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Wednesday, November 15, 2017

IEA Predicts That U.S. Will Dominate Global Oil & Gas Markets During Biggest Boom in History

From Bloomberg:
The U.S. will be a dominant force in global oil and gas markets for many years to come as the shale boom becomes the biggest supply surge in history, the International Energy Agency predicted.

By 2025, the growth in American oil production will equal that achieved by Saudi Arabia at the height of its expansion, and increases in natural gas will surpass those of the former Soviet Union, the agency said in its annual World Energy Outlook. The boom will turn the U.S., still among the biggest oil importers, into a net exporter of fossil fuels. 
“The United States will be the undisputed leader of global oil and gas markets for decades to come,” IEA Executive Director Fatih Birol said Tuesday in an interview with Bloomberg television. “There’s big growth coming from shale oil, and as such there’ll be a big difference between the U.S. and other producers.”

The agency raised estimates for the amount of shale oil that can be technically recovered by about 30 percent to 105 billion barrels. Forecasts for shale-oil output in 2025 were bolstered by 34 percent to 9 million barrels a day.

The U.S. industry “has emerged from its trial-by-fire as a leaner and hungrier version of its former self, remarkably resilient and reacting to any sign of higher prices caused by OPEC’s return to active market management,” the IEA said.
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School Districts Approve Tax Abatement for Natural Gas Pipeline

From the Star Beacon:
Two school districts in northeast Ashtabula County have approved 15-year tax abatement packages that will assist a $70 million natural gas pipeline construction project scheduled to start next year. 
At separate meetings last week, members of the Conneaut and Buckeye Local school boards accepted plans on behalf of RH Energytrans LLC of Erie, Pennsylvania, that would abate 75 percent of the property tax the districts would collect from the project over a 15-year period. Even when the abatement is applied, the districts will still see annual tax revenue gains approaching $100,000, officials said. 
At issue is a 30-mile stretch of new pipe that would originate in western Pennsylvania, pass through a portion of Conneaut and end at a location in North Kingsville, said Dennis Holbrook, a company spokesperson. As planned, the 12-inch pipe would be attached to an existing stretch of line, creating a 60-mile transport system, he said.

The new pipe would be evenly split between the two states, Holbrook said.
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Tuesday, November 14, 2017

Wells Producing in Utica Shale Drop for Second Straight Week; Rig Count Holds Steady

New permits issued last week: 9  (Previous week: 3+6
Total horizontal permits issued: 2674  (Previous week: 2665+9
Total horizontal wells drilled: 2174  (Previous week: 2166+8
Total horizontal wells producing: 1713 (Previous week: 1715-2
Utica rig count: 24 (Previous week: 24)  +-0

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Monday, November 13, 2017

Links of the Day: Rover Pipeline Progressing, Bowling Green Anti-Drilling Measure Flops, and More

Energy in Depth:  Anti-Fracking Antics in 2017 Have Been So Ridiculous It’s Scary   -   "The “Keep it In the Ground” movement has been a reliable source of ridiculous antics over the years, and 2017 has been no exception. In fact, anti-fracking stunts have been so absurd this year it’s downright scary..."

RBN Energy:  Back On Top - Marcellus/Utica Natural Gas Production Breaking Records Again   -   "A year ago, Lower-48 natural gas production was in steep decline and averaging less than 71 Bcf/d by the fall, down from nearly 74 Bcf/d in February 2016. The oil-price crash of 2014 had taken a toll on gas output, led by a drop in Texas. To add to that, Marcellus/Utica gas supply — which had helped prop up overall domestic gas production volumes — was no longer growing enough to..."

MDN:  FERC Gives Rover Pipe OK to Use Different Tech to Speed Up Drilling   -   "This story necessarily gets into the weeds of pipeline construction. But so you have the essential story line up front, this is it: On Monday Energy Transfer asked the Federal Energy Regulatory Commission (FERC) for permission to dump something called annular pressure monitoring (APM) when drilling..."

Bloomberg:  The Fracking Boom's Midlife Crisis   -   "Crude prices bouncing around $50 to $60 a barrel have kept U.S. shale producers stuck on the edge of profitability. That hasn’t been enough to shut down the oil boom in places such as North Dakota, Texas, and New Mexico—at least not yet. Drillers are heading into 2018 on the defensive as they face skepticism from shareholders who want to see..."

Vorys Energy & Environmental Law Blog:  Supreme Court of Ohio to Hear Landman Licensing Case   -   "In March, we posted about Dundics v. Eric Petroleum Corp., a decision by Ohio’s Seventh District Court of Appeals ruling that landmen were required to obtain real estate broker’s licenses in order to sue for compensation for brokering deals between landowners and oil and gas companies. Today, the Supreme Court of Ohio agreed to review the following..."

Seeking Alpha:  Chesapeake Energy (CHK) Q3 2017 Results - Earnings Call Transcript   -   "We're really excited about the program just continuing to evolve. As Doug mentioned, one of our strengths is the way that we use data and information across the company to optimize the asset and each technology from Haynesville and Utica and Eagle Ford and transfer those to these new..."

Seeking Alpha:  Gulfport Energy's (GPOR) CEO Mike Moore on Q3 2017 Results - Earnings Call Transcript   -   "On the operations front, in the Utica during the first nine months of 2017 we spud 77 gross wells utilizing six operating rigs, the wells release as an average drilled lateral length of approximately 7,882 feet and were normalized into an 8,000 foot lateral as assumed in our public type curve, we average the spud rig release of..."

Pittsburgh Business Times:  Rice Sees Production Increase — and Coins New Word — in Final 3Q Results   -   "Rice Energy Inc.’s final full quarter as a publicly traded company saw a production increase and the creation of a new word. Production in the third quarter was 131.2 billion cubic feet up from 68.7 million cubic feet in the same period a year ago with 32 wells drilled and 30 completed in the Marcellus and Utica..."

Associated Press:  Ohio Sues Gas Pipeline Developer Over Pollution Violations   -   "Ohio is suing the company building a $4.2 billion natural gas pipeline from West Virginia to Michigan over what it says are numerous water pollution violations during construction. The lawsuit filed Friday says work on the Rover Pipeline flooded a protected wetland with drilling mud and has damaged..."

Natural Gas Now:  Fracking is Killing Greenhouse Gas Emissions with Technology   -   "The EPA has a neat website tracking greenhouse gas emissions from onshore petroleum and natural gas production. The data shows they’re way down over the last five years in the Marcellus/Utica Shale region even though production is up and more data is being reported. Given that we know the substitution of natural gas for coal power generation has already..."

Business Wire:  Carrizo Oil & Gas Announces Third Quarter Results   -   "Over the past several months, Carrizo entered into agreements to sell its assets in the Utica Shale and Marcellus Shale. Both divestitures are currently expected to close during November; the impact of these divestitures on the Company's fourth quarter of 2017 production is estimated to be a reduction of approximately 3,050 Boe/d (2% oil) relative to..."

CNBC:  US Shale Oil Will Dominate the Market in Coming Years, OPEC Forecasts   -   "The American shale drillers that have upended the energy industry will capture much of the growth in oil demand in the coming years, OPECforecasts in a new report. But after years of booming U.S. production and flat output from OPEC, the tables will turn, the producer..."

Seeking Alpha:  Energy Transfer Partners LP (ETP) Q3 2017 Results - Earnings Call Transcript   -   "Growth on our Ohio River System in the Northeast continues to exceed our expectations, driven by greater than anticipated results from our anchor shippers on this pipeline in the dry Utica. We continue to see volumes fill up on our processing plants in the..."

The Blade:  Bowling Green Residents Reject Initiative That Would Ban Future Pipelines   -   "A citizen-led ballot initiative that calls for a ban on more pipelines transporting natural gas and other fossil fuels through city-owned property was soundly rejected by Bowling Green voters. The measure lost by a 61-39 percent margin. “I don't feel like it's an obituary,” said Terry Lodge, a Toledo attorney who represents citizens who successfully got the petition on the ballot. He added it has laid the groundwork for..."

World Oil:  Crude Tumbles After Shock Increases in Stored Oil and Production   -   "Traders dumped oil futures after a surprise increase in U.S. crude stockpiles and surging output dashed confidence that a worldwide glut is fading. Oil fell as much as 1.4% in New York after a U.S. government report on Wednesday found swelling crude stockpiles, shrinking overseas demand and skyrocketing output from American wells. The futures were on track for the first two-day decline in more than..."

Canton Repository:  Oil and Gas: Fuel for Business Growth   -   "From drilling to cheap energy to petrochemicals, oil and gas development can be an economic engine. Canton didn’t have a grand plan to become Ohio’s Utica Capital. Sure, local leaders cooked up the name and logo, but that was after the oil and gas industry had its sights on the energy-rich Utica Shale beneath eastern..."

EQT:  EQT Shareholders Approve Rice Energy Acquisition   -   "EQT Corporation (NYSE: EQT) today announced that, based on the final tabulation provided by its proxy solicitor, EQT shareholders have approved the pending transaction with Rice Energy Inc. (NYSE: RICE) at the Company’s special meeting held earlier today. Of the total shares cast, approximately 84% percent voted..."

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Thursday, November 9, 2017

Court Battles Continue Over NEXUS Pipeline

From The Canton Repository:
NEXUS Gas Transmission has federal approval to build its pipeline across Ohio, but it doesn’t hold rights to all of the land on the route. 
So, the company has gone to court, where a group of landowners hit back this week with their own lawsuit against the pipeline. 
NEXUS sued earlier this month to take temporary or permanent easements through eminent domain on 42 pieces of land in Stark, Summit, Wayne, Medina, Lorain, Sandusky, Wood and Erie counties. 
In its federal lawsuit, NEXUS said it negotiated easements on 97 percent of some 2,000 properties and made final offers to holdouts in September, but those landowners rejected or failed to respond to the company’s proposals. 
Many of the defendants are in Green, where landowners and the city have opposed the NEXUS project. 
NEXUS asked the court to let it immediately take the easements and start construction. Under the company’s plan, a three-person commission would decide later how much the company owes landowners. NEXUS said it would post a bond to ensure the property owners are paid.
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From WKYC:
An Ohio city is refusing to end its legal fight to move a high-pressure natural gas pipeline away from a community of 25,000 people. 
Officials in Green in southern Summit County are waging battles on different legal fronts against a partnership that has federal approval to begin construction of the $2 billion NEXUS pipeline. 
The partnership of Calgary, Canada-based Enbridge and Detroit's DTE Energy is poised to build a 255-mile-long pipeline capable of transporting 1.5-billion cubic feet of gas per day from Appalachian shale fields across northern Ohio and into Michigan and Canada. 
Green Mayor Gerard Neugebauer says he'll keep fighting to get the pipeline moved "as long as there is hope."
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Chesapeake Energy Trying Some New Techniques in Utica Shale

From The Independent:
Chesapeake Energy has used new well-completion techniques to coax more production from its Utica Shale holdings. 
Oklahoma City-based Chesapeake has drilled 735 Utica wells in Ohio, the most of any company. 
In July, the company’s eight-well Ellie pad in Carroll County’s Orange Township began producing at an initial rate of 1,100 barrels of oil equivalent per well per day. Sixty-five percent of the production came from liquids, the company reported Thursday before a conference call with investors to discuss third-quarter results. 
In the dry-gas part of the Utica, the three-well Schiappa Trust A pad in Jefferson County had an initial production rate of 20 million cubic feet of gas per well per day. 
The company said new completion techniques improved 120-day Utica well results by 25 percent, and it planned to continue testing new completions designs in the Utica and Marcellus shales.
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Wednesday, November 8, 2017

November 2017 Activity Maps Published by ODNR

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Rig Count is Up in Utica Shale, Number of Producing Wells is Down

New permits issued last week: 3  (Previous week: 6-3
Total horizontal permits issued: 2665  (Previous week: 2662+3
Total horizontal wells drilled: 2166  (Previous week: 2157+9
Total horizontal wells producing: 1715 (Previous week: 1717-2
Utica rig count: 24 (Previous week: 23)  +1

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