Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

How Does Conventional/Unconventional Drilling Differ in PA?
November 19, 2012November 19, 2012

Before the Marcellus Shale was actively drilled in Pennsylvania, starting with Range Resources in 2004, there was natural gas drilling in the state for many years. In fact, although about 5,000 Marcellus Shale or “deep” natural gas wells have been drilled in the past eight years, there are about 50,000 conventional or “shallow” natural gas wells scattered throughout the state, drilled over the past 50+ years. Ever wonder how conventional and unconventional wells stack up?

An article in the Pittsburgh Tribune-Review does a good job of comparing the two types of wells. Here’s a few interesting facts and figures:

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Ohio | Statewide OH | Utica Shale

The Latest Ohio Utica Shale Permits/Drilling Tally
November 19, 2012November 19, 2012

The Ohio Dept. of Natural Resources (ODNR) reports for the week ending Nov. 10, there have been 443 Utica Shale drilling permits issued in total throughout Ohio.

Here’s a few more facts about drilling in the Utica:

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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Nov 19, 2012
November 19, 2012November 19, 2012

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

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

NY Fracking Rules Won’t be Released in 2012
November 16, 2012November 16, 2012

Is there any chance that New York will move forward with releasing new shale gas drilling rules by Nov. 29, the one year anniversary after the last public hearing on the new rules (and by which the rules must be released or the rulemaking process restarts)? No. Not a chance.

Why? NY State Health Commissioner Nirav Shah has only just yesterday named three outside “experts” to help conduct a “health review” of New York’s proposed drilling regulations. The deadline given the experts to complete their review? “Mid-February.”

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Exporting | Industrywide Issues | Regulation

FERC Report on LNG Exports Coming by End of 2012
November 16, 2012November 16, 2012

Seven liquefied natural gas (LNG) export terminals have officially been proposed to the Federal Energy Regulatory Commission (FERC). Another six have been informally proposed. FERC has twice delayed releasing their decision on whether or not to permit and allow exports of natural gas, coming under heavy criticism for the delays. According to Chris Smith with the Dept. of Energy, we’ll have a pretty good idea of which way FERC is leaning by the end of this year.

In comments at an industry event in Washington, D.C., Smith said FERC will release their LNG export report detailing the pros and cons for each site by the end of this year (see a map and list of all North American proposed import and export sites below). Although the report will be issued this year, a final decision from FERC will not be made until early next year.

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Allegheny County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Industry “Prepares for Worst” with Expected EPA Regs
November 16, 2012November 16, 2012

Some energy producers at the Developing Unconventional Gas (DUG) East Conference in Pittsburgh went on record expressing their concerns that a rogue (MDN’s words) Obama EPA will soon make a power grab to control shale drilling through the back door of controlling hydraulic fracturing. In their words, they are “preparing for the worst,” although what those preparations include was unstated.

Here’s what was said at DUG East yesterday:

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

Anti-Drilling Group Releases Fracking Chemical Database
November 16, 2012November 16, 2012

A new database of the chemicals used in hydraulic fracturing (fracking) has just been released by anti-drilling organization SkyTruth.org. The database uses publicly available information posted on FracFocus.org. According to SkyTruth, they make the FracFocus chemical data more accessible and easy to use.

Here’s the press announcement from SkyTruth:

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Health Impacts | Industrywide Issues | Pennsylvania | Statewide PA

Third Group Joins Unfunded Marcellus Health Impact Study
November 16, 2012November 16, 2012

Three months ago MDN told you about two health care networks joining forces to study the health effects of Marcellus drilling in Pennsylvania—Guthrie Health and Geisinger Health System (see this MDN story). You may now add a third health care system to the list. Susquehanna Health, serving northcentral PA, will join Guthrie and Geisinger in a multi-year study. Problem is, as far as MDN knows, the so-called study is still not funded (see this MDN story).

You can get as many partners as you want, but until someone (like the deep-pocketed health care systems themselves) comes up with money, the study is going nowhere fast. Here’s the press release from Susquehanna Health:

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Allegheny County | Economic Impact | Industrywide Issues | Pennsylvania

I’ve Been Workin’ on the (Short Line) Railroad, All the Live-Long Day
November 16, 2012November 16, 2012

More feel-good stories of how the Marcellus Shale has almost single-handedly revived the short line railroad business. The Pittsburgh Tribune-Review has an excellent roundup piece that covers a number of short line railroads that have gotten a second chance because of the Marcellus. The article begins with this story about the Allegheny Valley Railroad company, located in a Pittsburgh suburb:

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Economic Impact | Industrywide Issues | Lehigh County | Pennsylvania | Statewide PA

Canadian Firm Building 2nd NatGas Power Plant Near Allentown
November 16, 2012November 16, 2012

Two months ago Canadian firm EmberClear Corp. announced they will build a new 300 megawatt (MW) electrical generating plant west of Allentown, PA. The plant, called Good Spring NGCC 1, will cost $400 million to build and create $1 billion in economic impact for the community (see this MDN story). The original plan was to use coal to power the plant, but EmberClear changed and decided to use abundant, cheap Marcellus Shale gas instead.

Although construction on that plant has not yet begun, EmberClear announced on Tuesday of this week that they now plan to build a second 300 MW electrical generating plant on the same property—Good Spring NGCC 2—which will also use Marcellus natural gas for power. From the EmberClear announcement:

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Energy Companies | Exxon Mobil | Industrywide Issues | Taxation

Exxon Mobil Foolishly Backs Obama Carbon Tax Idea
November 16, 2012November 16, 2012

Exxon Mobil is a major disappointment. Since 2009 they’ve supported a so-called “carbon tax” over what they consider a less-desirable alternative—legislation capping carbon dioxide emissions. Carbon dioxide, in case you didn’t know, is the substance you breathe out with every breath you take. Plants breathe it in. Plants, on the other hand, expire oxygen that we animals breathe in—something called the circle of life. Obama and green wackos want to tax carbon dioxide emissions in the misbegotten belief it’s “polluting the planet” and that by taxing it, you will cause its use to go down. (Maybe a tax on breathing will be next?) Boggles the mind.

What boggles the mind even more is Exxon’s support for the idea. A carbon tax is nothing more than a huge, new tax increase that gives greedy politicians more money to play with, reduces manufacturing activity (and jobs at those manufacturers), and overall is about the worst idea anyone has had in oh, about a century.

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Hydraulic Fracturing | Industrywide Issues

Obama’s War on Fossil Fuels (and Jobs)
November 16, 2012November 16, 2012

Warning: If you voted for Obama and don’t like reading critiques of our Dear Leader, move along and don’t bother reading this post. You’ve been warned.

The former chief Republican counsel to the Senate Foreign Relations Committee and author William C. Triplett II has an article in yesterday’s Washington Times that is a must read. Triplett makes a visit to various shale plays around the country, including the Marcellus in West Virginia, and comes to the conclusion that the miracle of hydraulic fracturing is now the fourth economic revolution since the end of World War II (the others being the jet engine, integrated circuits/modern electronics and the Internet, all invented by Americans). Triplett expected to see an exciting new industry—what he didn’t expect, and found, were the stories of how the shale revolution has profoundly and positively affected individuals.

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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Nov 16, 2012
November 16, 2012November 16, 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, Nov 16, 2012”
Chesapeake Energy | Energy Companies | EnerVest | Gulfport Energy | Lease & Royalty Payments | Meetings | Utica Shale

EnerVest CEO Contradicts McClendon: Utica Oil Will be Big
November 15, 2012November 15, 2012

At the Developing Unconventional Gas (DUG) East Conference in Pittsburgh yesterday, EnerVest CEO John Walker contradicted the view of Chesapeake CEO Aubrey McClendon. McClendon said the Ohio Utica Shale will not produce much oil—at least for Chesapeake (see this MDN story). Walker said he believes the Utica will produce a lot of oil—that is, once they figure out the “right completion method.”

Gulfport’s CEO Jim Palm also spoke glowingly about the Utica at the conference. Gulfport, you may recall, has the highest producing Utica well so far (see this MDN story). The conference is organized by Hart Energy, who provided information stating lease payments in the Ohio Utica Shale have reached as high as $8,000 per acre.

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Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | West Virginia | Wood County

Wood County, WV in the Running for Ethane Cracker
November 15, 2012November 15, 2012

According to Kevin DiGregoria, executive director of the Chemical Alliance Zone West Virginia, Wood County, WV is one of the prime locations in the state being considered for a new ethane cracker plant. DiGregorio also said the Marcellus Shale will be around for at least 30 years and is “an economic grand slam” for the state.

DiGregoria was joined by WV Commerce Sec. Keith Burdette at a roundtable discussion in Wood County. Burdette, who has been in the hunt for a cracker plant for the state for nearly two years now, said he’s in regular contact with interested companies:

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Commodity Price | Hydraulic Fracturing | Industrywide Issues | Regulation

Deloitte Survey: NatGas Price >$3 in 2013, Oil Price <$100
November 15, 2012November 15, 2012

Consulting firm Deloitte recently completed a survey of 250 oil and gas professionals on their expert opinions about where they believe the energy industry is headed in the near and long-term. Among their findings: The U.S. will soon become completely energy self-sufficient for natural gas, but we’ll always need to import at least some oil.

Looking at 2013, a majority of those surveyed (60%) believe the commodity price of natural gas will average more than $3 per million Btus for the year, and a majority (59%) think crude oil will stay below $100 per barrel next year. Attitudes about regulation of fracking is also interesting: 49% think existing regulations of fracking is “just right” or “on track.”

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