Even though Chesapeake Energy posted a $2.1 billion loss for the third quarter, in an analyst call on Friday, Chesapeake CEO Aubrey McClendon (“bad boy” poster child for anti-drillers) said he’s thrilled with the results the company is getting from the Utica Shale.
Here’s a recap of what McClendon and other top Chesapeake executives’ said on Friday about the Utica:
Read More “Chesapeake Energy Still in Love with Utica Shale”
Pennsylvania House of Representatives member Jesse White (D-Allegheny, Beaver, and Washington counties) is outraged with the PA Dept. of Environmental Protection (DEP) and says someone needs to go to jail. The DEP is outraged with Mr. White and lawyer Kendra Smith. What’s all the outrage over?
Two DEP officials have gone on record in a court case in Washington County, PA with testimony that seems to indicate when the DEP tests residential water wells suspected of being contaminated by natural gas drilling, the reports they issue suppress (or simply don’t look for) certain drilling-related chemicals. Mr. White says it’s evidence of a systematic cover-up—a crime. He’s basing his allegation on a letter by Kendra White, attorney in a case against Range Resources (a copy of the letter is embedded below). The DEP says Mr. White and Ms. Smith are both wrong.
Read More “PA DEP Accused of Skewing Water Tests from Wells Near Drilling”
The American Clean Skies Foundation has just released a major new study (copy embedded below) based on analysis by ICF International which finds that shale oil and gas drilling in the U.S., from 2007 to 2017 (10 years) will lead to the creation of upward of 1.6 million new jobs and increase the country’s domestic gross product (GDP) by as much as $245 billion. These are seriously huge numbers.
The 123-page study takes a detailed look at where the jobs are being created (state by state), and the types of jobs created. It is without a doubt the best kind of economic stimulus—it doesn’t come from the government! Here’s the press release announcing and summarizing the findings of the study:
Read More “New Study: U.S. Shale Drilling = 1.6M Jobs, $245B in 10 Yrs”
PennEnvironment, a very vocal anti-drilling organization in Pennsylvania, has released a list of anti-drillers they endorse for political office. MDN includes the list (below) so you know whom to vote against (if you’re pro-drilling) in next Tuesday’s election.
Here’s the list endorsed by PennEnvironment—the candidates to vote against…
Read More “List of Anti-Drillers to Vote Against Next Tuesday in PA”
Maryland State Delegate Heather Mizeur (D-Montgomery County, a Washington, D.C. suburb) continues to spread lies in her state about the miracle of hydraulic fracturing in an attempt to whip up support to ban fracking. Here’s the latest whopper from Ms. Mizeur:
Read More “MD Del. Heather Mizeur Continues to Spin Fracking Whoopers”
The U.S.’ second largest natural gas producer and most active driller, Chesapeake Energy, released their third quarter earnings and operations report yesterday. The update contains both good and bad. The media will no doubt focus on the bad: Chesapeake posted a $2.1 billion net loss for the quarter mostly due to lower natural gas prices and the need to write down certain assets. But there are signs the company is turning around both financially and operationally.
For some time Chesapeake has focused their activity on liquids-rich plays, and the latest 3-month period reflects it. Chesapeake’s average daily natural gas liquids (NGL) production in 3Q12 was 143,000 barrels/day, an increase of 51% from the same period last year, up 10% from the previous quarter. (Chesapeake’s NGL production represents 21% of their overall production.) Average daily oil production in 3Q12 increased a whopping 96% from the same period last year—up 21% from the previous quarter—to 97,800 barrels/day. And natural gas production in 3Q12 increased 24% from the same period last year—up 9% from the previous quarter—to 4.142 billion cubic feet per day.
Read More “Chesapeake 3Q12: $2.1B Net Loss, NGL/Oil Production Way Up”
Southwestern Energy reported its third quarter financials and operations update yesterday. As with many other shale drillers, Southwestern posted a net loss for the quarter. Southwestern’s loss for 3Q12 was $144.8 million. Why? They blame low natural gas prices. Southwestern CEO Steve Mueller says the “main drivers” for the business are moving in the right direction—and that includes a “rapid ascent in activity and production” in the Marcellus Shale. Southwestern currently has 50 producing Marcellus wells, an additional 44 wells waiting for completion or to be hooked to a pipeline, and another 34 currently being drilled. They use four drilling rigs in the Marcellus.
Below are relevant sections of Southwestern’s lengthy 3Q12 update, including the operations update for the Marcellus:
Read More “Southwestern 3Q12: $145M Net Loss, Production is Up”
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: Fri, Nov 2, 2012”
What happens when those who commit the academic “crime” of supporting the miracle of hydraulic fracturing won’t apologize or back down from their views, and the academic institution “harboring” them bravely defends their right to have a contrary-to-orthodoxy opinion? Those in the witch hunt sharpen their pitchforks and become even more shrill, banging at the gates, demanding the witches be burned and the department (castle) they work for be obliterated. That’s the situation at University at Buffalo (UB).
Yesterday a group of faculty members, led by an English professor, along with some of their impressionable young students (whom they’ve convinced that fracking is a sin against the renewable energy orthodoxy), sent a letter and “report” (full copy embedded below) to the SUNY Board of Trustees demanding the UB Shale Resources and Society Institute be shut down because they won’t admit to their crime of being pro-fracking. Yeah, real science and academic freedom rule at UB.
Read More “UB CLEAR: Burn the Fracking Witches and Their Castle”
An interesting comment yesterday from Anadarko Petroleum’s CEO about where price levels for natural gas have to be before he’s willing to commit more money for dry gas drilling. The magic number for Anadarko is $5 per thousand cubic feet (Mcf). Equally interesting was a comment by the VP of E&P that for the Marcellus Shale, the magic number is $4 per Mcf—because drilling in the Marcellus costs less than other plays. The current price of natural gas on the Nymex is currently $3.70 (as of this morning).
Until prices improve, Anadarko will stick to drilling in wet gas areas and not invest in Marcellus drilling. Here’s what Anadarko’s executives said yesterday on an earnings call:
Read More “Anadarko: Gas Must be $4 Mcf Before More Marcellus Drilling”
The Joint Landowners Coalition of New York (JLCNY) has provided New Yorkers with a handy list of endorsements from their organization for the upcoming election in a 14-county region (see the full list below). The offices they cover are either county, state or federal elections—mostly for New York State Senate and Assembly, with a few congressional and other offices on the list. The JLCNY has not endorsed candidates at the local town board level, instead referring voters to their local landowner coalition for guidance.
Read More “JLCNY Endorsements for NY Elections – Solid Republican”
Gulfport Energy is one of the few Marcellus and Utica Shale drillers who regularly reports on production results for its new wells (something we appreciate!). MDN told previously told you about Gulfport’s “King” of Utica wells, the Shugert 1-1H in Belmont County, Ohio, which produced 20 million cubic feet of natural per day, 144 barrels of condensate per day, and 2,002 barrels of natural gas liquids per day (see this MDN story).
Yesterday Gulfport released numbers for more new wells in Harrison and Guernsey counties in Ohio. Although the methane output of the wells is not spectacular, the condensate and natural gas liquids output is noteworthy. Here’s the latest report from Gulfport:
Read More “Gulfport Energy Releases New Production Numbers for OH Wells”
Atlas Resource Partners, with some drilling operations in the Marcellus, reported the company lost $10.1 million for third quarter 2012. As part of their update Atlas reports making moves into other shale plays, picking up acreage in the Mississippi Lime play (in northwest Oklahoma). Atlas picked up acreage in the Barnett Shale in April of this year.
The only reference to the Marcellus in the update was that Atlas brought online some “additional legacy Marcellus Shale wells connected in southwestern Pennsylvania” during 3Q12. Here’s the full 3Q12 update:
Read More “Atlas 3Q12: $10.1M Loss, Connected More PA Marcellus Wells”
Two years after Magnum Hunter bought out Triad Energy Resources, Triad is flourishing in the Marcellus and Utica Shale of Ohio and West Virginia. The company has gone from producing 750 barrels of oil equivalent per day (boe/d) to more than 15,000 boe/d. Triad just bought out another company (Viking International Resources, see this MDN story) and has added an additional 51,500 acres in WV and OH to their drilling portfolio.
Here’s the lowdown on the incredible success story of the company now called Triad Hunter:
Read More “Triad Hunter Success: From 750 to 15,000 BOE/D in 2 Years”
This is a fascinating (to MDN) story about where the industry and economics for shale gas drilling may be heading. Yesterday LSB Industries, an Oklahoma City chemical (and equipment) manufacturer that depends on natural gas as its raw materials, announced they have purchased ownership interest in 14 producing natural gas wells, 7 soon-to-be producing wells and 36 yet-to-drilled wells in the Marcellus Shale, in Wyoming County, PA.
Why would a manufacturing company invest in natural gas wells? As a hedge against natural gas prices going higher—which they believe is going to happen relatively soon. They want a piece of the action that supplies their company with a key raw material, to keep their future costs down. Smart.
Read More “Oklahoma Manufacturer Buys Interest in PA Marcellus Wells”
A relatively young independent oil and gas company (started in 2004), Endeavour International, continues its rapid growth as reported in their third quarter financial and operational update. Endeavour has a large oil drilling operation in the North Sea. They also have a natural gas drilling presence in the Pennsylvania Marcellus Shale.
According to the 3Q12 update, Endeavour now owns about 31,000 acres in the Marcellus Shale leases (see the release below). However, last year Endeavour had a deal with SM Energy to purchase SM’s Marcellus acreage, which would have added 50,000 additional acres to their Marcellus portfolio (see this MDN story). For no publicly stated reason, Endeavour bailed out of the deal and SM threatened to sue last December (see this MDN story).
Read More “Endeavour 3Q12: Income Way Up, Land Swap for Marcellus Acres”