Marcellus Drilling News

BP | Chevron | ConocoPhillips | Energy Companies | Equinor/Statoil | Exxon Mobil | Shell | Total

Top 10 Energy Companies & Top 10 Drillers Worldwide
October 29, 2012October 29, 2012

Each year Platts publishes a list of the top 250 energy companies in the world. They evaluate companies using four metrics: asset value, revenue, profit, and return on invested capital. It probably won’t surprise you to find out that 7 of the top 10 energy companies in the world have a presence in the Marcellus or Utica Shale.

Here’s the Platts list of the top 10 energy companies in the world for 2012:

Read More “Top 10 Energy Companies & Top 10 Drillers Worldwide”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

What PA Doesn’t Need: A Shale Gas Severance Tax
October 29, 2012October 29, 2012

Pennsylvania is facing a growing crisis over a too-generous and now essentially bankrupt pension system for state public employees. The Harrisburg Patriot-News’ editorial page writer has a “brilliant” solution: Enact a big fat severance tax on Marcellus Shale gas (killing it in the process) and transfer the money from one group of people to another group who didn’t earn it, didn’t work for it, and have nothing to do with it. Typical liberal solution to all problems.

All the usual arguments come out: “All the other states are doing it.” “Give everyone a property tax break (i.e. buy them all off to go along with it).” “At current prices we’re selling ourselves too cheaply.” And, “It’ll be just a teeny, tiny little tax—the big, bad energy companies won’t even notice it.” Don’t believe a word of it.

Read More “What PA Doesn’t Need: A Shale Gas Severance Tax”
Chesapeake Energy | Economic Impact | Energy Companies | Industrywide Issues | NGLs | Processing Plants

Plans to Use Natural Gas to Create $2/Gal Diesel Fuel
October 29, 2012October 29, 2012

A Bloomberg article highlights technology with roots all the way to Nazi Germany will soon be used to convert natural gas into natural gas liquids and into hydrocarbon products including low-price diesel fuel, gasoline and jet fuel.

Read More “Plans to Use Natural Gas to Create $2/Gal Diesel Fuel”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Oct 29, 2012
October 29, 2012October 29, 2012

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, Oct 29, 2012”
Anti-Drilling/Fossil Fuel | Economic Impact | Industrialization | Industrywide Issues | Jobs

Anti-Drilling Objection: Shale Drilling Causes Boom & Bust
October 26, 2012October 26, 2012

Two and one half years ago MDN editor first heard about “boomtowns” at a talk by Cornell Professor Tony Ingraffea. Ingraffea is a well-known anti-driller who traipses hither and yon to spread the anti-fracking message—from the halls of Congress to local town libraries to college classrooms with young, impressionable minds. That night, Dr. Ingraffea talked extensively about how local towns in the Western U.S. went through a cycle of building up (or “boom”) due to energy exploration, and then almost overnight went “bust” once the energy was mined and the companies left town. It was quite a horror picture he painted (see this MDN story recounting Ingraffea’s talk).

MDN has heard the same argument on and off over the years since. The latest example is a story published yesterday titled, “Will Shale Create Ohio Ghost Towns in 2040?” Every time MDN editor hears that argument it makes us angry. Here’s why…

Read More “Anti-Drilling Objection: Shale Drilling Causes Boom & Bust”
Anti-Drilling/Fossil Fuel | Bucks County | Industrywide Issues | Pennsylvania | Statewide PA | Tioga County (PA)

Anti-Drilling Close-up: Trout Unlimited
October 26, 2012October 26, 2012

One of the non-profit organizations that crops up in lists of those whom MDN would classify as anti-drilling is Trout Unlimited (TU). The 50 year-old organization is national in scope with 140,000 volunteers and 400 local chapters—really one of the country’s premier conservation organizations. The TU charter is “Conserving, protecting and restoring North America’s coldwater fisheries and their watersheds” according to their website.

MDN has noticed that over the past several years TU runs programs—mostly on the weekends and mostly in Pennsylvania—to train volunteers in how to test streams and rivers. The aim is to test before there is drilling (or pipelines or compressor plants) in an area, to test during drilling or construction and then to test after, to see if those streams and rivers are in any way affected by drilling and related activity. So what have they found?

Read More “Anti-Drilling Close-up: Trout Unlimited”
Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Taxation | Washington County

PA Rep. Jesse White Contacts MDN to Set Record Straight
October 26, 2012October 26, 2012

Yesterday MDN brought you the story of Cecil Township in Washington County, PA and how Range Resources indicated, according to the town, that they could influence the town resident who has brought a complaint against the town which is keeping the town from receiving $246,000 in impact fee revenue to drop his complaint in return for a private meeting between the town and Range (see this MDN story).

MDN quoted PA State Rep. Jesse White as part of that story. Rep. White said such an overture by Range is “extortion, plain and simple.” As part of that story, MDN referred to Rep. White as anti-drilling. He contacted us to set the record straight on that score. We always like to be accurate! So we’re happy to convey what Rep. White said.

Read More “PA Rep. Jesse White Contacts MDN to Set Record Straight”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Seneca Resources

Seneca Boasts First 100% LNG-Powered Drill Rig in Marcellus
October 26, 2012October 26, 2012

EQT was the first driller in the Marcellus Shale to convert a drilling rig to run on electricity produced by LNG, or “liquefied natural gas” (see this MDN story). CONSOL has also been experimenting with converting some of their rigs to use LNG too (see this MDN story). You may now add a third driller to the list: Seneca Resources. Seneca is the gas drilling arm of National Fuel Gas Company.

Yesterday, Seneca announced they are converting two of their rigs to run on LNG. But unlike EQT and CONSOL which mix LNG with diesel fuel in a blend, Seneca is using 100% LNG to power their rigs—a first for drilling rigs in the Marcellus Shale. Seneca says they’ve already converted one rig that’s now in operation, a second rig will be finished in November, and a third rig is coming later this year. Seneca also says someday they’d like to use the gas coming out of the ground to power the rig that’s drilling it. Cool.

Read More “Seneca Boasts First 100% LNG-Powered Drill Rig in Marcellus”
Columbiana County | Dominion Energy | Energy Services | Industrywide Issues | M3 Midstream | Ohio | Pipelines | Processing Plants | Statewide OH

Dominion Signs Deal with M3 to Pipe NatGas/NGLs to New Plant
October 26, 2012October 26, 2012

Dominion Resources (a subsidiary of Dominion) has penned an agreement with M3 Ohio Gathering to hook up to wells in Ohio’s Utica Shale and move up to 180 million cubic feet per day of natural gas from those wells to the Kensington Processing Plant in Columbiana County, Ohio. The new plant is currently being built by Chesapeake Midstream, M3 and EV Energy Partners (see this MDN story for background).

Here’s the details on Dominion’s deal with M3 to pipe natural gas and gas liquids to the new processing plant:

Read More “Dominion Signs Deal with M3 to Pipe NatGas/NGLs to New Plant”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Nutjob Protester Stops NYC Pipeline Construction for 2 Hours
October 26, 2012October 26, 2012

This story will help lighten the mood for Friday. Our entertainment for today comes courtesy the continuing antics of a small group of New York City protesters who object to what Mayor Michael Bloomberg has called “vital” to the city—more natural gas. Spectra Energy is building a pipeline from New Jersey, under the Hudson River, over to a pier in New York to help bring more badly-needed natural gas supplies to the city. Natural gas that will come mostly from the Marcellus Shale.

MDN told you a few weeks ago about protesters getting naked and painting themselves green (see this MDN story). On Wednesday of this week, one of the pipeline protesters (get this) didn’t even tell himself he was going to protest! He spontaneously chained himself to a backhoe. Here’s what happened:

Read More “Nutjob Protester Stops NYC Pipeline Construction for 2 Hours”
Dominion Energy | Energy Services

Dominion 3Q12 Update: Profits Down from Warm 2012 Winter
October 26, 2012October 26, 2012

Dominion is a huge utility and midstream (pipeline) company with customers and operations throughout the Marcellus and Utica Shale region. Yesterday Dominion issued their third quarter financials and it was not a pretty picture. Earnings for 3Q12 were down nearly half of what they were from 3Q11. Ouch. The reason? Dominion puts a lot of the blame on a hangover from a warm winter.

There’s not much in the way comment on their activities in the Marcellus in their statement below (they do mention the new Natrium, WV plant and a few other items). MDN includes their 3Q12 financial update because they are an important player in the Marcellus and Utica Shale and the overall health of the company is important to the industry.

Read More “Dominion 3Q12 Update: Profits Down from Warm 2012 Winter”
Energy Companies | Noble Energy

Noble Energy 3Q12 Update: Marcellus Production Up 38%
October 26, 2012October 26, 2012

Earnings reports for the third quarter continue to roll out. Yesterday, Noble Energy provided their 3Q12 update. Noble is a large company with operations in a number of countries. Here in the U.S., Noble is actively drilling in the Marcellus Shale in West Virginia. They also have a joint venture in the Marcellus in Pennsylvania. Noble reports their Marcellus production grew to 102 million cubic feet per day in the third quarter, an increase of 38% over last quarter. They also report their first two wet gas wells have started to produce natural gas liquids and are doing better than expected.

Here’s the relevant portion of the Noble announcement that focuses on the Marcellus:

Read More “Noble Energy 3Q12 Update: Marcellus Production Up 38%”
Pennsylvania | Statewide PA

New Book Released for PA Oil & Gas Law
October 26, 2012October 26, 2012

Three attorneys (two of them from Pennsylvania) with extensive experience in oil and gas law teamed up and wrote a just-released, first of its kind book, titled: Pennsylvania Oil and Gas Law and Practice. One of the PA authors, J.C. “Jay” Wilkinson, and the publisher, George T. Bisel Company, issued the following press release about the new book:

Read More “New Book Released for PA Oil & Gas Law”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Oct 26, 2012
October 26, 2012October 26, 2012

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, Oct 26, 2012”
Energy Companies | Range Resources Corp

Range Resources 3Q12: 24 New Wells in ‘Super-Rich’ Marcellus
October 25, 2012October 25, 2012

Range Resources posted its financial and operating update for the third quarter of 2012 yesterday. MDN has pulled out the operational report for the Marcellus Shale and includes it below. Of particular interest in the Range update are two items: 1) Range’s continued focus on what they call their “super-rich” area of the Marcellus—an area they define as having wet gas present with 1,350 Btus or higher; 2) Range had a “significant step-out well” in the super-rich area that tested at 1,044 barrels per day of natural gas liquids.

MDN has also included (below) a copy of a map Range published as part of a presentation earlier this year outlining where the super-rich area for them is located.

Read More “Range Resources 3Q12: 24 New Wells in ‘Super-Rich’ Marcellus”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Washington County

PA State Rep. White Accuses Range Resources of Extortion
October 25, 2012October 25, 2012

Pennsylvania State Rep. Jesse White (D) from Cecil, PA (Washington County) is a well-known and devoted anti-driller. He’s accusing Range Resources of attempted extortion of the Town of Cecil. Here’s the background:

Read More “PA State Rep. White Accuses Range Resources of Extortion”