Marcellus Drilling News

Allegheny County | Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Shell | Washington County

PA DEP Schedules 3 Hearings for Shell Ethane Pipeline
March 12, 2018March 12, 2018

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In February, MDN told you the Pennsylvania State Dept. of Environmental Protection (DEP) had caved to pressure from anti-fossil fuelers with regard to Shell’s proposed Falcon Ethane Pipeline project (see PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline). Shell is working on an ethane “pipeline system” with two “legs” to feed the mighty cracker plant being built in Monaca, Beaver County (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). The DEP advertised an official comment period for the project on Jan. 20, giving interested parties until Feb. 20 to file their comments–an entire month. However, one month isn’t enough time for anti-drillers to marshal the faithful to try and sink the project. FracTracker Alliance, an anti-fossil fuel organization, colluded with other groups to put the word out to flood the DEP with demands to keep the comment period open. The DEP caved and extended the comment period to April 17th along with three public hearings (circus freak shows), to give the FracTracker faithful time to mount publicity and legal offensives to try and stop the project. The DEP has just announced the dates and locations for the three public hearings…
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Economic Impact | Industrywide Issues

“Free” NatGas in Texas Permian Changes Shale Gas Economics in M-U
March 12, 2018March 12, 2018

We spotted an article appearing on the Forbes magazine website that has a chart that stopped us cold in our tracks. The article was written by Jude Clemente, one of our favorite contributors to the Forbes website. He includes three charts in the article to update folks who have an interest in the natural gas space (the article is titled 3 Natural Gas Charts To End Winter 2018). The first chart in the list is “U.S. Natural Gas Wellhead Breakevens by Basin” and shows how much money a driller must make in order to break even–still make a profit. How much money, on average, does a driller have to make per thousand cubic feet (Mcf) in, for example, the Marcellus Shale basin in order to stay profitable? That number would be $2.15/Mcf. Anything above $2.15 and the driller makes money. (Bear in mind these are averages. Some drillers, like Cabot Oil & Gas, have lower expenses and can make money at much lower prices per Mcf than others.) What about the Utica? Drillers need to make an average of $2.41/Mcf in the Utica to break even. But at the top of the chart is a rather wild number. Drillers in the Permian Basin (in Texas) can LOSE or spend up to $2.36/Mcf and still “break even.” What? How can that be?…
Read More ““Free” NatGas in Texas Permian Changes Shale Gas Economics in M-U”
Calendar

Calendar of Marcellus/Utica Events for Mar 12 – Jun 11
March 12, 2018March 12, 2018

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. Thank you!
Read More “Calendar of Marcellus/Utica Events for Mar 12 – Jun 11”
Best of the Rest

Other Energy Stories of Interest: Mon, Mar 12, 2018
March 12, 2018March 12, 2018

The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: $597K maintenance agreement between Allegheny Twp and Huntley & Huntley; PA’s CNG project lauded by engineers; PA DEP wants input on drilling under I-79 for pipes; PA DEP Secretary tells PA Senator fracking in SRBC has been fine; Chesapeake may sell Haynesville assets to Tellurian; fraudulent climate litigation shakedowns; huge Chinese demand fuels next U.S. shale boom; and more!
Read More “Other Energy Stories of Interest: Mon, Mar 12, 2018”
Industrywide Issues | Ohio | Research | Statewide OH

OH Utica Production 4Q17: Ascent Tops in Gas, Eclipse Tops in Oil
March 9, 2018March 9, 2018

The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the fourth quarter of 2017. Production was up for both natural gas AND oil, as it was in the third quarter (see OH Utica Production 3Q17: Ascent Res. Dominates Top Producers). Utica natgas production saw a gigantic percentage increase–up 38% over the same period last year. Oil production was up a healthy 16% over the previous year’s 4Q. However, when looking at the full year, Ohio’s Utica oil production was lackluster in 2017–down 9% from 2016. Natgas production for all of 2017 was up 24% in 2017 compared to 2016. Which drillers dominated natural gas production, and which dominated oil production, in 4Q17? We have the answers…
Read More “OH Utica Production 4Q17: Ascent Tops in Gas, Eclipse Tops in Oil”
Belmont County | Jefferson County (OH) | Monroe County | Ohio

Top 3 Most-Drilled Counties in Ohio Utica for 2017
March 9, 2018March 9, 2018

If you look at the number of Utica wells drilled in 2017, Belmont, Monroe and Jefferson counties were the top 3 counties in the state for new Utica wells drilled. However, if you dig a little further, you’ll find that two of those three counties saw more wells drilled in 2017 than in 2016, while one of them saw a 45% drop in new wells drilled in 2017–indicating that county has “fallen out of favor,” at least to some extent. Which is which? For that, you have click to continue reading…
Read More “Top 3 Most-Drilled Counties in Ohio Utica for 2017”
Pennsylvania | Statewide PA

PA Marcellus Production Shifting from NE to SW PA
March 9, 2018March 9, 2018

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Every now and again it’s good to step back and look at the macro shale trends in a given state. Pennsylvania is the largest shale gas producing state in the country (yes, even bigger than Texas), so it’s good to take stock of what’s happening in PA. The Pittsburgh Business Times has done some excellent analysis of gas production in PA. Their analysis shows that regionally, production of shale gas in PA over the past four years (2014-2017) has gone up in both regions. However, it’s gone up more/faster in southwestern PA than in northeastern PA. Why? More pipeline infrastructure is available or has come online in southwestern PA over that period, while northeastern PA remains pipeline starved…
Read More “PA Marcellus Production Shifting from NE to SW PA”
CNX Resources | Energy Companies | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Range Resources Corp | Regulation | Statewide PA

Range, CNX Look for Alternatives to ME1 Pipe Following Shutdown
March 9, 2018March 9, 2018

MDN reported yesterday that due to underground horizontal direction drilling (HDD) in Chester County, PA (near Philadelphia) for the Mariner East 2 (ME2) Pipeline project, a third sinkhole had developed (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). ME2 is being built close to the existing Mariner East 1 (ME1) pipeline. The sinkhole exposed a portion of the ME1 pipeline to the open air. Not a good situation, which is why the state Public Utility Commission has temporarily shut down the propane and ethane flowing through ME1. The shutdown is for 10-14 days. Problem is, both Range Resources and CNX Gas pump propane and ethane through ME1. With the shutdown, both companies are “scrambling” to find alternative means to get their NGLs to market…
Read More “Range, CNX Look for Alternatives to ME1 Pipe Following Shutdown”
Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Gov. Justice Does 180 – Says He’ll Sign Co-Tenancy Bill
March 9, 2018March 9, 2018

West Virginia Gov. Jim Justice has done a complete 180 degree turn around with respect to signing a co-tenancy bill. As we previously reported, the co-tenancy bill was passed first by the House, and then the Senate (see WV Co-Tenancy Bill Passes in Senate – Now Waits for Gov to Sign). However, on the way to final passage, Justice wanted to link co-tenancy with joint development, which would allow drillers who own existing (old) leases on adjoining properties to pool them into a unit without signing new shale leases with the owners. He threatened to veto a co-tenancy bill if there is no joint development bill too (see WV Gov. Justice Kills Co-Tenancy Bill by Linking it to Joint Dev). Justice got a lot of blowback, from everyone, and soon after his shoot-from-lip comments, he backed off his threat to veto. Yesterday Justice said he will sign the co-tenancy bill, that there are a lot of “positive benefits” to the legislation. What a turnaround!…
Read More “WV Gov. Justice Does 180 – Says He’ll Sign Co-Tenancy Bill”
Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | Lackawanna County | Pennsylvania

More on Yellow Smoke Coming from Gas-Fired Plant Near Scranton
March 9, 2018March 9, 2018

We spoke too soon. In a story MDN published yesterday, we said that Big Green propagandist mouthpiece PBS StateImpact Pennsylvania was the only “news” outlet reporting on “yellow smoke” released as part of the commissioning process for the Lackawanna Energy Center, a Marcellus gas-fired electric plant being built near Scranton (see Gas-Fired Power Plant Near Scranton Nears Startup; Yellow Smoke). We said yesterday that not even the Democrat-controlled Scranton Times-Tribune found the “yellow smoke” report newsworthy. A day later, the Times-Tribune was shamed into releasing a story about it. Once again, the only people quoted as experiencing ill health effects following the “yellow smoke” are long-time local activists, people who oppose the project…
Read More “More on Yellow Smoke Coming from Gas-Fired Plant Near Scranton”
Anti-Drilling/Fossil Fuel | Columbia Pipeline Group | Energy Services | Industrywide Issues | Maryland | Pipelines | Statewide MD | TC Energy/TransCanada

Maryland Antis Oppose 13th Pipeline Under Potomac as “Dangerous”
March 9, 2018March 9, 2018

Anti fossil fuel nutters have been on a holy mission to stop a 3.5-mile, 8″ pipeline from being installed under the Potomac River since last summer (see Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement). To hear them talk, you’d think this is the first time a pipeline has been drilled under the Potomac River–that drilling and installing a pipeline under the Potomac will result in an environmental holocaust. However, TransCanada, via its Columbia Pipeline subsidiary, has already built and operates 12 other pipelines that go under the Potomac River–just in the State of Maryland! Yet the president of the Washington County (MD) Board of County Commissioners, Terry Baker, says “the dangers are high” and “real” if this, the 13th pipeline, gets installed. Why, Mr. Baker, are the dangers “high” and “real” now–but they weren’t high and real the 12 other times a pipeline was installed under the river?…
Read More “Maryland Antis Oppose 13th Pipeline Under Potomac as “Dangerous””
Best of the Rest

Other Energy Stories of Interest: Fri, Mar 9, 2018
March 9, 2018March 9, 2018

The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: How Philadelphia Energy Solutions bet on accessible American crude–and lost; Devon selling Barnett Shale assets for $553M; Shell & Blackstone bid on BHP Billiton’s shale assets; Shell spending more on oil than gas for next two years; yet, long-term, Shell gas production will triple oil production by 2050; DOE spends $12M on natural gas vehicle engine research; shale oil defeating its skeptics; Saudis ink LNG deal with Shell; and more!
Read More “Other Energy Stories of Interest: Fri, Mar 9, 2018”
Accidents | Chester County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole
March 8, 2018March 8, 2018

3rd sinkhole opens up in Chester County, PA

Sunoco Logistics Partners (aka Energy Transfer Parnters) has had its challenges in constructing the twin Mariner East 2 (ME2) pipelines across Pennsylvania. Earlier this week MDN told you that underground horizontal directional drilling (HDD) work in Chester County has led to a third sinkhole developing in the area (see 3rd Sinkhole Appears Near ME2 Construction in Chester County, PA). For most of its length, ME2 is being built right next to ME1 (Mariner East 1), a liquids pipeline originally built in 1931. ME1 now flows 70,000 barrels a day of NGLs like propane to Marcus Hook, PA. The third sinkhole has exposed a portion of ME1. That is, bare steel pipeline was uncovered due to the sinkhole. Not good. That situation led to the PA Public Utility Commission (PUC) slapping ME1 with an emergency shut down order yesterday…
Read More “PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole”
Accidents | Belmont County | Energy Companies | Industrywide Issues | Ohio | XTO

Exploded XTO Well in Belmont County Finally Capped After 20 Days
March 8, 2018March 8, 2018

On Feb. 15, XTO Energy was drilling a Utica Shale well on the Schnegg well pad near Captina Creek (York Township, Belmont County, OH) when they “lost control” of the well and it exploded and caught fire (see XTO Energy Utica Well Explosion in Belmont County – 100 Evacuated). Fortunately no one was injured. Some of the ~100 people from the nearby 30 homes who were evacuated finally felt safe enough to return home–some 10 days later (see Neighbors of Exploded XTO Well in Belmont, OH Finally Return Home). However, not all of them returned home. Some did not want to return until the well is capped. We’re happy to report the well is finally, after 20 days, now capped. In order to cap it, workers first had to flare the well (burn off excess gas)–which happened Tuesday. XTO’s #1 priority now that the well is capped is to get those displaced back into their homes…
Read More “Exploded XTO Well in Belmont County Finally Capped After 20 Days”
CNX Resources | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp

Top 3 Most Productive Drillers in the Marcellus Shale
March 8, 2018March 8, 2018

We spotted an intriguing story that summarizes some of the information found in a newly-released report from private equity firm Baird Equity Research. Baird’s report purports to show, using data, “the most productive operators in the Marcellus shale.” What is the criteria used? They use productivity per average well along with how much money the average well is generating for the operator (i.e. driller). We wish we had a copy of the full report. Sadly, we do not. However, we do have the article summarizing it, which shares the top three operators. The top operator stands head and shoulders above the rest. Would it surprise you to learn the top operator in the Marcellus, according to Baird, is Cabot Oil & Gas? No, it didn’t surprise us. What about the other two in the top three? And what about the top Utica operator? Read on…
Read More “Top 3 Most Productive Drillers in the Marcellus Shale”
Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | Lackawanna County | Pennsylvania

Gas-Fired Power Plant Near Scranton Nears Startup; Yellow Smoke
March 8, 2018March 8, 2018

Invenergy is currently building the Lackawanna Energy Center, a 1,480 megawatt plant in Jessup, PA (near Scranton) that will cost “well over $1 billion” according to an exclusive MDN source working on the project. When the plant is completed (first phase now done), and when it goes online (to be determined), it will be Pennsylvania’s largest natural gas-fired electric generating plant. As with all fossil fuel-related projects, there is a dedicated (small) group of antis attempting to stop the project. They frequently conduct smear campaigns, making all sorts of wild claims, in their futile attempt to stop the project. Here’s the latest example. The plant is, this week, going through a “short” commissioning stage–a time when they test the machinery in preparation to begin operations. As part of the commissioning, there is a “visible vapor plume and audible noise”–but NO chemicals are involved. Yet a local, well-known anti, upon seeing a waft of “yellow smoke” coming from the plant, immediately claimed she felt “burning [in] my nose, throat, sinuses and chest”–even though no chemicals were used during testing. What does that tell you about the veracity of the antis opposed to the plant?…
Read More “Gas-Fired Power Plant Near Scranton Nears Startup; Yellow Smoke”