Shale Directories Conferences
Shale Insight Conference
with special appearance by President
Donald J. Trump
October 22-24, 2019
David Lawrence Convention Center
Visit Our Booth #211
7th Annual Midstream PA 2019
November 12, 2019
Penn Stater Conference Center
State College, PA
Appalachian Basin Real Estate Conference
December 11 & 12, 2019
Latest facts and a rumor from the Marcellus, Utica, Permian, Eagle Ford, and Bakken Shale Plays
Trump Coming to Shale Insight. Major coup by Marcellus Shale Coalition. Trump spoke at the conference when he was running for President in 2016. If you are interested, here’s the link. https://shaleinsight.com/
ExxonMobil Cracker Plant in the Appalachian Basin. Everyone knows that there have many discussions about Exxon looking for a location in the region. I heard a rumor recently that Exxon was looking in WV. What’s interesting is that Exxon is looking at sites around Shell’s site in Monaca, Beaver County, PA.
Shale Directories member Barbco Attended the Innovative Housing Showcase in Washington, DC.
Yes, Perry’s Leaving. U.S. Energy Secretary Rick Perry has notified President Trump he intends to leave his job in the near future, numerous media outlets were reporting late Thursday, Kallanish Energy learns.
That’s according to an administration official who confirmed the news on condition of anonymity.
Perry was traveling with Trump to Texas Thursday when he shared the news aboard Air Force One.
The former Texas governor had disputed reports he was planning to leave the administration in an interview Wednesday with The Wall Street Journal.
But he reportedly left the door open, saying he expected to be at the Department of Energy at Thanksgiving, but giving a less definitive answer when asked whether he’d be there through the end of the year.
Perry had largely avoided headlines since joining the Trump administration in 2017. But in recent weeks he became entangled in the Democratic-led impeachment probe into Trump’s actions involving Ukraine.
Perry was one of three political appointees overseeing the U.S. relationship with the country after acting White House chief of staff Mick Mulvaney transferred that portfolio away from career staff.
House Democrats, investigating whether Trump conditioned military assistance for the country on an investigation of his political rival, served Perry earlier this month with a subpoena for documents.
The subpoena included a demand for a variety of Ukraine-related materials by today.
Slowing Permian Oil Supply Might Be Reversed Soon. Opinion. Turmoil in the oil market is nothing new, and recent events in the Middle East, including the missile attack on Abqaiq and the apparent attack on an Iranian tanker, have overshadowed developments in the oil market fundamentals, but further out the latter should drive market trends. One factor looming especially over the next few quarters is the trend in U.S. oil production, which many have noticed is slowing. This has led some to predict U.S. production has peaked and others to argue that prices might soar.
Enterprise to Expand Appalachia-to-Texas Ethane Pipeline. Houston pipeline operator Enterprise Products Partners is moving forward with plans to expand a pipeline to move ethane from the natural gas fields of Appalachia to the company’s processing plants and storage terminals in southeast Texas. In a statement released on Monday morning, Enterprise confirmed that it will proceed with the expansion of its Appalachia-to-Texas pipeline. Known as ATEX, the 1,200-mile pipeline moves ethane from the Marcellus Shale and Utica Basin of Pennsylvania, West Virginia and Ohio to Enterprise’s natural gas liquids storage complex just east of Houston in Mont Belvieu.
FERC OKs Sendero’s Permian Carlsbad Gateway Pipeline; Glick Dissents. FERC has issued a certificate to Sendero Carlsbad Gateway LLC’s 400 MMcf/d natural gas pipeline to transport Permian Basin supply across the New Mexico/Texas border. The Federal Energy Regulatory Commission, currently with only three sitting commissioners, issued the decision late last week in a split vote, with Democratic Commissioner Richard Glick dissenting.
NatGas Demand Will Soar. The world’s largest natural gas users and US LNG. Natural gas has become the go-to fuel globally to lower CO2 emissions and backup wind and solar, power sources that are naturally intermittent. The best modeling agencies confirm that gas demand increases under any practical energy policy scenario No wonder: from 2010 to 2018, global gas use boomed nearly 25% to around 375 Bcf/d. That’s a daily consumption figure that is almost five times what the U.S. uses – easily the world’s largest market. And now, the U.S. Department of Energy just projected that global gas use will rise another 40-45% by 2050. The rising LNG market is quickly turning natural gas, long a regional product with distinct markets, more into a global commodity like oil. Americans should therefore know that as we become even more of an active player in the global LNG market, our supplies will be critical to meeting new demand. That’s because Iran, Qatar, and Russia hold half of total proven gas reserves.
AI Becoming More Important to O&G Companies. Oil and gas companies turn to AI to cut costs. Amid a growing push to cut operating costs, big oil is looking to artificial intelligence for help with automating functions, predicting equipment problems and increasing the output of oil and gas. AI tools can quickly find solutions for the costly problems that can disrupt the business of searching for and extracting hydrocarbons. For example, a faulty well pump at an unmanned platform in the North Sea repeatedly disrupted production earlier this year for Aker BP, AKERBP -2.96% a Norwegian oil company in which BP 0.81% owns a stake. The company finally fixed the problem by installing an AI program that monitors data from sensors attached to the pump and flags glitches before they cause a shutdown, says Lars Atle Andersen, vice president of operations for technology and digitalization. Engineers now can fly in to fix such problems ahead of time and avert a shutdown, Mr. Andersen says.
PennEast Pipeline Denied in NJ. New Jersey denies permit for controversial shale gas pipeline. New Jersey regulators denied a key permit for the PennEast natural gas pipeline, the latest in a series of challenges for projects designed to shuttle fuel to the Northeast from Appalachian shale basins. The New Jersey Department of Environmental Protection said a federal court decision that prevents the developer from taking state-owned land means its application can’t be considered complete. The agency denied the certification without prejudice, meaning the company can apply again. Pat Kornick, a spokeswoman for PennEast, said the companies behind the pipeline remain “fully committed.” Note: AP and NGI also report.
Mountain Valley Pipeline Stalled. Appeals court orders stay of Mountain Valley Pipeline permit. Already slowed by the loss of two permits and a lawsuit that challenges a third one, construction of the Mountain Valley Pipeline hit another major roadblock Friday. The 4th U.S. Circuit Court of Appeals ordered a stay to a permit from the U.S. Fish and Wildlife Service, pending its review of lawsuit brought by environmental groups headed by the Sierra Club. Following the late afternoon stay, the club said it “effectively means construction must stop” on the 303-mile pipeline. Mountain Valley suspended new construction on some stretches of the pipeline in August, three days after the lawsuit claimed that an approval from the Fish and Wildlife Service failed to adequately protect endangered species in the project’s path.
WV O&G Companies Get Ready for Petrochemicals. WV’s oil and gas industry prepares for petrochemical manufacturing. Industry insiders and state officials alike agree that development of petrochemical manufacturing is the future of West Virginia’s oil and gas industry. The industry, which would utilize the state’s abundant oil and gas reserves to create a wide variety of commercial and industrial products and components, is expected to create more than 100,000 jobs and bring in billions to the state’s economy, according to Gov. Jim Justice. In August, Justice established the Governor’s Downstream Jobs Task Force, which he said will develop sites for use by manufacturers and work to attract potential investors.
Gulfport’s Production 3rd Quarter Production Is Up. Gulfport Energy reported net production in 2019’s third quarter averaged 1.53 billion cubic feet-equivalent per day (Bcfe/d), a 6.9% increase over the 1.43 Bcfe/d produced in Q3 2018, the Oklahoma-based company reported Thursday, Kallanish Energy finds.
Gulfport is a key operator in Ohio’s Utica Shale and Oklahoma’s SCOOP play. Its production in the Utica Shale grew from 104.98 Bcfe in Q3 2018, to 114.46 Bcfe in Q3 2019, a 9% increase.
Its production in the SCOOP play increased from 25.26 Bcfe in the year-ago quarter, to 25.90 Bcfe in the recently-concluded third quarter, a 2.5% increase.
It said its realized prices for the quarter were $1.73 per thousand cubic feet of natural gas, $78.59 per barrel of oil and 45 cents per gallon of natural gas liquids.
The company said its Q3 production was 93% natural gas, 5% natural gas liquids and 2% oil.
In Q3 2019, the company drilled two gross and net operated wells in the Utica Shale and one gross and net operated well in the SCOOP.
It completed three gross (1.8 net) operated wells in the Utica Shale in the quarter and had two gross wells in various stages of completion on Sept. 30. It turned to sales 16 gross (10.5 net) operated wells in the Utica in the quarter.
The company said its forecasted full-year 2019 net production will likely fall in the mid-point of the company’s previously released guidance of 1.36 Bcfe/d, to 1.40 Bcfe/d. Gulfport will release its Q3 financial results on Nov. 1.
Oil and Gas Taxes Generate $123 Million. Oil/gas property taxes to provide $123 million to county governments. Property taxes on oil and natural gas production will provide West Virginia’s county governments with over $123 million for local school systems and vital community services in 2019. In a recent media release, the West Virginia Division of Tax & Revenue reported an increase of nearly 40 percent, or $34.8 million, over 2018. Those counties where natural gas and oil production is occurring have received hundreds of millions of dollars in the way of property tax receipts over the past several years. Although the amount of property taxes may fluctuate year over year due to many factors, including commodity prices, West Virginia’s producing counties continue to receive significant funds generated from the development of our oil and gas resources.
LNG Usage Expanding. LNG As a Transport Fuel-Is the Demand Real? LNG as a transport fuel continues to attract considerable interest and is establishing itself as a specific new market for gas. Nevertheless, questions remain over the breadth, scale, and rapidity of uptake. LNG can provide significant environmental advantages over traditional petroleum products, most notably as a marine fuel, where a global limit of 0.5 per cent sulphur in fuel oil will be introduced in 2020, but also in some road transport applications.
Corpus Christi Valuable Export Location. The Pipeline Lifeline for Texas Oil. Waterborne crude exports from Corpus Christi, TX, reached a record high of 11.379mn bbls, or 1.626mn bpd, in week ending September 27, buoyed by increased flows into the port from new pipelines coming online, according to our North American Waterborne report. The high exports from Corpus Christi partially drained crude inventories that grew 2.7mn bbls between mid-August and late September, following the start-up of Plains All American’s 585,000 bpd Permian-to-Ingleside, TX, Cactus II pipeline and EPIC’S 400,000 bpd Permian-to-Corpus Christi EPIC NGL pipeline, currently in interim crude service, according to our Texas Gulf Coast Storage report.
They Need Power in the Permian. Power sector working to expedite power to Permian Basin oil, gas production. Fast-growing power demand in West Texas’ Permian Basin is creating challenges for wires and generation projects, industry officials said Wednesday, but grid planners, regulators and industry officials are working to expedite planning and construction, which could reduce large power congestion costs in the region. During a Gulf Coast Power Association panel discussion, Stephen Robertson, Permian Basin Petroleum Association executive vice president, noted that the Permian Basin, where the first oil well was drilled in 1920, is now producing five times as much oil and gas as it did a decade ago. On Tuesday, DeAnn Walker, who chairs the Public Utility Commission of Texas, said that in her discussions with oil and gas producers in West Texas and the transmission and distribution utilities that serve the area, “it became very apparent to me that the two industries don’t match up” in terms of the schedules needed to accomplish their work. Oil and gas project demands move much more quickly than power projects, she said.
DUC’s Are Down. All seven basins/plays included in the Energy Information Administration’s latest Drilling Productivity Report (DPR) experienced a drop in drilled, but uncompleted (DUC) wells from August to September, Kallanish Energy reports.
The just-released October DPR reports 206 DUCs were completed from August to September, dropping the total number of DUC wells to 7,740, from 7,946 in August.
Six of the seven basins/plays saw a double-digit drop in DUC wells, led by the Anadarko, which completed 59 former DUC wells, dropping its total to 826 from 885.
The Permian’s DUC wells total fell by 49, to 3,668 in September, from 3,717 one month before. The Niobrara’s DUC wells total dropped by 32, to 443 from 475, the DPR reported.
Drops were also recorded from August to September in the Eagle Ford Shale (down 24 DUC wells to 1,444), the Bakken (down 21, to 675), and Appalachia (including the Marcellus and Utica Shale plays), which completed 16 former DUC wells, bringing its total at Sept. 30 to 504.
The smallest August-to-September decrease was recorded in the Haynesville Shale, down a handful of DUC wells, falling to 180 from 185.
Leidy South Project — $100 Million Impact. Williams announced today that the design and construction of the two new compressor facilities proposed as part of its Leidy South project will generate approximately $100 million in economic impact to the regional and state economy of Pennsylvania, according to a study authored by researchers at Philadelphia-based Econsult Solutions, Inc.
The Leidy South project includes the proposed installation of new turbine-driven compressor units in Luzerne County, Pa., (Compressor Station 607) and Schuylkill County, Pa, (Compressor Station 620).
According to the researchers, the design and construction of two new compressor facilities associated with the proposed Leidy South project could support approximately 680 direct, indirect and induced jobs in Pennsylvania – primarily in Luzerne and Schuylkill counties – with a combined $28 million in employee compensation.
The economic modeling exercise was funded by Williams and uses IMPLAN, a widely used commercial software designed to perform input-output economic analysis in order to estimate the economic and employment impact on each of the counties where construction is expected to occur. IMPLAN is used by state governments across the nation for economic modeling and predicting.
“This report shows how natural gas infrastructure projects like Leidy South can provide a significant boost to our local economy,” said Columbia Montour Chamber of Commerce President Fred Gaffney. “Williams has a long history of operations in Pennsylvania and we are pleased to see the company continuing to invest in our region.”
Key findings from the analysis include:
- The project will require an investment of approximately $82 million by Williams to construct the two greenfield compressor facilities associated with the project. • The one-year construction phase of the two new compressor facilities is expected to result in overall economic impact of $100 million and could support 680 direct, indirect and induced jobs in Pennsylvania. • The majority of the economic impact is projected to be felt in Luzerne and Schuylkill counties, with Luzerne County experiencing a one-time economic impact of $47 million, supporting 3402 jobs worth a combined $13 million in employee compensation. Schuylkill County is projected to experience a $39 million economic impact as a result of construction, supporting 290 jobs worth $10 million in employee compensation. • An estimated $1.3 million in one-time total tax revenues from the direct, indirect, and induced economic activity of construction. • Ongoing operations of the compressor facilities is expected to produce $2 million annually in total economic impact in Luzerne County and $2.1 million annually in total economic impact in Schuylkill County.
“Construction and ongoing operations of the project look to be economically beneficial to the counties the pipeline would cross, as well as to Pennsylvania and the region,” said Dr. Peter Angelides, Econsult Solutions Senior Vice President and Principal.
The Leidy South project is a proposed expansion of Williams’ existing Pennsylvania energy infrastructure to meet the energy demand of the Mid-Atlantic region including customers in Pennsylvania by the 2021-22 winter heating season. Leidy South supports the broader goal of meeting the growing regional demand for affordable, clean, and reliable natural gas.
The project will help ease natural gas supply constraints, creating enough additional pipeline capacity to serve approximately 2.5 million homes and enabling more power plants to convert from coal to cleaner-burning natural gas. The U.S. leads the world in CO2 emissions reductions thanks to increased natural gas use.
Danley’s FERC Nomination Goes to the Senate. The White House has sent the nomination of James Danly of Tennessee to be a member of the Federal Energy Regulatory Commission to the U.S. Senate for confirmation, Kallanish Energy reports.
His nomination and 24 other nominations were forwarded to the Senate earlier this week.
On Sept. 30, the White House had announced Danly, the agency’s general counsel, had been tapped to serve on the five-member commission
His term will expire on June 30, 2023. He will replace the late Kevin J. McIntyre, who died last January. McIntyre had joined the commission in late 2017.
Danly joined the FERC in September 2017. He previously worked in the energy regulation and litigation group for law firm Skadden, Arps, Slate, Meagher and Flom.
He was a managing director of the Institute for the Study of War, a military think tank in Washington, D.C., and served an International Affairs fellowship at the Council on Foreign Relations.
PA Permits October 10, to October 17, 2019
County Township E&P Companies
- Susquehanna Bridgewater Cabot
- Susquehanna Bridgewater Cabot
- Susquehanna Bridgewater Cabot
- Susquehanna Bridgewater Cabot
OH Permits October 12, 2019
County Township E&P Companies
- No New Permits This Week.