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  • Price of Natural Gas.  If you have not been tracking the price of natural gas, it’s been above $4 for about a week or more and is now around $4.15.  It’s what we’ve all been wanting.  It’s even more bullish for drilling in 2013, ’14 and ’15.
  • Bringing “FrackNation” to Philadelphia.  As many of you know, I live in Philadelphia.  ShaleDirectries.com has partnered with a few local firms to create the Delaware Valley Marcellus Association (DVMA) which is premiering “FrackNation” in Philadelphia.  Phelim McAleer, the film’s producer, will be in Philadelphia to serve on the panel along with a couple of families from Dimock, PA.  Josh Fox of Gasland fame has been invited to serve on the panel also. We are hoping to make this a huge success.  We look forward to your support for a successful event.   If you would like to come or be a sponsor, here’s the link to the event  http://www.marcellusdelval.org/special-invite-fracknation/

Latest facts and a rumor from the Marcellus and Utica Shale

  • Chesapeake’s new boss still bullish on Utica Shale Chesapeake Energy Corp.’s acting CEO said last week the company expects a major increase in production from its wells in the Utica shale play this year as more processing facilities open to support oil and natural gas drilling.

    Steve Dixon, named acting CEO on Friday after the departure of embattled chief Aubrey McClendon, said Chesapeake is targeting net production of more than 330 million cubic feet of natural gas equivalent per day from the Utica play in eastern Ohio and western Pennsylvania by year-end. Current production totals about 75 million cubic feet a day.

    Chesapeake (NYSE:CHK) has drilled more than 240 wells in the Utica play, but just 54 are in production due to what Dixon called “infrastructure constraints.” The projected gains in production, he said, are dependent on the timely start-up of processing plants to serve the wells.
  • Dominion to build largest LNG exporting facility.  Dominion announced on April 1 it was applying to the federal government to approve a massive natural gas liquefaction project expected to receive supplies from the Marcellus and Utica shale region of Appalachia.

    The Richmond, Va.-based energy and utility company said the natural gas liquid processing and exporting facilities, which will cost $3 billion, will be added to its existing Dominion Cove Point LNG Terminal in Lusby, MD.

    The Chesapeake Bay site will have access to natural gas and natural gas liquid supplies that include those being extracted from the Marcellus and Utica shale region. The Cove Point facility can process natural gas into various products that are then exported.
  • The Safety Push by the major producers delivering results. The Wall Street Journal reported last week that the influx of big drillers is resulting in fewer drilling violations.

    Large drillers in Pennsylvania were responsible for 38 regulatory violations per 100 wells drilled, according to state records.

    Small drilling companies were responsible for 132 regulatory violations per 100 wells drilled.

    For medium-sized companies, there were 69 violations, according to state records.

    The newspaper said the larger companies are more apt to stress safety and compliance.

    The emphasis on safety will only increase forcing smaller and mid-size producers to focus more of the efforts on safety.
  • Ohio’s First Quarter Permit Update by County and E&P Compan

    • Counties
      • Ashland -1
      • Belmont – 19
      • Carroll – 223
      • Columbiana – 67
      • Coshocton – 5
      • Geauga – 1
      • Guernsey – 35
      • Harrison – 71
      • Holmes – 3
      • Jefferson – 33
      • Knox – 2
      • Mahoning – 16
      • Medina – 1
      • Monroe – 25
      • Muskingum – 3
      • Noble – 30
      • Portage – 14
      • Stark – 13
      • Trumbull – 4
      • Tuscarawas – 13
      • Washington – 1
      • Wayne – 1

    • E&P Companies
      • Anadarko E&P Company LP – 12
      • Antero Res Appalachian Corp – 18
      • Atlas Noble (Chevron) – 5
      • BP – 1
      • Carrizo Utica LLC – 2
      • Chesapeake Appalachia LLC – 6
      • Chesapeake Exploration LLC – 367
      • Chevron Appalachia LLC – 2
      • CNX Gas Company LLC – 22
      • Devon Energy Production Co - 13
      • Eclipse Resources LP – 1
      • Enervest Operating LLC - 16
      • EQT Production Company – 3
      • Gulfport Energy corporation – 37
      • Halcon Operating Company Inc. – 2
      • Hall Drilling – 1
      • Hess Ohio Develop. LLC – 12
      • Hess Ohio Resources LLC – 7
      • HG Energy LLC – 16
      • Hilcorp Energy Company – 3
      • Mountaineer Keystone LLC – 7
      • Petroleum Development Corp – 6
      • R E Gas Development LLC (Rex) – 13
      • Sierra Resources LLC – 3
      • Swepi LP (Shell) – 1
      • XTO Energy Inc.(ExxonMobil) – 5
  • BASF and more European companies could be coming to America.  German chemicals giant BASF, which operates the plant here, has announced plans for wide-ranging expansion in the United States, where natural gas prices have fallen to a quarter of those in Europe, largely because of American innovations in unlocking shale gas.

    Among those most affected are energy-intensive industries such as steel and chemicals, because they use natural gas as a raw material and power source. With Europe lagging in energy production, manufacturers on the continent warn that a chain reaction could shift more and more investment to U.S. shores.

    “It’s become clear, with the drop in gas and electricity prices in the United States, that we are, at the moment, at a significant disadvantage with our competitors,” said Gordon Moffat, director general of Eurofer, the main lobbying group for European steel manufacturers.

    As new dollars pour into the United States, the outflow from Europe is costing jobs and weighing on decisions about ambitious and expensive green-friendly policies that critics say are contributing to the energy-price gap.
  • Antero moving to natural gas engines to reduce cost and maintenance.  Waukesha-Pearce Industries Inc. and GE Energy recently completed the deployment of three Waukesha VHP L7044GSI natural gas engines for Antero Resources and Patterson-UTI Drilling Co. LLC in Harrison County, W.Va., where Antero is performing drilling operations in the Marcellus Shale.

    "The low-cost nature of switching to natural gas-fired rigs versus the conventional diesel-fired rigs and the intense focus on reduced emissions make the Series Four 7044 a terrific choice," says Kevin Kilstrom, vice president of production for Antero Resources.

    In addition to enabling Antero to realize fuel-cost savings (natural gas is half the price of diesel in the region), the L7044GSI engines have a reduced maintenance schedule versus other spark-ignited and diesel engines.

    "Rich-burn engines operate at lower cylinder pressures, providing longer operational times between oil changes, top-end overhauls and complete overhauls," explains Brian White, president of GE's Waukesha gas engines business unit.

    Antero says it intends to replace additional drilling-rig diesel engines with natural gas power in other locations.
  • Top 5 Producers in PA

    1. Chesapeake
    2. Cabot
    3. Talisman
    4. Range
    5. Anadarko

I was surprised to Talisman as number 3.  I never hear much information or rumors about Talisman.

Baker Hughes Rig Counts

  • Baker Hughes Rigs count for the April 5 reporting week. 
    • PA Marcellus 61  rigs – down 7
    • PA Utica 2 rig – up 1
    • Ohio Utica 30 rigs – up 2
    • WV Marcellus 20 rigs  – down 2

PA Permits for March April 1 - 6

    County             Township          E&P Company
1. Beaver            Ohioville            Chesapeake
2. Greene            Cumberland      Energy Corp of Am
3. Greene            Cumberland      Energy Corp of Am
4. Lycoming         McHenry            PA Gen. Energy
5. Lycoming         McHenry            PA Gen. Energy
6. Lycoming         Upper Fairfield   Inflection Energy
7. Washington     Amwell              Rice
8. Washington     Amwell              Rice
9. Washington     Amwell              Rice
10. Washington   Morris               CNX (Consol)

OH Permits – week ending March 30

     County        Township    E&P Companies
1. Carroll           Loudon        Chesapeake
2. Carroll           Loudon        Chesapeake
3. Carroll           Loudon        Chesapeake
4. Columbiana   Franklin       Chesapeake
5. Harrison        Moorefield    Gulfport
6. Noble            Seneca         Antero
7. Noble            Seneca         Antero

Take advantage of a bullish 2013 and become a ShaleDirectories.com member.

Joe Barone jbarone@shaledirectories.com 610.764.1232
Vera Anderson
vera@shaledirectories.com 570.337.7149
Andrea Bagnell
andrea@shaledirectories.com 610.256.1898

Northeast Supply Enhancement