EIA Oct ’18 Drilling Report: Shale Gas Output Up Another 1 Bcf/d
The hits keep rollin’ in. Last month the U.S. Energy Information Administration’s (EIA) monthly “Drilling Productivity Report” (DPR) estimated that this month (in October) the country’s seven major shale plays would produce an amazing, all-time high of 73 billion cubic feet per day (Bcf/d) of natural gas production (see EIA Sep ’18 Drilling Report: Shale Output Flies Past 73 Bcf/d). EIA issued the October DPR yesterday (with numbers for November) and once again, production is going up. EIA estimates November production will hit 74 Bcf/d–another record-breaker.
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Nine Energy Service, an oilfield services company that competes with companies like Halliburton and Baker Hughes, operates in a number of shale basins, including the Marcellus/Utica. Magnum Oil Tools is a “downhole technology” company providing completions products including dissolvable frac plugs and a number of other patented inventions. Magnum also has operations in the Marcellus/Utica. Yesterday Nine announced it is buying out and merging in Magnum in a deal worth $493 million.
Here’s a theme we return to from time to time, when we spot a story worth highlighting. Not everyone can or even should go to college following high school. Some students would be better served by learning a skill, a trade, and entering the workforce sooner rather than later. There are a number of skilled trades in the shale industry–in all segments from upstream (drilling) to midstream (pipelines) to downstream (petrochemicals). Last week a workforce forum was held at the Mon Valley Career & Technology Center in Washington County, PA. A panel discussion pointed out we’re quickly heading for a shortage of skilled workers for shale (and other industries) in the tri-state area.
On September 21, Dominion Energy stopped pulling gas from pipelines into the Cove Point LNG export facility (on the shoreline of Maryland) in order to conduct scheduled maintenance (see 
The Obama years were a disaster for the country in general, and the oil and gas industry (all coal) in particular. One of the egregious examples of overregulation under Obama (wild, far-out overregulation) was reducing so-called fugitive methane (CH4)–preventing teeny tiny leaks of methane from pipelines, wellheads, etc. Obama’s Stalinist EPA put in place expensive requirements to capture nearly every last molecule of CH4–making it uneconomical for many drillers and pipeline companies, driving them from the industry. The Trump Administration is correcting many of the egregious regulations of the Obama era. On Monday, Team Trump floated reworked (relaxed) regs for methane emissions.
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Intense fight over Colorado oil and gas setbacks could end with national precedent; Opponents speak out on Superior natural gas power plant; Ohio Sen. Sherrod Brown is a climate kook; U.S. eyes military bases for coal, natural gas exports; Williams appoints Debbie Cowan as Senior Vice President and Chief Human Resources Officer; Why satellites could unlock the future of natural gas; Natural gas jumps on expectations of above-average cold, with supplies at decade low; The giant corporations behind your burgers and milk have a “terrifying” climate secret; Not being there: How augmented reality is changing the oil industry; Saudis team up with Russians to compete with US natural gas; The LNG Canada project will impact gas markets, but not soon enough; In wake of “terrifying” climate report, German environmentalists will rally for nuclear.
It’s one thing for mud and sediment to wash away from a pipeline drilling site due to heavy and relentless rains–as we have experienced in the northeast these past few months. But it’s another thing entirely when actual sections pipeline sitting at the construction site float away! That happened in Franklin County, Virginia last Thursday. The landowner, who was (and is) opposed to the 303-mile Mountain Valley Pipeline from slicing through his property, has complained repeatedly about erosion and sediment from the construction path spilling over onto his farmland. Friday morning he woke up to MVP pipes washed onto his cornfield following torrential rains and wind, the leftovers of Hurricane Michael.
Here’s a project we have not actively tracked in the past–but recently popped up on our radar. Virginia Natural Gas’ “Southside Connector” project is a roughly 9-mile pipeline from Norfolk, VA to Chesapeake, VA that company officials say will fill a gap between two main supply lines. A 24-inch pipe will be installed at least 3 feet deep and cross under the Elizabeth River, which has prompted the owner of a shipyard on the river to object. As is typical of these things, antis are involved. Virginia Natural Gas’ president has responded to that opposition (i.e. lies) with a letter to the editor to defend what is the final leg of a 200-mile project begun back in 1992.
Hey Andy Cuomo: Your days of blocking pipeline projects are numbered. There’s momentum building in Washington, D.C. to address the issue of rogue politicians like Cuomo from blocking federally-approved interstate pipeline projects, as Cuomo has done with several such projects (Constitution Pipeline, Northern Access, Millennium). There’s talk among Team Trump to fix this problem (see 
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events. To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address.
Diversified Gas & Oil continues its mission to buy as many non-shale (conventional) oil and gas wells as it can in the Appalachian Basin. In June, MDN brought you the exclusive news that Diversified had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million (see