Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Research

Preliminary EPA Report on Fracking Coming Soon
November 12, 2012November 12, 2012

MDN has shared its view—for years—that the federal Environmental Protection Agency under Obama has become a rogue agency, attempting to usurp the U.S. Constitution by taking over regulation of that which belongs to the states. Namely, oil and gas drilling. How? By using the federal Clean Water Act and federal Clean Air Act to control drilling (among a plethora of other federal laws). The EPA’s favored target is and has been hydraulic fracturing.

The EPA is currently conducting a multi-year study on fracking. An interim report will be released in the next month or so, and if a high-ranking EPA official’s comments about it are any indication, the energy industry has reason to be concerned:

Read More “Preliminary EPA Report on Fracking Coming Soon”
Energy Companies | Halcon Resources | Ohio | Trumbull County

Landowner Group Forms in Trumbull County to Field Halcon Offers
November 12, 2012November 12, 2012

Very important for landowners in and around Trumbull County, Ohio: Halcon Resources, which took possession of some 31,000 acres of 20-50 year old gas drilling leases in northeastern Ohio, is approaching landowners about amending their leases to allow drilling in the Utica Shale. It’s a good opportunity for landowners to make money from drilling, but also a good opportunity to negotiate new protections.

A new landowner group has just formed in Lordstown, OH to help landowners navigate the offers being made by Halcon:

Read More “Landowner Group Forms in Trumbull County to Field Halcon Offers”
Belmont County | Energy Companies | Guernsey County | Gulfport Energy | Harrison County | Ohio | Statewide OH | Utica Shale

Gulfport CEO Says Company’s Future is the Utica Shale
November 12, 2012November 12, 2012

On a conference call last week, Gulfport Energy’s CEO James Palm called the Utica Shale a “once-in-a-lifetime play … and a company changer.” He said the company plans to invest $225 million next year in Ohio’s Utica Shale to drill 50 new wells. The eventual goal? They plan to drill 400 Utica Shale wells in the next four years.

Read More “Gulfport CEO Says Company’s Future is the Utica Shale”
Energy Companies | Rex Energy

Rex Energy 3Q12: Income Up, First Utica Well Pumps 70% NGLs
November 12, 2012November 12, 2012

Last week Rex Energy Corporation reported its third quarter financial and operating results. Among Rex’s notable results: The company’s first Utica Shale well averaged a 30-day sales rate of 731 Boe/d (70% Liquids). Counter to many other energy companies, Rex’s 3Q12 revenues were up 14% from the same period last year.

Below are relevant sections of the Rex 3Q12 update:

Read More “Rex Energy 3Q12: Income Up, First Utica Well Pumps 70% NGLs”
Ethane | Industrywide Issues | Ohio | Processing Plants | Statewide OH

Ohio May Still Get an Ethane Cracker Plant
November 12, 2012November 12, 2012

Could Ohio (and for that matter West Virginia) still get their own ethane cracker plant? That would be a “yes” according to Cal Dooley, CEO of the American Chemistry Council. He was interviewed last week by Columbus Business First reporter Jeff Bell.

This is what Dooley had to say:

Read More “Ohio May Still Get an Ethane Cracker Plant”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

JLCNY Declares Victory over Anti-Drillers in NY Elections
November 12, 2012November 12, 2012

According to Dan Fitzsimmons from the Joint Landowners Coalition of New York (JLCNY), the elections last week produced an excellent result—at least locally in the Southern Tier of New York State. The most visible anti-drillers—candidates running on an anti-drilling platform—went down to defeat.

Here’s the letter sent out by the JLCNY late last week:

Read More “JLCNY Declares Victory over Anti-Drillers in NY Elections”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Obama’s Re-election Impact on Ohio’s Utica Shale Drilling
November 12, 2012November 12, 2012

A sobering and excellent article in the Coshocton Tribune takes a look at how the re-election of Barak H. Obama will negatively impact small businesses and the Utica Shale drilling industry in Ohio. We highly recommend you read the entire article to gain an understanding of the implications for all types of small businesses—businesses that are the economic backbone of our country.

Here’s a small portion of the article that deals with federal impacts on shale gas drilling in Ohio:

Read More “Obama’s Re-election Impact on Ohio’s Utica Shale Drilling”
Chesapeake Energy | Columbiana County | Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M3 Midstream | Ohio | Pipelines | Processing Plants | Utica Shale

Hanoverton, OH NGL Processing Plant on Track for May 2013
November 12, 2012November 12, 2012

In May 2012, MDN told you about a new $400 million cryogenic processing plant to be built in Hanoverton (Columbiana County), Ohio by a joint venture between Chesapeake Energy, M3 Midstream and EV Energy Partners (see this MDN story). The plant will collect and process shale gas, separating out natural gas liquids like propane, butane and ethane. In early October we told you construction had begun and the first phase of the new plant is due to come online in May 2013 (see this MDN story).

Last week an official for M3 Midstream, one of the partners in the project, visited the construction site and said things are track to meet the “very aggressive” May 2013 opening date:

Read More “Hanoverton, OH NGL Processing Plant on Track for May 2013”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Nov 12, 2012
November 12, 2012November 12, 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, Nov 12, 2012”
Commodity Price | Economic Impact | Industrywide Issues

Energy Industry Expert Says Shale Gas Will Last <10 Years
November 9, 2012November 9, 2012

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:

Read More “Energy Industry Expert Says Shale Gas Will Last <10 Years”
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:

Read More “Marcellus Wastewater Ban Leads to Lower Bromide in PA Rivers”
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.

Read More “Norse Energy 3Q12: Revenue Down 33%, Waiting on NY Moratorium”
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:

Read More “2 New Wetzel County, WV Wells Best Yet for Trans Energy”
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:

Read More “Hilcorp Most Aggressive Driller in Lawrence County, OH”
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…

Read More “OH City Bans Drilling in City Limits – Legality Questioned”
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:

Read More “New Shale Wastewater Plant Planned for Mahoning County”