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NewsLetters

  • Permit Activity.
    • PA – 24 permits; Chevron and Vantage active in Greene County; Shell in Tioga County
    • OH –8 permits; Chesapeake expands into Guernsey County
    • WV – while no permit information is available it’s worth noting that the rig count in WV this past week is up 5 rigs.
       
  • Expo/Event activity
    • The OOGA Oilfield Expo is the largest event of its kind in the eastern United States. The I-X Center is an impressive facility, uniquely capable of housing the wide array of equipment and services deployed in the oilfield. Exhibit space has been expanded and refined, a Safety Congress component has been added, industry-specific training being offered, and completed with the Fall Technical Conference and Oilfield Symposium – bringing the decision makers, industry professionals, and suppliers together at one very impressive venue. Visit us at booth 824

      http://www.shaledirectories.com/oil-and-gas-expo-information.html#ex46
       
    • The Northeast Oil & Gas Awards take place on March 20th, 2014 and celebrate the best companies operating within the Northeast. If you are interested in attending the conference for excellence and the Gala Dinner in the evening please contact us info@oilandgasawards.com
       
    • Oil & Gas Awards Enter Now http://www.oilandgasawards.com/northeast-2013/

Latest facts and a rumor from the Marcellus and Utica Shale

  • Cold weather moving natural gas prices up. If you have not been paying attention, the price is around $3.90. It will be interesting to see if the price can go above $4.00 and stay there for a while.
     
  • Shell cracker plant moving forward in PA. Royal Dutch Shell has intensified its efforts to buy properties surrounding the Horsehead Corp. zinc smelting plant in Monaca, which the energy company is evaluating as a site for a multibillion-dollar ethane cracker.

    Shell has been negotiating with businesses along Route 18 in Beaver County for an option to buy their land in the next year. In the past several months, the company has also approached residents along the same stretch. It is also studying a road construction project near the plant.
    Shell selected Monaca for its proposed cracker in March 2012. Since then, it has extended its land option agreement with Horsehead twice to buy more time as it considers environmental, site and economic factors.

    Mark Petrik, owner of Midway Bar & Grill, a quarter-mile from the Horsehead plant, was contacted by the energy company in the beginning of the year about selling his property. While he declined to give details about his agreement with Shell, he said the bar would be operating until Dec. 31, 2014. "I just hope it goes through," Mr. Petrik said. "It would be good for the area."

    A number of businesses and residents declined to be identified for this story, citing ongoing legal negotiations with Shell.

    "I understand there were some offers made," said Joe Spanik, Beaver County commissioner. "I think that's a good thing. That shows this is moving forward."

    He said there also has been talk of Shell pursuing nearby parcels for possible office space. "That could be on Pleasant Drive or behind the mall."

    Kim Windon, a spokeswoman for the company, confirmed the company "has been in contact with a limited number of landowners around the site" but said Shell "will not discuss on-going negotiations."

    A decision on whether it will build the cracker is expected next year. The plant would take oil and gas and break them up into smaller molecules, utilizing the ethane produced by fracking. An ethane cracker creates ethylene, a compound used in the manufacture of plastic.

    Rumors the cracker project may be in danger took hold when Shell's CFO, Simon Henry, told investors during a quarterly earnings call Oct. 31 that the company will have to choose among three, large capital project opportunities currently under evaluation -- a proposed project to export liquefied natural gas from Canada, a gas-to-liquids facility in the Gulf Coast, and the cracker in Beaver County.

    "We can't do all of these," Mr. Henry said. "We will need to make choices which one goes forward." But Shell has kept a poker face throughout the speculation as its employees have continued work around the site.

    Already, a traffic impact study has been completed on a plan to move a half-mile stretch of Route 18 near the Interstate 376 interchange further inland, away from the Ohio River, Ms. Windon said. "The highway presently passes directly through the proposed site," she said. "The change would move Highway 18 to the southern edge of the proposed site, enhancing community safety and improving highway access."

    If it proceeds, Shell will pay for all the work.
     
  • Eclipse quote to landowner. “Eclipse is currently drilling 4 wells in Monroe County, OH and it looks to be accelerating the process as quickly as possible.”
     
  • Shell drilling may stay in PA. We previously reported that it looked like Shell may be closing down on land drilling in the U.S. That may not be accurate. A member in ShaleDirectories.com just got a two-year contract with Shell and he informed us that Shell just bought a high tech rig for use in PA.

    If you look at the PA permitting information below, you’ll see that Shell just got a permit in Tioga County, PA.
     
  • BP to announce Utica decision in 2014 according NGI. BP has done some test wells in NE OH and is watching the results of other E&P companies in the area. It appears BP is evaluating whether it will continue to drill or pull out. BP purchased leases for 105,000 acres in NE OH. Look for the announcement in 2014.

Rig Count

  • Baker Hughes Rigs count for the November 22 reporting week.
    • PA Marcellus 55 – down 2
    • PA Utica 1 – down 1
    • Ohio Utica 34 rigs – unchanged
    • WV Marcellus 37 rigs – up 5

PA Permits for October November 22 to November 29, 2013

County Township E&P Company

1.Greene Center Vantage
2.Greene Franklin Chevron
3.Greene Franklin Chevron
4.Greene Franklin Chevron
5.Greene Franklin Chevron
6.Greene FranklinChevron
7.Greene Franklin Vantage
8.Greene Franklin Vantage
9.Greene Franklin Vantage
10.Greene Franklin Vantage
11.Greene Franklin Vantage
12.Lycoming Cogan House Anadarko
13.Lycoming Cogan House Anadarko
14.Lycoming Cogan House Anadarko
15.Lycoming Upper FairfieldInflection
16.SusquehannaApolacon Talisman
17.Washington Donegal Range
18.Washington Donegal Range
19.Washington Donegal Range
20.Washington Union EQT
21.Washington Union EQT
22.Washington Union EQT
23.Washington Union EQT
24.Washington Union EQT

OH Permits – week ending November 23, 2013

County Township E&P Companies

1.Carroll Loudon Chesapeake
2.Carroll Loudon Chesapeake
3.CarrollLoudonChesapeake
4.ColumbianaHanover Chesapeake
5.ColumbianaHanover Chesapeake
6.Guernsey Millwood Chesapeake
7.Jefferson Cross CreekHess
8.Noble Marion Antero

Take advantage of the bullish outlook and become a member in ShaleDirectories.com now or and secure your budget for membership in 2014.

Looking for workers, advertise on ShaleDirectories.com

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

Midstream PA