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NewsLetters

Expo/Industry events for the next few months

Emerging Opportunities Ohio River Valley Conference

February 22, 2018

Oglebay Resort

Wheeling, WV

http://emergingopportunitiesorv.com/

Utica Midstream

April 4, 2018

Walsh University

North Canton, OH

www.uticasummit.com

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

2018 A Great Start!  After spending two days at the Marcellus Utica Midstream, I want to share a couple of thoughts:

  1. January sales are so strong that a number of companies have already reached anywhere from 40% to 70% of their 2018 sales goal.
  2. While everyone thinks 2018 is going to be a very good, 2019 is going to be even better.
  3. The pressure for pipeline completions is getting greater every year.  You need to make sure your company supports the industry by attending FERC and DEP hearings and sending letters to government officials in support of the industry.
  4. ExxonMobil made a big announcement of spending $35 billion in the U.S. in the next five years. .  At MUM, we were wondering if$5 billion of that amount makes it to the Appalachian Basin in the form of a cracker plant.  Everyone knows ExxonMobil is looking at a number of properties.  Let’s hope they pull the trigger this year. 

TX November Oil Production Up, But NatGas is down.  Initial November 2017 production in Texas was 75.57 million barrels (MMBbl) of crude oil and 543.21 billion cubic feet (Bcf) of natural gas, according to the Railroad Commission of Texas.

Those are preliminary figures and will be updated by operators, Kallanish Energy reports.

In November 2016, the commission initially reported 72.32 MMBbl of crude that has been updated to the current figure of 83.16 MMBbl, the state commission said.

The preliminary natural gas totals from November 2016 have been updated from the initial 571.26 Bcf to the current figure of 647.26 Bcf, it said.

From December 2016 through November 2017, total Texas production was 1.01 billion barrels (BBbl) of oil, and 7.6 trillion cubic feet (Tcf) of total gas, the commission reported.

Crude oil production is limited to oil produced from oil leases and does not include condensate, which is reported separately.

The preliminary Texas November 2017 crude oil production averaged 2.52 million barrels per day (MMBPD). That compares to 2.41 MMBPD on average in November 2016.

The preliminary Texas total natural gas production averaged 18.11 Bcf/d. That compares to the 19.04 Bcf/d average in November 2016.Texas production in November 2017 came from 180,060 oil wells and 92,177 natural gas wells.

The top 5 Texas counties for crude oil production in November were: Midland with 7.95 MMBbl of production, followed by Karnes, Upton, Martin and Reeves counties. The top 5 counties for natural gas were Webb, with 55.23 Bcf of production, followed by Tarrant, Midland, Karnes and Reeves counties.

For condensate, the top 5 counties were Culberson, with 975,867 Bbls of production, followed by DeWitt, Karnes, Webb and Reeves counties.  Texas is the No. 1 drilling state in the U.S., with roughly half of the operating drilling rigs.

ExxonMobil to Spend $35 Billion.  One day after saying it would spend $35 billion in the U.S. over five years, citing tax reform as an impetus, ExxonMobil (XOM) said Tuesday $2 billion of that total would be spent in the Permian Basin.

The oil supermajor plans to triple total daily production to more than 600,000 barrels of oil-equivalent by 2025 from the Permian in West Texas and New Mexico. Tight oil production from the Delaware and Midland basins will increase 500% in the same period, Kallanish Energy learns.

The increased volumes will be driven by reduced drilling costs, technology improvements and expanded acreage. ExxonMobil has a large, highly contiguous acreage position located in the oil zones of the Delaware and Midland basins.

“Our geographic and competitive advantages in the Permian position the company for strong growth and long-term value creation,” said Sara Ortwein, president of ExxonMobil’s XTO Energy subsidiary. “We can deliver profitable production at a range of prices, and we have logistics and technology advantages over our competitors.”

ExxonMobil is one of the most active operators in the Permian. To help achieve its projected growth, the horizontal rig count in the Permian is expected to increase 65% over the next several years.

The company said it’s doubled its footage drilled per day on horizontal wells in the Permian since early 2014, and reduced per-foot drilling costs by roughly 70%.

ExxonMobil doubled its holdings in the Permian in 2017, through the $5.6 billion acquisition of companies owned by the Bass family, which added an estimated 3.4 billion barrels of oil-equivalent to its portfolio.

“With this production growth, we are well positioned to maximize value as increased supply moves from the Permian to our Gulf Coast refineries and chemical facilities, where higher-demand, higher-value products will be manufactured,” Ortwein said.

The increased production will provide low-cost supply and feedstocks to ExxonMobil downstream and chemical operations in Baytown, Beaumont and Mt. Belvieu, Texas, and Baton Rouge, La.

As part of its Permian-focused infrastructure, ExxonMobil recently bought a crude oil terminal in Wink, Texas, to handle Permian crude and condensate from Delaware basin sources near the Texas-New Mexico border for transport to Gulf Coast refineries and marine export terminals.

The company plans to expand the Wink terminal and add infrastructure upgrades that will move ExxonMobil and third-party production from the Delaware, Central and Midland basins in the Permian to ExxonMobil’s operations and other market destinations in the Gulf Coast region.

ExxonMobil last March said it would spend $20 billion to construct chemical, refining, lubricant and liquefied natural gas facilities along the Gulf Coast.

Good News on PPTGC Cracker.  There was news Wednesday concerning the proposed $6 billion ethane cracker in eastern Ohio, but the news is not what most supporters of the massive project had been hoping for, Kallanish Energy reports.

The board of directors of PTT Global Chemical America has approved an agreement with a subsidiary of Daelim Industrial Company Ltd., a leading Korean construction and chemical company, to conduct a feasibility study and to secure funding for the petrochemical complex on the Ohio River, in Belmont County.

Supporters had hoped PTT Global Chemical America would make the final investment decision for the cracker. Instead, the company said:  “The final investment decision is expected to be made by the end of 2018.”

The initial plan had called for that decision to be made in late 2017.

The company added: “As PTTGCA continues to solicit strategic partners, there are multiple interests from international investors, including Daelim, to participate.”

The plant would be capable of producing ethylene and its derivative totaling 1.5 million metric tons per year, the company said, in a statement.

Daelim has 70 years of construction experience and 40 years in the petrochemical industry. It has ethylene production capacity of 1.95 million metric tons per year.

PTT Global Chemical America is a subsidiary of PTT Global Chemical, Thailand’s largest integrated petrochemical company.

The plant, if built, would be located on the site of a now-razed coal-fired power plant at Dilles Bottom, Ohio.

Royal Dutch Shell is building a similar ethane cracker in Beaver County, Pa., roughly 30 miles northwest of Pittsburgh.

The plants would take ethane from drilling in the Utica and Marcellus shales and turn it into ethylene and polyethylene for plastics.

Gulfport 2018 CAPEX Spending.  Gulfport Energy said it intends to spend between $770 million and $835 million in 2018 on capital projects, Kallanish Energy reports.

That spending will be funded within cash flow of the Oklahoma-based company. In 2017, the company's capital budget was between $1.0 and $1.1 billion.

The company is predicting full-year 2018 production will average between 1.25 billion and 1.3 billion cubic feet-equivalent per day, an increase of between 15% and 19% over 2017.

The company also announced it intends to acquire up to $100 million of outstanding common stock in a new repurchase program.

Gulfport has hedged 80% of its expected 2018 natural gas production at prices of more than $3.05 per MMBtu, said president and CEO Michael Moore, in a statement.

Gulfport said it intends to run 2.5 rigs in the Utica Shale in eastern Ohio in 2018, and to drill 36 to 40 gross (26 to 29 net) horizontal wells there, with an average lateral length of 11,200 feet.

In addition, the company said it intends to turn to sales 33 to 37 gross and net horizontal Utica wells, with average laterals of 8,000 feet,

as well as participate in non-operated activities with other companies to drill seven or eight horizontal wells and to turn to sales nine or 10 horizontal wells, all net to Gulfport’s interest.

The company plans to operate three rigs in the SCOOP formation in Oklahoma, where it intends to drill 15 or 16 gross (10 to 11 net) horizontal wells with an average lateral length of 8,900 feet.

The company plans to turn to sales 20 to 22 gross (16 to 18 net) horizontal SCOOP wells with an average lateral of 8,600 feet.

It will work with other SCOOP drillers on four to five horizontal wells and turn to sales two to three horizontal wells.

In 2017's fourth quarter, production averaged 1.26 billion cubic feet-equivalent per day (Bcfe/d). That was a 61% increase over Q4 2016, the company said.

Production was 89% natural gas, 7% natural gas liquids and 4% oil.

MPLX LP 4TH Qtr. Results and CAPEX for 2018.  The highlights are;

  • Reported record fourth-quarter net income of $238 million and adjusted EBITDA of $569 million; reported record full-year net income of $794 million and adjusted EBITDA of $2 billion
  • Reported fourth-quarter net cash from operating activities of $569 million and distributable cash flow of $445 million
  • Declared 20th consecutive quarterly distribution increase to $0.6075 per common unit; delivered 12.1 percent distribution growth in 2017 with a full-year coverage ratio of 1.28
  • Announced closing of transactions completing planned strategic actions with MPC
  • Affirmed 2018 distribution growth guidance of 10 percent
  • Announced 2018 capital investment plan focused on growth investments for the development of natural gas, gas liquids and crude oil infrastructure

MPLX LP reported fourth-quarter 2017 net income attributable to MPLX of $238 million and full-year 2017 net income attributable to MPLX of $794 million.

MPLX achieved record financial results in the fourth-quarter and full-year 2017, reporting $1.2 billion in income from operations for the year. This record-setting performance was primarily driven by gathered, processed and fractionated volume growth, resulting in high plant utilization, as well as contributions from acquired logistics and storage assets.

MPLX achieved 12.1 percent distribution growth for 2017, in line with prior guidance and ended the year with strong full-year distribution coverage of 1.28 times and debt-to-pro forma adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 3.6 times. Higher earnings and cash flow, combined with a disciplined approach to capital investments, have increased the partnership's capacity to fund organic growth with debt and retained cash. As a result, there was no public equity issued in the fourth quarter.

MPLX and its sponsor, Marathon Petroleum Corp. (NYSE: MPC), announced that they are today closing the dropdown of refining logistics assets and fuels distribution services that are projected to generate approximately $1 billion in annual EBITDA as well as the exchange of MPC's general partner (GP) economic interests, including its incentive distribution rights (IDRs), for newly issued MPLX common (LP) units, eliminating the GP cash distribution requirements of the partnership.

"In 2017, MPLX delivered strong results with sequential earnings growth in all four quarters as we executed our strategy to grow the business through increased utilization of our existing assets; an impressive portfolio of organic projects; strategic third-party acquisitions; and strategic actions with our sponsor," said Gary R. Heminger, chairman and chief executive officer. "These actions have transformed MPLX, nearly doubling the partnership's earnings base and improving the partnership's cost of capital by permanently eliminating the IDR burden."

MPLX also announced its 2018 capital investment plan, which includes approximately $2.2 billion of organic growth capital and $190 million of maintenance capital. For the Gathering and Processing (G&P) segment, this robust organic growth plan includes the addition of 8 processing plants representing nearly 1.5 billion cubic feet per day of incremental processing capacity as well as 100,000 barrels per day of additional fractionation capacity in the prolific Marcellus, Utica and Permian basins.

In the Marcellus and Utica basins, MPLX expects to strengthen its position as the largest processor and fractionator with the addition of six gas processing plants in 2018, increasing the partnership's processing capacity by 21 percent to over 7 billion cubic feet per day. Additionally, the partnership expects to add 40,000 barrels per day of ethane fractionation capacity, and 60,000 barrels per day of propane-plus fractionation capacity.

In the Southwest, the partnership also plans to expand its footprint by adding nearly 300 million cubic feet per day of processing capacity. The Argo gas processing plant will be placed in service in the first quarter, doubling the partnership's processing capacity in the Permian basin. Construction of the Omega gas processing plant in the STACK shale play of Oklahoma is on schedule and expected to be complete by mid-2018.

In the Logistics and Storage (L&S) segment, work continues on the expansion of the Ozark and Wood River-to-Patoka pipeline systems, which connects Cushing, Oklahoma, to Patoka, Illinois. Both are targeted for completion in mid-2018. Additional 2018 projects include the completion of a butane cavern in Robinson, Illinois; tank expansions in Patoka, Illinois, and Texas City, Texas; and an expansion of the partnership's marine fleet. Work also continues on the refining logistics project to expand Galveston Bay refinery's export capacity, expected to be completed in 2020. These projects are expected to create additional fee-based revenue for the partnership while providing logistics solutions to MPC and other market participants.

Hess CAPEX Spending for 2018.  Hess Corp has announced plan to invest $2.1 billion in exploration and production in 2018, with a major focus on the Bakken Shale in the U.S., and off the coast of the South American country Guyana.

“We are allocating approximately two thirds of our 2018 budget to our transformative investment opportunity in Guyana that continues to get bigger and better, and to our low-cost position in the core of the Bakken, which together are expected to drive industry leading returns for Hess shareholders for many years to come,” Hess CEO John Hess said.

Of the total allocated budget, the company plans to invest $1.1 billion for production, $555 million for offshore development, and $375 million for exploration and appraisal.

In the Bakken, Hess plans to allocate $900 million to increase the rig count from four to six by the end of 2018, and to drill roughly 120 new wells and to bring about 95 new wells online.

Hess also will invest to complete five previously drilled wells in Ohio’s Utica Shale play, Kallanish Energy learns. 

In Guyana, the firm plans to allocate $250 million on the Liza Phase 1 development project and $65 million for front-end engineering and design (FEED) work for future development phases and capitalized interest in Guyana.

The company also plans to invest $240 million for continued development of the Stampede Field in the deepwater Gulf of Mexico. Hess holds a 25% stake in the project and is operator of the field, which is expected to begin operations in the first quarter of 2018.

Eclipse Resources CAPEX in 2018.  Pennsylvania-based Eclipse Resources said it expects to spend between $300 million and $320 million in 2018 on capital projects, Kallanish Energy reports.

That budget is up slightly from the $300 million budgeted in 2017.  Of that 2018 total, 84% will be allocated for drilling and completions, the company said in a report released Wednesday.

The company is also shifting its production away from dry natural gas to condensate in the Appalachian Basin’s Utica Shale, and has opted to curtail some gas production by as much as 20%.

That could reduce overall production, but the condensate would produce additional income, said president, chairman and CEO Benjamin Hulburt, in a statement.

The company is planning to drill 17 net (33 gross) wells, and complete 18 net (35 gross) horizontal Utica Shale wells. The company also plans to drill and complete one horizontal well in 2018 in its newly acquired Flat Castle area in northern Pennsylvania.

The lateral length for wells to be drilled in 2018 will average more than 16,800 feet, said Eclipse, a company known for its long laterals.

It said net production in the fourth quarter of 2017 averaged 311.7 million cubic feet-equivalent per day (MMcfe/d), a 22% increase over Q4 2016.  Net production for full-year 2017 averaged 310.7 MMcfe/d, a 36% increase over full-year 2016.

Eclipse said it expects to produce between 335 million and 355 MMcfe/d in full-year 2018. Condensate production is also projected to grow by 42% year-over-year, it said.

The company said year-end 2017 proved reserves increased by 211%, to 1.46 trillion cubic feet-equivalent (Tcfe) based on SEC pricing.

In 2017, Eclipse drilled 29 gross wells with an average lateral length of roughly 13,600 feet. It drilled eight wells with laterals that exceeded 19,000 feet.

Eclipse said it has elected to retain 30% of its pre-carry working interest in the second program of its Utica drilling joint venture with Sequel Energy.

Enbridge to Send NatGas to New England.  Enbridge is working to get more natural gas to New England, a region that has fought needed energy infrastructure projects, including pipelines, Kallanish Energy reports.

The company’s first phase of the Atlantic Bridge Pipeline began service last November and Phase 2 is scheduled to begin service in Q4 2018, said Erin Petkovich, director of Northeast Business Development for Enbridge.

That initial $500 million project will move an additional 40 million cubic feet per day (MMcf/d) of natural gas, she told the audience Wednesday at Hart Energy’s Marcellus-Utica Midstream Conference and Exhibition in Pittsburgh.

The whole project, when completed, will move 135 MMcf/d, she said. The Calgary-based company is also working on its Access Northeast Project to expand the Algonquin pipeline system in New England, Petkovich said.

The system can provide natural gas to 60% of the 25 gas-fired power plants in New England, but only 4% of those plants are connected to natural gas, she said.

Massachusetts burned 2 million barrels of oil over 15 days for home heating during the Arctic blast in early January, a costly and environmentally damaging practice, the Enbridge executive said.

More pipelines to serve New England are needed, although some areas of New England are highly resistant, she said.

“We’re not giving up on the Northeast and New England,” Petkovich said.

Chesapeake Reduces 13% of Workforce.  In an email sent to employees on Tuesday, company representatives announced a 13-percent layoff. CEO Doug Lawler wrote the following:

The total number of people let go on Tuesday is about 400, 330 of whom were based in Chesapeake's Oklahoma City offices, a company representative confirmed with News 9. This brings the company's total employment down to about 2,900 people, 1,800 of whom are in Oklahoma City. The company representative added that field employees across all of Chesapeake's operating areas were impacted.

Chesapeake has field operations in Oklahoma (Mid-Continent), Texas (Eagle Ford Shale), Louisiana (Haynesville Shale), Wyoming (Powder River Basin), Ohio (Utica Shale), and Pennsylvania (Marcellus Shale).

EQT Leaving Midstream.  Look for Pittsburgh-based EQT to drop-down its midstream assets in 2018.

That assessment came Wednesday from Jerry Ashcroft, senior vice president of EQT Corp., president, midstream and senior vice president/chief operating officer of EQT Midstream Partners.

He spoke to an audience of roughly 360 at Hart Energy's Marcellus-Utica Midstream Conference and Exhibition in Pittsburgh. Kallanish Energy attended the conference.

Such a drop down would help simplify the company's overall structure, he said. EQT Midstream Partners is now moving roughly 2.3 billion cubic feet (Bcf) of natural gas and has 950 miles of pipelines approved by the Federal Energy Regulatory Commission.

It also acquired Rice Midstream, he noted. EQT Corp., since its merger with Rice Energy, is now the No. 1 natural gas producer in the U.S.

It is producing 4 Bcf/d of Marcellus Shale natural gas, and that production is expected to double to 8 Bcf/d in the next five years, he said.

The company, with 1,800 employees is projecting annual production growth of 15% to 20% over the next five years, Ashcroft said.

It is working on the $460 million Hammerhead Pipeline to move natural gas from southwest Pennsylvania to Mobley, W. Va., Ashcroft said. It will run about 57 miles and move 1.2 Bcf/d to the Mountain Valley Pipeline, that will move natural gas to the Mid-Atlantic States, he said.

It is expected to be in service in Q3 2019. The $3.5 billion Mountain Valley Pipeline is expected to be completed in Q4 2018 and it will move 2 Bcf/d, he said. It is “a monumental project” and will significantly improve EQT's pricing in 2019, Ashcroft said.

Up to 6,000 workers will be employed to build the 303-mile pipeline in nine spreads or sections, he said.

His company is primarily interested in moving Marcellus natural gas to the South, New England and to the petrochemical industry on the Gulf of Mexico, he said.

Ashcroft said he remains “very bullish” on the Appalachian Basin over the next five to 10 years.

10 Million Barrels!  U.S. crude oil production jumped the 10 million barrels a day (MMBPD) hurdle for the first time in nearly a half-century in November, according to new data released Wednesday by the Energy Information Administration.

The U.S. last produced 10 MMBPD in November 1970, just when production peaked before a long decline, according to EIA monthly data, Kallanish Energy finds.

Unlike 1970, U.S. oil production in 2018 is increasing, and U.S. shale and other producers are expected to add more than 1 MMBPD in 2018, for an average production rate of 10.3 MMBPD.

Bakken Needs More Infrastructure.  North Dakota could run out of capacity in its existing crude oil and natural gas pipeline infrastructure in four to seven years, the head of the state’s Department of Mineral Resources told county officials this week, Kallanish Energy learns.

Lynn Helms said there was little doubt more infrastructure would be needed.  "Today, every cubic foot of natural gas we produce has to get into one of two pipelines," he said. "After 2022, those pipelines are 100% full of North Dakota gas. There is no place to put another cubic foot of gas."

Because it can take four to five years to permit a large pipeline project, he added, "We need to start permitting the next natural-gas export pipeline today if it's going to be there when the industry needs it," the Minot (N.D.) Daily News newspaper reported.

Competition for limited pipeline space also keeps natural gas prices low, eroding the economics necessary to reduce flaring, he said. State regulations restrict the amount of allowed flaring, the Daily News reported.

NatGas Plant Planned for ND.  A $150 million natural gas processing plant is planned in western North Dakota, bringing to four the number of projects proposed to capture more of the associated gas produced as a result of crude oil production.

Republican Gov. Doug Burgum announced Thursday Hess Midstream Partners and Targa Resources will build the plant, near Watford City, Kallanish Energy learns.

The Little Missouri Four gas plant will process 200 million cubic feet daily (MMcf/d) at an existing facility owned by Targa. The companies say the project will be completed in the fourth quarter of this year.

North Dakota pipeline authority director Justin Kringstad said the addition of the new plant and others should help keep pace with expected oil production until 2020, The Associated Press reported.

Atlantic Coast Pipeline Gets OK from WV and NC.  Environmental regulators in West Virginia and North Carolina last week approved permits for the multistate, 600-mile, $5.1 billion Atlantic Coast Pipeline, Kallanish Energy reports.

The 42-inch line will flow Marcellus Shale natural gas through five West Virginia counties, through the heart of Virginia and bend through eight North Carolina counties.

The West Virginia permit covers storm water discharge associated with the disturbance of roughly 2,500 acres of land for the pipeline, along with a compressor station, meter stations, access roads and interconnects, according to the West Virginia Department of Environmental Protection.

PA Gov Wants More Regulators.  Pennsylvania Gov. Tom Wolf on Friday proposed ways to reduce backlogs in Pennsylvania’s approval process for new natural gas well permits, including the hiring of 35 new regulators.

Wolf said he would ask the state’s General Assembly to boost the Department of Environmental Protection’s budget to make the “long-overdue” hires, the Philadelphia Inquirer newspaper reported.

The governor’s office said it would propose to increase new well-permit fees from $5,000, to $12,500, though that would require a formal regulatory rule-making process that typically takes roughly 18 months.

In a “white paper,” (reviewed by Kallanish Energy) Wolf’s office said DEP’s oil and gas staff has decreased from 226 to 190 because of budget cuts. The review staff in the busy Southwest District office is down 43%.

“You cannot cut your way to greater efficiency if all you are cutting is the number of people that do the work and you don’t have to be in business to know that,” Wolf said.

Marcellus Shale Coalition president David Spigelmyer praised Wolf and DEP Secretary Patrick McDonnell. “On behalf of our members, we have worked with the administration and General Assembly to elevate the impact that permit delays and inconsistencies within the department have had on Pennsylvania’s ability to attract capital and retain jobs,” Spigelmyer said, in a statement, the Inquirer reported.

“We’ll continue to engage with policymakers on ways to enhance Pennsylvania’s business climate and maximize the shared benefits of natural gas development.”

The DEP said in the last six months, it has reduced the backlog for erosion-control permits and well permits by half, or roughly 6,000 applications, and had reduced the review time for an erosion-control permit by over 220 days, to under 100 days. Every new drilling or pipeline project requires an erosion-control permit before earth is moved.

DEP’s permit-review process is paid from fees, but revenue has fallen as the initial rush of Marcellus Shale drilling slowed. The program is currently running a $600,000 monthly deficit, according to the white paper.

Magellan Extends Open Season in the Permian.  Magellan Midstream Partners announced Wednesday it extended by one month the open season for a new pipeline system to transport crude oil and condensate from the Permian Basin and Eagle Ford Shale play, to multiple destinations in the Houston and Corpus Christi, Texas, markets.

Binding commitments are now due March 1. Significant interest has been expressed from potential shippers, and the extension provides these potential shippers additional time to finalize their commitments, according to the Tulsa, Oklahoma-based crude and petroleum products transporter.

The proposed project would include construction of a roughly 375-mile, 24-inch line from Crane, Texas, southeast to near Three Rivers, Texas, providing shippers the option to ultimately deliver crude and condensate from the Three Rivers area to the Houston area via a new 200-mile pipeline, or to the Corpus Christi area in a new 70-mile line.

The potential pipeline system is expected to have an initial capacity of at least 350,000 barrels per day (BPD), with the ability to expand to 600,000 BPD for each destination.

Additional pipeline extensions are being considered for Midland and Orla, Texas, in the Permian, and Gardendale and Helena in the Eagle Ford, Kallanish Energy reports.

Magellan previously announced construction of a 60-mile, 24-inch Delaware Basin pipeline to deliver crude oil and condensate from Wink to Crane, Texas, and construction of the Wink line is currently underway.

Subject to receipt of all necessary permits and approvals, the proposed pipeline could be operational by the end of 2019.

Fracking Dominates Drilling.  Hydraulically fractured horizontal wells in 2016 accounted for 69% of all oil and natural gas wells drilled in the U.S., and 83% of total linear footage drilled, the Energy Information Administration reported Tuesday.

Fracked horizontal wells became the predominant method of new U.S. crude oil and natural gas development in October 2011, when total footage (in linear feet) surpassed all other drilling and completion techniques.

The combination of horizontal drilling and fracking has contributed to increases in crude oil and natural gas production in the U.S., both expected to set records in 2018, according to EIA.

Although horizontal drilling has been used for nearly a century, its use as a source of U.S. oil and natural gas production began growing in the early 2000s, Kallanish Energy learns.

Horizontal drilling allows more of the wellbore to remain in contact with the producing formation, increasing the amount of oil or natural gas that can be recovered.

 

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PA Permits January 25, to February 1, 2018

             County                                       Township                                          E&P Companies

  1. Bradford                                       Tuscarora                                          Chesapeake
  2. Bradford                                       Tuscarora                                          Chesapeake
  3. Bradford                                       Tuscarora                                          Chesapeake
  4. Fayette                                         Luzerne                                             Chevron
  5. Greene                                         Franklin                                             EQT
  6. Greene                                         Franklin                                             EQT
  7. Greene                                         Franklin                                             EQT
  8. Greene                                         Franklin                                             EQT
  9. Greene                                         Franklin                                             EQT
  10. Greene                                         Franklin                                             EQT
  11. Greene                                         Franklin                                             EQT
  12. Greene                                         Franklin                                             EQT
  13. Greene                                         Franklin                                             EQT
  14. Greene                                         Franklin                                             EQT
  15. Greene                                         Franklin                                             EQT
  16. Greene                                         Franklin                                             EQT
  17. Greene                                         Franklin                                             EQT
  18. Greene                                         Franklin                                             EQT
  19. Greene                                         Washington                                      EQT
  20. Greene                                         Washington                                      EQT
  21. Greene                                         Washington                                      EQT
  22. Greene                                         Washington                                      EQT
  23. Greene                                         Washington                                      EQT
  24. Greene                                         Washington                                      EQT
  25. Westmoreland                            Salem                                                 Apex Energy

OH Permits for week ending January 27, 2018

            County                                         Township                                          E&P Companies

  1. Carroll                                          Washington                                      Rex
  2. Carroll                                          Washington                                      Rex
  3. Carroll                                          Washington                                      Rex
  4. Harrison                                       German                                              Chesapeake
  5. Jefferson                                     Mt. Pleasant                                      Ascent
  6. Monroe                                        Malaga                                               Antero
  7. Monroe                                        Malaga                                               Antero
  8. Monroe                                        Malaga                                               Antero
  9. Monroe                                        Malaga                                               Antero
  10. Monroe                                        Malaga                                               Antero

Joe Barone jbarone@shaledirectories.com 610.764.1232

Vera Anderson vera@shaledirectories.com 570.337.7149

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