BusinessCreator, Inc.

NewsLetters

Expo/Industry events for the next few months

Utica Midstream
April 4, 2018
Walsh University
North Canton, OH
www.uticasummit.com

 The New Upstream PA 2018
May 17, 2018
Penn Stater Conference Center
State College, PA
www.upstreampa.com

Appalachian Storage Hub Conference
June 7, 2018
Hilton Garden Inn, Southpointe
Canonsburg, PA
https://www.appastorage.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

Faster Permitting from Trump Proposal.  The Trump administration’s infrastructure proposal released on Monday would speed up the permitting of U.S. natural gas pipelines includes cutting Congress out of the process for allowing them to cross national parks. The proposal fits into President Donald Trump’s broader plan to boost U.S. oil and gas development by slashing red tape, something that has cheered the industry. The plan also aims to speed up the time that a state has to issue water permits - “section 401” certificates required under the federal Clean Water Act - needed for the construction of interstate natural gas pipelines. The changes would deliver “projects in a less costly and more time effective manner by creating a new, expedited structure for environmental reviews and delegating more decision-making to States and enhancing coordination between State and Federal reviews,” the proposal says.

Antero 4th Qtr. Update.  Antero Resources reported record fourth quarter production of 2.357 billion cubic feet per day (Bcf/d) of natural gas in the Appalachian Basin, Kallanish Energy reports.

That is an 18% increase over Q4 2016 production, said the Denver-based company.

Liquids production averaged 107,433 barrels per day (BPD), a 24% increase over the year-ago quarter. Liquids contributed 41% of the total product revenue before hedging, up from 30% one year ago. Liquids represented 28% of overall production, the company said.

Antero reported Q4 2017 net income of $487 million, compared to a net loss of $486 million one year ago.

Full-year 2017 net income was $615 million, compared to a loss of $848 million for all of 2016.

“During 2017, Antero reached an inflection point by executing on its long-term strategic plan,” chairman and CEO Paul Rady said, in a statement.

“We are now positioned to generate free cash flow and reduce financial leverage, while maintaining a 20%-plus debt-adjusted production growth profile,” he said.

Antero said it is projecting a full-year 2018 production of 2.7 billion cubic feet equivalent per day (Bcfe/d).

It admitted production in Q4 was hurt slightly by the construction delay on the Rover Pipeline across northern Ohio that caused 10 Ohio Utica wells not to come on line earlier.

In the latest quarter, the company completed and placed on line 28 horizontal Marcellus wells and 10 Utica wells.

The company drilled its two longest Marcellus laterals, both over 14,000 feet, on a 12-well pad. That is Antero’s largest pad to date. About 120,000 feet of drilled laterals are planned and about 300 Bcfe is expected.

Another nine-well pad with average laterals of 13,200 feet will be placed in sales in Q1 2018, it said.

The 10 Utica wells are flowing at a constrained rate of 200 million cubic feet per day (MMcf/d) and are Antero’s first wells in the Ohio Utica dry gas window. Antero said it achieved record gross production in the Utica of 632 MMcf/d with only 22 wells completed in 2017.

The company also drilled its longest Utica lateral at 17,445 feet.

Production in Q1 2018 is expected to be flat with Q4 2017 due to temporary shutdowns at two processing plants. Both are again in service.

 Constitution Pipeline Keeps Fighting.  Developers of the long-stalled Constitution pipeline want federal regulators to reconsider their refusal to intervene in a state-level permitting standoff in New York. Lawyers for project backer Williams Cos. yesterday again asked the Federal Energy Regulatory Commission to issue a "waiver" that would trump New York officials' denial of a critical water permit for the natural gas pipeline. New York denied the permit in 2016, and FERC last month rejected Constitution's waiver request. Now the company is seeking a rehearing from the agency. FERC did grant a waiver for another New York project — Millennium Co.'s Valley Lateral pipeline — after finding last year that the New York Department of Environmental Conservation

had taken too long on its review. Constitution says its 126-mile natural gas project is entitled to the same federal boost. The dispute centers on the definition of the "reasonable period of time" the Clean Water Act gives state officials to consider permit applications.

MarkWest Expands Fractionation in Hopedale.  MarkWest Energy Partners is adding more fractionation capacity to its Hopedale plant in eastern Ohio, Kallanish Energy reports.

The company, a subsidiary of MPLX, is adding 60,000 barrels per day (BPD) of additional capacity to the complex at Jewett. Honeywell on Monday issued a statement saying its UOP Russell business will build the plant for MarkWest.

It will take 40 weeks to build the fourth plant in the Hopedale complex, the company said.

On Feb. 1, Ohio-based parent company Marathon Petroleum announced plans to spend $2.2 billion in 2018 to build eight new processing plants in the Marcellus and Utica Shales and the Permian Basin in West Texas. Few other details came with the announcement.

The company has now said its 2018 plans will boost fractionation capacity in the Appalachian Basin by 19%, to 631,000 BPD. That includes the Hopedale project plus expansions at Harmon Creek and Sherwood plants in northern West Virginia.

It also plans to expand its natural gas processing in the Appalachian Basin by 21% in 2018, to 7 billion cubic feet per day (Bcf/d) with new additions to Harmon Creek, Houston, Majorsville and Sherwood plants in western Pennsylvania, and northern West Virginia.

MarkWest says the new Hopedale project will bring the plant’s capacity to 240,000 BPD. The Hopedale plant is designed to separate natural gas liquids from drilling in the Utica and Marcellus shales. That includes ethane, propane, butane, isobutene, and pentane or natural gasoline. It is referred to as a C3+ facility because the liquids all have at least three carbon atoms.

The company provides 60% of the fractionation capacity in the Marcellus and Utica shales.

MarkWest’s assets in the Marcellus and Utica shales include 2.8 Bcf/d of gas-gathering, 5.5 Bcf/d of processing, and 537,000 BPD of fractionation capacity.

Rover Seeking Approval on Compressor Station.  Rover Pipeline is seeking approval from the Federal Energy Regulatory Commission to start service on a new compressor station and a pipeline lateral that extends into western Pennsylvania, Kallanish Energy reports.

Adding the compressor station near Wooster, Ohio, will enable the company, an Energy Transfer Partners’ subsidiary, to boost mainline pipeline capacity to 2.02 billion cubic feet per day (Bcf/d). It is identified in the request as Mainline Compressor Station No. 2.

The company is also seeking approval to begin service on the 51.3-mile Burgettstown lateral. It runs from Washington County, Pa., west through West Virginia to Carroll County in eastern Ohio, where the lateral would connect with the twin main pipelines.

The 36-inch lateral includes a compressor station and a meter station.

The company asked for FERC approval by Feb. 26 so producers can arrange natural gas shipments. The requests were filed separately by Rover Pipeline.

The $4.2 billion pipeline has encountered problems with horizontal directional drilling under streams and highways in northern Ohio. That drilling had been halted by FERC, although drilling has been allowed to resume.

The 213 miles of the pipeline from Cadiz in eastern Ohio to Defiance and along two laterals went into service in late August.

Constructing the 125-mile pipeline from Defiance north into Michigan to connect into Ontario is continuing and is nearly complete.

The 713-mile twin pipeline will carry natural gas from the Marcellus and Utica shales to the Midwest, Canada and the Gulf Coast. The pipeline will move up to 3.25 Bcf/d.

Pipeline Work Heating up in WV.  Hiring is under way for pipeline projects in the state. Tree felling has already started in West Virginia to make way for the Atlantic Coast Pipeline, which will carry natural gas from Harrison County to Robeson County, North Carolina. Another project, the Mountain Valley Pipeline, expects tree felling to start soon in some locations. This pipeline will run from northwestern West Virginia to Southern Virginia. “A definitive construction start date has not yet been set,” according to Natalie Cox, Mountain Valley Pipeline spokesperson. “Given the issuance of partial notices to proceed by the (Federal Energy Regulatory Commission) for select areas along the route, it is likely that activity in West Virginia will begin with tree felling.” Construction on the Atlantic Coast Pipeline is expected to begin in the spring, according to Aaron Ruby, spokesperson for Dominion Energy. Trade unions are actively recruiting workers, he said.

TX January Permits Up 21.9%.  The Railroad Commission of Texas issued 1,166 original drilling permits in January, compared to 956 permits in January 2017. That is a 21.9% increase, Kallanish Energy reports.

The January total included 1,036 permits to drill new oil or gas wells, 18 to re-enter plugged well bores and 112 for re-completions of existing well bores, the state commission reported.

The breakdown of well types issued in January was 243 oil, 78 gas, 784 oil or gas, 55 injection, two service and four other permits.

In January 2018, the commission processed 963 well completions, up from 536 recorded in January 2017. That is an increase of nearly 80%

That includes 739 oil wells, 179 gas wells, 44 injection and one other well completion.

The top three areas for permits to drill oil and natural gas wells in January were Midland, 514 permits; San Antonio, 159; and Refugio, 96.

For oil well completions, the top three areas were Midland, 460; San Angelo, 73; and San Antonio, 67.

For gas well completions, the top three areas were San Antonio, 48; East Texas, 40; and Midland, 34.

Texas remains the No. 1 drilling state. The Texas rig count as of Feb. 9 was 479 representing 49% of all active rigs in the United States, says well service company Baker Hughes.

SWN to Sell Fayetteville and Focus on Appalachian Basin.  Southwestern Energy is looking at perhaps sell its legacy Fayetteville Shale assets in northern Arkansas to focus more on its assets in the Appalachian Basin, Kallanish Energy reports.

Some say such a divestment of upstream and midstream assets could bring $2 billion.

The company announced last week it will “actively pursue strategic alternatives for the Fayetteville Shale E&P and related midstream gathering assets.”

Proceeds from any sales would reduce debt, supplement Appalachia development capital and provide value to stockholders, the company said.

The company is also looking to make structural, process and organizational changes to further reduce costs.

Those are among the steps the Houston-based company intends to take “to reposition its portfolio, sharpen its focus on the company’s highest return assets, strengthen its balance sheet and enhance its financial performance,” it said, in a statement.

Said president and CEO Bill Way: “These announced initiatives continue a series of strategic actions that began in early 2016 to reposition our company to compete and win in the future.”

He said the company’s “Appalachia assets produce industry-leading returns with a growing higher-value liquids component and will soon be capable to self-fund future growth.

“We are now in a position to further advance our opportunities in Appalachia, to deliver sustainable, value-driven growth and greater returns for our shareholders, all while maintaining our disciplined capital investing commitment,” he said.

Southwestern was one of the first drillers to develop wells in the Fayetteville Shale and once had more than 900,000 net acres leased in Arkansas.

The dry gas play has been likened to the Barnett Shale in North Texas.

“Fayetteville is a large-scale, low-decline, cash-flow-generating asset with identified, low-risk future development opportunities and a world-class operating team,” Way said.

The company reported net 2017 production of 897 billion cubic feet-equivalent (Bcfe) of gas, with 578 Bcfe from the Appalachian Basin and 316 Bcfe from the Fayetteville.

The company reported a record Appalachian operated exit production rate of 2.35 billion cubic feet-equivalent  per day, a 40% increase from year-end 2016.

The Appalachian Basin in Pennsylvania and West Virginia accounted for 75% of the company’s proved reserves.

Boston Globe Editorial Supports Pipelines.  To build the new $27 billion gas export plant on the Arctic Ocean that now keeps the lights on in Massachusetts, Russian firms bored wells into fragile permafrost; blasted a new international airport into a pristine landscape of reindeer, polar bears, and walrus; dredged the spawning grounds of the endangered Siberian sturgeon in the Gulf of Ob to accommodate large ships; and commissioned a fleet of 1,000-foot icebreaking tankers likely to kill seals and disrupt whale habitat as they shuttle cargoes of super-cooled gas bound for Asia, Europe, and Everett.

On the plus side, though, they didn’t offend Pittsfield or Winthrop, Danvers or Groton, with even an inch of pipeline.

This winter’s unprecedented imports of Russian liquefied natural gas have already come under fire from Greater Boston’s Ukrainian-American community, because the majority shareholder of the firm that extracted the fuel has been sanctioned by the US government for its links to the war in eastern Ukraine and Russia’s illegal annexation of Crimea. Last week, in response to the outcry, a group of Massachusetts lawmakers, led by Senator Ed Markey, blasted the shipments and called on the federal government to stop them.

But apart from its geopolitical impact, Massachusetts’ reliance on imported gas from one of the world’s most threatened places is also a severe indictment of the state’s inward-looking environmental and climate policies. Public officials, including Attorney General Maura Healey and leading state senators, have leaned heavily on righteous-sounding stands against local fossil fuel projects, with scant consideration of the global impacts of their actions and a tacit expectation that some other country will build the infrastructure that we’re too good for.

As a result, to a greater extent than anywhere else in the United States, the Commonwealth now expects people in places like Russia, Trinidad and Tobago, and Yemen to shoulder the environmental burdens of providing natural gas that state policy makers have showily rejected here. The old environmentalist slogan — thinks globally and acts locally — has been turned inside out in Massachusetts.

But more than just traditional NIMBYism is at work in the state’s resistance to natural gas infrastructure. There’s also the $1 million the parent company of the Everett terminal spent lobbying Beacon Hill from 2013 to 2017, amid a push to keep out the domestic competition that’s ended LNG imports in most of the rest of the United States.

And there’s a trendy, but scientifically unfounded, national fixation on pipelines that state policy makers have chosen to accommodate. Climate advocates, understandably frustrated by slow progress at the federal level, have put short-term tactical victories against fossil fuel infrastructure ahead of strategic progress on reducing greenhouse gas emissions, and so has Beacon Hill. They’ve obsessed over stopping domestic pipelines, no matter where those pipes go, what they carry, what fuels they displace, and how the ripple effects of those decisions may raise overall global greenhouse gas emissions.

The environmental movement needs a reset, and so does Massachusetts policy. The real-world result of pipeline absolutism in Massachusetts this winter has been to steer energy customers to dirtier fuels like coal and oil, increasing greenhouse gas emissions. And the state is now in the indefensible position of blocking infrastructure here, while its public policies create demand for overseas fossil fuel infrastructure like the Yamal LNG plant — a project likely to inflict far greater near and long-term harm to the planet.

“All is gloom and eternal silence,” wrote a 19th century English traveler in an awestruck account of the Kara Sea, then still a largely uncharted domain of ice floes and fog. Though more powerful vessels and melting ice have enabled more human activity in the Arctic, the area around Yamal, an indigenous name meaning “edge of the world,” remains a refuge. An estimated 2,700 to 3,500 polar bears live in the Kara Sea region, along with the ring seals that form a crucial part of their diet.

Opening a gas export facility in such a harsh environment required overcoming both political obstacles — the US sanctions delayed financing — and staggering triumphs of industrial engineering by a workforce that reportedly reached 15,000 people. Dredgers scooped away 1.4 billion cubic feet of seabed to make room for the ships and built a giant LNG facility on supports driven into the permafrost, all in temperatures that can plunge to less than minus 50 degrees Fahrenheit.

The oil and gas industry poses serious threats, especially in an area like the Arctic that recovers slowly from damage, and in 2016 the Russian branch of the World Wildlife Fund issued a report warning of Yamal LNG’s potential dangers. White toothed whales, a near-threatened species, breed in the vicinity of the facility, and the noise from shipping and the presence of more giant vessels “may force toothed whales to leave this habitat, which is crucial for their living, feeding, and reproduction.”

The giant “Yamalmax” icebreaking tankers, longer than three football fields and designed to mow through ice up to six feet deep, are also “extremely bad news for any ice-associated mammals that should be in the vicinity of their path,” said Sue Wilson, who leads an international research group based at the University of Leeds in the United Kingdom. The group has recently published a paper in the journal Biological Conservation on the impact of icebreakers on seal mothers and pups in the Caspian Sea and is currently studying shipping impacts in the Arctic.

“The captain is unlikely to notice — or even be able to see — seals in the vessel’s path ahead,” she said. “Even if the captain does notice, the fact that the ship is designed to proceed at a steady pace means that it is unlikely to attempt to stop for seals or maneuver around them, even if the ship can be slowed or stopped in time.”

Advocates also worry that increased Arctic production and shipping will hurt indigenous people; sever reindeer migration routes; import invasive species to an environment ill-equipped to deal with them; and introduce the very remote, but potentially cataclysmic, danger of an LNG explosion.

Finally, the gas pumped there will contribute to global climate change. In some parts of the world, especially China, LNG may provide climate benefits by displacing dirtier coal. If LNG displaces gas carried by pipeline, however, the math works out differently: Liquefied natural gas generally creates more emissions, since the process of cooling it to minus 260 degrees Fahrenheit and then shipping and regasifying it requires more energy than pumping natural gas through all but the longest and leakiest pipelines.

“The bottom line is that because of the nature of the liquefaction process, LNG is fairly carbon intensive,” said Gavin Law, the head of gas, LNG, and carbon consulting for the energy consulting firm Wood Mackenzie. The exact difference depends on factors like how much pipelines leak, carbon impurities in the gas, age of equipment, and distance shipped, but generally LNG produces 5 to 10 percent more emissions over its whole life cycle from start to finish, he said.

From a planetary perspective, it doesn’t matter where those emissions occur: Whether from the plant in Yamal, or the power plant in Everett, they have the same impact. The science should make the state’s decisions straightforward.

“Natural gas has shown itself to be an important bridge to a clean energy future,” said Ernest J. Moniz, the former secretary of energy in the Obama administration. “For New England, expanding the pipeline capacity from the Marcellus” — the area of shale gas production in Pennsylvania — “makes the most sense.”

“Life cycle emissions for LNG imports to Boston certainly are higher than they would be for more Marcellus gas,” he said.

But the upstream emissions typically don’t show up on the books of states like Massachusetts, which judge the success of their climate efforts based only on how much greenhouse gas they emit within their own borders.

That’s an accounting fiction. But it’s a convenient one for lawmakers who’ve bowed to pressure to legislate based on what’s visible inside the Commonwealth’s own borders.

From Mashpee to Springfield, Taunton to Sudbury, the message was clear: To fight climate change, the state shouldn’t allow more fossil fuel pipelines or other infrastructure in Massachusetts.

That’s what state senators Marc Pacheco and Jamie Eldridge, the heads of the state Senate’s Committee on Global Warming and Climate Change, heard when they conducted a listening tour of the state — whose results they released on the same day the Russian gas was unloading in Everett — to help prepare a new energy bill.

The resulting legislation was introduced this Monday. It contained many fine ideas, including boosting the state’s renewable energy requirements. But it also would raise obstacles to pipelines that would lock in the state’s reliance on foreign gas, with its higher carbon footprint.

In an interview, Pacheco said “Obviously any fossil fuel investments are problematic;” no matter where they occur, but that “we have no control over what happens in Russia or anywhere else in the world.” Eldridge said, “I think this bill takes a big step to preventing pipelines,” and also expressed concern about the LNG the state imports instead. “I think activists need to think about where a large amount of this gas is coming from, and that could be something the Legislature could take a look at” in the future, he said/

In 2015, the Conservation Law Foundation, a prominent environmental advocacy group in Boston, released a report dismissing the need for new pipeline capacity in New England, and called on the region to rely on a “winter-only LNG ‘pipeline,’ ” including imported gas, to meet its winter energy needs instead.

After the first shipload of Russian gas arrived, David Ismay, a lawyer with the group, stood by the recommendation and shrugged off the purchase of Russian gas from the Arctic as simply the nature of buying on the worldwide market. “I think it’s important to understand that LNG is a globally traded commodity,” he said in an interview with the Globe.

The foundation, he said, hadn’t compared the overall greenhouse gas emissions from LNG to pipeline gas from the Marcellus to determine which was worse for the climate, nor had it factored the impact on the Arctic of gas production into its policy recommendations.

But a state policy that doesn’t ask any questions about its fuel until the day the tanker floats into the Harbor abdicates the state’s responsibility to own up to all consequences of its energy use — and mitigate the ones that it can.

When an icebreaker bears down on a mother seal during the springtime breeding season, the terrified animal tries to scurry away with her pup. The two may leave a trail of urine and feces on the ice, telltale signs of their distress. Even if the animals survive the collision, the disruption may separate the mother and pup, leading to the pup’s death.

Conscientious companies can minimize the cruel realities of global shipping — or conscientious governments can force them to. American law, for instance, requires ships to maintain a safe distance from seals and walruses in ice habitats. Wilson, the seal researcher, also suggested that icebreakers can change routes to avoid known seal habitats, especially during the breeding season, and carry trained observers onboard to advise vessel captains and record any adverse impact, particularly on mothers and young.

The Globe attempted to contact Sovcomflot, the Russian state-owned shipper in St. Petersburg that handled the first leg of the first shipment from Siberia to Everett, about what policies, if any, it employs to avoid killing seals and other wildlife, and whether it would halt LNG shipments during the spring as mother seals nurse their pups in the Arctic.

The policy of Massachusetts, apparently, is to hope that the Russians are on top of it — and that the world beyond the state’s borders manages the impacts of fossil fuel production and transportation that the Commonwealth buys and uses, but considers itself too pure to handle itself.

As of Monday night, the next shipment of Russian gas was anchored about 70 miles off Gloucester

posed the question “Why is LNG coming 4,500 miles to Boston from the Russian Arctic when the US is the world’s No. 1 natural gas producer? . The simple answer to the question is a lack of natural gas pipelines in New England due to the “pipeline absolutism” of anti-fossil fuel environmentalists who have blocked all new pipeline expansions, as   ??  I WHOS’ THE AUTHOR – keeps stating “I” explained in a recent Boston Herald op-ed “Epic U.S. energy boom cruises by region,” here’s an excerpt:

Although America is a global energy superpower and the U.S. has been the world’s top producer of natural gas since 2009, New England relies on imported LNG from faraway countries for about 20% of its natural gas. This is what happens when you don’t build your own natural gas pipelines, which are the safest and most economical way to transport energy. The trouble is there isn’t enough pipeline capacity to bring in natural gas from the Marcellus shale in Pennsylvania to New England in times of high demand. Even as America’s natural gas production has soared, the pipeline capacity to get it to where it’s needed hasn’t kept up. The problem: political obstacles driven by environmental groups.

In the past two years, regulatory obstacles have led to the cancellation of two pipeline projects, which is ominous for a region that desperately needs more natural gas to make up for the shutdown of nuclear and coal plants. Moreover, there are those in the region who promote themselves as climate leaders but continually block new gas pipeline capacity.

Now the editorial board of the Boston Globe is weighing in on “pipeline absolutism” with a lengthy, 2,000-word editorial yesterday “Our Russian ‘pipeline,’ and its ugly toll, here’s part of the opening (emphasis added):

To build the new $27 billion gas export plant on the Arctic Ocean that now keeps the lights on in Massachusetts, Russian firms bored wells into fragile permafrost; blasted a new international airport into a pristine landscape of reindeer, polar bears, and walrus; dredged the spawning grounds of the endangered Siberian sturgeon in the Gulf of Ob to accommodate large ships; and commissioned a fleet of 1,000-foot ice-breaking tankers likely to kill seals and disrupt whale habitat as they shuttle cargoes of super-cooled gas bound for Asia, Europe, and Everett.

On the plus side, though, they didn’t offend Pittsfield or Winthrop, Danvers or Groton, with even an inch of pipeline.

Massachusetts’ reliance on imported gas from one of the world’s most threatened places is also a severe indictment of the state’s inward-looking environmental and climate policies. Public officials have leaned heavily on righteous-sounding stands against local fossil fuel projects, with scant consideration of the global impacts of their actions and a tacit expectation that some other country will build the infrastructure that we’re too good for.

 As a result, to a greater extent than anywhere else in the United States, the Commonwealth now expects people in places like Russia, Trinidad and Tobago, and Yemen to shoulder the environmental burdens of providing natural gas that state policy makers have showily rejected here. The old environmentalist slogan — think globally and act locally — has been turned inside out in Massachusetts.   

And there’s a trendy, but scientifically unfounded, national fixation on pipelines that state policy makers have chosen to accommodate. Climate advocates have put short-term tactical victories against fossil fuel infrastructure ahead of strategic progress on reducing greenhouse gas emissions. They’ve obsessed over stopping domestic pipelines, no matter where those pipes go, what they carry, what fuels they displace, and how the ripple effects of those decisions may raise overall global greenhouse gas emissions.

The environmental movement needs a reset, and so does Massachusetts policy. The real-world result of pipeline absolutism in Massachusetts this winter has been to steer energy customers to dirtier fuels like coal and oil, increasing greenhouse gas emissions. And the state is now in the indefensible position of blocking infrastructure here, while its public policies create demand for overseas fossil fuel infrastructure like the Yamal LNG plant — a project likely to inflict far greater near and long-term harm to the planet.

PA’s NatGas Reserves Keep Climbing.  Pennsylvania was sitting on at least 62.7 trillion cubic feet of recoverable natural gas in 2016, trailing only Texas which had at least 88.3 trillion cubic feet, according to the Energy Information Administration.

Pennsylvania saw the largest increase in proved reserves because development of the Marcellus shale added 6.1 trillion cubic feet to the total. Overall, the nation's reserves increased 16.8 trillion cubic feet or about 5 percent to 341.1 trillion cubic feet.

The nation produced about 29 trillion cubic feet of natural gas in 2016, so the reserves represent about 11.7 years of production at that rate.

Proved reserves are estimates of how much natural gas can be recovered from known reservoirs under current economic and operating conditions.

U.S. Oil to Grow by 2MMBPD.   Wood Mackenzie has doubled its forecast for U.S. tight oil growth over the next two years, to 2 million barrels per day (MMBPD), thanks to an "extraordinary leap" in output and a jump in rig activity in 2017, Kallanish Energy reports.

Simon Flowers, chairman and chief analyst, said Tuesday U.S. onshore liquids production is on a tear again. "After rebounding from the downturn for a year, right now it’s turbo-charged,” he said, adding operators will start making money this year.

Tight oil is now expected to grow by 1.1 MMBPD in 2018 and 0.9 MMBPD in 2019. WoodMac’s projection excludes another 1 MMBPD of new natural gas liquids (NGL) volumes associated with rising gas production.

That’s because in September and October of last year, production jumped by 0.6 MMBPD, while a jump in rig activity in 2017 led to a backlog of 3,000 drilled, but uncompleted wells (DUCs) – which are expected to be the focus of operators this year, contributing to growth in 2019.

“Tight oil operators might even confound expectations and make money this year,” said Flowers. “Production will be higher – 30% up, on average, for tight oil-focused players.”

By 2020, U.S. oil tight production will reach 7 MMBPD, and eventually reach a plateau of 10 MMBPD by 2025, Wood Mackenzie forecast.

Stay connected and current on the oil & gas industry.
Receive Facts & Rumors directly to your email.
 
Sign up now at 
http://www.shaledirectories.com/site/newsletter.html
Be informed, be prepared.
 
Visit our Blog for daily updates on what’s
happening in theoil & gas industry.
http://www.shaledirectories.com/blog/

PA Permits February 8, to February 15, 2018

             County                                   Township                                          E&P Companies

  1. Lycoming                                     Shrewsbury                                      Inflection
  2. Sullivan                                       Fox                                                     Chief
  3. Sullivan                                       Fox                                                     Chief
  4. Susquehanna                            Apolcan                                             Reposol
  5. Washington                                Nottingham                                       EQT
  6. Westmoreland                            Salem                                                 Apex

OH Permits for week ending February 10, 2018

County                                   Township                                          E&P Companies

  1. NO PERMITS THIS PAST WEEK

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

Midstream PA