BusinessCreator, Inc.

NewsLetters

Expo/Industry events for the next few months

 

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

Ohio Valley Regional Oil & Gas Expo
April 24-25, 2018
Belmont County Carnes Center
St. Clairsville, OH

http://ohiovalleyoilgasexpo.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

OLD STUFF

Reliance Sheds More Shale Assets.  Reliance Industries Ltd said on Tuesday its unit would sell some of its shale assets in the United States to privately held Sundance Energy Inc for $100 million, as the Indian oil-to-telecom conglomerate moves closer to exit U.S. shale investments.

The sale includes Reliance’s interest in the assets in the Eagle Ford shale in Texas, it said in a statement.

U.S.-based Pioneer Natural Resources Co, which was a partner in the asset, also exited the blocks.

In November 2014, Reliance and Pioneer announced exiting their stake in shale oil and gas transportation and distribution joint venture, which analysts had said was a precursor to Reliance’s move to exit U.S. shale operations.

The deal, which is expected to close in the first quarter of fiscal 2019, is the second such sale by the Mukesh Ambani-backed Reliance in the United States.

In October, the Reliance sold a similar asset block in the Marcellus shale region in northeastern and central Pennsylvania.

The following is all a repeat from the above……

Court Rules in Favor of Mariner East Project.  The Commonwealth Court ruled Monday that the public utility status of Sunoco Pipeline LP’s Mariner East project outweighs a Delaware County community’s zoning law that prohibits a pipeline from passing less than 75 feet from a residence.

The appeals court dismissed the appeal of six Middletown Township residents, who sought to enforce a local ordinance against Sunoco in the construction of the Mariner East 2 pipeline.

The court said its ruling was consistent with its rejection in February of a lawsuit led by the Delaware Riverkeeper Network that sought to enforce a West Goshen ordinance that specifies how far a pipeline must be constructed from occupied structures.

Antero Looking to Cut Sand Costs.  US natural gas producer Antero Resources Corp said on Monday it is eyeing options to mine its own sand for fracking to offset recent price increases.

The company, which produces in the Marcellus and Utica shale formations, has seen its sand cost rise markedly in the past year, Glen Warren, Antero's president, said at the Scotia Howard Weil energy conference in New Orleans.

Sand is used as part of the hydraulic fracturing process to extract crude oil and natural gas from shale rock. It is typically mined from large deposits, many of which are located around the United States.

Sand, which is about 12% of the company's well development cost, has been the only oilfield product in which the company has seen a large price increase. Antero is now eyeing ways to "self-source" the material, Warren said.

Russians Working to Kill Drilling in the U.S.  Retired Gen. Philip Breedlove, who served as Supreme Allied Commander of NATO under President Barack Obama, testified in the House Armed Services Committee last week that the Russians waged what he called "hybrid war" through social media to stop fracking and oil pipelines in Western nations.

In making his point to the committee, Breedlove cited the same organization--the Internet Research Agency in St. Petersburg Russia--that Special Counsel Robert Mueller has indicted for interfering in the U.S. presidential election.

“They are instigating fights on both sides of things like oil pipelines and fracking in order to cause discord, disharmony, and to hopefully continue to suppress those efforts to keep oil prices up,” Breedlove told the committee in response to a question from Rep. Vicky Hartzler (R.-Mo.)

“And so the first step, I think, is making Americans aware that the Russians and the troll factory there in St. Petersburg, the Internet Research Agency, is out there orchestrating these battles in these spaces, and make our folks aware that when they go into their social media, they are getting an echo chamber of their own thoughts, they're really not seeing both sides,” said Breedlove in his March 21 testimony.

Eclipse Resources Weighing Alternatives.  Independent oil and gas producer Eclipse Resources said Monday its board has initiated “a process to evaluate and consider a full range of potential strategic, operational and financial alternatives to maximize shareholder value.”

The State College, Pa,-based company has retained Jefferies as its financial advisor and Norton Rose Fulbright U.S. as its legal counsel to assist with the process of determining its future, Kallanish Energy finds.

"Our management team and board have always been focused on maximizing long-term shareholder value. We will review all alternatives available to Eclipse Resources and will take all steps necessary to evaluate our opportunities and achieve the best strategy for our shareholders, partners and employees,” said Benjamin W. Hurlburt, chairman, president and CEO of Eclipse.

Hurlburt added Eclipse has succeeded despite the “challenging environment” the oil and gas industry has faced in the last several years.

Eclipse has “has made significant progress in increasing the scale of our assets, improving well performance, decreasing operational costs and increasing asset level returns,” he said.

The head man at Eclipse said his company has developed an industry-leading drilling capability “that we believe would benefit greatly from increased scale and acceleration, while at the same time reducing the company’s general and administrative costs and interest expense on a per-unit of production basis.”

There is no set timetable for completion of the review process, and Eclipse will not comment further until the board determines it must make a statement.

Biggest Deal Ever in the Permian.  Concho Resources Inc. will buy rival shale oil producer RSP Permian Inc. in an $8 billion all-share deal, creating one of the largest producers in the region at the center of America’s energy boom. The deal is the biggest ever in the Permian Basin, topping Exxon Mobil Inc.’s acquisition of assets from the Bass family for as much as $6.5 billion last year and Encana Corp.’s purchase of Athlon Energy Inc. for $7.1 billion in 2014. The Permian, which straddles West Texas and parts of New Mexico, is America’s most fertile shale play. The move comes as oil majors and independents both focus spending in the region. It “has the potential” to boost shares for small-cap drillers operating there, and may trigger a run on them by bigger producers, said Leo Mariani, an Austin-based analyst for NatAlliance Securities.

Virginia Approves Mountain Valley Pipeline.  The Mountain Valley Pipeline has won final approval in Virginia, which will allow “land disturbing activities” and pipeline construction to begin in the state on the $3.5 billion natural gas pipeline located in West Virginia and Virginia, Kallanish Energy reports.

Final approval came Monday from the Virginia Department of Environmental Quality when it approved the project’s erosion, sediment, storm water and karst plans.

Previously, only tree cutting had been allowed.

“Protecting water quality and water supplies is our greatest concern,” said DEQ Director David Paylor, in a statement. “We required MVP to submit detailed plans for every foot of land disturbance, and we carefully reviewed all aspects of these plans.”

DEQ began its review of the pipeline project in March 2016.

The final Virginia plans are now available at www.mountainvalleypipeline.info/current-news.

The 301-mile pipeline will run from West Virginia to southern Virginia. It will carry natural gas from the Marcellus and Utica shales, from Wetzel County, W. Va., to Pittsylvania County, Va.

The MVP is being developed by Mountain Valley Pipeline LLC, a joint venture of six companies. It will be operated by EQT Midstream.

Pioneer Sells Eagle Ford Acreage.   Independent producer Pioneer Natural Resources said Tuesday it’s signed a purchase and sale agreement with Sundance Energy to sell roughly 10,200 net acres in the western portion of Pioneer’s Eagle Ford Shale position for $102 million.

The sale is part of Pioneer’s master plan to divest all assets outside the Permian Basin in West Texas.

The Eagle Ford acreage is located in Atascosa, LaSalle, Live Oak and McMullen counties in Texas. Current net production is roughly 1,100 barrels of oil-equivalent per day (BOE/d), Kallanish Energy reports.

After the sale closes, expected by July 1, Dallas-based Pioneer’s acreage position in the Eagle Ford will be roughly 59,000 net acres, all held by production.

As previously announced in early February, the remaining Eagle Ford Shale acreage position is also being divested. Net production from this asset averaged approximately 26,000 BOE/d during the fourth quarter of 2017, consisting of roughly one-third oil, one-third natural gas liquids (NGLs) and one-third gas.

A data room for the remaining Eagle Ford assets is expected to open next week.

Pioneer also is divesting its holdings in the Raton Basin in southeastern Colorado, where the company has approximately 198,000 gross acres and 2,300 wells and produces coalbed methane from the coal seams in the Vermejo and Raton formations.

Also for sale is Pioneer’s West Panhandle gas field in the Texas Panhandle, where it operates more than 700 wells on more than 246,000 gross acres. The company owns the Fain gas processing plant and controls the wells, production equipment and gathering system for its portion of the field.

LNG Exports Quadrupled in 2017.  U.S. liquefied natural gas (LNG) exports quadrupled in 2017, with shipments to 25 different countries, says the U.S. Energy Information Administration.

The volume of shipments increased from 0.5 billion cubic feet per day (Bcf/d) in 2016, to 1.94 Bcf/d in 2017, it said.

All the shipments originated from Cheniere Energy’s Sabine Pass liquefaction terminal in Louisiana, Kallanish Energy reports.

Mexico got the most LNG: 20% of the total, EIA said.

Delays in pipeline projects and increased demand, especially from power plants, have resulted in Mexico relying on LNG to supplement natural gas imports by pipeline, EIA said.

South Korea was No. 2 for LNG volume, with 18% and China was third, with 15%. Mexico, South Korea and China together accounted for 53% of U.S. LNG exports in 2017, it said.

Almost 60% of U.S. LNG in 2017 was sold on a spot basis to more than 20 countries, according to EIA.

Sabine Pass’ LNG is fully contracted under long-term contracts, but flexibility in those contracts allows U.S. LNG to ship to any market in the world, it said.

LNG shipments to Europe increased in 2017, but shipments to South America decreased, it said.

With Cove Point LNG in Maryland coming online, the U.S. export capacity has grown to 3.6 Bcf/d, EIA said.

Four more LNG projects are scheduled to come online in the next two years: Elba Island in Georgia, Cameron in Louisiana and Freeport and Corpus Christi, both in Texas.

LNG Global Demand to Grow by 7.2% in 2018.  Global demand for liquefied natural gas (LNG) is estimated to grow 7.2% this year, surpassing the 300 million tons per annum (MTPA) mark for the first time, according to a BNEF report.

The research firm found LNG demand will reach 305 MTPA this year, up from 285 MTPA in 2017, Kallanish Energy learns. Although the growth in imports is significant, it’s still below the 9.6% rate seen between 2016 and 2017.

During the 2018-2020 period, BNEF estimates the additional 30-33 MTPA capacity coming online will be sufficient to meet demand until 2025, and supply capacity will peak at 396 MTPA in 2021.

Energy Imports Lowest in 36 years.  Total net energy imports to the U.S. fell to 7.3 quadrillion British thermal units (quads) in 2017, a 35% decrease from 2016 and the lowest level since 1982, the Energy Information Administration reports.

Gross energy imports have been generally decreasing from a high of 34.7 quads in 2007; however, the larger factor leading to the reduction in the net energy trade balance has been increasing energy exports, Kallanish Energy understands.

Gross energy exports rose to 18.0 quadrillion Btus in 2017, a 27% increase from 2016 and the highest annual U.S. energy exports on record.

Increasing U.S. energy exports have been driven largely by increases in exports of petroleum products and natural gas. In recent years, exports of crude oil have also contributed to the overall rise in energy exports after crude oil export restrictions were lifted at the end of 2015, EIA said.

In energy content terms, the U.S. now exports nearly as much energy in the form of crude oil (2.3 quads) as coal (2.5 quads).

Last year, the U.S. saw substantial increases in exports of all fossil fuels, with exports of crude oil (89% higher than in 2016), petroleum products (11% higher), natural gas (36% higher), and coal (61% higher) all increasing over the prior year.

Energy Hunter Expanding in the Permian.  Energy Hunter Resources is doubling the size of its footprint in the San Andres oil play in Texas, Kallanish Energy reports.

The company, with offices in Irving, Texas, has finalized an agreement with Lubbock Energy Partners to acquire 8,817 gross acres in Cochran County, Texas, at a sale price is $2,083 per acre.

The asset in the Permian Basin has 201 existing wells: 82 producing wells, 32 saltwater injection wells and 87 shut-in wells.

The asset is 100% held by production via vertical wells and there are vertical recompletion possibilities. A total of 45 horizontal wells sites have been identified on the newly acquired land, the company said.

The deal is expected to close in August. The date of the deal is Jan. 1, 2018. Energy Hunter took over operations of the properties last week.

FERC Denies Tree Cutting Extension.  The Federal Energy Regulatory Commission has declined an Atlantic Coast Pipeline request to extend its deadline for clearing trees along its construction path.

FERC issued the denial in a letter released Wednesday.

MORE: Read the letter from the Federal Energy Regulatory Commission.

The pipeline developer has faced a March 31 deadline to clear trees during a seasonal window designated to be of minimal harm to bats and migratory birds.

FERC concluded that there was no way to extend the date for the pipeline’s developer, Dominion Energy Transportation, without having an ecological impact.

“As part of your applications, Atlantic and DETI committed to minimizing impacts on both migratory bird species and threatened and endangered species by adhering to time-of-year tree felling restrictions,” wrote Rich McGuire, director of FERC’s Division of Gas — Environment and Engineering.

“After a thorough review of your request, we find that it would not offer an equal or greater level of protection,” he concluded in denying the request.

Atlantic Coast Pipeline started felling trees along its construction path in January.

The Atlantic Coast Pipeline would deliver up to 1.5 billion cubic feet of Marcellus shale gas from West Virginia to customers in Virginia and North Carolina every day.

The project by Dominion Transportation Inc. would run the pipeline 600 miles, beginning in Harrison County in West Virginia through Virginia and into southeastern North Carolina.

The $5.1 billion Atlantic Coast Pipeline would span 600 miles from Harrison County and across Lewis, Upshur, Randolph and Pocahontas counties in West Virginia.

Atlantic Coast Pipeline, in its original modification request to FERC said despite its best efforts it would be unable to complete scheduled tree felling within the existing time-of-year restrictions in West Virginia, Virginia and North Carolina.

The request asked FERC to allow tree felling to continue until May 15, except on U.S. Forest Service lands and with additional protections for two species of bats.

“Completing the tree felling within one season also limits the amount and frequency of disturbance in the general area, benefiting landowners,” the request states.

Dominion spokesman Aaron Ruby said workers have completed tree-felling on more than 200 miles of the project, though that’s less than the company planned for this year.

“For any large infrastructure project, we have to plan for contingencies,” Ruby said. “By rearranging some of our construction plans and shifting some work to 2019, we’ll keep the project on track for completion by the end of next year.”

Shell Cracker Plant Helping Steamfitters.  On a recent afternoon, Ken Broadbent walked the aisles of his union’s “weld shop.” He was showing off his union’s brand new training center in Butler County, about half an hour north of Pittsburgh. This training center, which opened last year, cost $18.5 million dollars to build. Broadbent says that its money well spent. His members will have plenty of work, thanks in large part to the oil and gas business. They’ll be working on natural gas processing plants, power plants, and Shell’s multi-billion dollar ethane cracker in Beaver County, which will employ 1,500 steamfitters at peak construction. “I’m almost going to double the amount of people when it peaks working out of my union. That is good for our education fund. That’s good for our health coverage. It helps us stay in business,” Broadbent said.

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 March 22, to March 29, 2018

            County                                   Township                                          E&P Companies

  1. Bradford                                       Overton                                              Chief
  2. Bradford                                       Overton                                              Chief
  3. Bradford                                       Overton                                              Chief
  4. Bradford                                       Overton                                              Chief
  5. Bradford                                       Overton                                              Chief
  6. Clarion                                         Perry                                                   Laurel Mountain
  7. Clinton                                         Gallagher                                          EXCO Resources
  8. Greene                                         Richhill                                              CNX
  9. Greene                                         Richhill                                              CNX
  10. Greene                                         Richhill                                              CNX
  11. Susquehanna                            Auburn                                              Chesapeake
  12. Susquehanna                            Forest Lake                                       Cabot
  13. Susquehanna                            Forest Lake                                       Cabot
  14. Susquehanna                            Forest Lake                                       Cabot
  15. Susquehanna                            Hartford                                              Cabot
  16. Susquehanna                            Hartford                                              Cabot
  17. Susquehanna                            Hartford                                              Cabot
  18. Susquehanna                            Hartford                                              Cabot
  19. Susquehanna                            Hartford                                              Cabot
  20. Susquehanna                            Hartford                                              Cabot
  21. Susquehanna                            Hartford                                              Cabot
  22. Susquehanna                            Lathrop                                              Cabot
  23. Susquehanna                            Lathrop                                              Cabot
  24. Susquehanna                            Lathrop                                              Cabot
  25. Susquehanna                            Lathrop                                              Cabot
  26. Susquehanna                            Lathrop                                              Cabot
  27. Susquehanna                            Lathrop                                              Cabot
  28. Susquehanna                            Lathrop                                              Cabot
  29. Susquehanna                            Lathrop                                              Cabot
  30. Susquehanna                            Lathrop                                              Cabot
  31. Susquehanna                            Lathrop                                              Cabot
  32. Susquehanna                            Rush                                                  SWN
  33. Susquehanna                            Springville                                         Cabot
  34. Susquehanna                            Springville                                         Cabot
  35. Susquehanna                            Springville                                         Cabot
  36. Susquehanna                            Springville                                         Cabot
  37. Susquehanna                            Springville                                         Cabot
  38. Susquehanna                            Springville                                         Cabot
  39. Susquehanna                            Springville                                         Cabot
  40. Susquehanna                            Springville                                         Cabot
  41. Tioga                                            Middlebury                                        Shell
  42. Tioga                                            Middlebury                                        Shell
  43. Tioga                                            Middlebury                                        Shell
  44. Tioga                                            Middlebury                                        Shell

OH Permits for week ending March 24, 2018

               County                                   Township                                          E&P Companies

  1. Harrison                                       Nottingham                                       Ascent
  2. Harrison                                       Nottingham                                       Ascent
  3. Harrison                                       Nottingham                                       Ascent
  4. Harrison                                       Nottingham                                       Ascent
  5. Jefferson                                     Mt. Pleasant                                      Ascent
  6. Jefferson                                     Mt. Pleasant                                      Ascent
  7. Monroe                                        Green                                                 Eclipse Resources
  8. Monroe                                        Switzerland                                       CNX
  9. Monroe                                        Switzerland                                       CNX
  10. Monroe                                        Switzerland                                       CNX
  11. Monroe                                        Switzerland                                       CNX

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

Midstream PA