Marcellus Drilling News

Pennsylvania | Statewide PA

Former PA Gov. Tom Ridge and Marcellus Shale Coalition Part Ways
August 3, 2011August 3, 2011

The leading and most visible organization representing the Marcellus drilling industry in Pennsylvania is the Marcellus Shale Coalition (MSC). Backed by a who’s who of companies in the energy industry (including Range Resources, Chesapeake Energy, Shell, ExxonMobil, Hess, Chief O&G and many more), the MSC attempts to counter the ever-present misinformation about drilling in general, and hydraulic fracturing in particular. The MSC’s stated goal is to promote responsible development of the Marcellus Shale and generate jobs while doing it.

Kathryn Klaber is the very visible and dynamic president and executive director. Ms. Klaber is the public face of the MSC. But there’s also been a second visible face of the MSC for the past year. Former Pennsylvania Gov. Tom Ridge (and his two consulting firms) was named as a “strategic advisor” to the MSC in July 2010. The contract was for one year. The MSC has just announced the contract with Ridge will not be renewed. Does that mean there’s a problem? Trouble in gasland? MDN does not know. From all appearances it was a contract for a specified period, the contract was fulfilled, objectives achieved, and life moves on. That’s the nature of consulting work.

Read More “Former PA Gov. Tom Ridge and Marcellus Shale Coalition Part Ways”
Hydraulic Fracturing | Industrywide Issues | Wastewater

US Dept of Energy Awards Grants for Hydraulic Fracturing Research, Looking for Greener Alternatives
August 3, 2011August 3, 2011

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.

The selections include $10.3 million for eight projects that will reduce the environmental risks of shale gas development while accelerating the application of new exploration and production technologies; and $2.1 million for three projects investigating innovative processes for extracting additional oil from mature domestic oil fields including Enhanced Oil Recovery (EOR).

The total value of the shale-related projects is more than $17.0 million over 3 years with approximately $6.7 million of cost-share provided by the recipients in addition to the $10.3 million in federal funds. The shale gas projects include:

Read More “US Dept of Energy Awards Grants for Hydraulic Fracturing Research, Looking for Greener Alternatives”
Chesapeake Energy | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

Chesapeake Energy CEO Aubrey McClendon Talks to Jim Cramer About the Utica Shale in Eastern Ohio
August 2, 2011August 2, 2011

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.

McClendon also says in the segment he believes the Utica Shale will be even bigger (production-wise, economic-wise) than the Eagle Ford Shale, with an estimated 25 billion barrels of oil equivalent in the form of oil, natural gas liquids and natural gas in eastern Ohio. McLendon says the Utica is possibly “one of our biggest discoveries in U.S. history.”

Read More “Chesapeake Energy CEO Aubrey McClendon Talks to Jim Cramer About the Utica Shale in Eastern Ohio”
Hydraulic Fracturing | Industrywide Issues | New York | Noise | Regulation | Roads | Statewide NY | Trucking

NY Drilling Delayed Again: Public Comment Period on New Regulations Delayed by DEC’s Joe Martens for Additional Month, Maybe Longer
August 2, 2011August 2, 2011

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.

The 60-day public comment period will now not begin until “late summer,” which in DEC-speak means September. Why?

Read More “NY Drilling Delayed Again: Public Comment Period on New Regulations Delayed by DEC’s Joe Martens for Additional Month, Maybe Longer”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Public Opinion

Unnamed Source in New York Times Anti-Gas Articles was…an Intern?!
August 2, 2011August 2, 2011

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 (see one example here). The Times has a public editor that, from time to time, will criticize the paper’s coverage. Recently, the public editor published a couple of articles refuting the Times’ reporting on the natural gas industry. In particular, the public editor revealed that one of the key anonymous government sources quoted by Urbina, one credited with a number of damaging remarks, was in fact just an intern and not a senior official.

Below is a press statement issued by Energy in Depth, an organization founded and funded by the energy industry. With their usual flair, they do an excellent job of uncovering the truth behind the Urbina articles. EID connects the dots between the intern, Urbina and the anti-drilling organizations who have been feeding them the propaganda we’ve been reading in the Times. MDN is reprinting the entire EID article, with full credit to the fine folks at EID. Please read it!

Read More “Unnamed Source in New York Times Anti-Gas Articles was…an Intern?!”
Allegany County | Garrett County | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Maryland Marcellus Shale Commission to Have First Meeting This Week – One Meeting Down, Three More Years of Meetings to Go
August 2, 2011August 5, 2011

Maryland Gov. Martin O’Malley has effectively taken his state out of consideration for Marcellus Shale drilling. How? He’s appointed a commission to study that which has already been studied to death, to have meetings, to issue preliminary reports, have more meetings, and issue a final report in August 2014, years after drilling will already be firmly established in Pennsylvania, West Virginia and (perhaps) New York. A relatively small area of Maryland sits atop the Marcellus—two rural counties in the panhandle of Maryland: Allegany and Garrett counties. Both counties have high unemployment and would greatly benefit from Marcellus gas drilling, but the landowners and the people who could be employed by the drilling industry in those communities will not benefit from drilling for many years to come because of Gov. O’Malley’s delays.

So it’s of note, but of little consequence, that the kick-off meeting for Gov. O’Malley’s recently appointed Marcellus Shale Advisory Commission will happen this Thursday at 9:30 am at the Lakeside Visitors Center at Rocky Gap State Park. The meeting is open to the public. Below is a recent press release announcing the people appointed to O’Malley’s Commission.

Read More “Maryland Marcellus Shale Commission to Have First Meeting This Week – One Meeting Down, Three More Years of Meetings to Go”
Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Chesapeake Energy Slated to Start Drilling in the Utica Shale in Columbiana County, OH this Fall
August 1, 2011August 1, 2011

Last week, Chesapeake Energy announced (via it’s quarterly earnings statement) a major revelation—that it has struck oil as well as natural gas liquids and natural gas, in the Utica Shale of eastern Ohio. Columbiana County, OH is in the hot zone and stands to reap millions in revenue.

In the run-up to the announcement, Chesapeake has been busy signing deals with landowners in Columbiana County, including leases with local municipalities and school districts:

Read More “Chesapeake Energy Slated to Start Drilling in the Utica Shale in Columbiana County, OH this Fall”
Chesapeake Energy | Energy Companies | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

Ohio Gov. John Kasich Jazzed About Chesapeake Striking Oil in the Utica Shale – Refers to Potential Out-of-State Workers as “Foreigners”
August 1, 2011August 1, 2011

Ohio’s Gov. John Kasich is jazzed about Chesapeake Energy’s announcement of striking oil in the Utica Shale in eastern Ohio. But he also has issued a warning to Chesapeake and other drillers about the makeup of the work crews who will be populating well pads:

Read More “Ohio Gov. John Kasich Jazzed About Chesapeake Striking Oil in the Utica Shale – Refers to Potential Out-of-State Workers as “Foreigners””
Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

New York State Democratic Party Chairman Says Risks from Marcellus Drilling are “Minuscule”
August 1, 2011August 1, 2011

New York State Democratic Party Chairman Jay Jacobs wants to see hydraulic fracturing for natural gas in the Marcellus Shale in New York State begin. From today’s New York Post:

Read More “New York State Democratic Party Chairman Says Risks from Marcellus Drilling are “Minuscule””
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Commonwealth Foundation Identifies Groups, People Who Fund Anti-Drilling Efforts in PA
August 1, 2011August 1, 2011

Last week the Commonwealth Foundation released a policy briefing paper titled “The Great Frack Attack: The War On Natural Gas” (full copy of the paper embedded below). The policy paper names names and outlines the big money behind groups critical of drilling in the Marcellus Shale.

From the introduction:

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About MDN | MDN Weekly Update

MDN Weekly Update – Jul 31, 2011: Boycotting Cities and Towns that Ban Drilling
July 31, 2011July 31, 2011

First, the results of last week’s poll, which asked:

If anti-drillers engage in civil disobedience to prevent drilling, should those who support drilling retaliate and engage in civil disobedience too?

No (63%, 143 Votes)
Yes (33%, 76 Votes)
Not sure (4%, 8 Votes)

Total Voters: 227

Current Poll – No Stomach for Civil Disobedience, but How About a Boycott?

Two weeks ago MDN wrote about a civil disobedience training meeting on the shores of Keuka Lake, NY and mused what if the shoe was on the other foot. Would those who support drilling be willing to engage in civil disobedience against those who civil disobediently try to obstruct legal and lawful drilling? It seems the answer, at least from the MDN audience, is a resounding “no”. Breaking laws, even if it’s in response to those already breaking them, is not in the DNA of most who support drilling.

So this week MDN further muses, what about a boycott instead? On Friday, MDN covered a story about drillers in West Virginia who are growing weary of municipalities in that state enacting Marcellus Shale drilling bans, citing concerns over water supplies (see this MDN article). The West Virginia Independent Oil & Gas Association said they’re not interested in doing business with the businesses of municipalities that ban drilling. A boycott breaks no laws and only changes purchasing behavior. It puts pressure on businesses who in turn fund the political campaigns of local politicians who are enacting the bans. That is, it hits them where it hurts—in the pocketbook.

So what if not only drillers, but landowners and those who support drilling, were to join in and stop doing business (as much as possible) with businesses in municipalities that ban drilling? That’s the question MDN asks in this week’s poll:

Should those who support drilling boycott businesses in municipalities that ban drilling until the ban is lifted?

Register your vote along the right side of any page on the site.

Below are the most recent “top 5” lists and the calendar of Marcellus related events for the next few weeks.

Happy reading!
Jim Willis, Editor

Read More “MDN Weekly Update – Jul 31, 2011: Boycotting Cities and Towns that Ban Drilling”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Major Discovery – Chesapeake Energy Strikes Oil (and Gas) in Ohio’s Utica Shale
July 29, 2011July 29, 2011

After two years of research and experimental drilling, Chesapeake Energy announced yesterday they have struck oil, natural gas liquids and natural gas in Ohio’s Utica Shale. This new find will boost Chesapeake’s company value by 15-20 billion dollars and is causing quite a sensation among Ohioans.

Read More “Major Discovery – Chesapeake Energy Strikes Oil (and Gas) in Ohio’s Utica Shale”
Air Quality | Industrywide Issues | Regulation

EPA’s Proposed New Air Pollution Rules for Hydraulic Fracturing in the Oil and Gas Industries
July 29, 2011July 29, 2011

The federal Environmental Protection Agency (EPA) yesterday released a 604-page set of rule changes that will force oil and gas drillers that use hydraulic fracturing to use new or improved processes and equipment in an attempt to cut the level of volatile organic compounds (VOCs) and other air pollutants they say are emitted during the completion of new and modified hydraulically fractured wells. There are some 25,000 oil and gas wells that are fracked on land in the U.S. each year, so this is will have a major impact on the entire industry.

The new rules will cost the industry 3/4 of a billion dollars by 2015 according to EPA estimates, although they also say the rule changes mean that more methane (natural gas) will not escape into the atmosphere as it is now, and therefore the cost of complying with the new rules will be offset by extra revenue from selling the gas that doesn’t disappear into the atmosphere—that is, “it all comes out in the wash” and evens out. (Gotta love EPA math.)

Read More “EPA’s Proposed New Air Pollution Rules for Hydraulic Fracturing in the Oil and Gas Industries”
Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | West Virginia | Wetzel County

WV Drillers Threaten Economic Boycotts of Local Businesses in Cities that Ban Marcellus Drilling
July 29, 2011July 29, 2011

Here and there, some city municipalities in West Virginia—like Morgantown—have banned hydraulic fracturing and Marcellus shale gas drilling inside, and even outside of their borders. The latest WV city to do so is New Martinsville (Wetzel County). The West Virginia Independent Oil & Gas Association has had enough and is threatening to stop supporting local businesses in cities that have enacted bans.

Read More “WV Drillers Threaten Economic Boycotts of Local Businesses in Cities that Ban Marcellus Drilling”
Broome County | Chemung County | New York | Tioga County (NY)

Three NY State Counties Along Border with PA Will be Focal Point for Marcellus Drilling According to Experts
July 28, 2011July 28, 2011

Three New York State counties that sit on the border with Pennsylvania will likely be the first, and biggest beneficiaries of Marcellus Shale drilling when it finally begins in New York. Those counties are Broome, Tioga and Chemung. That prediction comes from two of the most prominent geologists in the Marcellus Shale:

Read More “Three NY State Counties Along Border with PA Will be Focal Point for Marcellus Drilling According to Experts”
Chesapeake Energy | Energy Companies | Industrywide Issues | Pipelines

How Much Should Landowners be Paid for Marcellus Pipelines on Their Property?
July 28, 2011July 28, 2011

With an increase in the number of Marcellus gas wells drilled, comes an increase in the need for pipelines to get that gas to market. Local pipelines that gather the gas and take it to a compressor station where it’s then sent to a larger pipeline, and pipelines that bring water to drilling sites, can be from as small as 4 inches in diameter to as large as 36 inches in diameter. In Marcellus Shale states like West Virginia and Ohio, the mineral rights to drill for gas beneath the ground are often owned by someone different than the landowner who owns the surface rights. A pipeline contract is known as a right-of-way easement with the surface owner.

Since surface owners will not see any royalties from the gas, they understandably want to get as high a price as they can for allowing pipelines to traverse their property, pipelines that once installed, will be there for many years—often longer than the producing gas well. But what’s a fair price?

Read More “How Much Should Landowners be Paid for Marcellus Pipelines on Their Property?”