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NewsLetters

  • Permit Activity.
  • PA – 24 permits; Lycoming and Washington most active counties; Shell may be back in the game
  • OH –23 permits; Belmont and Harrison dominate with Gulfport and Hess
  • Free Oil and Gas Safety Workshop

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  • Hosted by Cintas, Bulwark and ShaleDirectories.
     
  • At the workshop, you will learn:
     
    • What OSHA looks for when conducting a flash fire safety inspection
    • What you need to protect your employees
    • How to build a Managed FRC Program
    • Make plans to attend today! Learn more and register at

      www.cintas.com/flashfireworkshop
       
  • PSU DuBois Marcellus Seminar

    The Shale Gas Industry: Working and Succeeding in this Expanding Energy Paradigm


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    Penn State DuBois Continuing Education, 1 College Place, DuBois, PA 15801
    LIMITED SPACE! Contact Shelly Luchini at (814) 375-4715
    or email smc200@ psu.edu to reserve your spot.

Latest facts and a rumor from the Marcellus and Utica Shale

 

  • The expo season will be starting soon. With many companies experiencing “Expo fatigue,” a number of organizations are looking to rejuvenate their expos in order to maintain a high degree of participation and interest. The increase in drilling activity may help participation. I’ve heard considerable “buzz” about the drilling this year and next which could lead to great expo participation.

    We have a complete recap of the expos occurring April through June:
     
    • Wyoming County Chamber of Commerce, 2014 Business, Gas & Job Expo, April 30th at the Wyoming County Fairgrounds – Sleeper expo, the expo is supported by the E&P companies in the region who have operations people at the expo and not PR folks (no disrespect for the PR folks)
    • Ohio Valley Oil & Gas Expo April 30 – May 1st Belmont County Fairgrounds – it’s the third year for this expo. With all the activity in Belmont County, OH, the expo could generate good participation and attendance.
    • A Shal-Abration May 10th Guernsey County Fairground – this is the inaugural expo for Guernsey County. Kristy Hawthorne is leading this expo. It will be a good one worth attending.
    • PIOGA Eastern Conference Oil & Gas Trade Show and Conference at Heinz Field in Pittsburgh on May 13-14 – PIOGA is adding a new dimension to their expo this year looking to create more excitement at this event and the move to Heinz Field should do it.
    • DUG East Conference & Exhibition June 3-5 Pittsburgh – Hart Energy moved this expo from November to June. With the Marcellus Shale Coalition moving back to Pittsburgh with its Shale Insights and scheduled it in November before the prior DUG East Expos. The DUG East Expos are a bit expensive, but it’s the place to meet the major decision-makers and get the latest industry information. If you have the money in your budget, it’s worth attending.
    • Northern Tier Marcellus Shale Business Expo June 18th at Mansfield University – I could not attend last year’s, but I heard it was lacking. This year they are moving it to Mansfield University and are having it on Wednesday rather than Saturday which should help. The new location and increased drilling activity in the Northern Tier could make this an interesting expo.
       
  • Nat Gas prices holding in there. Despite the arrival of spring and slightly warmer weather, the price of Nat gas has been hovering around $4.50. It’ll be interesting to see how prices fare as warmer weather eventually comes to the Marcellus and Utica Shale region.
     
  • American Energy Partners adding rigs – McClendon’s ramp up quickly. AEP could have 8 rigs in the Utica Shale by the end of 2014. (RUMOR)
     
  • Hilcorp still drilling in PA. The Pennsylvania Department of Environmental Protection awarded Hilcorp Energy Co. seven new permits for wells in Lawrence County two days after a series of earthquakes rumbled through the Mahoning Valley and the company was ordered to cease drilling at its nearby Carbon Limestone well pad just across the state line in Ohio.

    On March 10, the Ohio Department of Natural Resources asked Hilcorp to suspend drilling operations at its Carbon Limestone Landfill site after earthquakes measuring 3.0 and 2.6 in magnitude occurred in portions of Lowellville, Poland and Boardman.

    Two days later, March 12, the Pennsylvania DEP awarded Hilcorp seven new permits to drill horizontal wells in Pulaski Township on the Artman farm, about six miles northeast of the Carbon Limestone site, DEP records show.
     
  • MarkWest looking for processing facility in Findley Township, PA. MarkWest is evaluating a landfill facility in Findley Township, PA as a location for processing plant. (RUMOR)
     
  • OH bullish on the Utica. Ohio is projecting that more than 19,000 new Utica shale wells for natural gas and liquids will be drilled in eastern Ohio in the next 19 years.

    That’s how many wells would fit on the 3 million acres in eastern Ohio without any Utica shale wells at the moment, said Ohio state geologist Mike McCormac in his not-yet-released report.
     
  • Halcon is going to be a short-term player in OH. Halcon which just stopped all drilling in OH never viewed OH as a long term investment. Halcon had stated that it was only going to be in OH for three years. (RUMOR)

     
  • WV cracker plant moving forward. The proposed ethane cracker project for Wood County is continuing to move forward as work has started to see what will be needed to make the project a reality.

    In November, officials announced the Brazil-based Odebrecht is planning for the development of an ethane cracker, three polyethylene plants and associated infrastructure for water treatment and energy co-generation.

    The proposed complex is called ASCENT, which stands for Appalachian Shale Cracker Enterprise. If the plant is built, it would be operated by Braskem America.

    Odebrecht/Braskem spokesman Chuck Glazer said officials are still in the beginning stages of the feasibility study to evaluate if the factors are in place to see if the project is able to move ahead in Wood County. Some of those factors include the availability of raw material supplies, the local labor force, available help from the local community as well as the state government.

    "We are still very early in the process," Glazer said.
     
  • Rice Energy drilling plans for 2014. Of the $580 million 2014 drilling and completion budget, approximately 85% is related to Rice Energy-operated drilling and approximately 74% is allocated to the Marcellus Shale. Furthermore, approximately $200 million of the drilling and completion budget is for wells that Rice plans to begin producing in 2015. The company anticipates running two horizontal rigs in the Marcellus Shale and one horizontal rig in the Utica Shale throughout 2014.
     
  • Rig count up. Oilfield services company Baker Hughes Inc. says the number of rigs exploring for oil and natural gas in the U.S. increased by 17 this week to 1,809.

    The Houston firm said in its weekly report Friday that 1,461 rigs were exploring for oil and 344 for gas. Four were listed as miscellaneous. A year ago there were 1,776 active rigs.

    Of the major oil and gas-producing states, North Dakota gained seven rigs, New Mexico, Oklahoma and Texas each gained four and Pennsylvania gained one.

    Alaska lost three rigs, Kansas lost two and California declined by one. Arkansas, Colorado, Louisiana, Ohio, Utah, West Virginia and Wyoming were unchanged.

    The U.S. rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999.
     
  • New player could be coming to the Utica. A brand new shale exploration & production has formed in Houston, TX, but it has its eyes set on the Utica Shale–at least in part. Rock Oil Holdings recently began operations and received a nice little $250 million cash infusion from New York-based energy equity firm Riverstone Holdings LLC. Rock Oil says they will concentrate their efforts in the Eagle Ford Shale, the Utica Shale and the Permian Basin, “which are well suited to the Company’s land and technical capabilities.” In other words, they’re targeting “oily” shale plays–those with the potential for crude and for natural gas liquids (NGLs).

    We’ll keep an eye out for Rock Oil in the coming months to see if they lease any Utica acreage.


Rig Count
 

  • Baker Hughes Rigs count for the March 14th reporting week.
     
    • PA Marcellus 53 rigs – up 1
    • PA Utica 1 rigs – unchanged
    • Ohio Utica 41 – unchanged
    • WV Marcellus 25 – unchanged


PA Permits for March 13 to March 20 2014

County Township E&P Company
1. Beaver South Beaver Chesapeake
2. Bradford Stevens Southwestern
3. Bradford Stevens Southwestern
4. Bradford Stevens Southwestern
5. Greene Center CONSOL
6. Greene Center CONSOL
7. Greene Gray Rice
8. Lycoming Cogan House Southwestern
9. Lycoming Cogan House Southwestern
10. Lycoming Eldred Inflection
11. Lycoming McIntyre Shell
12. Lycoming McIntyre Shell
13. Lycoming McIntyre Shell
14. Lycoming McIntyre Shell
15. Lycoming McIntyre Shell
16. Washington Morris CONSOL
17. Washington Morris CONSOL
18. Washington Morris CONSOL
19. Washington Morris CONSOL
20. Washington Mt. Pleasant Range
21. Washington Mt. Pleasant Range
22. Washington Mt. Pleasant Range
23. Washington Mt. Pleasant Range
24. Washington Mt. Pleasant Range

OH Permits – week ending March 15, 2014

County Township E&P Companies

1. Belmont Somerset Gulfport
2. Belmont Somerset Gulfport
3. Belmont Union Gulfport
4. Belmont Union Gulfport
5. Belmont Union Gulfport
6. Belmont Union Gulfport
7. Belmont Union Gulfport
8. Carroll East Chesapeake
9. Carroll East Chesapeake
10. Harrison Athens Hess
11. Harrison Athens Hess
12. Harrison Athens Hess
13. Harrison Athens Hess
14. Harrison Athens Hess
15. Harrison Athens Hess
16. Harrison Cadiz Hess
17. Harrison Cadiz Hess
18. Harrison Cadiz Hess
19. Harrison Cadiz Hess
20. Harrison Cadiz Hess
21. Jefferson Island Creek Chesapeake
22. Noble Seneca Antero
23. Noble Seneca Antero

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

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