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  • Permit Activity. 
    • PA issued 29 permits; Lycoming County most active; Shell continuing to move into drilling activity into Northwestern PA
    • OH another 17 permit week; Carroll and Harrison most active
  • Learn about the opportunities coming from the Shell cracker plant – “Fueling Our Economic Growth with Natural Gas” scheduled for June 18th, 2013 at Cross Creek Resort in Titusville, Pa.  This event is focused on the business opportunities available due to the growth of the natural gas industry and the planned building of a cracker plant in Western Pennsylvania.

Latest facts and a rumor from the Marcellus and Utica Shale

  • Ohio Department of Natural Resources Report.  Ohio says the Utica shale is living up to its promise. The state announced well production results Thursday afternoon in a live press conference.

    Oil production out of 87 wells in 2012 was 635,896 barrels.  Natural gas production was nearly 13 billion cubic feet.  Production is being hindered by a lack of so-called midstream facilities to process and transport the oil and gas taken from the wells, the state said

    Utica shale wells made up one-half of 1 percent of all oil wells in Ohio yet produced 12 percent of all oil in the state and 16 percent of its natural gas. Just three Utica shale wells produced for 300 or more days last year.

    "We believe the Utica shale is the real deal," said Jim Zehringer, director of the Ohio Department of Natural Resources.

    We believe it will produce staggering amounts of oil and gas, Zehringer said.

    The state estimates there will be 362 Utica shale wells in production by the end of this year; 662 wells in production by the end of 2014; and a bit more than 1,000 wells in production by the end of 2015.

    It can cost as much as $10 million to drill one well, the state said.

    The ODNR report tries to put a positive spin on production somewhat in a response to the Bloomberg article that stated the oil boom in OH.  In all my conversations with the E&P companies, the oil and gas is in OH.  Midstream development is needed to move it.  The big opportunities in OH are in Midstream in 2013 and possibly 2014.
  • Shell is evaluating Ohio.   It Shell is taking a close look at OH and has wildcatters looking around Ohio.  If this is true, it could credence to our rumor last week that Shell may be Enervest. (Rumor)
  • LNG is going overseas.  The Obama administration opened the door to a new era of U.S. energy exports on Friday, approving the first liquefied natural gas project since the start of a heated debate over how best to benefit from the shale energy boom.

    The Energy Department’s approval of unrestricted natural gas exports from Freeport LNG’s Quintana Island, Texas, terminal ends nearly a two-year pause in its review of export applications as the administration addressed concerns that sending unlimited amounts of domestic gas abroad could harm US manufacturers.

    While the approval had been widely expected after growing signals that President Barack Obama supported exports, the timing of the decision just one day after the Senate approved a new Energy Department secretary was a surprise. Many observers had expected the administration would wait until Ernest Moniz had settled into his new role before moving ahead.
  • Cabot using Marcellus gas to fracture wells.  Cabot Oil & Gas Corp. said it is using natural gas from the Marcellus shale in Susquehanna County, Pa., to fracture wells via dual-fuel technology in a process that can displace as much as 70% of the diesel fuel traditionally used to operate hydraulic fracturing equipment.

    The dual-fuel technology involves engines operating on a mixture of natural gas and diesel. The effort was a partnership with FTS International (FTSI) and Caterpillar Global Petroleum, Cabot said. Benefits are said to include:
  • Reduced air emissions for a cleaner environment, due to a reduction in diesel usage.
  • Reduced truck traffic when field gas at or near the well site is used due to a reduction in the transportation of diesel fuel to site.
  • Reduced costs, as natural gas can be a less expensive fuel option than diesel, providing potential cost savings for industry and consumers.
  • Chesapeake names new CEO.  The Wall Street Journal cited sources Sunday who said Robert Douglas Lawler would be announced as the head of the Oklahoma City-based natural gas company with extensive operations in the Marcellus and Utica shale’s. Lawler replaces co-founder and CEO Aubrey McClendon, who left Chesapeake in April.
  • Chesapeake consolidating operations in Northeastern PA.  Chesapeake Energy Corp. will soon move all the company’s local offices to a new 103-acre office complex in Athens Township.

    All Chesapeake operations and employees in Northeastern Pennsylvania – including affiliate companies – will be based there.

    The current field offices at South Main Street in Towanda and Elmira Street in Athens will remain open until May 22. After that date, landowners and other individuals who wish to meet or contact Chesapeake employees should go to the new facility at 14 Chesapeake Drive. Phone: (570) 882-7702.

    The multi-building complex includes office space for Chesapeake, NOMAC Drilling L.L.C., Great Plains Oilfield Rental, Oilfield Trucking Solutions, Hodges Trucking Company L.L.C. and MidCon Compression. The lobby of the five-story building will display a full-scale model of the series of steel casings and cement used to build Chesapeake wells in the Marcellus shale, along with educational material explaining the processes involved.

    An open house will be scheduled for later this summer.

    Chesapeake operates six drilling rigs in Pennsylvania, employs more than 900 people in the state, and maintains leasehold of more than 1.5 million acres in the Marcellus shale.
  • Baker Hughes Rigs count for the May 17 reporting week. 
    • PA Marcellus 55 rigs – down 1
    • PA Utica 2 rigs – down 1
    • Ohio Utica 33 rigs – up 1
    • WV Marcellus 23 rigs  – down 1

PA Permits for March May 15 to May 22

    County             Township           E&P Company
1. Bradford           Terry                  Chesapeake
2. Bradford           Wilmot               Chesapeake
3. Bradford           Wilmot               Chesapeake
4. Forest               Howe                Shell
5. Forest               Howe                Shell
6. Greene              Dunkard            Chevron
7. Greene              Dunkard            Chevron
8. Greene              Dunkard            Chevron
9. Greene              Jefferson           Vantage Energy
10. Greene            Washington      EQT
11. Greene            Washington      EQT
12. Lawrence         Pulaski             Hilcorp
13. Lycoming          Cogan House   Anadarko
14. Lycoming          Cogan House   Anadarko
15. Lycoming          Cogan House   Anadarko
16. Lycoming          Cogan House   Anadarko
17. Lycoming          Cogan House   Anadarko
18. Lycoming          Cogan House   Anadarko
19. Lycoming          Cogan House   Anadarko
20. Lycoming          Cogan House   Anadarko
21. Susquehanna   Jackson            Southwestern
22. Susquehanna   Lathrop            Chief
23. Susquehanna   New Milford      Southwestern
24. Washington     Amwell              EQT
25. Washington     Buffalo              Range
26. Washington     Cross Creek      Range
27. Washington     Cross Creek      Range
28. Wyoming          Mehoopany      Chesapeake
29. Wyoming          Mehoopany      Chesapeake

OH Permits – week ending May 18

    County          Township        E&P Companies
1. Carroll           Loudon            Chesapeake
2. Carroll           Loudon            Chesapeake
3. Carroll           Loudon            Chesapeake
4. Carroll           Union               Chesapeake
5. Carroll           Union               Chesapeake
6. Carroll           Washington     Chesapeake
7. Carroll           Washington     Chesapeake
8. Columbiana   Hanover           Chesapeake
9. Harrison        North               Chesapeake
10. Harrison      North               Chesapeake
11. Harrison      North               Chesapeake
12. Harrison      Cadiz               Hess
13. Harrison      Freeport          Gulfport
14. Harrison      Freeport          Gulfport
15. Harrison      Freeport          Gulfport
16. Harrison      Freeport          Gulfport
17. Portage       Nelson             Mountain Energy

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


Utica Summit 2019