Shale Directories Conferences
SPRING 2022 Hydrogen & Carbon Capture Conference
May 5, 2022
Stay Tuned for Registration Details
Hilton Garden Inn, Southpointe
Canonsburg, PA
Latest facts and a rumor from the Marcellus, Utica, and Permian, Eagle Ford Plays
ExxonMobil Coming to Beaver County. I have heard additional rumors about ExxonMobil and Beaver County. The union workers on the Shell cracker site have been told that they will be working on the Bruce Mansfield site in January 2022. This information has come from different sources. We’ll keep monitoring this. (RUMOR)
NatGas Production Up. US gas production surges to 19-month high in pre-heating-season push. US natural gas production continues to surge this month, hitting fresh 19-month highs recently propelled by gains in output across Appalachia, the Haynesville Shale and the Permian Basin. Month to date, domestic gas production has trended at just over 93.9 Bcf/d rising more than 2.2 Bcf/d, or about 2.4%, from its October average, data compiled by S&P Global Platts Analytics shows. The recent surge comes almost entirely from a handful of onshore fields where producers are ramping up output ahead of the heating season in a likely push to capture record prices this winter.
Ascent 3rd Qtr. Update. (Thanks, MDN) Ascent Resources, originally founded as American Energy Partners by gas legend Aubrey McClendon, is a privately-held company that focuses 100% on the Ohio Utica Shale. Ascent is Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S. The company issued its third quarter 2021 update yesterday. The company produced 1.98 billion cubic feet equivalent per day (Bcfe/d) during 3Q–nearly all of it, 1.83 MMcf/d–was natural gas, the rest was oil and NGLs. Ascent generated $28 million of free cash flow, but like other M-U drillers, hedging bets on derivatives resulted in a huge loss of $1.3 billion for the quarter.
Pioneer Bullish Oil Prices for Next Few Years. Pioneer’s Sheffield sees $80-100 oil price for ‘next several years’. Pioneer Natural Resources Co. CEO Scott Sheffield foresees continued tightening in the oil market over the next few years as spare capacity is drawn down and producers continue prioritizing returns over volumes. During a recent conference call to discuss third quarter earnings for the Permian Basin pure-play, Sheffield predicted that spare production capacity within the Organization of the Petroleum Exporting Countries and its allies, aka OPEC-plus, will get “used up over the next two years,” as “there is no extra supply. “I’m a firm believer that we’re going to be in a $80 to $100 scenario over the next several years, if not higher.”
EOG Announces Carbon Capture Project. EOG aims to launch carbon capture project by late 2022. Reuters. U.S. shale oil firm EOG Resources said on Friday it aims to begin a carbon dioxide injection program by late 2022 to reduce greenhouse gases from its oil and gas production. The Houston, Texas-based energy producer emphasized it had no intention of changing its business focus, limiting the project to its own output, reducing so-called Scope 1 and Scope 2 emissions.
Permian See Big Drop in Methane Emissions. Permian sees 70 percent drop in methane emissions intensity. Rigzone. Methane emissions intensity in the Permian Basin has dropped almost 70 percent between 2011 and 2020, even as oil and gas production rose by over 320 percent. That’s according to an analysis by Texans for Natural Gas (TNG), a project of the Texas Independent Producers and Royalty Owners Association (TIPRO). The analysis also highlighted that flaring intensity in the basin decreased by more than 50 percent from 2019 to 2020 and that the basin remains “well below” the flaring intensity of other global producers.
Number of Fracking Crews Increasing. Race is on to frack shale fields before costs jump in 2022. Explorers are racing to get frack jobs done in the Permian Basin and other U.S. shale-oil fields before higher prices kick in next year, according to research and analysis firm Lium LLC. The number of hydraulic-fracturing crews deployed across the U.S. shale patch jumped by 10 in recent weeks to 230, Lium analysts said in a note titled “Permianflation” on Friday.
Uncle Joe’s Helping O&G. Biden’s infrastructure bill will boost oil demand. Biden’s Infrastructure Bill is often painted as being anti-fossil fuels, but the truth is that the bill will provide a major boost to the oil and gas industry. With plenty of the climate change provisions being removed from the bill or significantly weakened, it is primarily a bill that will spark an economic recovery and boost energy demand. While environmentalists may be upset with how the bill has turned out, it is certainly still a step in the right direction for a country that claims to be determined to transition away from fossil fuels in the future.
Join Utica Energy Alliance. At a pivotal time of a growing global energy crisis, a new alliance of local stakeholders who recognize the importance of Ohio’s shale production in securing our energy future and supporting our economy has launched the Utica Energy Alliance (UEA). UEA membership will include a diverse group of Ohio landowners, community leaders, organizations, businesses and elected officials who understand now, not later, is the time to protect and support Ohio’s shale production and promote American energy independence.
There’s no doubt an energy crisis is here. For the first time since 2014, gasoline prices are consistently over three dollars a gallon across the country, and a surge in energy demand threatens to raise utility costs for millions of Ohioans this winter.
The UEA knows Ohio’s natural gas and oil industry can play a huge role in solving this crisis if the right policies are in place. The alliance plans to interact with decision makers, media, and other organizations to protect our industry and promote American energy independence.
The UEA also plans to educate about the massive community impact of shale development on economic opportunity, jobs and tax revenue. Since 2010, when the first horizontal well was drilled in Ohio, the natural gas and oil industry has invested over $90 billion in the state and supported over 375,000 total jobs (79,000 directly and 296,000 indirectly), which is nearly 5.3 percent of Ohio’s total employment. In 2020 alone, the natural gas and oil industry invested $6.6 billion in our state. Successful energy production in Ohio means thriving schools, businesses, and opportunities for workers.
“90% of all manufactured goods contain one or more cast metal components,” said Angela Dine Schmeisser, President and CEO of St. Marys Foundry, “We cast parts essential to natural gas infrastructure, strengthening the industry’s economic impact and keeping the region’s foundries in business. Reminding our leaders of the need for this relationship to continue is critical.”
“Natural gas and oil operations are woven into the fabric of our community. Our community, businesses and even public budgets rely on them,” said Clinton Hendrick, who has natural gas production on his land in Coshocton County, “It’s important to all landowners that policies supportive of natural gas and oil are prioritized by our leaders.”
The Utica Energy Alliance welcomes individuals, businesses, leaders, and anyone who supports the mission to preserve and promote the benefits of the shale industry for Ohio’s economy and communities. Current UEA members include Consumer Energy Alliance, the Ohio Chamber of Commerce, the Ohio Cast Metals Association, St. Marys Foundry, the Ohio Gas Association, the Toledo Regional Chamber of Commerce, Vallourec, and the Youngstown-Warren Regional Chamber.
To learn more about the Utica Energy Alliance or to join the effort, visit www.uticaenergyalliance.com
Northeast Natural Energy First to Get EO certification. (Thanks, MDN) In April of this year, Northeast Natural Energy (NNE), a West Virginia driller, announced it had enrolled itself in both the Equitable Origin and MiQ certification programs to prove the natural gas it produces is “responsibly sourced gas” (see WV Driller NNE Adopts Green Gas Certification Used by EQT). Yesterday NNE announced all of its gas produced in West Virginia has achieved Equitable Origin’s EO100™ Standard for Responsible Energy Development. It is the first driller in the country to obtain the EO certification.
Manchin Pushing Back. Manchin signals hesitation to passing Biden’s social agenda with inflation ‘getting worse’. Senator Joe Manchin of West Virginia on Wednesday expressed renewed concerns about President Joe Biden’s social and climate spending plan after a new report said inflation worsened in October. Resistance from Manchin, a conservative Democrat, has already caused sizable changes to the president’s Build Back Better spending legislation, including a drastic drop in its price tag. Manchin has also often said rising inflation was a major hurdle regarding his approval of any plan.
TX Facing Major Energy Problems. Texas faces ‘generational’ energy problems that it doesn’t know how to fix. Winter is coming. It’s an unavoidable truth hovering over Austin as the Texas energy market’s governing bodies attempt to fix an aching electric grid in a race against Mother Nature. February’s winter storm and subsequent electricity crisis, which led to the deaths of more than 250 people and knocked out power for nearly 70% of Texans, served as a wake-up call for a state that prides itself on its independent, deregulated electricity market.
Range Working Towards Net-Zero. Range Resources expands upon its net-zero goals. When Range Resources Corp. recently revised its goal for net zero emissions by 2025, the Appalachian natural gas producer not only reaffirmed its commitment but it also added another layer: Scope 2 emissions. While natural gas companies have been moving to net zero greenhouse gas emissions, in one form or another, Range (NYSE: RRC) likely planted its stake in the ground first, in August 2020. The major Marcellus Gas driller, whose regional headquarters is at Southpointe, had announced the net-zero plan by 2025 and has made strides in reducing its greenhouse gas footprint over the past five and 10 years.
Abarta Declares Bankruptcy. (Thanks, MDN) We’ve seen the name a few times over the years, but Abarta Energy (aka Abarta Oil & Gas Co.) has not appeared on our radar often. The privately-owned company is based in Pittsburgh and owns (did own) assets, including wells and pipeline systems, in Pennsylvania, West Virginia, and Kentucky. On Sunday Abarta filed for Chapter 11 bankruptcy, reporting liabilities of $25.4 million and assets of $4.2 million. Abarta says it wants to liquidate/sell all of its remaining oil and gas assets.
No Chance with FERC. US GOP lawmaker sees dim prospects for permitting reforms to influence FERC. At the North American Gas Forum in Washington, hosted by Energy Dialogues, Representative Bill Johnson, Republican-Ohio, a frequent supporter of the oil and gas sector, was asked by LNG Allies President Fred Hutchison if Congress could do something positive to help FERC move forward to enable gas pipelines to be built. “I wish I could tell you that I was optimistic,” Johnson replied. “In today’s climate, with [House Speaker] Nancy Pelosi and the Democrats holding the majority in the House until January of 2023 …, it’s going to be difficult to have any influence in the next year or so over FERC,” he said.
PA DEP Has Interesting Plan. (Thanks, MDN) What do you think of this one? The Pennsylvania Dept. of Environmental Protection (DEP) is launching a “favorites” list for Marcellus drilling and pipeline companies. You can earn yourself onto the list to get special treatment if you go to the extraordinary (and very expensive) lengths to do things the DEP wants you to do–things *not* required under current law, like “plugging abandoned oil wells, powering equipment with renewable energy, improving water quality in historically polluted streams and planting trees to offset greenhouse gas emissions.” Your reward for landing on the attaboy list? Your application for building a well pad or pipeline corridor will move to the top of the stack for review, leapfrogging those in line for a standard review. In other words, you’ll get the treatment the law guarantees (14 days for an erosion permit review) instead of the months and months of delays (in violation of the law) you get now. What a deal.
RIL Leaving North America. RIL to exit North America shale gas business by divesting Eagleford upstream asset stake. Economic Times. Reliance Industries NSE 0.79 % has signed an agreement to sell off the last of its shale gas businesses, upstream assets in the Eagleford in Texas, USA, marking the company’s exit from the shale gas play in North America, the Mukesh Ambani-led company said late Monday. RIL acquired shale gas assets through joint ventures in the US between 2010-2013, as a part of its global energy portfolio diversification plan, But as shale gas prices.
ETP CEO “It Is Insanity.” Energy Transfer CEO on net-zero targets: ‘It is insanity’. The head of Energy Transfer LP, the pipeline company that built the Dakota Access line, sees a long future for oil and natural gas despite the transition to cleaner-burning fuels and the coronavirus pandemic’s economic turmoil that slashed oil demand. Kelcy Warren, the executive board chairman of Dallas-based Energy Transfer, rejected the idea that companies’ and governments’ adopting net-zero goals for cutting greenhouse gas emissions would eliminate petroleum use.
Oil Will Be Here for a Long Time. Oil has staying power for years to come. Why does it matter and where does it come from? Houston Chronicle. Even as more countries and companies pledge to get to net-zero carbon emissions, the world will continue to require fossil fuels for years to come, analysts say, because oil and natural gas are so intertwined with modern life. But for all the talk about getting to a low-carbon future, there’s been little granular analysis on which fossil fuels produced from which oil fields emit the least amount of harmful greenhouse gases.
PA Permit November 4, to November 11, 2021
County Township E&P Companies
- No New Permit
OH Permits October 31, to November 6, 2021
County Township E&P Companies
- Jefferson Wells Ascent
- Jefferson Wells Ascent
WV October 25, to October 29, 2021
- Pleasants Jay-Bee Oil
- Wetzel Antero
- Wetzel Antero
