced by Delegate Mike Manypenny, D-Taylor (see New Rules/Laws for Shale Drilling Will Come to WV in 2013).

Not all of the bills will become law, but some will. Here’s a look at a few of the more serious contenders that stand a chance of getting enacted, and one (forced pooling) that hasn’t even been introduced—yet:

Read More “Closer Look at Shale Bills Before WV Legislature”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation | Utica Shale

Youngstown, OH to Commit Utica Suicide with Vote to Ban Drilling
February 25, 2013February 25, 2013

Is it right for a simple majority to strip away the hard-earned property of their neighbors with an up or down vote? The Founding Fathers called it mob rule, which is why the United States was founded as a democratic republic—not a straight democracy. They recognized that up or down votes that allow citizens to take away property (money, use of land, possessions) from fellow citizens is abhorrent and immoral, which is why they cooked up the ingenious document called the Constitution—full of checks and balances to prevent it from happening.

But alas, the Constitution has become nothing more than toilet paper in some places, like Youngstown, Ohio…

Read More “Youngstown, OH to Commit Utica Suicide with Vote to Ban Drilling”
Atlas Energy | Energy Companies

Atlas Resource Partners to Focus on Utica, Marcellus in 2013
February 25, 2013February 25, 2013

Atlas Resource Partners plans to focus on just four shale plays in 2013. Two of them are the Utica and Marcellus.

Matthew Jones, COO of parent company Atlas Energy LP, said the following about the Utica and Marcellus during the company’s 4Q conference call on Feb. 22:

Read More “Atlas Resource Partners to Focus on Utica, Marcellus in 2013”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G Operational Update for Marcellus Shale
February 25, 2013February 25, 2013

Last week MDN told you about Cabot’s distinction in belonging to two different “1 billion” clubs (see Cabot O&G in 2012: Membership in 2 Different “1 Billion” Clubs). About the same time Cabot released their financial results, they also released an operational update which we neglected to report.

Below is the portion of that report for Cabot’s Marcellus Shale operations:

Read More “Cabot O&G Operational Update for Marcellus Shale”
Economic Impact | Housing | Industrywide Issues | Ohio | Washington County (OH)

Marietta, OH Feels the Economic Effects of Utica Drilling
February 25, 2013February 25, 2013

Marietta (Washington County), Ohio is starting to feel the impact from Utica and Marcellus Shale drilling. It’s showing up in a dramatic increase in tax revenue from hotels and motels. It’s also showing up in the local real estate market that’s turned from being a buyers market into a seller’s market:

Read More “Marietta, OH Feels the Economic Effects of Utica Drilling”
Economic Impact | Industrywide Issues | Jobs | Ohio | Portage County | Utica Shale

New Utica Pipe/Equipment Plant Setting up in Portage County, OH
February 25, 2013February 25, 2013

A welding and fabrication company—Six C Fabrication—has just purchased a former plastics plant in Rootstown (Portage County), Ohio where it will establish a manufacturing plant for piping and structural steel equipment for the Utica Shale drilling industry.

Six C hails from Louisiana. They believe the Utica offers a great opportunity to expand their business. Another 100 new jobs are on the way (this year) in the Utica…

Read More “New Utica Pipe/Equipment Plant Setting up in Portage County, OH”
About MDN | Calendar

Calendar of Events for Feb 25 – Mar 10, 2013 [Free]
February 25, 2013February 25, 2013

Below are upcoming events for this week and next.

Read More “Calendar of Events for Feb 25 – Mar 10, 2013 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Feb 25, 2013
February 25, 2013February 25, 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: Mon, Feb 25, 2013”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G in 2012: Membership in 2 Different “1 Billion” Clubs
February 22, 2013February 22, 2013

The 2012 reports continue to roll in. Cabot Oil & Gas has just reported its 2012 report and the results are extraordinary. Cabot joined two different “1 billion” clubs in 2012. First, they surpassed $1 billion in revenues for 2012, earning $1.2 billion. Second, they became the first (and so far only) company to achieve 1 billion cubic feet of natural gas production per day in the Marcellus Shale (see Who’s a Member of the Marcellus “1 Bcf/d” Club?).

Companywide, Cabot’s natural gas production was up an astonishing 43% over 2011, much of that from their drilling in Susquehanna County, PA. Cabot is a great company run by great people, and they have a lot to be proud of when it comes to their performance last year. Here’s the numbers and the rundown for Cabot in 2012:

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Chesapeake Energy | Energy Companies

Chesapeake 2012 Update: Revenue Down $940M, Gas Production Up 9%
February 22, 2013February 22, 2013

Chesapeake Energy issued it’s fourth quarter 2012 and full year 2012 financial and operational update yesterday (full report below). This is a big deal because Chesapeake is the #2 natural gas producer in the U.S. behind Exxon Mobil. The company is also the biggest driller in the Utica Shale and one of the biggest in the Marcellus Shale.

What does the update show? The company lost $940 million in 2012, which was expected. In early 2012 Chesapeake made noise about curtailing output until the commodity price of natural gas went up. So much for that: Production increased 9% from the end of 2011 to the end of 2012—to an average of 3.9 billion cubic feet of gas per day.

Read More “Chesapeake 2012 Update: Revenue Down $940M, Gas Production Up 9%”
Chesapeake Energy | Energy Companies | Marshall County | Ohio County | West Virginia

Chesapeake Energy Strikes Oil Again, This Time in WV
February 22, 2013February 22, 2013

Chesapeake Energy announced in July 2011, to great fanfare and shouts of joy, that it had hit oil in the Ohio Utica Shale (see Major Discovery – Chesapeake Energy Strikes Oil (and Gas) in Ohio’s Utica Shale). Although early results were promising, by the end of 2012 Chesapeake admitted it had “misjudged” the Utica Shale fairway—the best places to drill—and their early enthusiasm seems to have subsided (see Chesapeake Admits Misjudging Ohio Utica Sweet Spot).

But perhaps Chesapeake has reason to smile again. Chesapeake has hit oil—in the West Virginia Marcellus Shale:

Read More “Chesapeake Energy Strikes Oil Again, This Time in WV”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake Still Loves the OH Utica Shale – 2012 Year in Review
February 22, 2013February 22, 2013

Estimating that it will recover 5 to 10 billion cubic feet of natural gas equivalents from each well drilled in the Ohio Utica Shale, Chesapeake Energy says they still love the Ohio Utica Shale, even if oil isn’t a big part of the picture.

Chesapeake held an earnings call yesterday to discuss 2012 numbers with analysts. Akron Beacon Journal reporter Bob Downing listened in:

Read More “Chesapeake Still Loves the OH Utica Shale – 2012 Year in Review”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec. Krancer Faces Tough Questions from Senators
February 22, 2013February 22, 2013

MDN loves Pennsylvania Dept. of Environment Protection Sec. Michael Krancer—primarily because he doesn’t take any guff from politically posturing Democrats. He also happens to be very smart and very funny. Krancer faced a grilling yesterday during budget hearings from (some) PA senators who wanted to score political points. Krancer fired right back when challenged. He also refused to answer questions about his religious beliefs on global warming. It’s dangerous to go against GW orthodoxy. You’re branded a heretic and imbecile if you’re not a Kool-Aid drinker of the GW mythology.

Below is some of the back and forth from yesterday’s budget grilling of Krancer. He addresses the topic of Marcellus Shale drilling and the DEP’s ability to regulate it. He also answers an interesting question about “asexual behavior” in fish…

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EMG | Energy Services | MarkWest Energy

MarkWest: We Just Banked $450M from EMG, Another $2.8B Available
February 22, 2013February 22, 2013

A couple of weeks ago MDN told you the news that MarkWest Energy and Utica Shale joint venture partner EMG had struck a deal to infuse extra cash into their Utica projects which seemed to be running low on money (see Cash Runs Low – MarkWest Floats $150M Loan in Utica Midstream JV). MarkWest issued another press release yesterday to say the deal with EMG is now done, and an extra $450 million will soon be in the bank from EMG to keep the Utica projects going.

Also in yesterday’s announcement, MarkWest says they’ve raised $1.5 billion over the past three months from “debt and equity transactions” including the $450 from EMG; they still have an untapped $1.2 billion line of credit; and they have the ability to issue $600 million in common stock, should they need to (a $3.3 billion pile of cash from all sources). Translation: MarkWest seems to be allaying investor concerns about cash flow problems for their active projects. “No overextension happening here,” seems to be the mantra.

Read More “MarkWest: We Just Banked $450M from EMG, Another $2.8B Available”
Industrywide Issues | NG Vehicles | Statewide WV | West Virginia

WV NatGas Vehicle Task Force Releases 17 Recommendations
February 22, 2013February 22, 2013

In June 2012, then acting (now newly elected) WV Gov. Earl Ray Tomblin appointed a 21-member Natural Gas Vehicle Task Force with the mission of providing a road map for converting at least part of the state’s fleet of vehicles to run on natural gas (see WV Task Force Investigates CNG for State Vehicles).

The task force met, talked, researched and did their job. Yesterday, Gov. Tomblin released a 38-page report containing the task force’s recommendations along with loads of other useful information including helpful maps (a full copy of the report is embedded below). Here’s a quick list of the task force’s 17 recommendations:

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