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Permit Activity last week. 

  1. PA – 15; Consol in Allegheny (airport); Chesapeake in Bradford
  2. OH –0; I’m wondering if the ODNR offices were closed for the week.

Expo/Industry events for the next few months

Upstream PA 2015 – April 16, 2015 Penn State

Do you know what is going on in the Marcellus?

Upstream PA 2015 is worth half-day of your time on April 16.  How can you plan for the remainder of the drilling season without knowing what’s coming in the remainder of 2015.   The following information will be presented

  • Drilling activity in the Marcellus
  • Tax and regulation challenges facing the industry
  • Learn how to make your voice heard in the severance tax debate
  • E&P updates from Cabot Oil & Gas and Inflection Energy
  • API’s pricing outlook
  • PA Midstream activity

It’s worth a half-day of your time to get the latest information.  If you want to plan for the remainder of 2015, you will want to attend.

Upstream PA 2015
April 16, 2015
Penn Stater Inn
State College, PA

http://upstreampa2015.com/


Ohio Valley Oil & Gas Expo
April 28 & 29
James Carnes Center
St. Clairsville, OH

Last year’s event showcased over 150 booths and brought in 2,000+ visitors.  An even larger turn out is expected this year, as this area continues to evolve into the busiest shale play—making our business to business event the place to be!
 

Register now to exhibit!  www.ohiovalleyoilgasexpo.com


“Get Ready for Summer Safety Seminar”
May 27, 2015
Undo’s
St. Clairsville, OH

Summertime is the height of the drilling season in the oil and gas industry.  It is a time when workers have to be especially aware of the safety issues and how it relates to work practices, clothing and general health.

The “Get Ready for Summer Safety Seminar” will the first safety seminar of its type held in the Marcellus and Utica Shale regions of OH, WV and PA. 

The topics to be covered in the seminar are:

  • Summer means: It’s storage tank vapor hazard season
  • Bulwark – Flame Resistant Clothing
  • Timberland PRO – Foot protection
  • HexArmor – Hand protection
  • Sqwincher – Hydration
  • Strata Products Worldwide – OSHA training and gas meters

Register here:  http://bit.ly/1BEDfRr

Latest facts and a rumor from the Marcellus and Utica Shale

  • Utica Upstream Seminar.  We had our Utica Upstream seminar this week and the presenters provide relevant and very recent information about drilling activity in OH. 

    Ohio Department of Natural Resources information:
     
  • ODNR projects between 550-600 permits in 2015 which is down from 702 in 2014.
  • Rig counts by county as of 4/6/15
    • Belmont               6
    • Carroll                  1
    • Columbiana        2
    • Guernsey             2
    • Harrison               6
    • Jefferson             1
    • Monroe                5
    • Noble                   1
       
  • There are 581 wells which are waiting pipelines
  • BP, which paid $300 million dollars for leases in Trumbull County, OH, drilled about 4 or 5 wells and hit substantial natural gas, but BP was looking for oil.  It ended up plugging the wells because it is an “oil” company.
     
  • Shell makes big play.  Royal Dutch Shell Plc’s $70 billion agreement to buy BG Group Plc may be just the signal that other dealmakers need to make their own energy takeover bets, particularly in the U.S. shale sector.

    Bankers and analysts say that Shell’s move is telling potential acquirers that one of the biggest players is now confident enough to make a big play – which the fears of a further big slide in oil and gas prices may be fading.

    Following the more than 50 percent collapse in oil prices since the middle of last year, the market has been too volatile to give buyers and sellers clarity on valuations, bankers say, even as potential acquirers knock on doors to examine a range of assets.

    The Shell deal with BG brings together two European companies with a global reach. A tie-up will ripple across an energy industry ripe for consolidation.

    On CNBC the day of the deal, Shell’s chairman, Ben van Beurden stated the natural gas was the driver in the deal.  He commented natural gas is good for the environment.

    Everyone is now wondering what is the impact of this deal on the cracker plant in Beaver County, PA? We’ll keep you posted.
     
  • Halliburton selling businesses to make the Baker Hughes’ deal happen.  Oilfield services giant Halliburton said it plans to sell its fixed-cutter and roller cone bits, directional drilling, and logging-while-drilling (LWD)/measurement-while-drilling (MWD) businesses as it moves toward closing its $34.6 billion acquisition of competitor Baker Hughes.

    Halliburton estimates the sale of the businesses will close around the same time as the Baker Hughes deal, which is expected late in the second half of 2015.

    “Although we would prefer to retain these assets, we will be required to divest some of our overlapping businesses to obtain competition authorities’ approvals as anticipated when we announced the Halliburton-Baker Hughes transaction," Dave Lesar, CEO, Halliburton,  said.

    Halliburton and Baker Hughes shareholders overwhelmingly approved the deal last week.

    Halliburton will operate as one company, including the businesses held for sale, until the sale of the identified businesses is complete. 
     
  • Oil in Harrison County, OH.  An E&P company drilled into the Trenton Black River and hit oil.  (RUMOR)
     
  • Noble realignment leads to job cuts.  Noble Energy, one of the country’s largest independent producers, said Tuesday it “is implementing an organizational realignment of its US operations,” that will cut roughly 100 jobs in Denver and Greeley, CO, and another 120 positions in Houston and Cecil Township, PA, south of Pittsburgh, according to media reports.

    The cuts represent about 10% of Noble’s 2,200 US employees, Shale Energy Business Briefing (SEBB) understands.

    However, Colorado also is gaining something in the reorganization, as executives in Noble's Denver office now will oversee all of the company's US onshore operations. Previously, US onshore operations were overseen by executives in Noble's Houston office.
     
  • Rover Pipeline in OH continues to make adjustments.  Rover Pipeline, LLC has provided updated maps detailing the proposed route of the Rover Pipeline to local libraries and government offices in the counties through which the route is proposed. The maps were submitted as part of the project’s filing on February 23, 2015 with the Federal Regulatory Commission (FERC).  As with previous Rover Pipeline maps, it is important to note that adjustments to the route continue to be made as the surveys are completed.  A list of locations where map books are located, along with the most up-to-date information on the Rover Pipeline project can be found on the recently launched Rover Pipeline website, RoverPipelineFacts.com, or by calling the project’s toll-free number at 1-888-844-3718.

    The approximately $4.2 billion 711-mile Rover Pipeline project will primarily serve domestic consumers by transporting natural gas from the rapidly expanding Marcellus and Utica shale production areas to U.S. markets in Midwest, Great Lakes and Gulf Coast regions of the United States.
     
  • New developments in the Utica and Point Pleasant shale.  Low organic gas rates that have organizations balancing spending cuts with promises of ramped-up production are driving some new development in the Utica and Point Pleasant shale, where deeper wells can yield additional gas and liquids.

    Variety Resources, Consol Power, and Rice Energy are amongst Marcellus shale producers reporting constructive benefits from their Utica and Point Pleasant wells, and are expecting to drill much more there regardless of budget cuts of up to 45 %.
     
  • Williams buy more pipeline assets in the Utica.  EV Energy Partners said Monday, April 6; it’s signed a definitive agreement to divest its 21% interest in Utica East Ohio Midstream (UEO) to Williams Partners subsidiary Utica Gas Services for $575 million in cash – nearly doubling its investment.

    EV Energy's net capital contribution to UEO was roughly $294 million. The purchase gives Williams a 70% equity interest in the midstream system.

    "This transaction, along with the previous sale of our interest in Cardinal Gas Services [sold to Samchully Asset Management ad E1 for $162 million last October], reflects the completion of our divestiture of midstream investments in the Utica Shale.  We are pleased with the returns we achieved and look forward to participating in what we expect to be an attractive upstream A&D market in the second half of the year," said Michael Mercer, CEO, EV Energy.
     
  • Trans Energy sells wells and acreage in WV.  A Marcellus Shale drilling company plans to sell off some of its wells and acreage in the play to focus on its northern West Virginia holdings. Trans Energy Inc. (OTCQB: TENG) said Thursday it would sell 12 operating wells and 5,159 acres in Wetzel County, W.Va., for $71.3 million to an undisclosed buyer. That's about one-third of its acreage in the Marcellus Shale, according to a statement from St. Mary’s, W.Va.-based Trans Energy.
     
  • Nat Gas plants replacing coal plants in OH.  At least six gas-fired power plants are being built or on the drawing boards in Ohio.

    All are being built by independent power companies. They hope to capitalize on Ohio's plentiful and cheap shale gas, on the decision by companies like FirstEnergy to close old coal-burning power plants rather than upgrade them or replace them with natural gas plants, and on proposed federal rules requiring power companies to cut their carbon dioxide emissions.

    The latest gas project to make the news is in shale gas-rich Carroll County, where a Swiss power plant builder has begun grading parts of a 77-acre parcel about 2 miles outside of the county seat Carrollton. Carroll County Energy's 750-megawatt gas-fired power plant will have the capacity to generate enough electricity to power about 750,000 homes, on average.

Rig Count

  • Baker Hughes Rigs count for the week April 10, 2015
     
  • PA
    • Marcellus 48 unchanged
    • Utica 2 unchanged
  • Ohio
    • Utica 26 down 1
  • WV
    • Marcellus 22 unchanged
  • TX
    • Eagle Ford – 125 down 12
    • Permian Basin  220 down 17
  • NM
    • Permian Basin – 44 down 4
  • ND
    • Williston – 88 down 2
  • MT
    • Williston – 1 unchanged
  • CO
    • Niobrara –26 down 1

 

  • TOTAL U.S. Rig Count 988 down 40

 

PA Permits for April 2, to April 9 2015

           County                                      Township                                  E&P Companies

  1. Allegheny                                    Findlay                                           Consol
  2. Allegheny                                    Findlay                                           Consol
  3. Allegheny                                    Findlay                                           Consol
  4. Armstrong                                   Burrell                                            EQT
  5. Bradford                                     Asylum                                           Chesapeake
  6. Bradford                                     Orwell                                             Chesapeake
  7. Bradford                                     Smithfield                                       Chesapeake
  8. Cameron                                    Shippen                                          Seneca
  9. Elk                                               St. Mary’s                                       Seneca
  10. Elk                                               St. Mary’s                                       Seneca
  11. Greene                                       Washington                                     EQT
  12. Greene                                       Washington                                     EQT
  13. Susquehanna                            Rush                                                 Chesapeake
  14. Westmoreland                          Salem                                               Apex
  15. Westmoreland                          Salem                                               Apex

 

OH Permits – week ending April 4. 2015

 

County                                   Township                                          E&P Companies

 

  1. NO PERMITS THIS WEEK

 

Maximize your 2015 marketing budget by being a member in ShaleDirectories.com

Joe Barone jbarone@shaledirectories.com 610.764.1232

Vera Anderson vera@shaledirectories.com 570.337.7149

Midstream PA