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We hope to see you at the OOGA’s Oilfield Expo this week.  Visit us at Booth #253

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

  • Major Oil Companies have production shortfalls.  In 2012, Exxon has had a 5.7% shortfall, Chevron 2.9%, and BP 2.7%.  Shell had a 2.2% increase of production.  We could see increased activity by the majors in the Marcellus and Utica Shale region in order offset declines elsewhere in the world.  As I tell people, “Shell is not in the Marcellus and Utica Shale to ship natural gas to Boston.”  The majors drilling plans are not really affected by the price of natural gas.  They have long-term global production grills.
  • Rigs in Ohio drilling for oil.  According to Midwest Energy News, the growing interest in drilling for oil in Ohio’s Utica Shale may offset the decline in gas-centric interests, in the state.  Nearly 86 percent of active rigs in the Utica play were directed toward drilling for shale oil, according to a report published by Baker Hughes Inc.
  • Seneca successful in the Utica in PA.  National Fuel Gas Co.’s Seneca Resources Corp. unit has flow-tested its first horizontal Utica shale well, in Forest County, southeast of Titusville, Pa.  The well is part of the company’s program to assess the Utica as a second producing horizon underlying much of its Marcellus shale acreage in western Pennsylvania.

    Seneca has drilled two horizontal and three vertical exploratory wells to the Utica. The second horizontal well, on the Mount Jewett prospect in McKean County, Pa., has three frac stages complete and the ability to complete additional stages is under evaluation, Seneca said.

    Seneca plans two more Utica horizontal wells in Pennsylvania this fiscal year, one on the Owl’s Nest prospect in Elk County and one on the Henderson prospect in Venango and Mercer counties.
  • Slowdown in pipeline builds to cut Marcellus gas output growth.  A slowdown in the construction of pipelines will lead to lower natural gas production growth in some parts of the Marcellus Shale and could lead to higher gas prices next year as supply from higher-priced regions makes up some of the shortfall, investment bank FBR Capital Markets said in a Thursday report.
  • Range Resources drilling in Washington County.  Range Resources-Appalachia LLC of Cecil is applying to drill the Marcellus Shale on two properties in Robinson, Washington County.

    Plans include natural gas wells on a Midway-Candor Road farm and on a Valleyview Road site owned by a resident who has challenged the township's drilling regulations.

    Township supervisors held a public hearing Nov. 20 on plans to drill up to six gas wells -- with three drilled initially -- on 168 acres owned by Micheale F. Parees and Robert M. Frame
  • Baker Hughes converts fleet to bifuel.  Baker Hughes Incorporated, through its subsidiary Baker Hughes Oilfield Operations, has converted a fleet of its Rhino™ hydraulic fracturing units to bifuel pumps as a way to improve operational efficiency, lower costs, and reduce health, safety, and environmental impacts.

    The new pumps use a mixture of natural gas and diesel, reducing diesel use by up to 65 percent with no loss of hydraulic horsepower. The converted fleet, which meets all U.S. Environmental Protection Agency emissions standards, also can reduce a number of emissions including nitrogen oxides, carbon dioxide, and particulate matter.
  • Halcon the company to watch.  Halcon is meeting success in drilling in NW PA and is looking to renegotiate Utica Shale mineral rights leases on more than 30,000 acres in Trumbull and Mahoning counties.  The senior management of Halcon has considerable track record of building very successful E&P companies.  You’ll see them more and more in the Utica Shale.
  • Gulfport keeps on rolling.  Gulfport Energy Corp. has struck gold once again with its second shale gas well on the Shugert property in Belmont County. Its Shugert 1-12H well tested at an average of 28.5 million cubic feet of natural gas, 300 barrels of oil, and 2,907 barrels of natural gas liquids per day. When combined, the peak production rate amounts to 7,482 barrels of oil equivalent per day, by far the best performing well in the Utica shale and all of Ohio.
  • Seneca reduces environmental impacts.   Seneca Resources Corp. and drilling partner Ensign Drilling have installed two of GE's Jenbacher gas engines to power the first liquefied natural gas (LNG)-fueled drilling rigs of their kind in the Marcellus Shale region of Pennsylvania.
  • Marcellus providing more of the nation’s natural gas. The Marcellus Shale region now accounts for 26 percent of the country's shale gas production, according to the latest report from the U.S. Energy Information Administration.
    The Marcellus formation of Pennsylvania and other Mid-Atlantic states produced 6.8 billion cubic feet of gas per day in October, an increase of 72 percent from the same time one year ago.

Baker Hughes Rig Counts

  • Baker Hughes Rigs count for the November 30 reporting week.  A rig count remains steady.
    • PA Marcellus 66 rigs – down 1
    • PA Utica 4 rigs – up 1
    • Ohio Utica 26 rigs – unchanged 
    • WV Marcellus 26 rigs – down- 1

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

Joe Barone 610.764.1232
Vera Anderson 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

Northeast Supply Enhancement