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Don’t miss the Midstream Opportunities

There is considerable attention being played to the well site and getting a MSA with an E&P company.  While drilling will be stronger in 2013 so will the midstream activities and opportunities.  I encourage you to learn as much as you can about your opportunities as more and more pipeline is being laid and processing facilities are being built. 

We will be working with Penn State’s Marcellus Center for Outreach and Research to develop midstream supply chain information similar to what is available for drilling a well. Look for midstream seminars and events in the near future.

OOGA’s Winter Meeting

Visit us at Booth #33.  If you are not registered, here’s the link.

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

  • Investment in Mark West based on strong drilling results. Houston investment firm Energy & Minerals Group is increasing its stake by another $450 million in a joint venture with Denver’s Mark West Partners to support the Utica shale play in eastern Ohio.

    The increase brings the companies’ total investment in MarkWest Utica EMG LLC to $950 million; deepening its presence throughout the Utica shale region and helping its planned processing operations keep pace with drilling.

    With a planned processing plant and pipelines in Harrison County, MarkWest is set to meet key infrastructures needs in Ohio’s shale gas boom. Early results from producers including Antero Resources, Gulfport Energy Corp. and Rex Energy spurred additional investment from EMG in the joint venture.
  • More activity in Butler County, PA.  XTO, (ExxonMobil) and Shell are working more with local groups, business, governmental and privately to address any questions or issues.  As these two companies step up these activities, it could mean that activity in Butler County will be increasing.
  • Halliburton announces new safer frack fluid.  Energy giant Halliburton Inc. has developed a new hydraulic fracturing fluid, which the company said contains safe, food-industry ingredients, The Associated Press reported. The move is an effort to ease growing environmental concerns regarding the controversial drilling technique, which typically involves blasting a mixture of water, sand and chemicals down a well to break up hard rock formations, allowing for oil and gas to flow.

    Environmental groups have for years been concerned that the hazardous chemicals in fracking fluid, which are injected deep into the ground, have the possibility to contaminate drinking water. Halliburton said its new nontoxic fracking fluid, called CleanStim, will provide "an extra margin of safety to people, animals and the environment in the unlikely occurrence of an incident" at a drilling site, the AP reported.

    The new fracking fluid is more expensive to make than traditional fluids, the article stated. The source also said environmental groups welcome the new development of the frack fluid, but still have questions about the drilling process.
  • Permitting activity could be picking up in PA.  DEP issued 258 permits in January 2013
    • Armstrong – 7
    • Bradford – 93
    • Butler – 14
    • Clearfield – 2
    • Fayette – 3
    • Forest – 1
    • Greene – 8
    • Jefferson – 1
    • Lycoming – 12
    • McKean – 4
    • Potter – 2
    • Sullivan – 7
    • Susquehanna – 40
    • Tioga – 5
    • Venango – 1
    • Washington – 42
    • Westmoreland – 5
    • Wyoming – 11
  • Latest permit info in OH.  As I have been telling everyone “, Draw a line from Trumbull County to Washington County.  That is where the drilling activity will occur in the near future.”  This permit data supports my statement.
  • Updates in Bold 
    • Ashland -1
    • Belmont – 14
    • Carroll – 280
    • Columbiana – 62
    • Coshocton – 5
    • Geauga – 1
    • Guernsey – 27
    • Harrison – 65
    • Holmes – 3
    • Jefferson – 33
    • Knox – 2
    • Mahoning – 16
    • Medina – 1
    • Monroe – 22
    • Muskingum – 3
    • Noble – 25
    • Portage – 14
    • Stark – 13
    • Trumbull – 2
    • Tuscarawas – 12
    • Wayne – 1
  • Rex Energy Update.  This week Rex Energy posted their Investor Presentation which should drilling activity in PA in Butler, Warren and Mercer Counties.  Its activity in OH was in Carroll, Belmont, Noble and Guernsey Counties.  Rex Energy has leases in PA counties of Westmoreland, Clearfield and Centre counties which are not active at this time.
  • Could Utica Shale drilling move farther south? Today, Southern Ohio Energy Consultants, in the capacity of exclusive consultant and adviser to Utica Shale mineral owners, announces that the company continues to represent over 100,000 acres of Utica Shale located in the “rich condensate” and “oil” phases of the emerging play in Washington, Athens, Meigs, Muskingum, and Perry Counties in South Eastern Ohio.

    This acreage position is available for lease and is off-set to Anadarko’s (APC) and Antero Resources production in Noble County Ohio and recently permitted or announced wells by PDC Energy, Magnum Hunter Resources and Flat Rock Resources in Washington County Ohio.

Baker Hughes Rig Counts

  • Baker Hughes Rigs count for the February 8 reporting week. 
    • PA Marcellus 68 rigs – up 2
    • PA Utica 3 rigs – 0 unchanged
    • Ohio Utica 27 rigs – down 1
    • WV Marcellus 23 rigs  – down 1

Take advantage of a bullish 2013 and become a member.

Joe Barone 610.764.1232
Vera Anderson 570.337.7149
Andrea Bagnell 610.256.1898

Northeast Supply Enhancement