Marcellus Drilling News

Energy Industry Expert Says Shale Gas Will Last <10 Years

November 9, 2012November 9, 2012

say what Here’s a contrary view if ever we’ve seen one: Bill Powers, editor and writer of the Powers Energy Investor newsletter and someone who has sat on the board of three oil and gas companies and has been an active investor for 25 years, says shale gas supplies in the U.S. have been vastly overhyped. Over the past three years Powers researched and next spring will publish a new book called: Cold, Hungry and in the Dark: Exploding the Natural Gas Supply Myth. In the book he argues that contrary to the popular belief that the U.S. has a 100-year supply of natural gas due to shale gas fracking, he believes it’s more on the order of 5-7 years. Say what??

Powers was interviewed by The Energy Report and the interview was posted on the Seeking Alpha website. Here’s a brief excerpt:

Industrywide Issues | Pennsylvania | Statewide PA | Wastewater

Marcellus Wastewater Ban Leads to Lower Bromide in PA Rivers

November 9, 2012November 9, 2012

Not long after Michael Krancer was appointed Secretary of the Pennsylvania Dept. of Environmental Protection, he “requested” (which was more order than request) that municipal sewage treatment plants still accepting and processing Marcellus drilling wastewater stop the practice. At the time there were 15 plants accepting Marcellus wastewater. Under pressure from Krancer, they ended the practice in May of last year (see this MDN story).

The reason Krancer wanted the practice to end was because the plants were discharging wastewater with high concentrations of bromides which, when combined with chlorine, can produce harmful compounds. It looks like Krancer’s directive has worked. Bromide levels in the Monongahela River have come down:

Energy Companies | New York | Norse Energy | Statewide NY

Norse Energy 3Q12: Revenue Down 33%, Waiting on NY Moratorium

November 9, 2012November 9, 2012

Norse Energy is the plucky drilling company still holding on in New York State. MDN has written quite a bit about Norse. They rolled the dice and bet on acreage in New York State (brave people). Norse currently holds some 130,000 acres of leased land in New York. Problem is, there’s no shale gas drilling in New York and there hasn’t been for 4 1/2 years. All of which has caused Norse to do everything but sell off the kitchen table in an effort to “hang in there” until the day New York does finally allow drilling.

Yesterday Norse released their third quarter financial and operational update. Oil and gas revenue for Norse was down 33% from one year ago. The company says they produced less gas, and the gas they did produce was sold for less money (due to the low commodity price) than gas from a year ago, which led to the decrease in revenue.

Energy Companies | Trans Energy | West Virginia | Wetzel County

2 New Wetzel County, WV Wells Best Yet for Trans Energy

November 9, 2012November 9, 2012

Trans Energy announced impressive production numbers yesterday for two Marcellus wet gas wells in Wetzel County, WV. In addition, they also provided details on other Wetzel County wells:

Energy Companies | Hilcorp Energy

Hilcorp Most Aggressive Driller in Lawrence County, OH

November 9, 2012November 9, 2012

The Youngstown Business Journal reports that Hilcorp has three more new permits for Utica Shale wells in Lawrence County, OH, making it the most aggressive driller in the county:

Cuyahoga County | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation

OH City Bans Drilling in City Limits – Legality Questioned

November 9, 2012November 9, 2012

Broadview Heights, OH (Cuyahoga County) voters passed a measure on Tuesday that bans any further oil and gas drilling in the city limits. There are currently 90 oil and gas wells drilled in Broadview Heights. Problem is, the new measure, which becomes part of the city’s charter, is in violation of Ohio law which states only the Ohio Dept. of Natural Resources (ODNR)can regulate oil and gas drilling.

It’s another “home rule” lawsuit in the making…

Industrywide Issues | Mahoning County | Ohio | Wastewater

New Shale Wastewater Plant Planned for Mahoning County

November 9, 2012November 9, 2012

ESI Enviro wants to build a new $5 million Utica and Marcellus Shale wastewater treatment facility in Campbell, Ohio, along the Mahoning River. The mayor of Campbell, Bill Vansuch, is in favor it. The city has been under water financially (in receivership) since 2004 and the revenue from the plant would be a big boost in revenue for the city.

Here’s the details:

Clinton County | Industrywide Issues | Pennsylvania | Wastewater

Clinton County, PA to Get New Marcellus Wastewater Plant

November 9, 2012November 9, 2012

South Avis, in Clinton County, PA, will get a new Marcellus Shale wastewater treatment facility in about a year if all goes according to plan:

Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Nov 9, 2012

November 9, 2012November 9, 2012

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

Chesapeake Energy | Energy Companies

Chesapeake Energy Gets New, Unsecured $2 Billion (!) Loan

November 8, 2012November 7, 2012

Holy smokes. Yesterday Chesapeake Energy, one of largest drillers in both the Marcellus and Utica Shale region, took out an unsecured (unsecured!) 5-year loan from Bank of America, Goldman Sachs and Jefferies Finance. How much? Try $2 billion (with a “b”). The loan will be syndicated or sold off to a large group of investors. Chesapeake is using the loan to pay off other previous loans. The company continues to sell off parts of the company to pay off all the loans, including this new one.

Here’s a quick statement issued by Chesapeake about the new loan:

10 New Utica Shale Permits Issued Last Week in Ohio

November 8, 2012November 7, 2012

Ten new Utica Shale wells were approved by the Ohio Dept. of Natural Resources (ODNR) for the week covering Oct. 28 through Nov. 3. Here’s a breakdown on where the permits were issued:

Economic Impact | Industrywide Issues | Research

Netherlands Research Co. Predicts Marcellus will Reach 7.7 Tcfe by 2020

November 8, 2012November 7, 2012

Netherlands-based ASDReports.com has just released a new research study focusing on the Marcellus Shale titled, Marcellus Shale in the US, 2012 – Gas Shale Market Analysis and Forecasts to 2020. The company issued a press release (below) which hits some of the highlights from the study. Among the astonishing predictions: The Marcellus Shale will produce a “massive” (their words) 7,685 billion cubic feet equivalent of gas by 2020—or said another way, 7.7 trillion cubic feet equivalent. They predict the Marcellus will be producing 4,861 bcfe (4.9 tcfe) by 2015.

Here’s the press release announcing the study with a few juicy tidbits thrown in:

Access Midstream Partners | Energy Services

Access Midstream 3Q12: 65 New Marcellus Wells Connected

November 8, 2012November 7, 2012

Access Midstream Partners, a pipeline, compressor station and processing plant (infrastructure) company with operations in the Marcellus Shale released their third quarter financial and operational update on Monday. They report a 26.9% increase in the amount of natural gas moving through their pipelines for 3Q12 compared with 3Q11 mostly from their Marcellus operations which they acquired in December 2011. Access hooked up 186 new wells to their gathering system pipelines during 3Q12 across all of the plays they service (65 in the Marcellus alone), an increase of 27.4% over the same period in 2011. In addition, 3Q12 income was plus $2 million. What’s not to like about a good midstream company?!

Here are relevant sections from the Access Midstream 3Q12 update:

Industrywide Issues | Ohio | Regulation | Richland County | Wastewater

Mansfield, OH Voters Approve “Environmental Bill of Rights”

November 8, 2012November 7, 2012

The voters of Mansfield, Ohio voted to approve an “environmental bill of rights” in yesterday’s election. The new measure will now be part of the city’s charter, enabling the city to control the location and regulation of wastewater injection wells.

A year ago Preferred Fluids Management announced they would build two 5,000 foot deep injection wells in the Mansfield industrial park. Some area residents are opposed and the new measure passed yesterday will allow them to prevent the wells from being built. It’s a dead issue anyway because the permits to build the wells have expired. The question now is: Does the new “bill of rights” extend to other types of wells, and even other business activities, besides injection wells?

Pennsylvania | Statewide PA

Will New PA AG Go After the Marcellus Drilling Industry?

November 8, 2012November 7, 2012

Will Kathleen Kane, newly elected Pennsylvania Attorney General, take aim at the Marcellus Shale drilling industry once she takes office in January? Depends on whom you ask…

Pennsylvania | Statewide PA

Shale Gas Innovation Contest is Back-This Yr (3) $25K Prizes

November 8, 2012November 7, 2012

In October 2011, the Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC) announced the first Shale Gas Innovation Competition. In May of this year they awarded two organizations from State College, PA as the winners, each receiving a $25,000 prize (see this MDN story).

The SGICC is back for round two and this time they are offering three $25,000 prizes. Here’s the low down: