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Expo/Industry events for the next few months

Midstream PA 2017
October 19, 2017
Penn Stater Conference Center
State College, PA
http://midstreampa.com/ 

2017 NARO Appalachia Annual Conference
October 30-31
The Greenbrier
White Sulphur Springs, WV
http://www.naro-us.org/event-2633934?CalendarViewType=0&SelectedDate=9/5/2017 

Veolia Water Treatment Seminar
Wednesday, November 8
Hilton Garden Inn Pittsburgh/Southpointe
1000 Corporate Drive
Canonsburg, Pennsylvania
https://events.r20.constantcontact.com/register/eventReg?oeidk=a07eei63an3e2146025&oseq=&c=&ch= 

For other events visit http://www.shaledirectories.com/site/oil-and-gas-expo-information.html

Latest facts and a rumor from the Marcellus, Utica, Permian, Eagle Ford, Bakken and Niobrara Shale Plays 

Another Super Well Site.  Eclipse Resources is developing a giant well site in Monroe County, PA where it will have 21 wells.  (RUMOR)  

This rumor may be indicating a trend to super well sites.  Chevron has two well sites in Moundsville, WV that will drill 35 wells on each site.  How many more super well sites are coming?  We’ll be looking for them.  

Nexus Completion Date.  Canadian energy company Enbridge Inc and Michigan's DTE Energy Co plan to complete their $2 billion Nexus natural gas pipeline from Ohio to Ontario late in the third quarter of 2018, they said on Thursday.

The U.S. Federal Energy Regulatory Commission approved construction of the pipeline on Wednesday. Once complete, it will move up to 1.5 billion cubic feet per day of gas from the Marcellus and Utica shale formation in Ohio, Pennsylvania and West Virginia to the U.S. Midwest and eastern Canada.

One bcfd is enough gas to supply about 5 million U.S. homes.

The approval "keeps the project on track to meet its targeted in-service late in the third quarter of 2018," Enbridge spokesman Adam Parker said in an email.

The companies said the pipeline would support growing demand for gas in the U.S. Midwest and eastern Canada and help offset the decline in traditional western Canadian supplies available to service the markets.

3 Rover Compressor Units Get Approval.  Energy Transfer Partners announced that Rover Pipeline, LLC received approval from the Federal Energy Regulatory Commission (FERC) to begin operating three compressor units at its Mainline Compressor Station 1 in Carroll County, Ohio (USA).

Phase 1A of the pipeline can now move more than 1 billion ft3/d of natural gas from Cadiz (Ohio) to Defiance (Ohio), which brings the project closer to its design total of 3.25 billion ft3/d. Phase 1A began operating on 31 August 2017.

Phase 1B of the pipeline from Seneca (Ohio) to Cadiz is anticipated to be complete by the end of the year. The Rover pipeline project is expected to be in full service by the end of the first quarter of 2018.

The approximately 713 mile pipeline will transport natural gas from the Marcellus and Utica Shale production areas to markets across the US, as well as into Union Gas Dawn Storage Hub in Ontario (Canada).

Williams and SWN Partner on Gathering Lines.  Williams Partners L.P. announced the execution of agreements with Southwestern Energy Company to expand its services to Southwestern in the Appalachian Basin of West Virginia where Williams Partners has established a strong operational footprint. The agreements call for Williams Partners to deliver gas processing, fractionation, and liquids handling services in Southwestern’s Wet Gas Acreage in the Marcellus and Upper Devonian Shale along with gas gathering services for Southwestern in its South Utica Dry Gas Acreage.

Williams Partners will provide Southwestern with 660 million cubic feet per day (MMcf/d) of processing capacity to serve a 135,000-acre dedication in Southwestern’s Wet Gas Acreage in the Marcellus and Upper Devonian Shale in Marshall and Wetzel counties in West Virginia. As a result of this agreement, Williams Partners expects to further build out its Oak Grove processing facility for Southwestern’s expanding production of wet gas. The Oak Grove processing facility has the ability to expand by an additional 1.8 Bcf/d of gas processing capacity.

Williams Partners’ Northeast Gathering & Processing Operating Area also secured a gathering dedication of Southwestern’s South Utica Dry Gas Acreage – 71,500 acres in Marshall and Wetzel counties in West Virginia. The gathering and processing expansions will be supported by long-term, fee-based agreements and volumetric commitments.

“Executing these agreements with a premier customer like Southwestern is a direct reflection of how well-positioned our existing assets are in our Northeast Gathering & Processing Operating Area footprint,” said Michael Dunn, chief operating officer and executive vice president of Williams Partners’ general partner. “We look forward to expanding our business relationship with Southwestern in the Northeast where our access to multiple gas takeaway markets and the ability to efficiently expand our infrastructure showcases our ability to serve the rapidly growing gas production in the Marcellus and Utica.”

Downstream gas connections into Columbia’s Leach Xpress and Mountaineer Xpress are being established to boost market access and diversify gas pricing opportunities.

“The new agreements with Southwestern are actually a ‘win-win-win’ opportunity,” said James Scheel, senior vice president for Williams Partners’ Northeast Gathering & Processing Operating Area. “We are able to grow our gathering and processing volumes, expand our services for a valued customer, and increase the takeaway hub by solidifying downstream connections from processing to new interstate pipelines – which benefits all producers in this area.”

Trucks Moving Ethane from Marcus Hook.  While ethane in large quantities is a raw material in plastics production, smaller volumes are used in research and development in the manufacture of ethane-fueled power generation equipment and facilities, for refrigeration for manufacturers and storage terminals, for enhanced oil recovery at well sites, and in the manufacture of electronics, Madray said.

Sunoco Logistics is currently transporting ethane from Western Pennsylvania to Marcus Hook in its controversial Mariner East system pipeline, which critics have complained is aimed at serving an export market.

Sunoco Logistics, a subsidiary of Energy Transfer Partners LP, has said that construction of the pipeline at the Marcus Hook terminal would provide an impetus for new domestic markets to emerge. Its pipeline will also deliver ethane as a supplemental fuel to a new power plant under construction in Cambria County.

Could the Appalachian Basin Become Petrochemical Hub?  The Little Tikes Co. gets a lot of the resin it uses to make plastic toys from a Chevron chemical plant on the Gulf Coast of Texas.

Thanks to Hurricane Harvey in late August, Chevron closed its plant until December, and Hudson-based Little Tikes had to find another polypropylene supplier as resin costs jumped 25 percent.

“Everybody in the industry is scrambling, which is just driving prices up,” said Andrew Pierzynski, a Little Tikes sourcing manager.

Little Tikes and other companies that use plastics could avoid hurricane-related disruptions, and reduce their transportation costs, if they could buy resins made in Ohio, Pennsylvania or West Virginia from Marcellus and Utica shale gas.

Utica Summit V, held Wednesday at Walsh University’s Barrette Center, explored how the tri-state Appalachian Basin could become a petrochemical hub. The conference was produced by the Canton Regional Chamber of Commerce, ShaleDirectories.com and The Canton Repository.

Natural gas liquids from the Utica and Marcellus shales are typically transported to the Gulf Coast turned into chemicals used in plastics and shipped back to manufacturers in Ohio and neighboring states.

“Right now we’re exporting a tremendous amount of value out of the region,” said Paul Boulier, a petrochemicals expert with the regional economic development group Team NEO. “What I’d like to do is try to have this region benefit from that and create wealth and jobs going forward.”

Shell, the global energy giant, has worked toward building an ethane cracker in Monaca, Pa., over the past several years. And PTT Global Chemical, a Thai company, has explored a similar project on the Ohio River in Belmont County.

If built, those multi-billion-dollar plants would be within 400 miles of more than 17,000 companies that make chemicals, rubber and plastics, including 250 with more than 100 workers. The plants also would have access to a network of railroad, highway and river transportation.

The region has the manufacturing infrastructure and know-how to develop a petrochemical hub, but the clock is ticking, warned James Cooper of the American Fuel & Petrochemical Manufacturers, an industry group.

“If we don’t get this done within 10 years, somebody else is going to do it,” Cooper said.

Having a place to store ethane and natural gas liquids, such as propane, will be key to developing a regional petrochemical industry.

Natural gas liquids can be stored in tanks, pipelines or underground. Mountaineer NGL Storage is one of the companies exploring an underground solution.

The company wants to store natural gas liquids in underground salt deposits along the Ohio River near Clarington. Mountaineer plans to pump freshwater thousands of feet below the earth and dissolve the salt, creating voids where it can store hydrocarbons.

A factory across the river from Mountaineer’s site would use some of the brine. The rest would be held in a pond and used to balance the amount of natural gas liquids stored below the surface, like the counterweight on an elevator.

David W. Hooker, a Mountaineer executive, said the company plans to store 3.5 million barrels of natural gas liquids at the site and could increase capacity up to 10 million barrels.

The company has invested $20 million in the $150 million project since 2013, but hasn’t obtained all the required permits.

Even when manufacturers don’t have to worry about hurricanes disrupting resin supplies, getting raw materials can be a logistical headache.

Pierzynski, who spoke on a conference panel, said it can take up to three weeks to get resin by train from Texas or Canada, where the company buys polyethylene, another type of plastic.

Having a local source of petrochemicals would hopefully cut supply disruptions and price spikes and allow Little Tikes to respond to large orders on a tight schedule.

“We don’t go back to Walmart and say, ‘I’m sorry, I can’t get you that,’ because they’ll say, ‘Alright, we’re going take the rest of your product off the shelf and put your competitor in,’” Pierzynski said

2018 Could Be Record Year for Oil Production.  The Energy Information Administration forecasts total U.S. crude oil production to average 9.2 MMBPD in 2017, and 9.9 MMBPD in 2018 -- which would mark the highest annual average production in U.S. history, surpassing the previous record of 9.6 MMBPD set 47 years ago.

U.S. crude oil production is estimated to have averaged 9.3 million barrels per day (MMBPD) in September, an increase of roughly 250,000 BPD from the August average, the EIA’s Short-Term Energy Outlook (STEO) reports.

Crude oil production in the Gulf of Mexico is estimated to have increased to a monthly average of 1.7 MMBPD in September, following Hurricane Harvey, an increase of 70,000 BPD from the August level, Kallanish Energy learns.

Record NatGas Production.  U.S. dry natural gas production is forecast to average 73.6 billion cubic feet per day (Bcf/d) in 2017, a 0.8 Bcf/d increase from the 2016 level, the Energy Information Administration’s just-released Short-Term Energy Outlook (STEO).

Natural gas production in 2018 is forecast to be 4.9 Bcf/d higher than the 2017 level -- to a record 78.5 Bcf/d, Kallanish Energy learns.

In September, the average Henry Hub natural gas spot price was $2.98 per million British thermal units (MMBtu), up 8 cents/MMBtu from the August level.

Expected growth in natural gas exports and domestic natural gas consumption in 2018 contribute to the forecast Henry Hub natural gas spot price rising from an annual average of $3.03/MMBtu in 2017, to $3.19/MMBtu in 2018.

NYMEX contract values for January 2018 delivery that traded during the five-day period ending Oct. 5, suggest that a range of $2.28/MMBtu to $4.63/MMBtu encompasses the market expectation for January Henry Hub natural gas prices at a 95% confidence level.

FERC Gives Approval for Atlantic Bridge Pipeline in NY.  The Federal Energy Regulatory Commission (FERC) last week granted permission to Algonquin Gas Transmission (i.e. Spectra Energy, now owned by Enbridge) to build new pipeline infrastructure in New York State, part of the $452 million Atlantic Bridge expansion project. Atlantic bridge was approved by FERC back in January. The project beefs up capacity along the Algonquin Pipeline, along with Spectra Energy’s Maritimes & Northeast Pipeline, to carry more Marcellus/Utica gas into New England and (eventually) all the way to Nova Scotia, Canada. 

Well Completion Up 63%.  The number of wells completed in the U.S. in the third quarter increased an estimated 63%, compared to Q3 2016, the American Petroleum Institute reported.

It said the oil wells completed grew by 84% from a year ago, Kallanish Energy finds.

The report, released Monday, “shows evidence that domestic oil and natural gas development remains strong,” said Hazem Arafa, director of API’s statistics department.

The API released no specific data on well completions. The information is available by subscription from analytics/consulting firm IHS, API’s primary distributor.

Rex’s Latest Production Report.  Rex Energy has released production data for the two-well Frye pad in the Moraine East area of Western Pennsylvania, Kallanish Energy reports.

The Marcellus Shale wells are producing at an average 24-hour rate of 9.436 million cubic feet-equivalent per day (MMcfe/d), said the company, which is based in State College, Pa. The production is 57% liquids from both wells, it reported.

The wells are averaging 4.10 MMcf/d of natural gas, plus 820 barrels per day (BPD) of natural gas liquids and 70 BPD of condensate.

The wells, with laterals that are 6,300 feet long, are in Butler County. The results, on a per lateral foot basis, the highest that Rex Energy has achieved in the Moraine East area, the company said.

“Over the last six months, the company has partnered with an engineering firm to review our historical completion data with the goal of developing an improved completion design,” said president and CEO Tom Stabley in a statement.

“The wells on the Frye pad are the first to be completed with this new design and we are encouraged by the early results,” he said.

Rex Energy has also completed four wells on the Wilson pad in the Butler Operated Area. Those wells will be placed into sales in November. The laterals are about 9,300 feet long.

The independent producer is working on completing three wells on the Manuel pad in the Moraine East area. The wells are scheduled to be completed and placed into sales in the fourth quarter. The laterals are about 6,750 feet long.

The company will also be putting additional compression in the Moraine East area into service in January 2018.

Rex Energy said it expects its Q3 production results to be toward the high end of its previously announced guidance of 171 to 181 MMcfe/d.

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PA Permits October 5, to October 12, 2017

             County                                   Township                                          E&P Companies

  1. Beaver                                        Hanover                                            Range
  2. Beaver                                        New Sewickley                                 PennEnergy
  3. Butler                                          Summit                                             XTO
  4. Butler                                          Winfield                                             PennEnergy
  5. Greene                                       Springhill                                           Rice
  6. Greene                                       Springhill                                           Rice
  7. Greene                                       Springhill                                           Rice
  8. Greene                                       Springhill                                           Rice
  9. Potter                                         Hector                                               JKLM
  10. Susquehanna                            Harford                                              Cabot
  11. Susquehanna                            Harford                                              Cabot
  12. Susquehanna                            Harford                                              Cabot
  13. Susquehanna                            Harford                                              Cabot
  14. Susquehanna                            Jackson                                             SWN
  15. Susquehanna                            Jackson                                             SWN
  16. Susquehanna                            Jackson                                             SWN
  17. Susquehanna                            Jackson                                             SWN
  18. Susquehanna                            Jackson                                             SWN
  19. Susquehanna                            Jackson                                             SWN
  20. Susquehanna                            Jackson                                             SWN
  21. Susquehanna                            Jackson                                             SWN
  22. Susquehanna                            Middleton                                          SWN
  23. Susquehanna                            Milford                                               SWN
  24. Susquehanna                            Milford                                               SWN
  25. Tioga                                         Liberty                                               SWN

OH Permits for week October 7, 2017

             County                                   Township                                          E&P Companies

  1. Monroe                                        Center                                                Gulfport
  2. Monroe                                        Center                                                Gulfport

Joe Barone jbarone@shaledirectories.com 610.764.1232
Vera Anderson vera@shaledirectories.com 570.337.7149

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