Shale Directories Conferences
Appalachian Basin Real Estate Conference
December 11 & 12, 2019
Latest facts and a rumor from the Marcellus, Utica, and Permian, Eagle Ford Plays
Appalachian Basin Economic Development and Site Selection Opportunities Showcased Shale Directories announces that millions of dollars of real estate and a numerous sites will be displayed at the Appalachian Basin Real Estate Conference December 11 & 12th at Oglebay Resort in Wheeling, West Virginia. The conference is sponsored by Ohio River Corridor, LLC a Site Selection, Consultation and Real Estate Brokerage firm; Bryce Custer, SIOR, CCIM, Principal.
“We are pleased that six Economic Development Organizations in the Appalachian Basin are sponsors,” stated Joe Barone, President, Shale Directories, LLC. These organizations will have information on their areas and specific development sites:
- Regional Economic Development Partnership in Wheeling West Virginia
- Belmont County Port Authority in St. Clairsville, Ohio
- Green County Industrial Developments, Inc in Waynesburg, Pennsylvania
- Monroe County Economic Development in Woodsfield, Ohio
- Brooke County Economic Development Authority in Wellsburg, West Virginia
- Jefferson County Port Authority in Steubenville, Ohio
The developers and investors that attend the Appalachian Basin Real Estate Conference will be able to see a wide variety of sites – river terminals, brownfield, industrial and manufacturing sites, warehouses, offices buildings, plants, and multi-family residential sites. The sites will be in the counties of Marshall, Ohio, Wetzel, Brooke in West Virginia; the counties of Jefferson, Belmont and Monroe in Ohio; and Greene County in Pennsylvania. Additionally, the presenting sponsor, Ohio River Corridor, LLC and NAI Ohio River Corridor will also have information on sites along the Ohio River from Chester, WV to Southpoint, Ohio. “We have a number of river terminals (bulk and liquid), warehouses, industrial sites and office buildings available along the Ohio River,” said Bryce Custer, SIOR, CCIM.
Barone further added, “We continue to speak with more economic development organizations throughout the Appalachian Basin and hope a few more will participate in the conference.
Mountain Valley Pipeline Takes on Sierra Club. In an unusual move, Mountain Valley Pipeline has sharply criticized the Sierra Club and attacked the eco-group for its opposition to the natural gas pipeline now under construction in West Virginia and Virginia, Kallanish Energy reports.
The company’s Nov. 18 letter is addressed to the Federal Energy Regulatory Commission, but is aimed at the Sierra Club. In the five-page letter, the company asks FERC to reject the Sierra Club’s Nov. 5 request seeking to have the federal permit for the 303-mile pipeline suspended and to halt all work on the project except for needed stabilization.
The Sierra Club’s request is unnecessary because FERC had halted construction Oct. 15, after a federal appeals court had stayed two key wildlife permits for the often-stalled pipeline project, the pipeline company said.
The stay was ordered by the Fourth U.S. Circuit Court of Appeals, pending a lawsuit brought by the Sierra Club and other environmental groups over the Endangered Species Act permits issued in 2017 by the U.S. Fish and Wildlife Service.
The Sierra Club’s letter “is plainly rooted in its opposition to the project rather than any noncompliance with the commission’s relevant orders,” Mountain Valley Pipeline said. “Its solitary goal is to cause further disruption of all project activities.”
Trying to establish itself as ‘arbiter’
The company accused the Sierra Club of trying to establish itself as “the arbiter” of FERC’s management of the project and Mountain Valley’s compliance with FERC’s orders.
“Mountain Valley is fully complying with the terms of the cessation order, just as it fully complied with the suspension. Sierra Club does not question Mountain Valley’s compliance. Instead, it argues that the commission’s orders are insufficient for several reasons, each of which lacks merit,” said Matthew Eggerding, assistant general counsel for Mountain Valley Pipeline with headquarters in Canonsburg, Pennsylvania.
Stabilization activities will end for 2019 later this month, the company said. The pipeline project is roughly 90% complete and is expected to be brought online by late 2020, Mountain Valley said. It has raised the project’s price tag from $4.6 billion, to $5.3 billion, to the current $5.5 billion.
Construction halted by numerous parties
The pipeline is designed to move natural gas from the Appalachian Basin to markets. Construction has been halted at times by the FERC, the federal appeals court, state agencies and the U.S. Army Corps of Engineers.
The pipeline is owned by joint-venture partners EQT Midstream Partners, NextEra US Gas Assets, Con Edison Transmission, WGL Midstream and RGC Midstream.
It is 42-inch pipeline system that will run from northwestern West Virginia to southern Virginia, flowing 2 billion cubic feet per day from the Marcellus and Utica shales. There are plans to extend the pipeline south from Virginia into North Carolina.
Barbco’s FlexBor- Cost Effective and Environmentally Safe
FERC to Issue Environmental Assessment for 2 PA Pipelines. The Federal Energy Regulatory Commission is expected to release in February 2020, an environmental assessment for two pipeline projects that will extend/expand Williams’ Atlantic Sunrise natural gas pipeline in the Appalachian Basin, Kallanish Energy reports.
The projects in Pennsylvania would help move Utica and Marcellus Shale natural gas to Transcontinental Gas Pipe Line customers on the East Coast. The Atlantic Sunrise pipeline moves roughly 1.7 billion cubic feet per day. It went into service in October 2018.
The new projects are being advanced by National Fuel Gas and Transco, a Williams subsidiary.
The National Gas project, known as FM 100, would boost capacity by 330 million cubic feet per day (Mmcf/d) by adding pipeline loops and additional compression in McKean, Potter and Clinton counties.
The FM 100 project is fully subscribed to Transco under that proposed capacity lease. That lease will enable the project to connect Clermont, Pennsylvania, to the Leidy Hub in north-central Pennsylvania, and a lease of Meade Pipeline Co.’s undivided ownership in the Central Penn Line from Zick to River Road in the state.
Transco’s Leidy South project is expected to provide additional takeaway capacity from northeastern Pennsylvania. The project would boost capacity by 582 Mmcf/d by adding compression and pipeline loops in Lycoming, Clinton, Wyoming, Columbia, Luzerne and Schuylkill counties.
That’s enough natural gas to serve about 2.5 million homes and enable power plants to switch from coal to natural gas, officials said.
The project includes 6.3 miles of existing pipeline replacement, 5.9 miles of new pipeline loops along the existing Transco pipeline corridor and enlarging two existing compressor stations. The project will also include two new compressor stations.
The $531 million project will move natural gas from the Leidy Hub and Zick interconnect to points downstream in Transco’s Zone 5 and Zone 6 market areas. Producers on the line are Cabot Oil & Gas, Seneca Resources and UGI Utilities.
Both projects are seeking to begin service in time for the 2021-2022 heating season.
FERC is looking at the two projects as one because they are so closely related and interconnected.
FERC to Vote on 4 TX Pipelines. Federal regulators are expected to vote this week on final permits for four liquefied natural gas (LNG) liquefaction/export facilities in Texas, Kallanish Energy reports.
The Federal Energy Regulatory Commission is poised to vote on three LNG projects in Brownsville, and an addition to an existing LNG facility in Corpus Christi.
The Brownsville projects are being developed by NextDecade, Annova LNG and Texas LNG, and all three would process natural gas from the Permian Basin of West Texas/southeast New Mexico.
If the three plants are built, Brownsville is expected to receive roughly 470 LNG tankers annually, officials estimate.
The trio of projects has run into strong opposition from shrimpers, Native Americans and environmental groups. Habitat for endangered species, including the ocelot and jaguarundi, is a very big issue.
The $9.56 billion Brownsville LNG facility would include six trains and could produce up to 27 million tonnes of LNG per year. A final investment decision is expected soon from project owner-developer NextDecade. Operations at Brownsville are slated to begin in 2023, the company has said.
Exelon’s Annova LNG calls for six trains to process the natural gas. The liquefaction/export facility would process roughly 6.95 million tonnes of LNG annually. The company has said the facility could be operational in 2024.
The Texas LNG project calls for two trains that would produce 4 million metric tonnes of LNG annually from roughly 300 million cubic feet of natural gas per day. First production is expected in 2023-2024.
The facility would be built in two phases, with Phase 1 coming online in 2023-2024, and Phase 2 in 2025-2026, depending on demand.
The plant would rely on electric motors to drive refrigeration compressors, a process that will sharply reduce air emissions.
The Corpus Christi project is being developed by Cheniere Energy, which wants to add seven small LNG units to boost LNG production by 9.5 million tonnes per year.
It has three larger trains open or under development at Corpus Christi. It also has a facility open and being expanded at Sabine Pass in western Louisiana.
FERC OK’s Three LNG Projects in TX. In key vote, federal regulators OK controversial South Texas gas export facilities. Federal energy regulators on Thursday greenlighted three liquefied natural gas projects proposed for the Rio Grande Valley that a coalition of local residents and indigenous and environmental groups have fervently rallied against. After several years of review, the three-member Federal Energy Regulatory Commission voted to authorize permit applications to build LNG terminals at the Port of Brownsville that would receive natural gas produced in West and South Texas and convert it to liquid form so it can be exported around the world. Commissioners also approved a permit application from Houston-based Cheniere Energy to increase production capacity at its existing LNG terminal at the Port of Corpus Christi.
Conoco’s 10-Year Plan. ConocoPhillips says it intends to keep capital spending under $7 billion a year for the next decade and it could sell a 25% stake in its Alaskan assets, Kallanish Energy reports.
That Alaskan asset sale is in line with the company’s policy of not holding 100% equity in major projects, it said. The E&P company is spending $6.1 billion on capital spending in 2019.
Strategy outlined in Houston
Those plans were part of the 2020-2029 strategy outlined by the company Tuesday at its annual analyst & investor meeting in Houston, Texas. It intends to keep spending down and to profit when oil prices are higher or lower.
The company said it expects production to grow by 3% per year during the decade. It has major holdings in the Bakken Shale in North Dakota and Montana, the Eagle Ford Shale in South Texas and the Permian Basin in West Texas and New Mexico.
Those three basins produce about 30% of the company’s overall production. It also has operations in Alaska, western Canada, Australia, Norway, Qatar and Malaysia.
Spending $4B on US shale drilling
ConocoPhillips future exploration is aimed at Alaska, Canada, Columbia, Argentina, Norway and Malaysia, the Houston Chronicle reported. It said it expects to spend $4 billion in 2020 on U.S. shale drilling, with 20 rigs in four fields.
The company expects its U.S. shale production to increase from 400,000 barrels per day in 2020 to 900,000 Bpd in 2029.
ConocoPhillips said it expects to generate $50 billion in free cash flow, based on West Texas intermediate prices of $50 per barrel, over the decade.
It’s expecting to spend $20 billion in dividends and $30 billion in stock buybacks in those 10 years.
‘Consistent, predictable performance’
“Over the past few years, we have successfully transformed ConocoPhillips to position the company for consistent, predictable performance across the inevitable price cycles of our industry,” said Ryan Lance, chairman and CEO, in a statement.
“We believe that we offer the market a compelling, long-term E&P investment that provides downside protection and full exposure to the upside. Today’s plan demonstrates sustained value creation through significant free cash flow generation, distinctive returns of capital and growing returns on capital,” he said.
He added, “Our plan provides a powerful, multi-year outlook that combines a robust, scenario-based strategy framework, a diverse, low cost of supply resource base, a disciplined, value-based investment approach and a world-class workforce.”
Goodnight Midstream Expanding in the Eagle Ford. Oilfield water midstream company Goodnight Midstream Wednesday announced a “significant expansion” of its Eagle Ford shale operations, Kallanish Energy reports.
The Texas-based company also announced the complete integration and rebranding of Wyatt Water Solutions LLC under the Goodnight Midstream corporate umbrella. Goodnight purchased Wyatt Water, a provider of saltwater gathering and disposal systems, in 2017.
Goodnight has commenced construction of an additional injection facility to service its expanding DeWitt County, Texas, pipeline network.
The Rooster saltwater disposal facility (SWD) will be located south of Yorktown, Texas, and will serve both piped and trucked volumes. With this expansion, Goodnight’s Eagle Ford operations now include three SWD facilities and 40 miles of pipeline in DeWitt and Atascosa counties.
Goodnight began operating in the Eagle Ford shale in 2017 when it acquired Wyatt Water. Eric Leuenberger, Wyatt’s founder, will remain with Goodnight as the business development lead for South Texas.
“We are extremely appreciative of Eric and the Wyatt Water team for successfully building the business over the last two years, and are confident that now is the right time to fully integrate our South Texas operations with our facilities in North Dakota and the Permian Basin,” said Rich Rehm, chief operating officer of Goodnight Midstream.
Upon completion of the Rooster SWD facility, Goodnight Midstream will operate over 500 miles of oilfield wastewater pipelines and 58 saltwater disposal wells in the Williston, Midland and Delaware basins, along with the Eagle Ford Shale play.
Time Running Out for Cuomo. Time is running out in New York’s bitter natural gas showdown. In five days, New York Governor Andrew Cuomo may decide to expel one of the world’s biggest utilities from the state’s most populous region. That threat is the culmination of an extraordinary showdown between Cuomo and British energy giant National Grid Plc over the future of natural gas. The clash, hinging on the utility’s refusal to connect new gas customers, has already delayed thousands of construction projects across Brooklyn, Queens and Long Island. And it all began with New York rejecting a single permit for a pipeline, which the utility says is crucial for meeting surging gas demand. The fight lays bare just how fraught America’s relationship with gas has grown.
Oil Industry Slashes Jobs. The oil and gas industry in Texas has been shedding jobs since the middle of the summer, as drillers continue to slow their production and trim their spending to cope with lower oil prices. The number of jobs in the mining sector, which in Texas consists mostly of oil and gas production, fell to 252,200 in October, according to the Texas Workforce Commission. That’s the second consecutive monthly decline, and the sector is down 2.9% from June, when mining employment hit a peak of 258,900.
AI Becomes More Important to O&G. Oil & gas industry turns to AI for billions in savings. The oil and natural gas industry is turning to artificial intelligence technology to save billions of dollars in maintenance and production costs. Houston oilfield services company Baker Hughes, tech giant Microsoft and Silicon Valley artificial intelligence company C3.ai have signed an agreement to develop and deploy the technology for industry customers around the globe, the companies said Tuesday.
Baker Hughes Enters Agreement to Use AI in the Oilfield. Oilfield services firm Baker Hughes Co. has entered into a three-way agreement/partnership to boost the use of artificial intelligence technology in the oil and natural gas industry, Kallanish Energy reports.
Baker Hughes, technology behemoth Microsoft and Silicon Valley, California, artificial intelligence company C3.ai have signed an agreement to work together to develop and deploy the technology for industry customers across the globe, the companies announced Tuesday.
The agreement comes less than six months after Baker Hughes and C3.ai launched a joint venture to deploy artificial intelligence in the oilfield. The two will now be augmenting the technology they developed using Microsoft’s cloud computing platform Azure.
“The industry is adopting technologies that help manage the challenges and opportunities associated with the energy transition. The AI solutions offered through Baker Hughes and C3.ai deliver insights that can reduce risk and improve performance for operators as they navigate this transition,” said Lorenzo Simonelli, chairman and CEO, Baker Hughes.
Currently making roughly a tenth of its $23 billion in annual revenue from digital products, Baker Hughes is investing in artificial intelligence and other technologies ahead of a global energy transition where natural gas and tech-dependent renewables such as wind and solar will make up a larger percentage of the power generation mix.
Baker Hughes, Microsoft and C3.ai are betting artificial intelligence and cloud computing will allow oil and natural gas customers to reduce the amount of computer equipment needed onsite by storing and processing data on distant servers, in addition to making operations more efficient, better predicting maintenance needs, improving safety and lowering costs.
Oil supermajor Royal Dutch Shell has already signed up as a customer for C3.ai’s artificial intelligence platform on Azure. As an early adopter of the technology, Shell is using artificial intelligence to monitor its operations around the world to optimize flows of oil and natural gas as well as better predict when equipment needs repairs.
“Shell supports the aim of this strategic alliance to improve efficiencies, increase safety, and reduce environmental impact through digital transformation, aligning seamlessly with our goals and ambitions,” said Jay Crotts, Shell Group chief information officer.
DUCs Falling. The number of drilled, but uncompleted wells (DUCs) in the seven most productive unconventional basins/plays in the Lower 48 U.S. states fell 2.9% from September to October, the Energy Information Administration reports.
In the just-released Drilling Productivity Report (DPR), the total number of DUCs in the seven drilling regions fell last monthly 225, to 7,642, from the 7,867 DUCs in September, Kallanish Energy reports.
All seven basins/plays recorded a drop in DUCs, led by the Anadarko, where 72 DUCs were completed, bringing its total of DUCs at Oct. 31, to 741, from 813.
The Permian Basin turned the second-most DUCs to completed wells, with 45 DUCs turned, bringing the basin’s total DUCs in place to 3,589, from 3,634.
The Eagle Ford Shale and Appalachia (the Marcellus and Utica Shale plays combined) came next, falling 32 to 1,418, and down 30 DUCs, to 492, the DPR reveals.
The Niobrara lost 22 DUCs from September to October, with total DUCs remaining falling to 452, while Bakken lost 20 DUCs, falling to 739 remaining.
The Haynesville Shale saw 4 DUCs completed, with its remaining DUCs fell in October to 211, the fewest DUC total in all seven basins/plays.
Gulfport Cuts Its Workforce. Gulfport Energy is cutting 13% of its workforce and eliminating a stock buyback program due to depressed prices for natural gas, Kallanish Energy reports.
The company, with major operations in Ohio’s Utica Shale and in the SCOOP play in Oklahoma, made the announcement Monday. It also said it was “refreshing” its board with three new directors.
The Oklahoma-based company reportedly has roughly 240 employees, so a 13% reduction would mean 31 workers would lose their jobs.
“Gulfport’s board and management team are committed to taking timely and decisive action to build long-term sustainable value for all shareholders,” said president and CEO David M. Wood, in a statement.
“To that end, following discussions with our large shareholders and other stakeholders, we decided that accretive repurchases of our unsecured notes at discount represent an attractive allocation of our capital in the current market environment. We have been taking a hard look at how to be more efficient across all areas of our business and as part of this effort recently reduced our staffing levels,” he said.
Gulfport also said it’s suspending its previously announced share repurchase program. This action, the company said, “will enable the company to maintain a stronger balance sheet.” The program may be reactivated in the future, the company added.
It had pledged to repurchase about $400 million in stock in 2019, but had only acquired roughly $30 million, through Sept. 30.
The company announced two directors, Craig Groeschel and Scott Streller, will step down from the board by Dec. 31, and board chairman David L. Houston will not seek re-election at the company’s 2020 annual meeting.
Gulfport has announced it’s repurchased $40.9 million in face value of unsecured senior notes for $29.2 million in cash proceeds. These repurchases are in addition to the $104.4 million in unsecured senior notes repurchased during third-quarter 2019, for $80.3 million.
Gulfport said it plans to continue to pursue discounted repurchases of its unsecured senior notes, which allow the company to reduce its overall debt, improve cash flow through reduced interest expenses and capture discounts that result in value accretion to shareholders. It had roughly $2.1 billion in debt as of Sept. 30.
Cove Point Loads 100th Ship. Dominion Energy’s Cove Point LNG terminal loaded its 100th commercial liquefied natural gas ship on Monday, Nov. 11, 19 months after the facility entered commercial service for natural gas liquefaction and export, Kallanish Energy reports.
Located in Lusby, Maryland, Cove Point became the second-largest LNG export facility in the continental U.S. – and the first on the East Coast – when it entered commercial operation on April 9, 2018.
Cove Point produces LNG under 20-year contracts for ST Cove Point, a joint venture of Sumitomo Corp. and Tokyo Gas, and for Gail Global (USA) LNG, the U.S. affiliate of GAIL (India) Ltd.
“This is a major milestone for Dominion Energy and our country as a whole,” said Paul Ruppert, Dominion Energy’s president of Gas Transmission and Storage. “It reflects not only the world-class design and operational excellence of our facility, but also the environmental progress we are making by reducing global reliance on coal, oil and other carbon-intensive energy sources,” Ruppert continued.
Its owners say Cove Point is unique among U.S. LNG terminals for its operational flexibility and demonstrated ability to perform all the functions of an LNG facility, including import, export, vaporization and send out, and liquefaction.
To date, the facility has produced more than 4 billion gallons of LNG, with export ships reaching more than 20 countries worldwide.
PA Permits November 14, to November 21, 2019
County Township E&P Companies
- Indiana Young CNX
- Washington East Finley EQT
- Washington East Finley EQT
- Washington East Finley EQT
- Washington East Finley EQT
- Washington East Finley EQT
- Washington East Finley EQT
OH Permits November 16, 2019
County Township E&P Companies
- No New Permits