BusinessCreator, Inc.

NewsLetters

  • Permit Activity last week.
    • PA – 27 permits; EQT in Greene County; Range in Washington
    • OH –15 permits; Gulfport in Belmont and Noble; Hilcorp in Columbiana; ODNR reports there are 53 rigs in OH

Expo/Industry events for the next few months:

OOGA Oilfield Expo and Technology Conference, Dec 3-4, Cleveland

Look for an exciting program that will provide information for both conventional operators and shale producers.

Chesapeake, Enervest and Ergon have become platinum sponsors.  The Expo is certainly gaining momentum.  

http://ooga.org/expo/

Latest facts and a rumor from the Marcellus and Utica Shale

Key Facts from Midstream PA 2014

1. Penn State Marcellus Center for Outreach and Research – PA Midstream Opportunities

  • Marine East 2 (Sunoco Logistics, 2016)
    • $2.5 B, 300 miles, NGLs to Marcus Hook
  • PennEast Pipeline (UGI Energy Services, 2018?)
    • $1B, 108 new miles, NG to NJ
  • Diamond East (Williams, 2018)
    • $0.8B, 50 miles, NG to Western NJ
  • Leidy Southeast Expansion (Williams, 2015)
    • $3B, 30 miles “loops”, NG
  • Constitution (Williams / Cabot, 2016)
    • $0.7B, 124 miles, NG to NY/NE
  • Atlantic Sunrise Project (Williams, 2017)
    • $3B, 178 new miles, NG to south

2. McNees Wallace & Nurick

  • $15 billion in pipe line projects planned for the Appalachian Basin in 2015

3. IMG Midstream

  • Develops, owns and operates small scale electric generating stations in the Marcellus Shale region; station are about the size of compressor station
  • 14 station projects in development in Tioga, Bradford, Susquehanna, Wyoming, Clarion, Washington, and Greene counties
  • First project starts in 30 days.

4. UGI Energy Services

  • 15 projects in Eastern PA through 2017
  • Work will be local sourced looking for the following services:
    • Engineering services
    • Permitting services
    • Environmental inspection
    • Logistics
    • Electrical supplies
    • Pipe fittings
    • Instrumentation
    • Signage
    • Safety Equipment
       
  • Details of the Halliburton – Baker Hughes deal.  Halliburton agreed on Monday to buy its rival Baker Hughes for about $34.6 billion, uniting two big oil field services providers in a friendly deal only days after a hostile takeover battle appeared to be brewing.

    But the tie-up raises questions about whether the takeover will survive antitrust scrutiny, given the level of consolidation that it promises within the oil production services business.

    The deal came after an announcement by Baker Hughes on Friday that Halliburton had submitted a list of board nominees after talks between the two companies broke down. Halliburton’s submission suggested that it was willing to go hostile if rebuffed.

    A merger would help the two companies, both based in Houston; compete better against Schlumberger, which is by far the leader in oil field services.

    Combining the two companies would merge two decades-old competitors in the oil field services business. Halliburton was founded in 1919, and has since become one of the leading suppliers of equipment for hydraulic fracturing, better known as fracking — the drilling technique underpinning the American energy boom.

    Baker Hughes was created in 1987 with the union of Baker International and the Hughes Tool Company, both of which date back to the early 20th century. Among the products that the company’s predecessors created is a rotary bit for drilling wells through rock.

    The combined company will keep the Halliburton name and will be led by David J. Lesar, the current chairman and chief executive of Halliburton.

    Together, the two are expected to save nearly $2 billion in costs through a combination of operations and research and development.

    A major question about the proposed takeover will be the reaction of antitrust regulators. To that end, Halliburton has agreed to sell off businesses that generate up to $7.5 billion in revenue to appease the federal government. Mr. Lesar told analysts on Monday that his team and its advisers had already begun to identify potential buyers for any operations that would need to be sold.

    The businesses that Halliburton sells off will probably impact a number of you.  We will try to track these sales and report on the companies in Facts & Rumors.
     
  • Talisman selling Marcellus pipelines.  Bloomberg reports that Calgary-based Talisman Energy Inc. is in talks with Regency Energy Partners LP regarding the sale of its pipeline network servicing the Marcellus Shale region in New York and Pennsylvania.

    According to anonymous sources close to the matter, the deal could be valued at more than $1 billion and could be officially announced in as little as three weeks. A formal agreement has yet to be finalized, and Talisman could still elect to sell to another buyer besides Regency.
     
  • Waterless fracking in Tuscarawas County, OH.    A Canadian company that specializes in waterless fracking is putting its technology to use in the Utica Shale play in Tuscarawas County.

    Besides saving water, the new technology has the potential to give energy companies access to the oil trapped deep underground in the Utica play.

    GasFrac Energy Services uses liquid butane and mineral oil to fracture wells, instead of water — which is how all previous wells have been fracked in the Utica play. It generally takes more than 2 million gallons of water to frack a well.

    The company announced last week that it had begun fracturing its first well in the Utica, but it did not disclose its partners in the well. It said a number of companies have an interest in the project.

    One of the likely partners is EV Energy Partners, which is drilling a test well in Clay Township near Port Washington with eight other companies. That well is being fractured with liquid butane and mineral oil.

    According to EV Energy, the well could begin production in December.

    “We’re excited but cautious as we are bringing new technology to bear in this process,”  company President and CEO Mark Houser said.  “We are in the middle of the completion operations and have completed five of the 20 (fracking) stages so far."

    We’ll have to track this to see if other E&P companies begin to use GasFrac’s technology.
     
  • Purgason to lead AccessMidstream.  Williams announced that Robert Purgason and Walter Bennett each will assume a role as senior vice president of one of the company's operating areas, effective Jan. 1. Williams' board of directors confirmed both Purgason's and Bennett's roles, which will report directly to Williams President and Chief Executive Officer Alan Armstrong.

    The operating area Purgason will lead encompasses the assets and operations of Access Midstream Partners, which includes natural gas gathering and processing in the Marcellus, Utica, Eagle Ford, Haynesville, Barnett, Mid-continent and Niobrara producing areas.
     
  • Magnum Hunter’s monster well in WV. Tim Carr believed a Monroe County Utica Shale well producing 38.9 million cubic feet of natural gas per day last year was big.

    That was until he learned of the 46.5-million cubic feet pumping daily at the Magnum Hunter Stewart Winland well in Tyler County.

    Magnum Hunter drills wells in northern West Virginia and eastern Ohio via its Triad Hunter subsidiary.

    Company officials said their Winland well yielded a peak rate of 46.5 million cubic feet per day in September at a choke rate pressure of 7,810 pounds per square inch.

    "These numbers, both the rate and pressure, are unprecedented," Carr said.
     
  • Blue Racer Berne processing plant ready to open.  The Berne processing complex in Monroe County, which has the capacity to hold three plants each processing 200 million cubic feet per day of natural gas, is almost ready to open.

    The first 200 million-capacity plant will open in November, said Casey Nikoloric, spokeswoman for Blue Racer Midstream LLC, the company that runs the Monroe County, OH project. Construction of the second unit has started and should be in-service in April.

    Berne should be a boon to the chronically underdeveloped infrastructure in the Utica shale region. A new transmission line for the project was completed this week, according to a filing the company made to state regulators. Dallas-based Blue Racer had asked regulators for an expedited review of its plan to build the 138-kilovolt electrical transmission line in May and regulators approved the 2,000-foot line a month later.

    The cryogenic processing facilities strip away natural gas liquids from dry natural gas. Natural gas liquids are increasingly valuable and easy to export. Berne will start operations once it gets utility service connected and ties up a few other loose ends, Nikoloric told me.
     
  • Drilling the East’s largest National Forest. Oil rigs could one day join the treetops in George Washington National Forest south of the nation’s capital.

    Despite protests from Virginia’s Democratic governor and environmental groups, the U.S. Forest Service announced this week it would make 177,000 acres – or about 17 percent – of the forest in Virginia available for leasing for horizontal drilling and hydraulic fracturing, or fracking.

    Lynn Cameron of Mount Crawford, Va., takes in the view while hiking the Mines Run Trail in 2013 in George Washington National Forest.  

    The practice would be allowed on about 167,000 acres where there are existing private mineral rights – in other words, sites where people, groups or companies own whatever oil, gas and other minerals sit beneath the soil. It would also be allowed on another 10,000 acres that have already been leased to oil and gas firms.

 

 

Northeast Supply Enhancement