Marcellus Drilling News

Economic Impact | Energy Services | Industrywide Issues | Jobs | Mahoning County | Ohio | Uncategorized | V&M Star Steel

Youngstown Plant Produces Special Steel Pipe for Drilling
November 7, 2012November 7, 2012

More than two and half years ago V&M said they would build a new $650 million steel pipe plant in Youngstown, Ohio and create 350 new jobs (see this MDN story). The new plant would manufacture steel pipes used in Marcellus and Utica Shale drilling. Last week the first pipe to be produced at the promised plant rolled (pun intended) off the production line.

But just what kind of pipe is V&M making for the shale drilling industry? A special kind of pipe called OCTG…

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Carrizo Oil & Gas | Energy Companies

Carrizo 3Q12: Record Revenue, Slight Loss, 1 Marcellus Rig
November 7, 2012November 7, 2012

Carrizo Oil & Gas released their third quarter financial and operational update yesterday. The company, with drilling operations in the Marcellus and other shale plays, reported record revenue of $96.2 million in 3Q12 with a net loss of just under $1 million. The update says Carrizo plans to continue operating one drilling rig in the Marcellus, in northeastern PA, during the fourth quarter. They also say the Eagle Ford Shale is their primary focus for new investment.

Carrizo recently brought online 10 new wells in the Marcellus in Wyoming County, PA. The 10 wells are producing a collective 50 million cubic feet of natural gas per day on average. Highlights from the Carrizo 3Q12 update:

Read More “Carrizo 3Q12: Record Revenue, Slight Loss, 1 Marcellus Rig”
Energy Companies | Statewide WV | Stone Energy | West Virginia

Stone Energy 3Q12: Income Down, Revenue Up, Marcellus Expands
November 7, 2012November 7, 2012

Stone Energy reported third quarter results yesterday. The company’s 3Q12 net income was down about half of what it was in 3Q11 (to $23.7 million), but overall revenue was higher—$226.7 million in 3Q12 vs. $209.3 million for 3Q11. The company reports drilling a total of 59 horizontal wells in the Marcellus Shale so far, 17 of them this year (in West Virginia). Of the 59 wells, 35 of them are currently producing.

Highlights from the Stone 3Q12 report:

Read More “Stone Energy 3Q12: Income Down, Revenue Up, Marcellus Expands”
Energy Companies | Gulfport Energy | Harrison County | Ohio | Statewide OH | Utica Shale

Gulfport Energy 3Q12: Profits Up, Drilled 5 New Utica Wells
November 7, 2012November 7, 2012

Gulfport Energy Corporation, a company that has two of the highest producing natural gas wells in the Ohio Utica Shale, released their third quarter financial and operational update yesterday. Counter to most other large drillers, Gulfport showed a slight profit in 3Q12—of $0.5 million—on $60.5 million in revenue. If not for some income tax expenses their net income for 3Q12 would have been $16 million.

In the 3Q12 update we get production details for a sixth horizontal well drilled by Gulfport in the Utica—the BK Stephens 1-16H well (in Harrison County, OH), which is producing an initial 1,224 barrels of condensate per day, 6.9 million cubic feet of natural gas per day, and 759 barrels of natural gas liquids per day.

Read More “Gulfport Energy 3Q12: Profits Up, Drilled 5 New Utica Wells”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Nov 7, 2012
November 7, 2012November 7, 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: Wed, Nov 7, 2012”
Energy Companies | Pennsylvania | Susquehanna County | WPX Energy

WPX 3Q12: $64M Net Loss, But Production in Marcellus up 333%
November 6, 2012November 6, 2012

WPX Energy, a company formed in January 2011 by Williams (created by spinning off the Williams exploration and production division) released their third quarter financial and operational update last week. The report losing $64 million in 3Q12. Most of WPX’s operations and focus has been in plays other than the Marcellus, including a big focus on the Bakken Shale, where they drill for oil, and the Piceance Basin in northwestern Colorado where they drill for wet natural gas.

In comparison, the Marcellus (where they drill for dry natural gas) is much smaller. However, the Marcellus was the only natural gas play in which WPX has production where the numbers went up in 3Q12. Production in the Piceance, Powder River Basin and San Juan Basin all went down between 7% and 16%. The Marcellus? Up an astonishing 333% from 3Q11 (although the overall numbers are still pretty small, see below). WPX reports they have drilled and completed 28 wells in the Marcellus so far in 2012—all of them in Susquehanna County, PA. They have two rigs operating in the Marcellus.

Read More “WPX 3Q12: $64M Net Loss, But Production in Marcellus up 333%”
Hydraulic Fracturing | Industrywide Issues | New York | Onondaga County | Regulation

Town of Onondaga, NY Votes to Extend Fracking Ban 1 Month
November 6, 2012November 6, 2012

The Town of Onondaga, a bedroom community for Syracuse, NY, voted on Monday night to extend the fracking moratorium they previously enacted. The vote continues the moratorium for another month until board members meet again Dec. 3 and will presumably vote at that meeting to either further extend the moratorium or let it die.

From the Syracuse Post-Standard:

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New York | Statewide NY

NYT: Where Did Power/Heat Remain on in NYC After Sandy?
November 6, 2012November 6, 2012

In an unusual reversal, the New York Times tells the story of how some areas in New York City stayed online—lights burning and warm heat blowing—in the midst of power failures all around the city from Hurricane/Storm Sandy. How did these little islands of energy do it? You guessed it: because they were burning natural gas—using it for both heat and to generate their own electricity.

Of course the “article” was posted in the opinion section of the NYT site (they can’t be seen running a positive story about natgas in the news section, ya know). Still, it’s a startling turnabout for the bash-natgas newspaper of record. The article starts this way:

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Energy Services | Industrywide Issues | Pipelines | Regulation | Transco

FERC Approves Transco Northeast Supply Link Pipeline in NJ
November 6, 2012November 6, 2012

Good news: The Federal Energy Regulatory Commission (FERC) approved Transco’s Northeast Supply Link project Friday afternoon. The Sierra Club and other anti-drillers opposed the northern New Jersey pipeline expansion project that will bring more Marcellus Shale gas to the metro NYC market—but cooler FERC heads have prevailed.

Here’s how the news was reported by an anti-drilling local New Jersey newspaper:

Read More “FERC Approves Transco Northeast Supply Link Pipeline in NJ”
Economic Impact | Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Supply Chain | Washington County

Hotel in Rural Western PA Makes it Big from Marcellus/Utica
November 6, 2012November 6, 2012

Another feel good story about a small hotel that made it big because of the Marcellus and Utica Shale. This story comes from rural Bentleyville, PA, not far from West Virginia and Ohio:

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Crestwood Midstream | Energy Services

Crestwood Midstream 3Q12: Profits Up, Marcellus Gas Flows Up
November 6, 2012November 6, 2012

Crestwood Midstream Partners, a pipeline and processing plant company with operations across the U.S, including in the Marcellus, released their third quarter financial and operational update today. Unlike drillers, midstream companies are faring a bit better in this low natgas price climate. Crestwood’s 3Q12 financials show the company’s net profit rose 10% from 3Q11 and was up 12% from 2Q12.

The company owns 35% of Crestwood Marcellus Midstream (CMM). The volume of gas flowing through CMM’s pipelines increased by 32 million cubic feet per day from the second quarter of this year. Crestwood took over pipeline operations in the Marcellus from Antero Resources in April of this year.

Read More “Crestwood Midstream 3Q12: Profits Up, Marcellus Gas Flows Up”
Athens County | Meigs County | Muskingum County | Ohio | Perry County | Washington County (OH)

Large Block of 95K Acres Available for Lease in OH Utica Shale
November 6, 2012November 6, 2012

A private firm representing landowners with 95,000 acres in southeastern Ohio issued a press release yesterday essentially saying, “Hey, we’re still here, and we still have 95,000 acres to lease to some lucky driller.” The land is located in Washington, Athens, Meigs, Muskingum, and Perry counties in southeastern Ohio.

MDN is not in the habit of running this kind of “news,” but we are today because a) it helps the landowners, and b) it’s more or less a large landowner group—even though it’s a for-profit venture. And so, without further ado:

Read More “Large Block of 95K Acres Available for Lease in OH Utica Shale”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Nov 6, 2012
November 6, 2012November 6, 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: Tue, Nov 6, 2012”
Broome County | Chenango County | Delaware County | Energy Services | Industrywide Issues | Leatherstocking Gas | Madison County | New York | Pipelines | Williams

NY Company Plans to Tap Constitution Pipeline, Sell Locally
November 5, 2012November 5, 2012

An important, and apart from MDN friend Andy Leahy, unreported development on the Constitution Pipeline, a new Marcellus Shale gas pipeline proposed by Williams and Cabot Oil & Gas that will run from Susquehanna County, PA to upstate New York (Schoharie County) where it will connect with two large interstate natural gas pipelines.

The important “new news” is that the Constitution will be an “open gas pipeline” and already one company—the Leatherstocking Gas Company of New York—plans to build an interconnect along the Constitution to buy and resell locally produced natural gas locally. Hey, there’s a concept! Leatherstocking plans to set up a low-cost natural gas distribution network in Broome, Chenango, Delaware and Madison counties in New York’s Southern Tier area.

Read More “NY Company Plans to Tap Constitution Pipeline, Sell Locally”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA | Washington County

MSC Responds to Allegations PA DEP Skews Drilling Water Tests
November 5, 2012November 5, 2012

Late Friday MDN told you about an allegation made by PA State Rep. Jesse White (from western PA) and an attorney for a plaintiff in a lawsuit in Washington County, PA alleging well water was contaminated by nearby shale gas drilling. White and the attorney claim the state Dept. of Environmental Protection (DEP) knowingly suppressed water test results to the plaintiff and others that would have proven a link between drilling and water contamination (see this MDN story).

The DEP immediately responded, refuting the claim that they skew water tests. The Marcellus Shale Coalition (MSC), an organization representing large and small drillers in Pennsylvania and throughout the Marcellus Shale, has also responded. Here’s what they said on Friday about Rep. White’s claims of fraud at the DEP:

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Utica Shale

The Latest Permit/Drilling Numbers for OH Utica Shale
November 5, 2012November 5, 2012

A quick update on numbers for the Utica Shale, including how many permits have been issued to date in the Utica, how many wells have been drilled, how many rigs are operating and how many permits have been issued county by county, courtesy MDN friend Bob Downing of the Akron Beacon Journal:

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