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  • Permit Activity.
     
    • PA – 29 permits; Shell is permitting again; NW PA has pick up in permitting activity
    • OH –11 permits; it’s all Chesapeake and Eclipse Resources

 

  • Expo/Event activity
     
    • Alternative Fuel Conference

      The first‐ever Tri‐State Alternative Fueling Expo & Conference will be held February 19 and 20, 2014 at the Monroeville Convention Center in Monroeville, PA. The event will tie together two vital regional industries: the natural gas industry with the growing alternative fuels trade.

      This will be the best expo to learn the latest developments with alternative fuels. It’s a market that is developing quickly and it’s under the radar for most companies. If you are interested in alternative fuels, I encourage you to go.

      http://alternativefuelingexpo.com/

      The 2013 Northeast Oil & Gas Awards Finalists are announced

      With an unprecedented number of entries received for the Northeast region in the Oil & Gas Awards this year, the organizers are pleased to announce the finalist companies selected by the judges as best in class for the Northeast region.

      The Oil & Gas Awards will be holding the “Conference for Excellence” during the day of the gala dinner. The Conference for Excellence will provide a fantastic opportunity for selected finalists to speak on matters important to their business and to the industry. Professionals attending the conference will have further opportunity to network with other finalists and listen to the wide variety of keynote speeches from leaders in the market. There will also be the chance to contribute to panel debates on key topics. Should you wish to attend the conference and dinner, click on the link below.

      LINK: http://www.oilandgasawards.com/2013-finalists/

 

Latest facts and a rumor from the Marcellus and Utica Shale
 

  • Chesapeake to spend less in 2014. Companywide, it expects between $5.2 billion and $5.6 billion on total capital expenditures for 2014, which is 20 percent less than the 2013 midpoint. For the Marcellus region, it will spend 10 percent less in its Marcellus north region and 5 percent less in its Marcellus south region in 2014 than it did in 2013. Southern Marcellus is West Virginia and southwestern Pennsylvania. Northern Marcellus is the remaining area of Pennsylvania not including the southwest.
     
  • Noble acquires more acreage in WV. Noble announced an acquisition of a 50 percent working interest in approximately 90,000 gross acres in West Virginia expanding the Company's contiguous acreage footprint in the Marcellus Shale. The acquired acreage includes 350 identified locations and drilling is anticipated to begin in 2015.
     
  • MarkWest has been busy. MarkWest announced an operational update regarding the development of midstream infrastructure projects in the liquids-rich areas of the Marcellus and Utica Shale region. In the last four months, MarkWest has commenced operations of seven major infrastructure projects in the Northeast including five new cryogenic processing plants totaling 1 billion cubic feet per day (Bcf/d) of capacity and two fractionation facilities totaling 98,000 barrels per day (Bbl/d) of C2+ fractionation capacity. MarkWest continues to expand its leading midstream presence throughout the Northeast and currently has 17 major processing and fractionation projects under construction. These projects are occurring at nine locations in Ohio, Pennsylvania, and West Virginia and are expected to increase the Partnership's total processing capacity to approximately 4.7 Bcf/d and total fractionation capacity in the region to over 400,000 barrels per day (Bbl/d).

    In the Marcellus Shale, the Partnership commenced operations of three new processing plants during the fourth quarter of 2013. These new plants were commissioned at the Majorsville, Mobley, and Sherwood complexes and have increased MarkWest's total processing capacity in the liquids-rich corridor of the Marcellus to over 2.2 Bcf/d. At the Majorsville complex in Marshall County, West Virginia, MarkWest increased total capacity to 670 million cubic feet per day (MMcf/d) with the addition of Majorsville V, a 200 MMcf/d plant to support Chesapeake Energy Corporation and Statoil ASA. At the Mobley complex in Wetzel County, West Virginia, MarkWest increased total capacity to 520 MMcf/d with startup of Mobley III, a 200 MMcf/d plant to support rapidly growing rich-gas production from EQT Corporation and Magnum Hunter Resources Corporation. At the Sherwood complex in Doddridge County, West Virginia, MarkWest expanded total capacity to 600 MMcf/d after bringing online Sherwood III, a 200 MMcf/d to support Antero Resources Corporation's extensive Marcellus development program.

    In early December 2013, MarkWest doubled its purity ethane fractionation capacity in the Marcellus to 76,000 Bbl/d with the startup of its second de-ethanization facility. The new facility is located at the Majorsville complex and will provide the Partnership's producer customers' with the ability to consistently meet residue gas quality specifications and deliver downstream ethane pipeline commitments. In conjunction with the commencement of de-ethanization services at Majorsville, MarkWest's previously announced Liberty Ethane Pipeline became operational. The Liberty Ethane Pipeline transports purity ethane from the Majorsville complex to the Houston complex in Washington County, Pennsylvania. Once delivered at Houston, the purity ethane has direct access to multiple, major ethane takeaway projects including, Mariner West and ATEX, which began operations in December, and Mariner East, which is scheduled to come online in 2014. MarkWest is the first midstream operator in the Northeast to offer its producer customers the ability to recover and produce purity ethane and provide transportation infrastructure to all announced ethane pipeline takeaway projects. Ethane produced in the Northeast has the potential to become a key driver for the future expansion of the global petrochemical industry.
     
  • Pennsylvanians support Marcellus Shale boom. A significant majority of people in Pennsylvania support the boom in Marcellus Shale natural gas drilling, according to a new poll released Thursday, but many also have concerns about its environmental impacts.

    The Franklin & Marshall College poll found that 64 percent of respondents somewhat or strongly favor the gas drilling industry, compared to 27 percent who somewhat or strongly oppose it.
     
  • AEP moving quickly. An affiliate of American Energy Partner LP has amassed an industry-leading 260,000 net acres in the southern Utica Shale, the Oklahoma City-based company announced Monday.

    American Energy-Utica LLC’s has agreed to acquire about 130,000 acres from affiliates of Hess Corp., Exxon Mobil Corp. and privately held Paloma Partners LLC.

    Terms of those deals were not disclosed, although Hess last week announced the sale of 74,000 net Utica acres to an unnamed buyer for $924 million.

    American Energy’s holdings are centered in the core of the Utica, where it plans to drill 2,700 gross wells over the next decade.

    American Energy was founded last year by Aubrey McClendon after he was forced out as CEO of Chesapeake Energy Corp. The company secured $1.7 billion in loans and equity commitments to acquire acreage in southern Ohio.

    American Energy also announced last week it had secured another $500 million in equity commitments to buy oil and natural gas interests in other domestic plays.

    We’ve posted quite a few rumors about AEP the last couple of months. This is not a rumor.
     
  • Chevron is locating drilling activities in Uniontown, Fayette County, PA.
    This is where the action is for Chevron. (Rumor)
     
  • Still no fracking in NY. New York Gov. Andrew Cuomo's proposed budget for the 2014-2015 fiscal year does not allocate any funding toward regulating the oil and gas industry, and the state's top regulator added that there are "absolutely no plans" to issue permits for high-volume hydraulic fracturing (HVHF).
     
  • New player in Tioga County, PA. Scout Petroleum is contacting landowners about leasing mineral rights. (Rumor)
    Has anyone heard of Scout Petroleum?
     
  • Another major pipeline in OH. A Texas company wants to build a 76-mile-long, $468 million pipeline extension so major Utica and Marcellus shale companies can move natural gas from Ohio to the Gulf Coast.

    Texas Eastern Transmission LP said in a federal filing that it has agreements with four companies to transport natural gas. Chesapeake Energy Corp. (NYSE:CHK) committed to sending 350,000 dekatherms of gas a day from Ohio to the Gulf Coast, Total Gas & Power North America committed to 100,000 dekatherms and Consol Energy (NYSE:CNX) and Rice Energy (NYSE:RICE) committed to 50,000 dekatherms each, Texas Eastern said in a filing to the Federal Energy Regulatory Commission.

    The proposed pipeline would extend from the Kensington processing plant in Columbiana County to an interconnection with Texas Eastern’s system in Monroe County. It would then be delivered to the company’s Egan hub in Louisiana.
     
  • PA Governor wants to drill in state forests. Gov. Corbett on Tuesday proposed lifting a 2010 moratorium on leasing additional state forests for Marcellus Shale natural-gas development, to generate $75 million for state coffers.

    The new gas leases of state forests managed by the Department of Conservation and Natural Resources would not permit any drilling or surface disturbance, said Patrick Henderson, the governor's energy executive. The acreage would be adjacent to public and private lands under existing leases and could be developed using horizontal drilling techniques.
     
  • Elk County taking frack water. Seneca Resources Corp. has received federal approval to operate a new drilling wastewater injection well in Elk County, and more of those deep injection wells for the disposal of Marcellus and Utica shale gas drilling wastewater are on tap for Pennsylvania.

    The U.S. Environmental Protection Agency announced last week that it had approved Seneca's proposal to convert one of its existing vertical gas wells into an injection well that will pump up to 60,000 gallons a day of drilling wastewater and salty brine about 2,400 feet below the surface into the Elk 3 Sandstone formation.
     
  • Braskem cracker is for real. A Braskem executive at the Marcellus-Utica Midstream Conference stated that Braskem is definitely moving forward with its plan to build a cracker plant in Parkersburg, WV. He stated that there is enough ethane to support both Shell’s plant and Braskem’s. (Rumor)

Rig Count
 

  • Baker Hughes Rigs count for the January 31st reporting week.
     
    • PA Marcellus 53 rigs – unchanged
    • PA Utica 2 rigs – unchanged
    • Ohio Utica 38 rigs – up 2
    • WV Marcellus 33 rigs – unchanged


PA Permits for January 30, to Feb 6, 2014

County Township E&P Company

1. Bradford Canton Shell
2. Bradford Canton Shell
3. Bradford Canton Shell
4. Bradford Terry Chesapeake
5. Bradford West Burlington Chesapeake
6. Bradford Wyalusing Chesapeake
7. Bradford Wysox Chesapeake
8. Butler Clinton PennEnergy
9. Butler Clinton PennEnergy
10. Butler Jefferson PennEnergy
11. Clarion Porter EQT
12. Greene Jackson Twp. Vantage
13. Lawrence Neshannock Hilcorp
14. Lawrence Neshannock Hilcorp
15. Lawrence Neshannock Hilcorp
16. Lawrence Neshannock Hilcorp
17. Lawrence Neshannock Hilcorp
18. Lycoming Gamble Seneca
19. Lycoming Gamble Seneca
20. Lycoming Gamble Seneca
21. Lycoming Gamble Seneca
22. Lycoming Gamble Seneca
23. Tioga Liberty Shell
24. Tioga Liberty Shell
25. Venango Allegheny Sylvan Energy
26. Wyoming North Branch Chesapeake
27. Wyoming North Branch Chesapeake
28. Wyoming North Branch Chesapeake
29. Wyoming North Branch Chesapeake

OH Permits – week ending February 1, 2014

County Township E&P Companies

1. Carroll Union Chesapeake
2. Carroll Union Chesapeake
3. Carroll Union Chesapeake
4. Carroll Union Chesapeake
5. Harrison Archer Chesapeake
6. Harrison Archer Chesapeake
7. Harrison Stock Eclipse Resources
8. Harrison Stock Eclipse Resources
9. Harrison Stock Eclipse Resources
10. Harrison Stock Eclipse Resources
11. Harrison Stock Eclipse Resources


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

Northeast Supply Enhancement