Encore Energy Provides Update for Shale Oil Drilling in Kentucky
Kentucky is not known as a hotbed of shale drilling activity. The Marcellus/Utica does not extend under the Bluegrass State. However, as we wrote about back in 2017, Kentucky does have the Berea Sandstone which contains oil deposits (see Fracking Comes to Kentucky – Encore Drills First Horizontal Oil Wells). In 2017 we brought you the news that Encore Energy was just beginning to drill shale wells looking to extract oil from the Berea. Fast forward to today, and there are over 100 horizontal wells permitted, drilled and/or producing in the Berea in Lawrence County. The horizontal Berea play is the most active and prolific oil and gas field operation in Kentucky.
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In February, MDN brought readers the news that Tenaska, one of the largest privately operated companies in the U.S., is building a carbon capture and sequestration (CCS) hub spanning tens of thousands of acres in Pennsylvania, Ohio, and West Virginia (see 
Last week, the Baker Hughes rig count lost seven rigs after gaining three rigs the week before. The count went from 629 active rigs two weeks ago to 622 last week. The national count has consistently stayed between 620 and 625 (or one or two above or below that range) since last October until recently, when it went higher for a few weeks. But now it’s back in the same long-term range. The Marcellus/Utica remained the same last week with Pennsylvania at 24 rigs (the most since last June), Ohio with 12 rigs, and West Virginia with 8 rigs. The M-U combined is running 44 rigs, which it has run in four of the last five weeks.
Last year, University of Pittsburgh (Pitt) researchers released three studies commissioned by the State Dept. of Health supposedly investigating whether or not there is a connection between shale drilling and childhood diseases, including cancer (see 
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There were 17 new permits issued to drill in the Marcellus/Utica during the week of Feb. 26 – Mar. 3, down 1 from 18 permits issued the prior week. Pennsylvania issued 8 new permits last week. Ohio issued 4 new permits. And West Virginia issued 5 new permits last week. Four companies tied for the top slot of receiving 3 permits each: Chesapeake Energy (Susquehanna County, PA), Seneca Resources (Tioga County, PA), Gulfport Energy (Harrison County, OH), and Antero Resources (Ritchie County, WV). Arsenal Resources received 2 permits (Taylor County, WV). Three companies received a single new permit: Laurel Mountain Energy (Butler County, PA), Campbell Oil & Gas (Westmoreland County, PA), and EOG Resources (Noble County, OH).
Ascent Resources, founded as American Energy Partners by gas legend Aubrey McClendon, is a privately held company focusing 100% on the Ohio Utica Shale. Ascent, headquartered in Oklahoma City, OK, is Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S. The company issued its fourth quarter and full-year 2023 update yesterday. The update contains a statement by CEO Jeff Fisher that says we should look for a shift in the company’s strategy in 2024 for less gas production and more liquids production.
Last September, Dominion Energy and Enbridge co-announced that Dominion had agreed to sell the company’s remaining natural gas local distribution companies (LDCs) that Dominion owns to Enbridge for $14.0 billion, which includes $9.4 billion in cash plus the assumption of debt (see 
In 2019, the Rhode Island Energy Facility Siting Board waived a licensing requirement for a “temporary” LNG storage facility in Portsmouth to prevent another gas outage episode from happening again (see 
In January, we told you the State of Maine was actively considering a new law, L.D. 2077, that would prohibit natural gas companies from charging ratepayers for the construction and expansion of gas service mains and gas service lines beginning Feb. 1, 2025 (see 
Permitting in Pennsylvania, especially permits overseen by the Dept. of Environmental Protection (DEP), has been broken for years. A Chapter 102 Erosion and Sedimentation permit sometimes takes two, three, or even six to eight months for approval — instead of the law-mandated 14 days. It got so bad that in the fall of 2019, PA State Sen. Gene Yaw introduced a bill to allow third-party reviews of these permits in an attempt to speed it up (see 
Here’s something you don’t read about every day. An oilfield services company, Heavy Iron Oilfield Services, recently moved from its birthplace (founded in 2011) in Washington (Washington County), PA, across the border to a new location in Chester (Hancock County), WV. Washington County is a hotbed of drilling activity in Southwestern PA. But then again, Hancock County sees a lot of drilling, too. The reason for the move? Easier access to multiple job sites in the tri-state area and a pool of qualified workers to expand the business.
Every major (and most minor) drillers in the Marcellus/Utica have, over the past couple of years, signed on to one or more of the responsible gas certification authorities. Responsible or “certified” or “differentiated” gas is gas that is produced with lower methane emissions as certified by an outside organization like Project Canary, MiQ, or Equitable Origin. Given certification reviews cost big money, you would think (hope) there are actually customers on the other end who *want* to buy the certified natgas, and may be willing to pay a premium to get it. Utility companies are some of those customers who want to buy certified gas in order to comply with various mandates to lower emissions. But certified gas comes at a price — a price that gets passed on to end-user customers. How do they feel about paying more for certified gas?
Earlier this week, MDN told you that EQT, the country’s largest natural gas producer, had implemented an immediate cutback on natural gas production of 1 billion cubic feet per day (see