Marcellus Drilling News

New Study Predicts 65K Jobs in Ohio by 2014 from Utica Shale

February 29, 2012February 29, 2012

The Ohio Shale Coalition released a new economic study yesterday prepared researchers from Cleveland State University, Ohio State University and Marietta College. The study projects annual production of oil and gas from the Utica Shale in the state will reach $9.6 billion by 2014 along with an eye-popping 65,000+ jobs. And those jobs will have an average salary of more than $50,000 per year, adding an additional $3.3 billion in labor income in the state. Both a high level overview and a copy of the full 81-page report are embedded below. (MDN is honored to have scored a few mentions in the “News Articles and Web Sources” section of the study.)

MDN particularly likes this graphic from page 39 showing net acreage leaseholds held by drilling companies:

Baker Hughes to Build $64M Facility in Ohio; Create 700 Jobs

February 29, 2012February 29, 2012

Baker Hughes is planning to build a $64 million facility in Massillon (Stark County), Ohio. The announcement comes just a month after Baker Hughes announced they are building a new $40 million facility in Harrison County, West Virginia (see this MDN story). The company plans to employ 700 people at the Massillon facility when it’s done (in three years), at an average hourly wage of $31.25. The economic impact in eastern Ohio will be profound.

Hydraulic Fracturing | Industrywide Issues

NYT: Environmental Defense Fund is OK with Fracking

February 29, 2012March 24, 2012

An interesting editorial in the New York Times authored by Joe Nocera, a business writer for the NYT, begins this way:

Ohio Landowners Sue to Break Utica Lease Contract

February 29, 2012February 29, 2012

A group of landowners in Columbiana County, Ohio have filed a lawsuit seeking to dissolve lease agreements they say were improperly transferred from Anschutz Exploration to Chesapeake.

Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Oil & Gas to Donate $2M to Build New Hospital in NE PA

February 29, 2012February 29, 2012

Cabot Oil & Gas is donating an initial $1 million to help build a new hospital in Montrose (Susquehanna County), PA. Not only will they donate $1 million now, but Cabot is trying to enlist other companies to donate and so will match any other donations and give up to an additional $1 million to the project. Cabot’s goal is to jumpstart the capital campaign with a total $3 million infusion—much needed for a project that is projected to cost $30 million total.

From the Cabot press release:

Antero Sells WV Midstream Operation to Crestwood for $375M

February 29, 2012February 29, 2012

Antero Resources announced yesterday that they have sold their Marcellus Shale midstream gathering system in Harrison and Doddridge counties, WV to Crestwood Holdings for $375 million with a sweetener of an extra $40 million if certain production targets are met in 2012 and 2013.

From the Crestwood/Antero press release:

Energy Companies | Southwestern Energy

Southwestern Energy Increases Marcellus Budget for 2012

February 29, 2012February 29, 2012

Southwestern Energy just released their fourth quarter and year-end financial and operating results, along with a revised 2012 capital budget. In the Marcellus Shale, Southwestern spent $332 million to drill 45 wells in 2011. They have budgeted an increase in their Marcellus budget for 2012 to $526 million with plans to drill 80-85 wells.

From the relevant portion of the press release:

Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Feb 29, 2012

February 29, 2012February 29, 2012

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

Middlefield, NY Fracking Ban Stands in Court Decision

February 28, 2012February 28, 2012

court gavel A second court case decision in New York, this one in Middlefield (near Cooperstown) has ruled that local municipalities have the right to ban shale gas drilling within their borders. On Friday, Feb. 24 Acting Supreme Court Justice Donald F. Cerio, Jr. ruled that a previously passed drilling ban in the Town of Middlefield in Otsego County, NY is legal. A copy of the judge’s decision is embedded below. (Note: Thank you to an MDN reader for providing this exclusive copy of the decision that comes direct from the judge’s chambers.)

Hydraulic Fracturing | Industrywide Issues | Montgomery County | New York | Regulation

St. Johnsville, NY Town Board Votes to Ban Fracking

February 28, 2012February 28, 2012

Another Upstate New York municipality has jumped on the “ban fracking” bandwagon. The latest is St. Johnsville (Montgomery County), NY. In a unanimous vote last week, the town board passed a one-year moratorium on fracking, ostensibly to buy time to study it more.

Industrywide Issues | Jobs | Mahoning County | Ohio

Youngstown, OH Scores Another 100 Jobs from Gas Drilling

February 28, 2012February 28, 2012

More jobs coming courtesy of shale gas drilling—this time in Youngstown, Ohio. Exterran Energy Solutions has just announced plans to build a new $13 million facility that when done, will provide 100+ new jobs earning an average $23 per hour.

Chevron Pipe Leak in SW PA Bigger Than First Thought

February 28, 2012February 28, 2012

On Dec. 20, Chevron discovered a pipe leak at a well pad in Robinson (Washington County), PA. At the time it was thought perhaps a few barrels of wet gas condensate had leaked into the ground. It now appears it may be closer to 80 barrels, or 4,000 gallons.

Industrywide Issues | Jobs | Statewide WV | West Virginia

WV Residents to Get Free Pipefitter Training for Gas Jobs

February 28, 2012February 28, 2012

Yet more drilling-related jobs on the way, this time in northern West Virginia. The West Virginia Northern Community College is teaming up with Dominion Natrium to train up to 100 local residents to be pipefitters to work at the Natrium processing plant.

Congressional Hearing: Shale Energy a “Game Changer” for Small Biz

February 28, 2012February 28, 2012

Dennis Heller is a small business owner—president and CEO of Stephenson Equipment in Harrisburg, PA. Stephenson Equipment employs 120 people selling and renting construction equipment and crane services, parts, and operator training at seven locations in Pennsylvania and New York. Heller recently testified at a U.S. House of Representatives Natural Resources Committee Energy & Mineral Resources Subcommittee field hearing in Steubenville, Ohio, on the impact of shale energy development and what it means for small businesses (a copy of his testimony is embedded below).

Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Feb 28, 2012

February 28, 2012February 28, 2012

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

Pennsylvania’s Top 10 Marcellus Drillers in 2011

February 27, 2012February 28, 2012

NOTE: The facts and figures below were cited from a Pittsburgh Tribune-Review article. MDN has been contacted by several of the drilling companies in the list to let us know the numbers in some cases are not at all accurate. MDN is attempting to verify now (Feb 28) and will correct these numbers as soon as the raw data can be further analyzed.

top 10 In 2011, Marcellus drilling expanded exponentially in Pennsylvania. According to the PA Department of Environmental Protection (DEP), companies drilled 2,755 Marcellus shale gas wells in Pennsylvania in 2011, up from 1,386 in 2010. That’s nearly a 200 percent increase (or doubling) in one year alone.

Below are the top 10 Marcellus drillers in Pennsylvania ranked by amount of gas produced. Included are some other bits of information (PA figures only) to give you an idea of the size and scope of that company’s operation in the PA Marcellus. (mcf = thousand cubit feet)