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Wishing you Good Health, Peace and Prosperity in 2014
 

  • Permit Activity.
     
    • PA – 73 permits; the rush for permits at the end of 2013 means an increased activity for 2014. 19 different E&P companies got permits at the end of 2014
    • OH –3 permits; May be ODNR was closed a number of days at the end of the year.

 

  • 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


Latest facts and a rumor from the Marcellus and Utica Shale

We look for 2014 to be a bigger year in both E&P and midstream. With the start of the New Year, we want to share with you our outlook for 2014 in both the Marcellus and Utica Shale Regions.

Deals are getting done to move the gas from the Marcellus and Utica. With a supportive Secretary of Energy, look for LNG export permits to increase.

Chemical companies from all over the world are scrambling to build and/or expand their facilities in the U.S. as the result of cheaper energy and feedstock costs. BASF, the world largest chemical, is moving more of its production and research to U.S. Egypt’s Orascom is spending $1.4 billion to a build fertilizer plant in IA.

The downstream benefits are being recognized which will consume more and more of the gas to produced.


Marcellus

  • Supreme Court Decision striking down parts of Act 13 will have some impact on the drilling, but we think it will be very limited. If you look at what we call the Big 5 PA Marcellus Counties (Bradford, Greene, Lycoming, Susquehanna and Washington), these counties have seen hundreds of wells drilled in their respective locales with little or no problems. Concurrently, the economies of the counties have seen significant growth with all their citizens benefitting. The drilling will probably continue unabated.

    The bottom line is that the E&P Companies know where the most productive wells and they have “broken the code” to make substantial profits even with lower gas prices.
  • Drilling will continue to be heavy in the Big 5 counties. We think drilling will pick up in Allegheny, Armstrong and Butler Counties.
  • We have limited information on WV, but from everything that we’ve seen and heard we expect the drilling activity to remain strong.


Utica

  • Drilling in 2014 will continue to move south with the counties of Monroe, Noble, Morgan and Washington counties seeing largest increases of activity. Carroll and Harrison Counties will remain very active. Belmont County could be the sleeper county.
  • As the result of Chesapeake, Gulfport and Antero hitting some monster wells, the Utica which has been somewhat questionable is now seen as a major resource for NGL’s. The pressure is greater than ever to move the gas. Look for MarkWest, Williams, M3 Momentum and Access Midstream continue to build new facilities and expand recently built ones.
  • Cambridge could become the next “hot” town in OH if McClendon’s puts AEP’s headquarters there.
  • Shell getting closer to cracker plant in Beaver County, PA. Global oil giant Shell will invest more money at the site of a possible multibillion-dollar petrochemical plant in Beaver County as it nears a deadline to decide whether to build — a positive sign in the eyes of some industry experts.

    The chemical arm of Royal Dutch Shell PLC agreed to pay for some demolition at the site it is targeting and received more time from the property owner, Horsehead Holding Corp., to decide whether to buy the property, officials said on Thursday.

    “That shows a little more seriousness and investment,” said Cyril Telis, a chemical industry consultant based in Charleston, W.Va. “Having said that, that might be a sunk cost they'd be willing to write off. It is a positive sign, but there's no certainty it could go forward.”

    This will be the last time the company seeks an extension, Shell spokeswoman Kimberly Windon said. Company executives will decide by the next deadline, she said, but would not give a date.

    Business and civic leaders across the region have high hopes for the project, a plant that would turn plentiful shale gas into chemical products such as plastics. The state offered more than $1 billion in tax incentives based on advice from business leaders and economists that it could be the biggest economic project in a generation, birthing a petrochemical sector for the region's economy.

    “This is what a lot of people have been waiting for,” Beaver County Commissioner Joe Spanik said on Thursday, lauding news of Shell's new investment. “Even without making a decision yet, as you can see, Shell's moving forward along with Horsehead to get this operation going.”

    Shell, which has employees in Western Pennsylvania working on the effort, has offered few details about its progress during more than two years of deliberations, saying repeatedly that the decision is a years-long process. Shell and Horsehead declined to say what Shell is paying in the deal or how long they have extended the deadline.

    Demolition should start in the first quarter of 2014 at peripheral portions of the site, which spans Potter and Center, according to Horsehead. There are several empty office buildings that can come down around the 60-acre core, which has a smelter and other active work sites, spokesman Ali Alavi said.

    Razing them would give Shell a head start if it buys the property and clears all 300 acres, he added. None of the office buildings will require environmental cleanup beyond routine asbestos abatement, he said.
  • Noble to accelerate Marcellus activities. In the Marcellus Shale, Noble's development continues to accelerate with about 170 joint venture wells, including nearly 100 operated horizontal wells with laterals exceeding 7,000 feet in the liquids-rich areas of the play.

    Noble plans to double its Marcellus rig count and develop up to two million lateral feet per year in the play by 2018. The Marcellus assets are taking on a higher profile within Noble's portfolio.
     
  • MarkWest and Gulfport ink deal on condensate. MarkWest Energy and Gulfport Energy are joining forces to collect and distribute natural gas condensate produced during Utica and Marcellus Shale drilling operations in Belmont, Harrison, Guernsey, Noble and Monroe counties with a new facility slated to open next year. The condensate facility, to be built in Harrison County, will have initial stabilization capacity of 23,000 barrels per day, while an immediate 30,000 barrels per day expansion is anticipated.
     
  • Gulfport looking for big year in 2014. Gulfport plans to use as much as $634 million to drill as many as 95 new Utica Shale wells. The company has over 147,000 net acres under lease in the Utica Shale.

Rig Count
 

  • Baker Hughes Rigs count for the December 27th reporting week.
     
    • PA Marcellus 53 rigs – up 1
    • PA Utica 3 rigs – unchanged
    • Ohio Utica 35 rigs – unchanged
    • WV Marcellus 32 rigs – down 4


PA Permits for December 20, to January 2, 2013

County Township E&P Company

1. Allegheny Forward EQT
2. Allegheny Forward EQT
3. Allegheny Forward EQT
4. Allegheny Forward EQT
5. Allegheny Forward EQT
6. Allegheny Forward EQT
7. Allegheny Forward EQT
8. Allegheny Forward EQT
9. Allegheny Forward EQT
10. Armstrong East Franklin Synder Bros.
11. Armstrong New Buffalo MDS Energy
12. Bradford Burlington Chief
13. Bradford Burlington Chief
14. Bradford Burlington Chief
15. Bradford Burlington Chief
16. Bradford Burlington Chief
17. Bradford Burlington Chief
18. Bradford Burlington Chief
19. Bradford Herrick Southwestern
20. Bradford Litchfield Chesapeake
21. Bradford Smithfield Chesapeake
22. Bradford Springfield EOG Resources
23. Bradford Springfield EOG Resources
24. Bradford Springfield EOG Resources
25. Cameron Shippen Seneca Resources
26. Clearfield Lawrence EOG Resources
27. Clearfield Morris EXCO Resources
28. Elk Jay EQT
29. Elk Jay EQT
30. Elk Jay EQT
31. Elk Jay EQT
32. Elk St. Mary’s Seneca
33. Elk St. Mary’s Seneca
34. Greene Dunkard Chevron
35. Greene Franklin Vantage
36. Greene Morris EQT
37. Greene Morris EQT
38. Greene Morris EQT
39. Greene Morris EQT
40. Lycoming Cummins Anadarko
41. Lycoming Cummins Anadarko
42. Lycoming Cummins Anadarko
43. Lycoming Cummins Anadarko
44. Lycoming Cummins Anadarko
45. Lycoming Cummins Anadarko
46. Lycoming Cummins Anadarko
47. Lycoming Lewis Seneca
48. Lycoming Lewis Seneca
49. McKean Lafayette Triana Energy
50. Susquehanna Apolacon Talisman
51. Susquehanna Auburn Chesapeake
52. Susquehanna Franklin WPX Energy
53. Susquehanna Franklin WPX Energy
54. Susquehanna Franklin WPX Energy
55. Susquehanna Middletown WPX Energy
56. Susquehanna Middletown WPX Energy
57. Susquehanna Middletown WPX Energy
58. Susquehanna New Milford Southwestern
59. Susquehanna New Milford Southwestern
60. Susquehanna New Milford Southwestern
61. Washington Buffalo Range
62. Washington Buffalo Range
63. Washington East Finley CONSOL
64. Washington Independence Range
65. Washington Independence Range
66. Washington Independence Range
67. Washington Smith Range
68. Washington Smith Range
69. Washington West Bethlehem EQT
70. Washington West Bethlehem EQT
71. Westmoreland Sewickley Chevron
72. Wyoming Mehoopany Chesapeake
73. Wyoming Washington Citrus

OH Permits – week ending December 28, 2013

County Township E&P Companies

1. Carroll Augusta Chesapeake
2. Columbiana Franklin Chesapeake
3. Columbiana Franklin Chesapeake


Take advantage of the bullish outlook and become a member in ShaleDirectories.com now or and secure your budget for membership in 2014.
Put your 2014 marketing dollars to work with ShaleDirectories.com; the place where the Oil&Gas industry seeks viable partners.


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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