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NewsLetters

The latest facts and a rumor from the Marcellus and Utica Shale

  • Fracking boom gains momentum.  Political obstacles to oil and gas production are starting to fall away at the state and local levels as voters, elected officials and courts jump on the energy boom bandwagon.

    Voters are rewarding local politicians who support production. Ballot measures are distributing potential tax windfalls broadly. And most state legislatures are focused on managing the economic and environmental consequences of hydraulic fracturing, or fracking, so the drilling boom can speed up rather than slow down.

    The trend is crucial to the nation's energy future because oil and gas production is regulated and taxed almost entirely by state and local governments. The federal government's role is largely advisory, except on federal lands and on pipelines.
  • Permitting will be faster in PA. (Thank you Manko, Gold, Katcher & Fox, LLP).   PA DEP finalizes permit decision guarantee policy that started Nov 14, 2012  The Permit Decision Guarantee policy applies to over 240 types of environmental permits issued by each of DEP's four major program offices and provides a corresponding "Permit Decision Guarantee time for'' for each permit  which DEP is supposed to complete its review.  This policy also replaces the 'first in, first out', places greater emphasis on submitting high quality applications that provides a more stream-line customer friendly process.
  • Colorado Energy Company eyes Ohio's Washington County.  Colorado-based PDC Energy Inc. has plans to drill next spring in Ohio's Washington County. That well will likely be drilled starting in April, the company said in its third-quarter earnings call. The company has drilled two wells in Ohio's Guernsey County and is pleased with the results. The wells each cost about $9 million.

    The first well is in its 60-day resting period; the other is awaiting completion. Results of the flow test from that first well will likely be released in December and the second well should be done in December, PDC said. It is investing $50 million for Utica shale drilling in 2013 and plans to drill five Utica wells in 2013. Its rig is only available for the first six months next year and the energy company is seeking to lease another rig.

    The company says it has leased 45,000 acres and most of that land is in the liquids-rich window of the Utica shale.
  • CNX Gas expanding Columbiana County office.  CONSOL Energy’s CNX Gas subsidiary is expanding its presence at the Columbiana County Port Authority’s industrial park in Leetonia.  It’s an indicator of CNX/CONSOL’s commitment to the Ohio Utica shale.

    CNX Gas agreed to lease an additional 2,610 square feet to bring the leased total to 12,610 square feet. The company had initially leased office space last March. The Leetonia office is designed to serve as a base for the company's expanded drilling in Northeast Ohio.

    Consol is the largest domestic producer of underground-mined coal and the leading natural gas producer in the eastern United States.  Consol has the mineral rights to more than 200,000 acres in Ohio.
  • EnerVest in Ohio.  EnerVest is pleased with its NGL results to so far.  It sees Belmont, Harrison, Jefferson and Monroe counties as good areas for NGL.  This includes the Belmont County area known as Egypt Valley home to the productive Gulfport well located on the Shugert property.
  • Gulfport taking over Wishgard LLC or Tri-Star Energy contracts.  Many Belmont County residents who originally signed leases with Wishgard LLC or Tri-Star Energy have seen those contracts turned over to Gulfport, while Gulfport also signed many county landowners to their own leases. Terms of the leases can range widely depending on when they were signed and a multitude of other factors. However, some property owners have received at least as much as $5,900 per acre, with as much as 20 percent of the production royalties.
  • Gas processor ups its bet in the Utica Shale region.  The outlook for shale gas development in Ohio has won a new vote of confidence from MarkWest Energy Partners LP, which is expanding and accelerating its pipeline and processing capacity for the gas liquids coming out of wells in the Utica Shale.

    MarkWest, a Denver-based master limited partnership, announced that it has joined with the Energy and Minerals Group in agreements with Antero Resources to build a processing complex for Antero's natural gas liquids production in Noble County in eastern Ohio and additions to its gas gathering and processing operations in Cadiz, in Harrison County.

    It is also expanding its gas-processing facility in Wetzel County, W.Va., adding two new units that will handle 320 million cubic feet of gas daily from EQT Corp. and Magnum Hunter Resources Corp. and other producers in the Marcellus Shale.
  • Ohio Department of Natural Resources issues permits.  Between Nov. 4 and Nov. 10, the Ohio Department of Natural Resources, Division of Oil and Gas Resources Management, has issued permits for six new wells. Three are planned in Bucks Township in Tuscarawas County by CNX Gas. Chesapeake Exploration received permits for wells in Loudon and Washington townships in Carroll County. The sixth permit was given to Antero for a well in Noble County.

    The product that comes out of these wells varies by region, with wells in the eastern part of the Utica Shale play producing mostly natural gas. In Tuscarawas County, there are more heavy liquids, possibly more oil than natural gas.

    Gulfport Energy has completed six wells in 2012 — four in Harrison County and one each in Guernsey and Belmont counties.  These six wells averaged a peak rate of 8.17 million cubic feet of natural gas per day and 1,111 barrels of natural gas liquids.

    One of those wells, the Shugert in Belmont County, is the largest in the state in terms of natural gas production.  At its peak, it produced 20 million cubic feet of natural gas per day.
    Harrison County looks to be the prime spot of this play, but it’s still early.
  • Move over Shell another cracker plant is coming. Pittsburgh’s own Renewable Manufacturing Gateway (RMG) has signed a Letter of Engagement (LOE) with Aither Chemicals LLC (Aither). RMG and Aither have agreed to collaborate to finance and build a large petrochemical plant on Marcellus shale using Aither’s ethane catalytic cracker technology. With an investment of $750 million over the next five years, the project is expected to create over 2000 construction jobs, 200 permanent direct production jobs, and many thousand indirect jobs in the Tri-State Region (Western Pennsylvania, Eastern Ohio, and Northern West Virginia). It is anticipated to generate $463 million in annual sales by 2016.
  • GMC, Chevrolet, Bi-Fuel Pickup Production Begins.  Production of the 2013 Chevrolet Silverado HD and GMC Sierra 2500 HD bi-fuel pickup trucks is underway in Fort Wayne, Ind., and the pickups are available for order by fleet and retail customers through Chevrolet and GMC dealers.

    The Silverado HD and Sierra 2500 HD Vortec 6.0L V8 engine runs on gasoline or compressed natural gas (CNG) and seamlessly switches between the two fuels without affecting performance.

    The CNG and gasoline tanks have a combined range of 650 miles, the longest standard bi-fuel range of any original equipment automaker.
  • Chrysler’s Ram Truck Division begins building pickup powered by CNG.  Chrysler’s heavy duty Ram 2500 4X4 Longbed thus became America’s only factory built CNG pickup.

Baker Hughes Rig Counts

  • Baker Hughes Rigs count for the November 23 reporting week.  PA rig count is increasing as the price of gas continues to climb.  Ohio’s rig count has doubled since last year this time. 
    • PA Marcellus 67 rigs – up 4
    • PA Utica 3 rigs – unchanged
    • Ohio Utica 26 rigs – unchanged 
    • WV Marcellus 27 rigs – unchanged

Call us to give your business a strong presence on the well site, on the pipeline and on the road.

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

Many out of state companies supporting the Oil&Gas drilling in the Marcellus Shale have exited PA late 2011 and early 2012 due to the significant decrease of drilling in PA.  With the increase of PA permits issued and rig increases in PA projected for 2013, now is the time to get your company on board.  Become a member with ShaleDirectories.com.

Northeast Supply Enhancement