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Expo/Industry events for the next few months

Appalachian Storage Hub Conference
June 7, 2018
Hilton Garden Inn, Southpointe
Canonsburg, PA

https://www.appastorage.com/

DUG East
June 19-21, 2018
David L. Lawrence Convention Center
Pittsburgh, PA
https://www.hartenergyconferences.com/dug-east

Mainstream PA
September 25, 2018
Penn Stater Conference Center
State College, PA
http://midstreampa.com/

Utica Summit
October 10, 2018
Walsh University
North Canton, OH
http://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

PTTGC Selects Bechtel.  Everyone has been waiting to see which contractor would be selected by PTTGC.  In the toss-up between Fluor and Bechtel, one could make a case for either one.  Both are outstanding companies.  In analyzing this rumor, it does seem to make sense that Bechtel is the one. 

As many of you know, Bechtel is the lead contractor on the Shell cracker plant.  PTTGC could rationalize that Bechtel as its lead could manage all the vendors and resources in the Ohio River Valley.  (RUMOR)

Corp of Engineers Delays Mountain Valley.  The U.S. Army Corp of Engineers pulled a permit last week for EQT Midstream Partners LP’s Mountain Valley natural gas pipeline from West Virginia to Virginia that could delay the $3.5 billion project’s expected late 2018 in-service date.

“This is a big one,” Katie Bays, energy analyst at Height Capital Markets in Washington, DC, said in a report on Monday, noting “The loss of the (Nationwide Permit) is not easy to reconcile and could delay the project.”

The permit, known as Nationwide Permit (NWP) 12, authorizes Mountain Valley to discharge dredged and fill materials into several rivers, including the Gauley, Greenbrier and Elk, at 591 locations.

Officials at EQT Midstream were not immediately available for comment.

The Army Corps said in a filing made available on Thursday that it pulled the permit on May 22 to determine if it is at odds with West Virginia environmental rules.

The Sierra Club and others alleged violations of the West Virginia rules in an appeal to the Army Corps and a lawsuit that is currently before the U.S. Fourth Circuit Court of Appeals.

Even if the Army Corps reissues the permit, Bays at Height Capital Markets warned if Mountain Valley loses the Sierra Club lawsuit, it could delay the pipeline’s in-service date by a year and require re-routing around three rivers in West Virginia.

The 303-mile (488-kilometer) pipeline is designed to deliver up to 2 billion cubic feet per day of gas from the Marcellus and Utica shale formations in Pennsylvania, West Virginia and Ohio to meet growing demand for the fuel for power generation and other uses in the U.S. Southeast and Mid-Atlantic.

One billion cubic feet of gas is enough to fuel about 5 million U.S. homes for a day.

The project is owned by units of EQT Midstream, NextEra Energy Inc, Consolidated Edison Inc, WGL Holdings Inc and RGC Resources Inc. EQT Midstream will operate the pipeline and owns a significant interest in the joint venture.

The companies have said they expect to complete the project in the fourth quarter of 2018.

In April, the companies said they planned to spend about $350 million to $500 million to extend the pipe about 70 miles from Virginia into North Carolina by the fourth quarter of 2020.

FERC Raises Issues about Pipeline Security.  Lawmakers should "take a serious look" at mandatory security requirements for natural gas pipeline operators amid recent hacking threats, according to Commissioner Richard Glick of the Federal Energy Regulatory Commission. "If you just have one weak link — one entity that doesn't follow voluntary standards — it can cause significant damage," said Glick. He called the security of the U.S. gas grid a "growing concern" as electric utilities increasingly rely on natural gas as a fuel source for power generation. In an interview at FERC's headquarters Friday, he questioned the efficacy of current rules that put the Transportation Security Administration in charge of pipeline cybersecurity, as reports of attempted cyber intrusions pile up. "I'm not entirely certain that the TSA is the right agency for the job," Glick said, suggesting the Department of Energy might be a better fit. An Energywire investigation last year found that TSA had just six employees charged with monitoring the cyber and physical security of more than 300,000 miles of interstate gas pipelines. Since then, TSA has revamped cybersecurity guidance for oil and gas pipeline operators, issuing a new set of baseline standards in March. 

Rover Receives FERC Approvals.  Energy Transfer Partners, L.P. announced yesterday that Rover Pipeline, LLC received approval from the Federal Energy Regulatory Commission (FERC) to commence service of the Supply Connector B and full Mainline B pipeline segments. This latest approval allows for 100% of Rover’s mainline capacity, 3.25 billion ft3/d of natural gas, to be placed into service.

The U.S. Federal Energy Regulatory Commission (FERC) authorized ETP to start service on the Supply Connector in Ohio and parts of Mainline B, which is a 42-inch (107-cm) pipe that runs alongside the 42-inch Mainline A pipe from southeast Ohio to northwest Ohio.

FERC, however, said it was still considering ETP’s request to start service on other pipeline segments, including the Burgettstown Lateral from Pennsylvania to Ohio and the Majorsville Lateral from West Virginia to Ohio.

FERC said it granted the authorization to start service on the Supply Header and Mainline B on the expectation that “rehabilitation and restoration of the affected areas are generally proceeding satisfactorily.”

At this time, final restoration of the Supply Header and Mainline B is over 90 percent complete, FERC said, noting that ETP has estimated it will complete full restoration by July 24.

ETP said on Wednesday that placing all of the requested segments into service would have unlocked about 0.85 billion cubic feet per day (bcfd) of capacity that is not currently available to the market, which the company said could help offset the nation’s current storage deficit before next winter.

That deficit stands at over 500 billion cubic feet below the five-year average. One billion cubic feet is enough gas to supply about 5 million U.S. homes for a day. [EIA/GAS]The $4.2 billion Rover project is the biggest gas pipeline project under construction in the United States. It is designed to carry up to 3.25 bcfd of gas from the Marcellus and Utica shale fields in Pennsylvania, Ohio and West Virginia to the U.S. Midwest and Gulf Coast and Ontario in Canada.

ETP has said it wanted to put the entire Rover project into service by June 1. The Rover pipeline, which has been entering service in phases as ETP completes each section, is already capable of transporting 1.7 bcfd across Ohio and into F

Major producers that have signed up to use Rover include units of privately held Ascent Resources, Antero Resources Corp, Range Resources Corp, Southwestern Energy Co, Eclipse Resources Corp and EQT Corp.

FERC Stops Anti’s Law Suits.  The Federal Energy Regulatory Commission short-circuited potential legal challenges last month when it rolled out an updated approach to climate analysis for natural gas pipelines, environmentalists say. More than 200 groups told FERC yesterday that its recent decision to limit analysis of pipelines' indirect greenhouse gas emissions — those associated with gas production and consumption — effectively blocks them from the courtroom because the agency unveiled the change in a proceeding in which most of the groups aren't involved. FERC laid out its revised plan two weeks ago in a denial of a rehearing request for a Dominion Energy Transmission Inc. project in New York. Dominion proposed new compressor stations and upgrades opposed by the grass-roots group Otsego 2000. Environmental groups slammed the move as an abdication of FERC's duty to analyze the indirect climate impacts of the projects it approves. But the Delaware Riverkeeper Network and other groups say they have no legal recourse because they aren't intervenors in the Dominion case.

Saudi’s Select Halliburton for Fracking.  Saudi Arabia will partner with Houston-based Halliburton as it hopes to unlock a natural gas revolution similar to the shale boom that began in the U.S. more than a decade ago. State oil company Saudi Aramco signed a three-year contract Sunday with the North American fracking leader to handle the hydraulic fracturing and completions of its unconventional gas wells. Saudi Arabia hopes to rely much more on its domestic gas to power the Kingdom's electric grid. Whiles Saudi Arabia is known as the world's largest oil exporter, it has vast supplies of gas as well, but much of it is difficult to recover from shale rock and tight sand. The goal is to use the unconventional drilling and fracking technologies developed in the U.S., especially in Texas, to tap into those gas resources.

TX March Oil and NatGas Production.  Preliminary production totals for March 2018 in Texas included 86.44 million barrels (MMBbl) of crude oil and 577.82 billion cubic feet (Bcf) of natural gas from oil and gas wells, reports the Railroad Commission of Texas.

Those are totals reported to the state agency by operators and will be updated as late and corrected totals are reported.

Production reported in March 2017 was 77.26 MMBbl of crude oil, updated to a current total of 90.03 MMBbl; and 608.01 Bcf of gas, updated to the current total of 663.68 Bcf, Kallanish Energy reports.

The commission reported Texas production from April 2017 through March 2018 was 1.081 billion barrels (BBbl) of crude and 7.8 trillion cubic feet (Tcf) of natural gas.  Texas lists condensate separately.

In March 2018, Texas production averaged 2.79 MMBbl of crude daily, compared to 2.49 MMBbl per day in March 2017.

In March 2018, natural gas production averaged 18.64 billion cubic feet per day (Bcf/d), compared to 19.61 Bcf/d in March 2017.

The March 2018 production came from 180,368 oil wells and 91,195 gas wells.

The Top 5 oil producing counties in March 2018 were Midland, Karnes, Reeves, Loving and Upton. The Top 5 gas-producing counties in that month were Webb, Tarrant, Reeves, Loving and Midland, and the Top 5 condensate counties in March 2018 were Reeves, Culberson, Loving, De Witt and Karnes.

Texas is the No. 1 drilling state in the U.S. with roughly 50% of all active drilling rigs. 

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PA Permits May 24, to May 31, 2018

County                                   Township                                          E&P Companies

  1. NO NEW PERMITS THIS PAST WEEK

OH Permits for week ending May 16, 2018

            County                                   Township                                          E&P Companies

  1. Guernsey                                    Madison                                             Ascent
  2. Guernsey                                    Madison                                             Ascent
  3. Guernsey                                    Madison                                             Ascent
  4. Guernsey                                    Madison                                             Ascent

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

Utica Summit