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Latest facts and a rumor from the Marcellus and Utica Shale

  • MarkWest bullish on the Marcellus and Utica.  The ethane being produced in the Marcellus and Utica shale region should be enough to support construction of several ethane crackers, officials with MarkWest Energy believe.

    MarkWest has invested $2.2 billion into pipelines, processing and fractionation plants in the region. The fractionation plant at Hopedale served as the destination of the six "superloads" that recently made their way through Steubenville.

    "There is plenty of gas to go around," Greg Sullivan, area manager for MarkWest, said. "We probably have enough work here to expand for another five years."

    MarkWest has contracts to process Ohio gas for Gulfport Energy, Antero Resources, Petroleum Development Corp. and Rex Energy. The company also processes gas at the Mobley site in Wetzel County and the Majorsville complex in Marshall County, working for producers such as Magnum Hunter, Consol Energy, Noble Energy and Range Resources.
  • Productive gas wells in the Utica.  A few knowledgeable industry experts think the dry gas wells in the Utica may be more productive that the dry gas wells in the Marcellus.  The Utica dry gas wells will be in Belmont, Monroe and possibly Noble Counties in OH and Marshall and Wetzel Counties in WV. (Rumor)
  • CONSOL update. During the second quarter, CONSOL Energy drilled 13 horizontal shale wells: nine Marcellus Shale and four Utica Shale wells. CONSOL completed 15 Marcellus Shale wells in the second quarter and expects to initiate completion operations on the Utica Shale wells in the third quarter of 2013.

    Marcellus Shale Dry Gas (CONSOL Energy-operated):

    Southwest Pa.: During the second quarter, CONSOL drilled six wells in Southwest Pa., all in Washington County.

    CONSOL completed 10 wells: six wells in Washington County and four wells in Greene County.  CONSOL has one horizontal rig operating and plans to drill an additional nine wells in Southwest Pa., which is a slight decrease from previous guidance provided last quarter to now drill 22 wells in 2013.

    CONSOL does not currently have a horizontal rig operating but expects to drill five additional wells in Westmoreland County in Central Pa., which increases previous guidance provided last quarter to now drill 10 wells in 2013.

    Northern W.Va.: During the second quarter, CONSOL drilled the first three of six wells in Barbour County.

    CONSOL has one horizontal rig operating in Barbour County and expects to drill eight additional wells in Northern W.Va., which is an increase from previous guidance provided last quarter to now drill 11 wells in 2013.

    Marcellus Shale Wet Gas (Noble Energy-operated):

    During the second quarter, in the wet gas portion of the Marcellus Shale, Noble Energy drilled 13 wells: eight wells in Marshall County, W.Va. and five wells in Gilmer County, W.Va.

    Noble Energy is currently operating three horizontal rigs with the addition of a fourth rig now expected in the third quarter. By the end of 2013, Noble expects to operate five horizontal rigs, which is a decrease from previous guidance provided last quarter of six rigs, due to the improvements in horizontal rig efficiency being realized by increased top-hole drilling.

    Ohio Utica Shale (CONSOL-operated):

    During the second quarter, in the Utica Shale joint venture with Hess Corporation, CONSOL Energy drilled four wells all in Noble County.

    CONSOL has one horizontal rig operating and expects to drill three additional wells in Noble County, which is a slight decrease from previous guidance provided last quarter to now drill nine wells in 2013, all in Noble County.

    Ohio Utica Shale (Hess-operated):

    During the second quarter, CONSOL joint venture partner, Hess Corporation, drilled four wells: two in Harrison County; and the Oxford A 1H-8 and two in Guernsey County.

    Hess finished the second quarter with two horizontal rigs operating on JV acreage. Their current activity level is consistent with guidance provided by them last quarter.
  • Delaware River Basin Commission’s Moratorium’s hurting Wayne and Pike Counties in PA.  The two major companies that had sought to drill for natural gas in northeastern Pennsylvania within the Delaware River Basin are pulling out, nixing $187.5 million in lease payments that landowners had hoped to get. Landowners and businesses in Wayne County who had leased more than 100,000 acres to the companies in 2009 began receiving notices late last week that the leases they had with Newfield Appalachia PA L.L.C. and Hess Corp. were being terminated. 

    PA Governor Corbett is pressuring the DRBC to lift the moratorium.  Drilling in these counties would help many farmers survive.
  • More midstream work in Columbiana County OH.  The Columbiana County Port Authority approved two leases Monday night that again illustrate the growing presence of the oil and gas industry in the tri-state region.

    Anchor Drilling Fluids USA Inc., which opened a $2 million plant in November at the CCPA’s Wellsville Intermodal Facility, needs more land to store inbound storage tanks, says Tracy Drake, the port authority’s executive director. And Southern Automation Inc., a Louisiana material handling company that’s working with Shell at its Ergon refinery across the Ohio River in Newell, W.Va., needs space to store and set up equipment needed as part of Ergon Inc.’s planned $78 million expansion of its oil processing units and supporting infrastructure.
  • Marcellus Shale gas to Chile.  Bernardo Larrain is the chairman of Colbun, a Chilean energy company. Larrain says demand for energy in Chile is growing five to six percent a year, and will continue at that rate for the next 20 years.

    Larrain told StateImpact. “Pennsylvania produces a lot of natural gas, shale gas. And Chile has a big installed capacity with plants that operate with natural gas. So I think there’s a good potential for association with the state of Pennsylvania.”

Rig Count

  • Baker Hughes Rigs count for the July 12 reporting week. 

    • PA Marcellus 51 rigs – unchanged
    • PA Utica 2 rig – unchanged
    • Ohio Utica 35 rigs – up 2
    • WV Marcellus 24 rigs  – down 1

PA Permits for July 12 to July 18

 County       Township   E&P Company
1. Greene    Center        Chevron
2. Greene    Center        Chevron
3. Mercer     Jefferson     Chevron

Was PA DEP closed this week???

 OH Permits – week ending July 13

    County           Township    E&P Companies
1. Belmont          Warren       Gulfport
2. Belmont          Warren       Gulfport
3. Belmont          Warren       Gulfport
4. Belmont          Kirkwood    Gulfport
5. Carroll             Lee            Chesapeake
6. Carroll             Union         Chesapeake
7. Carroll             Union         Chesapeake
8. Carroll             Union         Chesapeake
9. Columbiana     Wayne       Chesapeake
10. Columbiana   Hanover     Chesapeake
11. Columbiana   Hanover     Chesapeake
12. Harrison        Rumley       Chesapeake
13. Harrison        Athens       Gulfport
14. Harrison        Athens       Hess
15. Harrison        Athens       Hess
16. Harrison        Athens       Hess
17. Harrison        Athens       Gulfport
18. Harrison        Rumley       Chesapeake
19. Harrison        Athens       Hess
20. Monroe         Seneca       Antero
21. Noble            Beaver       Antero
22. Noble            Beaver       Antero         

The second half of 2013 is going to be active.  Become a member of to tap into this future growth.

Joe Barone 610.764.1232
Vera Anderson 570.337.7149
Andrea Bagnell 610.256.1898

Utica Summit 2019