Shale Directories Conferences
WV Energy Expo
October 2, 2019
500 Mylan Park Lane
7th Annual Utica Summit
October 10, 2019
North Canton, OH
Shale Insight Conference
October 22-24, 2019
David Lawrence Convention Center
7th Annual Midstream PA 2019
November 12, 2019
Penn Stater Conference Center
State College, PA
Latest facts and a rumor from the Marcellus, Utica, Permian, Eagle Ford, and Bakken Shale Plays
Shell May Buy EQT. (RUMOR) I know this seems outlandish, but the person who passed it on to me is very credible. It makes sense. EQT is the largest NatGas producer in America.
If you have been watching the major globals that have been divesting themselves of assets all over the world. Shell, BP and ExxonMobil have announced divestures in the last 12 months.
These moves will enable the majors to focus on the U.S. shale industry. Drone attacks in Saudi Arabia will certainly make America the only safe place to invest oil and gas as well as petrochemicals. I look for a number of purchases by the majors of smaller shale drillers and petrochemical companies.
The Impact of Drone Strikes. What could last weekend’s strikes on Saudi Arabia’s oil industry mean for petrochemical development in the Appalachian Basin?
Right now, it’s hard to say, but continued uncertainty could lead to more investment in the region centered on the Ohio River.
Given the precision nature of the attacks that took out more than half of Saudi Arabia’s oil production, companies looking to build refineries or petrochemical plants in the Middle East will have to ask themselves whether it’s worth the risk, said Tom Gellrich, of TopLine Analytics, a company that studies the downstream shale gas industry.
“People are going to wait and see what’s happening, and projects that had been slated to move forward will get delayed or pushed back, so that presents an opportunity for the Appalachian Basin for additional investment,” Gellrich said.
But don’t expect the strikes to impact U.S. shale production this year, or even next, according to the analysts at IHS Markit.
The U.S. crude oil price jumped 15 percent after the strikes, but was still $8 lower than it was last year. If sustained prices remain below the mid-$70s, the impact on next year’s production will be muted as companies return the windfall to shareholders rather than invest in production, according to IHS Markit.
A lot will depend on what happens next.
“If the Saudis are able to quickly resume production, it will give confidence back into the market and the market will go back to where it was,” Gellrich said.
But higher energy prices make it more attractive for companies to invest in safer areas, such as the U.S., he said.
NESE May Happen! (Thanks, MDN) We have a bona fide mystery on our hands–a mystery that may signal a happy ending for the Williams Northeast Supply Enhancement (NESE) pipeline project getting approved. One of the first statements (threats) utility company National Grid made in relation to NESE is that if NESE, a Williams Transco Pipeline project meant to increase pipeline capacity and flows heading into northeastern markets, including to Long Island doesn’t happen, National Grid will not connect natural gas to a new $1.3 billion stadium complex on Long Island to host the New York Islanders hockey team. The company building the new arena recently began to clear the site for construction.
The Boston Globe Takes on the Dems Fracking Ban. The environmental case against fracking crumbled years ago. The economic case for it is unassailable. So why are leading Democratic presidential candidates intent on shutting down one of the most beneficial US innovations of the modern era?
Fracking — short for hydraulic fracturing — is the drilling method that launched an American energy renaissance. Though the technology isn’t new, its application to formerly impenetrable underground rock formations has turned the United States into the world’s leading producer of oil and natural gas. US energy independence, which as recently as a decade ago was a pie-in-the-sky slogan, is beginning to look realistic. Last November, the nation reached a singular milestone, exporting more oil and refined fuel than it imported. It was the first time since the early 1970s that America could claim the status of a net energy exporter. And all thanks to fracking.
At the same time — also thanks to fracking — America’s carbon-dioxide emissions have plummeted.
By unleashing vast quantities of clean-burning natural gas, fracking dramatically changed the economics of electricity production. As natural gas grew more and more affordable, fewer and fewer power plants continued to burn coal. Indeed, more than half of all US coal-fired plants have closed over the past 10 years. According to the Energy Information Administration, 35 percent of America’s electricity in 2018 came from natural gas; just 27 percent was from coal. No one would have thought those percentages were possible in 2000, when half of the nation’s electricity was generated by coal-fired plants and less than one-sixth came from natural gas.
Because natural gas releases only half as much carbon dioxide as coal, the sweeping shift to gas-fueled plants has led to a dramatic reduction in America’s greenhouse gas emissions. So dramatic, in fact, that no other nation matches it, as President Obama observed in his 2014 State of the Union address: “Over the past eight years, the United States has reduced our total carbon pollution more than any other nation on Earth.”
For anyone who worries about climate change and is intent on carbon reduction, all this should be cause for rejoicing. Fracking, which has made it possible, should be extolled as a boon to environmental progress.
Yet while many mainstream Democrats, including Senate Minority Leader Chuck Schumer and former California Governor Jerry Brown, have expressed support for fracking, at least three of the party’s leading presidential candidates — Senators Elizabeth Warren of Massachusetts, Bernie Sanders of Vermont, and Kamala Harris of California — want to do away with it. Warren declares that on her first day as president, she would issue an executive order to “ban fracking — everywhere.” Harris told CNN this month that “there’s no question” that she opposes it. Sanders, for his part, came out against fracking in 2016.
It’s hard to make sense of such blind hostility to the technology that has done more than any other to expand the supply of clean, affordable energy. The candidates’ rejectionism clearly isn’t grounded in science. Many fracking foes raise alarms about groundwater contamination. But when the Obama-era Environmental Protection Agency exhaustively studied that issue, it reported that it could “not find evidence” that fracking was responsible for “systemic impacts on drinking water resources.” Lisa Jackson, who headed the EPA during Obama’s first term, told a congressional hearing in 2011 that she was “not aware of any proven case where the fracking process itself has affected water.”
Of course, that isn’t to say that fracking can never lead to problems. Like every technology or industrial process, it comes with costs as well as benefits. But that only means it should be carefully supervised and regulated, not banned outright. As it is, fracking is regulated by the states, though there are environmentalists who argue for stricter supervision. That’s a position Warren/Sanders/Harris could adopt if their real interest was to craft a better energy policy. Their demand for a total end to fracking, however, is mere ideological posturing, unsupported by science.
To repeat, fracking has the support of many mainstream Democrats, some of whom actually are scientists. One of them is geologist John Hickenlooper, the former governor of Colorado who recently quit the Democratic presidential race.
“Based on experience and science, I recognized that fracking was one of our very best and safest extraction techniques,” Hickenlooper wrote in his 2016 memoir. “Fracking is good for the country’s energy supply, our national security, our economy, and our environment.”
A vow to “ban fracking — everywhere” may excite progressive extremists who hate the fossil-fuel industry and all its works. But it’s the very opposite of a serious proposal, and the mark of a candidate unsuited for the White House.
PA House Speaker Turzai’s “Energizer PA” Program Moving Forward. House Republicans are re-launching one of their biggest initiatives for the legislative session: a package of energy-focused bills aimed at coaxing new businesses into Pennsylvania. The package, which Republicans are calling Energize PA, includes eight bills in various stages of completion. One, a measure that gives grants to new manufacturing facilities to access existing natural gas lines, was already wrapped into the state budget, which passed in June. Some of the remaining initiatives aren’t particularly controversial — like a measure to create a registry of abandoned industrial sites.
Flooding Problems in Houston. “Catastrophic flooding’’ threatens heart of Texas oil industry. Flooding from a tropical storm hit the Houston area on Thursday, with some calling the situation worse than Hurricane Harvey. Disruptions from Tropical Depression Imelda won’t rival those of Hurricane Harvey, but heavy industry has indeed been affected. ExxonMobil said on Thursday that it was shutting down its 370,000-bpd Beaumont, Texas refinery because of flooding. “Exxon Mobil’s Beaumont refinery and chemical complex is conducting a preliminary assessment to determine the impact of the storm,” an Exxon spokesman said. “The Beaumont chemical plant has completed a safe and systematic shutdown of its units.” Other refineries continued to operate normally. Valero said its Port Arthur refinery did not see disruptions. The outage will likely be only temporary, and energy markets probably won’t skip a beat, with focus rightly concentrated on the Middle East.
Antero Idles Wastewater Facility. Natural gas producer Antero Resources and Antero Midstream are temporarily idling its pioneering wastewater treatment facility after less than two years of operation, a casualty of the steep drop in natural gas prices. The Antero Clearwater Treatment Facility in Pennsboro, West Virginia had been hailed as a major innovation in the industry when it opened in late 2017 and early 2018. It treated produced water from Antero (NYSE: AR) natural gas wells in the Marcellus and Utica shales.
U.S. to Supply 50% of Global NatGas. The United States is expected to account for more than half of the global natural gas supply growth through 2035, McKinsey & Company said in a new report. The U.S., thanks to booming shale gas production, is expected to contribute 380 billion cubic meters (bcm) to global supply growth by 2035. The total global supply growth is seen at 635 bcm, according to McKinsey. The U.S. will be followed by Russia and Africa, which will add 110 bcm to global supply each. On the other hand, gas supply in Europe will decline, the report showed. The pace of growth in the gas market is set to slow, but natural gas will remain the fastest-growing fossil fuel and the only fossil fuel expected to grow beyond 2035, McKinsey said in its ‘Global gas and LNG outlook to 2035’ report.
U.S. Shale Output to Rise in October. U.S. shale oil output to rise to record 8.8 million bpd in October: EIA. U.S. oil output from seven major shale formations is expected to rise by 74,000 barrels per day (bpd) in October to a record high 8.843 million bpd, the U.S. Energy Information Administration said in its monthly drilling productivity report on Monday.
U.S. Less Dependent on Saudi Oil. While attacks on Saudi oil facilities over the weekend have sent U.S. petroleum prices surging, America remains less dependent than ever on Saudi oil. A rise in shale oil production over the last decade catapulted the U.S. into the top spot for global oil production in 2018, according to the Energy Information Administration. America produced 18% of the world’s oil last year, compared with Saudi Arabia’s 12%, Russia’s 11% and Canada’s 5%.
Frackers Stand Pat. Major U.S. shale companies aren’t planning to fill the void in global crude supplies left by an attack on the heart of Saudi Arabia’s top oil facilities. Instead, producers such as Pioneer Natural Resources Co. hope to reap the benefits of the oil-price increase caused by the disruption in global supplies, and use the opportunity to regain investor support after delivering poor financial results and spending beyond their means.
Wells Fargo Says It’s the Oil and Gas Industry Driving PA. A Wells Fargo report recently showed that the Pennsylvania economy is continuing to build momentum in recent years with significant growth in the natural gas industry leading the way. Wells Fargo’s Pennsylvania 2019 Midyear Outlook reported a 2.9 percent increase in the commonwealth’s gross domestic product (GDP) in the first quarter of the year, which is on par with the national average. The recent economic rise is being driven by gains in construction, leisure and hospitality, and professional services as well as an increase in state energy, education and healthcare industries. The report found that the state’s largest metropolitan area, particularly Philadelphia, is accounting for the bulk of economic gains.
Indian Prime Minister Looking for Gas Deals in Houston. Indian Prime Minister Narendra Modi’s imminent visit to the U.S. energy capital is fueling speculation the second most-populous nation will further tap America’s shale gas bonanza. Modi is scheduled to address upwards of 50,000 people at a sold-out event at Houston’s NRG Stadium on Sept. 22 that’s billed by organizers as the largest-ever turnout for a foreign elected leader on U.S. soil. Energy investors, however, are keenly focused on what happens behind the scenes. A long-running trade war between Washington and Beijing has meant China hasn’t imported any American supply since February. The dispute has also put plans for new export terminals at risk. By contrast, India is open to making purchases, and the nation is already the sixth-largest buyer of U.S. liquefied natural gas.
EOG Does Deal to Supply NatGas to Corpus Christi. Houston oil & gas company EOG Resources has landed a natural gas supply deal for Cheniere Energy’s Corpus Christi LNG export terminal. The companies confirmed the 15-year gas supply agreement in a joint statement released on Monday afternoon. Under the deal, EOG Resources will supply 140,000 million British Thermal Units of natural gas per day to the South Texas facility starting in 2020. The delivery amount will be gradually increased to 440,000 MMBTU of natural gas per day.
New Pipeline to Mexico. More natural gas from the Eagle Ford Shale of South Texas and the Permian Basin of West Texas is flowing south of the border in Mexico. Just three weeks after resolving a contract dispute with the Mexican government, Infraestructura Marina del Golfo, a joint venture between the Mexican subsidiaries of Canadian pipeline operator TC Energy and San Diego utility company Sempra Energy, announced Tuesday that a $2.6 billion pipeline designed to move natural gas from deep South Texas to Central Mexico has started commercial operations.
New TX Pipeline to Brownsville. Houston liquefied natural gas company NextDecade is partnering with Canadian pipeline operator Enbridge to build a planned natural gas pipeline to support the proposed Rio Grande LNG export terminal in Brownsville. In a statement released early Wednesday morning, the two companies announced signing a memorandum of understanding to develop the Rio Bravo Pipeline together. NextDecade and Enbridge anticipate finalizing the terms of the MOU during the fourth quarter of 2019.
TX Whitepaper on Water. Whitepaper explains expanding shale water options in TX. North America Shale. The U.S. energy independence goal has been largely accomplished due to historic levels of oil and gas production in Texas. To maintain this edge, the Texas oil and gas industry must continue to use water wisely and sustainably. The question is: How? The Texas Alliance of Energy Producers is providing some answers today with the unveiling of its new white paper: “Sustainable Produced Water Policy, Regulatory Framework, and Management in the Texas Oil and Gas Industry: 2019 and Beyond,” by co-authors Blythe Lyons, John Tintera, and Kylie Wright.
Mountain Valley Pipeline Sues Landowners. The company behind the proposed Mountain Valley Pipeline Southgate has sued five more Alamance County landowners to get access for surveys to test the pipeline’s potential route.
In all, MVP has sued eight landowners in Alamance County this year and four more in Rockingham County, according to court records. MVP has already been granted consent judgments allowing it access to three of those properties in cases it filed in the spring. Hearings on four of the five cases filed in August will be held Sept. 30, according to court records. MVP dismissed the suit against the fifth landowner Sept. 12.
North Carolina law gives contemnors, which includes pipelines, the right to “enter upon any lands, but not structures, prior to condemnation to make surveys, borings, examinations, and appraisals,” so it is likely that MVP will get access to these properties at the Sept. 30 hearings. The properties in question are on Cherry Lane, Haw River Hopedale, Basin Creek and Jimmie Kerr roads.
The proposed Mountain Valley Pipeline Southgate would be a 72-mile, 24-inch-diameter line connecting to the existing MVP in Pittsylvania County, Va., to carry Marcellus shale gas to the PSNC distribution system south of Graham, near Cherry Lane Road and Alamance Community College, according to documents submitted to the county. The earlier stage of the pipeline, still under construction in Virginia, has been controversial and mired in litigation over numerous citations for violating environmental regulations.
PA Grant Helps Build Pipeline. (MDN) Pennsylvania’s Pipeline Investment Program (or PIPE) grants cover part of the cost of building new NatGas pipelines to connect homes and businesses in rural parts of the state to homegrown Marcellus Shale gas supplies. We’ve written about many of the more-than-a-dozen (so far) PIPE grant projects in the past. Another three such grants, totaling $2.8 million, have just been awarded–in Bradford, Lancaster and Lebanon counties. The big news with this latest round of grants is that they will create over 1,900 jobs!
$1.326 Million Generated by Oil and Lease Gas Sales in OH. Nearly $1.326 million was generated by oil and gas lease sales in Ohio by the Bureau of Land Management this month. The money was generated when the BLM successfully sold 14 parcels of land in the state that totaled nearly 655 acres, according to Francis Piccoli, the deputy state director for external affairs at the Eastern States State Office of the BLM. Piccoli told The Center Square in an email that all money collected in the sales is deposited in the BLM-Eastern States Office of Natural Resources Revenue, which distributes shares to the states in which parcels are sold. The money collected is everything minus the cost of recovery fees, which is $165 per lease.
PA Permits September 12, to September 19, 2019
County Township E&P Companies
- Lycoming Penn Exco Resources
- Washington Amwell Range
- Washington Amwell Range
- Washington Amwell Range
- Washington Amwell Range
OH Permits September 14, 2019
County Township E&P Companies
- Belmont Richland Ascent
- Belmont Richland Ascent
- Guernsey Wills Utica Resources
- Harrison Short Creek Ascent
- Harrison Short Creek Ascent