EXCO Plans to Increase Rig Count, Complete 49 Wells in the Marcellus Shale in 2011
The quarterly reports from public companies continue to roll in, which sometimes makes for interesting reading. EXCO Resources, Inc. has just issued their quarterly report and includes the following operational update on their drilling activities in the Marcellus Shale. Of particular note is EXCO’s statement about IP, or “initial production”. IP for oil and gas wells is that initial burst of activity which is not sustainable through the life of the well. Usually a well produces the most right at the start—according to EXCO IP is a 24-hour period during the first few days a well goes online. But as EXCO points out below, their Marcellus wells sometimes don’t hit peak performance until a month or two after they have come online.
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On May 31 of this year, NY Attorney General Eric T. Schneiderman filed a lawsuit in federal court seeking to force the federal government “to commit to a full environmental review of proposed regulations that would allow natural gas drilling – including the potentially harmful "fracking" technique – in the Delaware River Basin” (
The leading and most visible organization representing the Marcellus drilling industry in Pennsylvania is the 
The U.S. Department of Energy is funding a number of research projects to help find ways to extract more energy from unconventional oil and gas resources while reducing environmental risks. The DOE grants amount to $12.4 million.
Chesapeake Energy CEO Aubrey McClendon on Monday appeared on Jim Cramer’s Mad Money show on CNBC to talk about the company’s new, oil-rich discovery in the Utica Shale of eastern Ohio. He had some fascinating things to say, including that he expects there to be some 25,000 wells drilled in the Ohio Utica Shale, and that there will be $10 billion per year for at least 20 years (or $200 billion) of investments in the Ohio Utica Shale alone. Yikes! No wonder Gov. John Kasich is “gushing” about Chesapeake’s discovery. An investment of 1/5 of a trillion dollars is a major big deal for Ohio—not only for landowners but also for businesses and for those who will be employed by drilling and associated industries. You cannot overstate how important this discovery is.
Once again New York State Department of Environmental Conservation (DEC) Commissioner Joe Martens has delayed the start of Marcellus gas drilling—this time by at least an additional 30 days, maybe longer. The “nearly” final draft drilling regulations, called the Supplemental Generic Environmental Impact Statement (SGEIS), were released on July 8 (originally supposed to be released July 1 as ordered by Gov. Andrew Cuomo). At that time, Mr. Martens said there would be a 60-day public comment period that would begin in August. Then the DEC would review those comments, tweak the regulations, and issue the final regulations sometime late this year.
MDN has previously commented on the obvious vendetta by the New York Times against the natural gas industry, most particularly in articles written by Ian Urbina (
