The following Shale Directories Members are OPEN for BUSINESS during COVID-19 related shutdown.*
Support them when and how you can!
1st Choice Energy Services
Allison Crane & Rigging
EJ Breneman, L.L.C.
Frontier Group of Companies
Furbay Electric, Oil & Gas Division
Green Valley Seed
HYTORC Penn Ohio
Inland Tarp and Liner
MJ Painting Contractor Corp.
Mansfield Crane Service
Marshall County Co-Op – Southern States
NAI Ohio River Corridor
Oglebay Resort and Conference Center
Skycasters Converged Wireless
Zimmerman Steel and Supply Company, Inc.
*list subject to change
Shale Directories Conferences
8th Annual Upstream PA 2020
New Date October 29, 2020
State College, PA
4th Annual Appalachian Storage Hub Conference
New Date November 5, 2020
Hilton Garden Inn
Southpointe, Canonsburg, PA
8th Annual Utica Downstream
New Date November 19, 2020
New Location: Holiday Inn Belden Village
8th Annual Midstream PA 2020
New Date: December 10, 2020
State College, PA
Latest facts and a rumor from the Marcellus, Utica, and Permian, Eagle Ford Plays
8 Rigs Coming to PA. This is an interesting rumor which may fit with what I’m hearing. Everyone expects 2021 to have more CAPEX spending than 2021. If that’s true, the 8 rigs could make sense. (RUMOR)
8TH Annual Utica Midstream Highlights. Shale Directories and the Canton Chamber of Commerce’s latest Utica Midstream Conference, held this past Thursday in Canton, Ohio, was a success in all ways, as roughly 90 oil and gas businesses came together to hear the latest industry news.
Here is a sampling of what was presented:
- Despite the economic downturn and ensuing glut of wet natural gas and the ongoing pandemic, Appalachian Basin wet gas production stayed nearly flat beginning in August 2019, and will remain at roughly 33 Bcf/d through 2021, according to Colette Breshears, Senior Research Manager and Head of North America Infrastructure with Wood Mackenzie.
- Breshears said three major pipelines impacting Appalachian Basin gas production will be flowing product, including the 2 Bcf/d capacity Mountain Valley line, along with the 205 Mmcf/d Empire North pipeline, and the 497 Mmcf/d Northern Access 2016 line.
- Despite a more than $700 million decrease in capital spending in 2020, midstreamer MPLX is looking to do more projects and is talking to a number of potential customers for its proposed Hopedale natural gas liquids storage caverns in eastern Ohio, according to Jason Stechschulte, Business Development Manager for MPLX.
- Washington, D.C. is well aware of the potential the Appalachian Basin provides in terms of natural gas and natural gas liquids production and the impact said production can have on the petrochemicals and energy-intensive manufacturing industries, according to Chuck Zelek, Special Advisor to the Assistant Secretary of the U.S. Department of Energy Office of Fossil Energy.
- So important is the federal government’s thrust to expand economic opportunities for manufacturing, energy and petrochemicals, that interdepartmental teams have been established to look for opportunities to help industry, Zelek said.
- Much of Zelek’s presentation was on various federal programs – and billions of dollars via low-interest loans available to businesses to grow their operations.
Range to Supply Ethane to PTTGCA Cracker. PTTGC America LLC (PTTGCA), the U.S. subsidiary of PTT Global Chemical Public Company Limited, a leading integrated petrochemical and refining company based in Thailand, announced today that it has signed a long-term ethane feedstock agreement with Range Resources – Appalachia LLC, a leading producer of natural gas and natural gas liquids based in western Pennsylvania.
Under this ethane agreement, Range will provide 15,000 Barrels per day of ethane as feedstock for PTTGCA’s planned ethane cracker and petrochemical complex along the Ohio River in Ohio’s Belmont County. The ethane supplied by Range will be utilized by PTTGCA to manufacture polyethylene, one of the key resins used to produce plastics products. Throughout the COVID-19 pandemic, plastic materials have helped protect the public health, especially in the medical and food industries. This agreement is predicated upon PTTGCA reaching a final investment decision on the Ohio Petrochemical Project.
“This agreement will provide the ethane needed for the operation of this project,” said PTTGCA President and CEO Toasaporn Boonyapipat. “Range Resources is another example of the outstanding partners we are bringing together to make this world-scale petrochemical complex a reality. We deeply appreciate the continued support we have received from our federal, state and local partners.”
“We are very pleased to partner with PTTGCA to help support a world-class project in Appalachia. This further demonstrates our commitment to investing in our community, while growing regional demand for our products,” said Jeff Ventura, CEO and president of Range Resources. “This project is a great example of what is possible with a multi-decade asset base and forward-thinking teams working together to create value for all stakeholders.”
The PTTGCA Ohio petrochemical complex, once constructed, will be one of the largest manufacturing investments in Ohio. The project, which will include world-scale chemical manufacturing facilities to produce finished plastic resin, will be capable of producing 1.6 million metric tonnes of polyethylene plastic resin, which is used to make the myriad of plastic products that are necessary to use every day. This facility is expected to create hundreds of highly paid full-time jobs, thousands of construction jobs over the five-year period of construction the project’s investment and high-paying, full-time jobs would have a very positive and transformational impact on the local, regional and state economy and quality of life. For more information on PTTGCA’s Ohio petrochemical complex project, visit: http://pttgcbelmontcountyoh.com/project-facts/
PA and TX Permitting Remains Strong. Permit and natural gas production numbers for Texas and Pennsylvania have dropped and continue at a strong pace, respectively – despite the economic slowdown and COVID-19 pandemic, Shale Directories reports.
A review of Railroad Commission of Texas and Pennsylvania Department of Environmental Protection data show permits let in Texas for both oil and gas wells has whipsawed in the last year.
The numbers went from 960 in August 2019, to 1,041 in pre-COVID January 2020, before plunging to just 377 permits let in August 2020.
West Texas’ Midland region, which includes much of the Permian Basin and totals 20 counties, leads the way in permitting, with 495 let in August 2019, 520 this past February, but just 211 permits last month.
Permitting in Pennsylvania doesn’t match Texas in terms of volume, but the primary home of Marcellus Shale production saw oil and gas permits let dropped from 101 in August 2019, to 57 this past January, before jumping nearly 44%, to 82 in August 2020.
Greene County in Southwest Pennsylvania led the way last month, with 32 permits let. That total was up from just nine permits this past January, and up from 11 permits let in August 2019.
Natural gas production in Texas appears to only go up, according to RRC data, Shale Directories finds.
Total production jumped from 744.9 billion cubic feet in June 2019 (the latest data available), to 760.8 Bcf this past February, and 848.8 Bcf in June 2020.
Reeves County in the Permian was the top Texas producer, at 61.4 Bcf in June 2019, 77.1 Bcf in February 2020, and 79.6 Bcf in June 2020.
Webb County in the Eagle Ford Shale play took second place, with production totaling 52.2 Bcf in June 2019, 54.5 Bcf in February 2020, but falling to 51.8 Bcf this past June.
Susquehanna County in Northeast Pennsylvania leads natural gas production in the “Keystone State.” The dry gas county’s production totaled 134.5 Bcf in June 2019, 128.4 Bcf this past February, then rose to 133.4 Bcf this past June.
Washington County in Southwest Pennsylvania claimed second place in all three time periods, even with said production falling, from 96.3 Bcf in June 2019, to 92.9 Bcf in February 2020, before falling to 92 Bcf in June 2020.
Statewide production totaled 550.2 Bcf in June 2019, 567 Bcf in February 2020, and 554.5 Bcf this past June, Pennsylvania DEP reveals.
MVP Want FERC OK. MVP urges FERC to OK construction restart this week. With its revised Endangered Species Act review now completed, Mountain Valley Pipeline LLC (MVP) is seeking FERC authorization to restart construction activities that have been on hold since an October 2019 order. In a letter to the Federal Energy Regulatory Commission Tuesday, MVP asked the agency to allow construction on the 300-mile, 2 million Dth/d interstate natural gas pipeline to resume by the end of the week to allow the company to “maximize final restoration and complete as many activities as possible before winter.”
DOE’s Brouillette “Plastics.” Energy secretary sees region’s plastics industry as critical. Brouillette was in the Pittsburgh region earlier this week to visit the Shell petrochemical plant and other stops, including a forum on the use of artificial intelligence at Carnegie Mellon University. He said the Shell plant is an example of the finest technology in plastics manufacturing and that the Shell plant and potential other petrochemical plants in the region play a key role in the transition from coal to natural gas or from a gas-fueled engine to an electric vehicle.
President Trump Slams Biden on Fracking. President Trump on Tuesday slammed Democratic presidential candidate Joe Biden for changing his positions on fracking and trade during a rally in swing-state Pennsylvania.
Trump told a Pittsburgh crowd that Biden flip-flopped on fracking for oil and natural gas after promising to eliminate fossil fuels and prohibit “new fracking” — which he recently walked back.
“Don’t forget, I am not the candidate … that said, ‘We’re not going to have fracking, we’re going to ban fracking,’ and he said that for a year. Then all of a sudden, he said, well, maybe we’ll have some fracking,” Trump told the cheering crowd.
“By the way, you know that won’t last because the radical left won’t let him get away with it. And I’m all for fracking, folks.”
Trump invoked Biden’s July 2019 remarks to CNN’s Dana Bash, who asked if there would be “any place for fossil fuels, including coal and fracking in a Biden administration.”
“No, we would work it out. We would make sure it’s eliminated,” Biden told Bash.
Trump said that “when asked if there would be any place for fossil fuels including coal fracking and a Biden administration, Joe replied, ‘No, we would make sure that it’s all eliminated.’ Then all of a sudden he gets the nomination.”
On trade, Trump slammed Biden, a former longtime senator, as “a cheerleader for the worst trade deal ever made by any country, NAFTA, and China’s entry into the World Trade Organization, which built China like a rocket ship.”
“Biden shouldn’t be asking for your vote. He should be begging for your forgiveness. He did a terrible job,” Trump said.
“This election is a choice between Pennsylvania and China. If Biden wins, China wins. When we win, Pennsylvania wins and America wins.”
Trump accused Biden of copying his emphasis on domestic manufacturing after supporting “cheap labor to replace US workers” for years.
“I see his thing ‘hire American’ — he got it from me. All the words he’s got are my words, right?” Trump said. “They say he copied my campaign. I keep saying, ‘What the hell happened for 47 years and now he’s copying my campaign?’ And as president, you know it’s not gonna happen with him.”
West Virginia Economic Development Authority OKs direct loan for Brooke County Power plant. Weirton Daily Times. The West Virginia Economic Development Authority approved the Brooke County Power project for a direct loan to help the natural gas plant become closer to a reality. According to the West Virginia Department of Commerce, the board of directors for the West Virginia Economic Development Authority approved a $5.5 million direct loan to Energy Solution Consortium Brooke County Power Project on September 9th.
Permian Investments Continue. An American energy investment company pledged $8.5 million to a project to develop oil and gas assets in the Permian Basin owned by Shell Oil Company.
U.S. Energy Development Corporation announced the transaction on Sept. 16 to acquire interest in the horizontal well development project in Loving County near the New Mexico-Texas state line.
The Columbia Project’s total development cost was estimated at about $24 million and will include three horizontal wells in the Permian.
The development will target the Wolfcamp Shale, part of the U.S. Geological Survey’s 2018 discovery of the largest continuous oil and gas resource in history.
Along with the Bone Spring Formation, the discovery was reported to include 46.3 billion barrels of oil and 281 trilling cubic feet of natural gas along with 20 billion barrels of natural gas liquids.
More NatGas Demand This Decade. Everything points to more natural gas demand this decade. Natural gas has often been vilified as just another fossil fuel contributing to the climate crisis. While gas-fired power generation and the natural gas value chain do emit greenhouse gases, natural gas burns cleaner than other fossil fuels, most notably coal, and can play a major role in replacing coal
Drilling Lowest in More Than 80 Years. U.S. drilling total for 2020 will be lowest in more than 80 years. At World Oil, we have finished compiling the 2020 mid-year forecast update for drilling and production. On the drilling side, we now can tell you, our readers, that if this forecast is realized, the U.S. total for the year will definitely be the lowest since before 1940. Indeed, it could go back considerably further than the 1930s. One can see the history of U.S. drilling, as shown in the accompanying chart, all the way back to 1859.
U.S. Oil Has Peaked. Energy executives say U.S. oil production has peaked: Dallas Fed survey. Nearly two-thirds of U.S. energy company executives polled by the Federal Reserve Bank of Dallas believe U.S. crude oil production has peaked, according to a survey released on Wednesday. The COVID-19 pandemic has knocked global oil demand and prices, prompting deep cuts in drilling this year by shale oil producers. The United States last pumped 12.2 million barrels per day, taking top spot in global crude oil output.
CNG Station Opens in Monroe County, PA. A Compressed Natural Gas (CNG) fueling station recently held its grand opening in Swiftwater, Monroe County.
The station is part of a 20-year, $84.5 million statewide Public Private Partnership (P3) with Trillium. The company will design, build, finance, operate, and maintain CNG 24 public transit agency sites. The company also will upgrade existing transit maintenance facilities.
The Pennsylvania Department of Transportation (PennDOT) “is excited to continue expanding this program, to help make transit agencies more sustainable, and create public benefits for years to come,” Jennie Granger, PennDOT deputy secretary for Multimodal Transportation, said. “Compressed natural gas provides a cost savings in comparison to diesel fuel, and it burns cleaner.”
The Monroe County Transit Authority (MCTA) plans to convert up to 42 vehicles to CNG. This will save an estimated $200,000 and approximately 180,000 gallons of diesel annually.
Officials from MCTA, PennDOT, and Trillium CNG attended the grand opening.
Once all 24 fueling stations are built, they will supply gas to nearly 700 CNG buses at transit agencies. The P3 agreement includes the option to add sites in the future.
PennDOT will receive a royalty, excluding taxes, for each gallon of fuel sold to the public at public sites.
Oil Crash Saved Permian Pipeline Problems. While Permian oil and gas production was soaring in 2018, U.S. midstream operators were planning and building pipeline takeaway capacity, expecting that the largest U.S. shale play would increase output for years to come, even if at a slower pace than before.
Pipeline companies rushed to invest in and complete new oil pipelines in the region to stay ahead of the booming Permian production. But they got ahead of themselves in boosting pipeline takeaway capacity.
The black swan year of 2020 exposed the stark reality of the shale and pipeline construction boom. Current pipeline capacity in the Permian is exceeding production so much that in a year or two, when pipelines currently under construction are completed, Permian producers could find themselves using just half of the available takeaway infrastructure, according to analysts.
Granted, oil pipeline infrastructure was already running ahead of Permian production at the end of last year, when output growth slowed down with many producers prioritizing profits over production as the capital markets and investors soured on footing the bill for explosive output growth without meaningful returns.
Then came the pandemic and the price crash in March 2020, forcing Permian exploration and production companies to curtail production, which has dropped from nearly 5 million barrels per day (bpd) as of March to an estimated 4.150 million bpd in September—a drop of around 700,000 bpd over the six months since oil prices collapsed.
After the crash, pipeline infrastructure companies started to announce deferrals of final investment decisions and start-up dates for planned oil and gas pipelines, especially in the Permian, which suddenly found itself with additional overbuild of capacity as production and consumption of oil struggled to recover from the pandemic-driven crisis.
The latest announcement of a canceled oil pipeline came from Enterprise Products Partners, which said earlier this month that it was scrapping the 450,000 barrels per day Midland-to-ECHO 4 crude oil pipeline project.
But many of the pipelines planned back in 2018 are already in service and capacity was already exceeding production even if project deferrals and cancellations are taken into account.
DOE Secretary Brouillette Supports Ohio Growth. In 1788, the same year as the ratification of the Constitution, settlers with the Ohio Company made their way into southeastern Ohio. The men and women who first crossed the Appalachian Mountains were pioneers, yes, but they were also the leading innovators of their day. Their skills extended to navigation, engineering and the agricultural sciences, all critical to establishing a successful outpost in the Northwest Territory.
Fast forward 230 years, and Ohio is the same incubator of innovation it has been since its very beginning. Today, it is the energy industry that provides Ohio’s latest innovative economic boost.
Due to abundant gas formations of Appalachia, Ohio reaped incredible benefits from the shale revolution. In 2019, the Buckeye State produced 30 times more natural gas than in 2012, making Ohio our nation’s fifth largest gas producer. According to the U.S. Chamber of Commerce, Ohio’s energy renaissance created 114,500 jobs and accounted for $5.8 billion in labor income.
The exciting news for Ohioans is that the state has only scratched the surface of its energy and economic potential. Because of the region’s natural resources, Ohio, and the larger Appalachian region, stand on the cusp of a second energy renaissance.
In addition to continued growth in natural gas production and oil refining, Ohio has tremendous opportunities in the petrochemical industry and downstream manufacturing sector. The Trump Administration, including the Department of Energy, is committed to ensuring that Ohio and the surrounding region reap the benefits of its natural resources to create jobs and economic prosperity.
Petrochemicals, the byproducts of petroleum and natural gas, are used to make the things we require for modern, everyday life like plastics, pharmaceuticals and even clothing. The importance of these products and Appalachia’s resources make this industry primed for growth in Ohio and the larger region.
According to the Energy Information Administration, Ohio’s natural gas production is expected to increase through the year 2050 and beyond. That sustained growth makes Ohio attractive for private-sector investment in the petrochemical industry. Already a world-class petrochemical processing facility is under construction outside Pittsburgh, and there are plans to bring a second petrochemical processing plant to Belmont County. This facility could create as many as 6,000 jobs during the construction phase and an additional 600 operational jobs once the facility comes online. And according to the American Chemistry Council, regional opportunity in the petrochemical sector could result in an economic expansion of $28 billion per year and result in the creation of over 100,000 jobs.
When used in connection with petrochemicals, “downstream” manufacturing refers to the industries that make the items derived from petrochemical products, like car parts and medical devices. As businesses seek to meet the demand for these high-value articles, Eastern Ohio, with its petrochemical processing capabilities and low-cost energy, will be an ideal location for future facilities to design and manufacture them. These new manufacturing operations will diversify Appalachia’s economy, creating jobs and prosperity for a region hit hard by the coronavirus pandemic.
So, Ohio’s future energy economy opportunities go together. First, in the production of natural gas and the processing of petrochemicals. And second, in the creation and manufacturing of the items derived from those petrochemicals.
The Trump administration laid the foundation to realize the promise of this second energy renaissance by enacting a pro-growth tax and regulatory business environment. Moving forward, the federal government must continue to invest in public infrastructure like upgrading roads and railways and developing Appalachian broadband internet.
DOE will do its part to advance Appalachian prosperity by partnering with the Appalachian Regional Commission on workforce development so that the region’s workers are trained to fill future jobs. And we will continue to fund research and development that produces innovative energy technologies that can be commercialized by private industry to ensure a place for petrochemical production and downstream manufacturing in Ohio’s future.
Innovation is the story of Ohio’s past, and it holds the key to its future. President Trump and the DOE are committed to supporting the region’s energy industry so that Ohio continues to drive innovation and deliver the benefits of its natural resources to the American people.
Justin Bieber Feels O&G Industry Pain. Justin Bieber, one of the world’s best-selling music artists, has highlighted the pain of oil industry layoffs in his latest music video, which was released last Friday.
Bieber’s latest song, titled Holy, shows the musician donned in coveralls and a hardhat next to a field of pumpjack oil rigs. At the midway point of his new release, Bieber, along with several of his colleagues, is told his site must close, which results in several job losses. Bieber and his partner are later shown to be homeless and wandering the streets before they are picked up by a U.S. military man for a hot meal.
PA Permits September 17, to September 24, 2020
County Township E&P Companies
- No New Permits
OH Permits September 17, to September 24, 2020
County Township E&P Companies
- No New Permits
WV Permits September 7, to September 17, 2020
- Marshall Tug Hill
- Marshall Tug Hill
- Marshall Tug Hill