BusinessCreator, Inc.

NewsLetters

Permit Activity. 

Latest facts and a rumor from the Marcellus and Utica Shale

  • Kensington, OH processing plant now online.  What oil and gas producers have longed for in the Utica shale is now starting to come on line -- and natural gas sales are being processed at the huge new cryogenic plant here.

    The initial phase of Utica East Ohio Midstream LLC's cryogenic plant is now in operation, allowing for the first time natural gas from nearby wells in this part of eastern Ohio to be processed and marketed, officials reported late Monday.

    "Completing this first stage of the project is an important milestone in advancing the development of the Utica shale formation in Ohio, as wells can begin producing both natural gas and natural gas liquids," Frank Tsuru, president and CEO of M3 Midstream, said in a statement.
  • Two BP rumors.  It looks like BP is getting active.  Here are two rumors:

    BP is moving into PA.  We have heard from a couple of companies that BP is looking to establish MSA’s with companies in PA (Rumor)

    BP may be purchasing Antero Resources. (Rumor)
  •  Ford will be offering CNG engines in 2014 F-150s.  As the result of consumer demand, Ford will be offering two versions of CNG F-150’s next year – a biofuel version and a straight CNG version.  Ford currently offers CNG engines in its Heavy Duty F-150 and there has not been any decline in power with the CNG fuel.
     
  • EQT, Range and CONSOL looking at the Upper Devonian.  The question of fracking the shale layers above and below the Marcellus has transitioned from an "if" to a "when" for many oil and gas operators in Pennsylvania. On that, they agree; how to do it is another story.

    In recent discussions with analysts, executives at three of southwestern Pennsylvania's largest oil and gas firms shared contrasting views about what they believe happens when two wells are fracked on top of each other.
  • Drilling ramping up in Crawford County, PA.  Shell and Halcon continuing to get permits.   Drilling is expected to pick up in Crawford in the next couple of years.
  • Chesapeake update from new CEO.  Chesapeake Energy Corp. remains very satisfied with what it is developing in Ohio’s Utica shale.

    "First let me say that I really am encouraged by what I’ve seen in the Utica," said Doug Lawler, the company’s chief executive officer.

    He added: "The Utica is outstanding."

    The company intends to focus on the most-productive areas in the Utica shale for natural gas, petroleum and other liquids including ethane, butane and propane, he said.

    More multi-well pads will be developed in Ohio — with multiple wells being drilled from the same pad or drilling area, a process that will increase production with lower drilling costs, he said.

    Oklahoma-based Chesapeake, the No. 1 player in Ohio’s Utica shale, said Utica production is expected to increase sharply in late 2013, after this week’s start-up of a natural gas processing plant in Columbiana County and a liquids-separating facility in Harrison County.

    That complex, connected by a pipeline, is servicing Chesapeake-drilled wells in eastern Ohio. It is owned and operated by Utica East Ohio, a joint venture owned by Access Midstream, M3 and EV Energy Partners.

    Additional pipelines and processing facilities in eastern Ohio are also under construction.

    Through June 30, Chesapeake has drilled 321 wells in the Utica shale in eastern Ohio, western Pennsylvania and northern West Virginia.

    That includes 106 producing wells, 93 more awaiting pipeline construction and 122 wells in various stages of completion.

    Net production from the Utica shale averaged 85 million cubic feet of natural gas equivalents per day during the second quarter.

    That is up 48 percent from the first quarter 2013, the company said.

    It has had 11 rigs drilling wells in eastern Ohio. That number will be reduced to 10 by Dec. 31, the company said.

    Company-wide, Chesapeake will be operating 64 rigs, compared to 81 rigs in the first half of the year.

    The company also reported that its drilling time for Utica wells has been cut from 26 days a year ago to 18 days, a move that saves significant costs.

    Chesapeake said there were no announcements on possible asset sales in Ohio.

    The company has indicated that it intends to keep its core area in Carroll County and surroundings areas, but intends to sell off non-core assets in Ohio as part of an effort to reduce the company’s significant debt.

    Chesapeake is also shifting internal policy. Previously, its priority was to preserve leased land for drilling. Now it is seeking the most value and that may result in Chesapeake selling off assets and abandoning some leases, Lawler said.

    Chesapeake, the No. 2 U.S. natural gas producer, said oil production rose 44 percent in the quarter to 116,000 barrels per day. Analysts had expected 105,000 barrels per day.
  • ODNR report of July drilling activity in OH.  Click on the link to see ODNR’s map.  http://www.uticashaleblog.com/2013/07/ohio-utica-shale-wells-drilling-as-of.html

Rig Movement

This information shows the movement of new rigs into a county by an E&P company.  PA and WV reflect high activity with new rig moves

PA

County             E&P                      Rigs
Bradford           Chesapeake           2
Greene             EQT                         3
Lycoming          Seneca Resources   2
Susquehanna    Cabot                      4
                        Southwest              2
Washington       CNX                         3

WV

County        E&P              Rigs
Doddridge   Antero           3
Harrison      Antero           2
Ohio            Chesapeake  2

Rig Count

  • Baker Hughes Rigs count for the July 26 reporting week. 
    • PA Marcellus 51 rigs down 1
    • PA Utica 2 rigs – unchanged
    • Ohio Utica 34 rigs – unchanged
    • WV Marcellus 27 rigs  – up

Please note some wells are being drilled in the Upper Devonian in PA which are not captured by Baker Hughes.

PA Permits for July 26 to August 1, 2013

     County               Township      E&P Company
1.  Bradford             Orwell            Southwestern
2.  Bradford             Orwell            Southwestern
3.  Bradford             Orwell            Southwestern
4.  Bradford             Orwell            Southwestern
5.  Bradford             Orwell            Southwestern
6.  Butler                 Middlesex       Re Gas
7.  Butler                 Middlesex       Re Gas
8.  Potter                 Allegany         Shell
9.  Susquehanna      Forest Lake     WPX Energy
10. Tioga                 Duncan           EQT
11. Tioga                 Duncan           EQT
12. Tioga                 Duncan           EQT
13. Tioga                 Duncan           EQT
14. Tioga                 Duncan           EQT
15. Tioga                 Duncan           EQT
16. Venango            Oakland         Range
17. Washington       WestFinley       Chesapeake
18. Westmoreland   Sewickley       Chevron
19. Westmoreland   Sewickley       Chevron
20. Westmoreland   Washington     CONSOL
21. Westmoreland   Washington     CONSOL
22. Westmoreland   Washington     CONSOL

OH Permits – week ending July 27

    County          Township  E&P Companies
1. Belmont         Somerset    Gulfport
2. Belmont         Kirkwood     Hess
3. Belmont         Kirkwood     Hess
4. Carroll           Fox             Chesapeake
5. Carroll           Perry          Chesapeake
6. Carroll           Perry          Chesapeake
7. Columbiana   Hanover      Chesapeake


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

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


Utica Summit 2019