Sumitomo Corp Sells JV Stake in Butler County, PA Marcellus
In 2010 gigantic Japanese trading house Sumitomo Corp. bought a 30% stake (joint venture) in Rex Energy’s Marcellus drilling operation in Bulter County, PA for $150.7 million. Sumitomo wrote down much of the value for that purchase in 2015. In 2018 Rex went bankrupt and now PennEnergy Resources owns and operates the Butler assets (see Rex Energy Sells Itself to PennEnergy Resources for $600M). PennEnergy is getting a new JV partner. Yesterday Sumitomo announced the sale of their 30% share of the action.
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A few weeks ago MDN told you about Peregrine Energy Partners buying royalty payment rights from landowners in Doddridge County, WV (see 
We should have known that West Virginia Gov. Jim Justice is in league with his fellow coal baron Robert Murray. Officials from Brooke County, WV, where Energy Solutions Consortium is planning to build a $1.25 billion natural gas-fired power plant, are blaming the long fingers of Bob Murray for a last-minute delay of a state loan guarantee that was supposed to be made in August (see 
In early August the Federal Energy Regulatory Commission (FERC) finally issued a favorable environmental assessment (EA) for an amended request by PennEast Pipeline to break the project into two phases–building the pipeline through Pennsylvania in Phase One, and through New Jersey in Phase Two (see 
MARCELLUS/UTICA REGION: Joe Biden says he won’t ban fracking, but can we believe him?; Pence to campaign in Westmoreland and Beaver counties Sept. 9; Klaber’s Viewpoint – The energy industry is resilient; Harvest Oil & Gas announces changes in board of directors; OTHER U.S. REGIONS: Key documents raise troubling questions about money behind Hoboken climate lawsuit; U.S. shale producers race for federal permits ahead of presidential election; NATIONAL: U.S. shale recovery leans on huge inventory of DUCs; US oil, gas rig count rises by three to 285 heading into last trimester of 2020; Highlights of Joe Biden’s [horrible] energy plan; Rush Limbaugh likens Biden rejecting fracking ban to ‘me telling you that I’ve never been a conservative’; Why midstreamers depend on pigs; U.S. LNG exports: outlook improves as macro headwinds ease; Is the energy transition really accelerating?; Schlumberger deal shows hope for battered oil services sector; INTERNATIONAL: Russian led Nord Stream II in trouble over Navalny poisoning.
Each quarter the Ohio Dept. of Natural Resources (ODNR) issues an update on Utica (and Marcellus) oil and natural gas production. Apparently ODNR no longer issues a summary press release as they once did. They have, however, published a detailed spreadsheet of all active wells showing oil and gas production by well, which we have below. We do our own summary to show you the top 25 shale gas wells and top 25 shale oil wells for the quarter. We also have a summary of the overall results from the experts at S&P Global Platts.
Last week both Pennsylvania and West Virginia (but not Ohio) issued permits to drill new shale wells. PA issued 12 new permits and WV issued 2 new permits. The majority of PA’s permits were for a single well pad in Greene County. In fact, 10 of the 12 permits were issued in Greene County. Both of WV’s permits were for the same well pad in Marshall County.
Back in 2012 Gulfport Energy drilled a pair of exceptional Utica wells in Belmont County, Ohio–both on the same pad. The first was the Shugert 1-1H which had an initial production (IP) rate of 20 million cubic feet of natural gas per day (Mmcf/d). It also produced an initial 144 barrels of condensate per day, and 2,002 barrels of natural gas liquids per day (see 
Although Joe Biden is protesting (the lefty doth protest too much, methinks) that he would not ban “all” fracking if he’s elected president, his own words and the words of his pick for VP (Kamala Harris) say otherwise. Biden has endorsed most of the Green New Deal platform pushed by crazy Bernie Sanders and Alexandria Occasional-Cortex (AOC). So yes, if Biden is elected, fracking is pretty much done. Over. Fini. If fracking is banned, according to the Ohio State Grange it will be a catastrophe for farmers in the Buckeye State. Some farmers (many) will simply go out of business.
There’s potential trouble brewing for pipeline companies that own and operate big interstate pipelines that flow Marcellus/Utica Shale molecules to other regions. (Trouble for gas pipelines in other regions, too.) Some of the contracts for the earliest pipelines built or repurposed to flow M-U molecules out of the northeast are expiring. The customers, in many cases, were the drillers themselves (instead of utility companies and other gas customers). Drillers are pulling back and not likely to renew those contracts, at least not at the prices they signed originally.
The anti-fossil fuel zealots at the Scranton Times-Tribune (in Lackawanna County, PA) are doing their darnedest to try and stop an $800 million LNG liquefaction plant (generating hundreds of jobs) planned for nearby Bradford County. On Monday we told you the zealots were attempting to whip up a frenzy of opposition to the plant, based on trucks that would travel through the borough of Clarks Summit, a suburb of Scranton (see 
When the world’s largest oilfield services (OFS) company, Schlumberger, decides to call it quits in the fracking business, you have to ask the question, Is this the end of shale? (It’s not, but that’s what reporters at Bloomberg are hinting.) Yesterday Schlumberger announced a deal to turn over the keys to their U.S. and Canadian fracking business to Liberty Oilfield Services in return for 37% interest in Liberty.
Last December Columbia Gas of Ohio (NiSource) announced a new $135 million pipeline project to bring new supplies of Utica-sourced natural gas to homes and businesses located north and west of Columbus, in central Ohio (see