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NewsLetters

  • Permit Activity
     
    • PA – No permits were issued last week. It may be because of Thanksgiving and deer season
    • OH –No permits were issued last week. Same reason as above.

 

  • Expo/Event activity
     
    • Marcellus-Utica Midstream Conference and exhibition is scheduled January 28-30, 2014, at the David L. Lawrence Convention Center in Pittsburgh, PA. With more than 1,500 attendees and almost 200 exhibitors and sponsors, the Marcellus-Utica Midstream conference is Appalachia's premier midstream event. Each year key decision makers and stakeholders from the financial community, producers, pipeline operators, contractors, and service providers gather to review metrics and options at the Marcellus-Utica Midstream conference. Come to the Marcellus-Utica Midstream to hear the latest on the Appalachian Basin's rapidly evolving infrastructure, its impact on regional and national economies, and the outstanding business opportunities it presents.

      Make plans to attend today! Learn more and register at www.marcellusmidstream.com.
       
    • 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
 

  • As of December 6th, Nat Gas hovering around $4.18. The bone chilling artic weather is definitely impacting supply.
     
  • Bigger production budgets in 2014. After speaking with some companies that work closely with E&P companies, I’m hearing a consistent theme. The production budgets for 2014 are larger than 2013, and everyone is anxious to access 2014 funds.
     
  • Shell pulls plug on LA plant. Royal Dutch Shell said Thursday it is abandoning plans for a massive gas-to-liquids plant envisioned for Louisiana, citing poor economics for the project that was expected to cost more than $20 billion.

    The plant would have turned natural gas into diesel, jet fuel and other liquids, but the company determined that it would be too costly.

    This decision may bode well for the Shell cracker plant in Western PA.
     
  • Williams bullish on Marcellus Shale. The Pipeline and Gas Journal estimated that Williams planned to spend $20 billion in the Marcellus Shale of the eastern U.S. over the next five years. CEO Alan Armstrong put the estimate at $12 billion within a shorter time frame.

    A Tulsa World analysis of finished and pending Williams’s projects indicated at least $9.1 billion allocated across 22 projects ranging from petrochemical to gas processing plants and pipelines. The project list did not include financial details for Williams' 50-percent stake in the Bluegrass Pipeline, a joint venture with Broadwalk Partners to move NGLs across the eastern U.S. to Gulf petrochemical plants.

    The biggest build outs are the Ohio Valley Midstream and Susquehanna Supply Hub priced at $1.6 billion and $1.06 billion, respectively. Ohio Valley Midstream includes natural gas liquid pipelines, gas processing and a fractionation network from West Virginia to Ohio, while Susquehanna deepens Williams' footprint for moving Marcellus Shale production.
     
  • Antero sells midstream gathering systems in WV. Crestwood Midstream Partners and Crestwood Holdings Partners have formed a new joint venture Crestwood Marcellus Midstream to acquire some of Marcellus Shale producer Antero‘s gathering system assets located in Harrison and Doddridge Counties, West Virginia. The transaction value is for $375 million in cash plus an earn-out which would allow Antero to earn additional purchase price payments of up to $40 million based upon average annual production levels achieved during 2012 and 2013. Antero owns 220,000 net acres with approximately 75 percent of the acreage expected to have rich gas potential.
     
  • XTO expanding in Butler County, PA. XTO land men are contacting landowners in Butler County for access to properties for surveying.
     
  • PDC starts drilling in Morgan County, OH. Petroleum Development Corporation (PDC) Energy has obtained three horizontal Utica/Point Pleasant well permits off the Orin Palmer property in Center Township, Morgan County. These are the first horizontal Utica shale permits granted in Morgan County.
     
  • Sunoco Logistics looking to move NGL’s to Philadelphia. Sunoco Logistics Partners L.P. announced on Wednesday it is seeking commitments from shippers for a separate and mostly new pipeline that would generally follow the path of its current cross-state Mariner East pipeline, which carries natural-gas liquid fuels from the Marcellus Shale region to Marcus Hook.

    The binding open season will test whether there is a market for project, which would be called Mariner East 2 and transport ethane and propane. The materials, primarily used in petrochemical production, are being exported from the former refinery site in Marcus Hook.

    Industry experts project production of natural gas liquids from the Marcellus Shale and the neighboring Utica Shale to double by 2016, the targeted completion date of the new pipeline project.

    Shell looking for a back-up cracker site. Shell is concerned with all the brownfield issues with Monaca, PA site that is talking with the owners at Mountaineer Race Track in New Cumberland, WV which is a little north of Weirton, WV. (Rumor)
     
  • Range focusing on the Marcellus. While oil companies flock to the Permian Basin, Range Resources is seeking a buyer for 90K acres it leases in the oil-rich basin, its primary remaining asset there.

    Analysts say RRC doesn’t have the money to develop both its Permian holdings and leases in areas like the gas-heavy Marcellus Shale in Pennsylvania, where RRC's properties produce "wet gas" that includes large quantities of valuable liquids used in the chemicals business and thus may have a higher rate of return than the Permian holdings.
     
  • WV becoming active. The counties of Doddridge, Harrison, Wetzel, Marshall and Tyler, among others, have consistently averaged between 24 to 32 rigs since late 2009, said Corky DeMarco, executive director of the West Virginia Oil and Natural Gas Association.

    The figure hasn't flagged this month either, with Baker Hughes reporting that the state has averaged 33 rigs throughout November, with 37 up and running this week. That's ahead of 34 rigs in Ohio this week, and behind Pennsylvania's 54.

    State records show that West Virginia's three biggest operators are Chesapeake Energy, EQT Corp. and Antero Resources.
     
  • Marathon’s midstream project. Marathon Petroleum Corp's planned 50-mile pipeline in Ohio's Utica shale play could lead to other projects to move condensate further west or into Canada, an executive told analysts on Wednesday.

    The $140 million Utica pipeline project, dubbed Cornerstone, "could be the foundation for other projects to ship excess condensate west to refineries or on to Canada to use as a diluent," Garry Peiffer, executive vice president of corporate planning and investor and government relations, said during a webcast of the company's annual analyst meeting in New York.

    Chief Executive Gary Heminger earlier told analysts that the company aims to invest aggressively in its midstream and retail segments to help balance the volatility of its refining segment.

 

Rig Count
 

  • Baker Hughes Rigs count for the November 29 reporting week.
    • PA Marcellus 53 rigs – unchanged
    • PA Utica 2 rigs – up 1
    • Ohio Utica 35 rigs – up 1
    • WV Marcellus 34 rigs – down 3.


PA Permits for November 29 to December 5, 2013

County Township E&P Company

1. No permits issued.


OH Permits – week ending November 30, 2013

County Township E&P Companies

1. No permits issued

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

 

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