Marcellus Drilling News

PDC “Temporarily” Suspends All Marcellus Drilling Operations

March 1, 2012March 1, 2012

Petroleum Development Corporation (PDC) announced yesterday that they are “temporarily” suspending drilling operations in the Marcellus Shale because of “depressed” natural gas prices. They will keep their planned 2012 capital budget the same, at $284 million, and reallocate the $12 million they would have used in the Marcellus operation to other liquids-rich operations. So far this year PDC has drilled three Marcellus wells and they will finish drilling a fourth well before suspending all Marcellus operations.

From the PDC press release:

Southwestern Gives Away CNG Chevy Tahoe to Promote Marcellus

March 1, 2012March 1, 2012

There are over 100,000 compressed natural gas (CNG) vehicles on U.S. roadways, and roughly 400 CNG filling stations. Add one more CNG vehicle to that number in South Abington Township in Lackawanna County, PA—given away as a prize to promote CNG awareness.

The price to fill it up? How does $2 per gallon (gasoline equivalent) sound?

Commodity Price | Industrywide Issues | Pennsylvania | Statewide PA

PA Consumers See Natural Gas Bills Go Down Again

March 1, 2012March 1, 2012

The low commodity price of natural gas, due in part to the large supply created by Marcellus Shale gas, is resulting in lower monthly utility bills for customers in Berks County, PA, in an area not even part of the Marcellus Shale play.

Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 1, 2012

March 1, 2012March 1, 2012

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

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.