Friday, May 24, 2019

Utica Rig Count Rises Again, But Permitting Remains Very Slow

WEEK ENDING 05/18/2019

New permits issued last week: 2 (Previous week: 3)  -1
Total horizontal permits issued: 3080 (Previous week: 3079 +1
Total horizontal wells drilled: 2600 (Previous week: 2600)  +-0
Total horizontal wells producing: 2186 (Previous week: 2185)  +1
Utica rig count: 18 (Previous week: 17)  +1

Friday, May 17, 2019

Pin Oak Energy Scoops Up Utica Shale Assets in Deal with Protege Energy

From a press release:
Pin Oak Energy (Pin Oak) has acquired from Protege Energy III LLC the Caywood A 1H Utica well located in Washington County Ohio along with nearly 10,000 net acres in Washington and Noble Counties Ohio and Wood County, West Virginia. In addition to the producing Utica well, Pin Oak acquired the Big Red pad location, 60 square miles of proprietary 3D Seismic, largely undedicated acreage position and a 4-mile gathering line connecting into Blue Racer Midstream’s Washington County Connector line.
Marcellus Drilling News reports that Pin Oak is quickly moving on plans to develop its new assets:
It didn’t take long for Pin Oak to form their first drilling unit in Washington County, called Big Red. We have the details on where it is, and which properties are included.

Thanks to an MDN tipster, we have a copy of a pooling notice filed by Pin Oak on May 1. Pin Oak is pooling the land owned by 21 different landowners in Liberty Township (Washington County) to form a 465-acre unit they call the Big Red Unit. Below is the pooling notice. At the end of the notice you’ll find a list of the landowners and how much of their property will be included in the pool, along with a map of the unit.
To view the copy of the pooling notice, click here (subscription required).

Construction Finally Starting on $1.3 Billion Columbiana County Power Plant

From Business Journal Daily:
Representatives from South Field Energy Partners will be on hand this afternoon to break ground for a $1.3 billion combined-cycle energy plant that is likely to employ more than 1,100 tradesmen during the peak construction phase. 
The new plant, scheduled for commercial operation by mid-2021, would be fueled by natural gas and steam. It would be capable of generating 1,182 megawatts of power to the PJM grid, enough power to supply 1 million homes. 
Meanwhile, South Field’s parent, Advanced Power, announced Tuesday that it has sold a 15% membership interest to JXTG, a major oil and energy company based in Japan.

Thomas Spang, Advanced Power CEO, said the investment underscores the wide support the project has received in the private sector.
Read the whole article by clicking here. 

Energy Transfer to Donate $450,000 to PA Special Olympics

From a Special Olympics Pennsylvania press release:
Special Olympics Pennsylvania (SOPA) today announced a three-year partnership that will recognize Energy Transfer as its Law Enforcement Torch Run (LETR) Guardians of the Flame Premier Sponsor. LETR, the largest public awareness vehicle and grass-roots fundraiser for Special Olympics, is changing the future for people with intellectual disabilities and lighting the way for acceptance and inclusion. 
Energy Transfer will donate a total of $450,000 over a three-year period to further SOPA's mission to broaden the opportunities for people with intellectual disabilities (ID). Energy Transfer is one of the largest and most diversified midstream energy companies in the country with more than 86,000 miles of oil, natural gas and refined fuels pipelines traversing 38 states. Both organizations share a similar focus on working to improve the quality of life and well-being for the community. 
Known as Guardians of the Flame, law enforcement members and SOPA athletes carry the "Flame of Hope" into the Opening Ceremonies of local and state Games. The flame symbolizes courage and the celebration of diversity uniting communities around the globe. In 2018, more than $1.3 million was raised to support nearly 20,000 SOPA athletes via a multitude of LETR events and activities around the state that included Torch Runs, annual Polar Plunges, the Beaver Stadium Run and more. In Pennsylvania, there are more than 500 members of law enforcement and emergency responders engaged in LETR efforts.
Click here to continue reading. 

OOGEEP: Wide Range of Career Opportunities Available in Ohio's Oil and Gas Industry

From an OOGEEP press release:
As we celebrate "In-Demand Jobs Week" in Ohio, the Ohio Oil and Gas Energy Education Program (OOGEEP) wants Ohio students and job-seekers to know that there are more than 75 different rewarding and high-demand careers available in Ohio's natural gas and oil industry. In-demand jobs are defined as jobs that have a sustainable wage and a promising future based on the projected number of openings and growth. 
"In 2011, our industry employed around 14,000 Ohioans, and today that number has dramatically increased to nearly 200,000, thanks to the ongoing development of the Marcellus and Utica Shale formations," Rhonda Reda, OOGEEP Executive Director said. "As a result, workforce development remains a priority for our industry." 
OOGEEP recently released a new Career Guide and an online Career Video Series that highlights the in-demand careers in Ohio's natural gas and oil industry including diesel mechanics, welders, lease operators, land surveyors, CDL truck drivers, derrickhands, geologists, petroleum engineers and many more.
Click here to read more. 

2020 Dems Take Extreme Positions on Oil & Gas Development

by Jack Anderson, Energy in Depth

With the race for the 2020 Democratic presidential nomination getting more crowded every week, gaining the financial favor of deep-pocketed fringe activists could make a difference for candidates hoping to escape the first round of Democratic tryouts.
It’s no secret that Big Green has plenty of greenbacks to go around this election cycle, and Democratic hopefuls have been openly competing for those dollars. But for many, simply pledging to uphold the Paris climate accords isn’t enough to draw the support of well-endowed environmental activists, leading several candidates in the field to take extreme “keep-it-in-the-ground” (KIITG) stances on federal energy policy, ignoring key facts about oil and natural gas development on federal lands and its environmental benefits.
As of last week, nine Democratic hopefuls have pledged to enact a moratorium on new oil and natural gas development on federal lands if elected president, or at least restrict development in certain states, according to E&E News. Former Texas Rep. Beto O’Rourke, Massachusetts Sen. Elizabeth Warren, Vermont Sen. Bernie Sanders, New York Sen. Kirsten Gillibrand, Washington Gov. Jay Inslee, Hawaii Rep. Tulsi Gabbard and former HUD Secretary Juli├ín Castro have all committed to KIITG drilling moratoriums. California Sen. Kamala Harris and New Jersey Sen. Cory Booker also cosponsored legislation that would codify Obama-era restrictions on Alaska’s oil and gas industry.
While these candidates may perceive embracing KIITG messaging as a good short-term political move, such a stance betrays a shortsighted misunderstanding of the importance of oil and gas production on federal lands.
Emissions are falling as production rises.
Halting all new federal leases for oil and natural gas development would only cut U.S. emissions by 4-5 percent by 2030, according to a study by the Stockholm Environment Institute. But even that estimate seems on the high side; total emissions from production on federal lands fell from 2004-2015, according to a 2018 report by the U.S. Geological Survey, while production on those lands increased dramatically.
Natural gas in particular has played a leading role in reducing U.S. emissions. From 2005 to 2017, the fuel was responsible for 50 percent more reductions in emissions from power generation than solar and wind combined, according to the U.S. Energy Information Administration. In the same period, production of natural gas rose 51 percent across the country, and America’s GDP rose 48 percent.
More revenue is coming from less land.
The economic benefits of federal oil and gas leases are tremendous for local economies surrounding these developments. For example, New Mexico’s state and local governments absorbed over 20 percent of all revenue generated by oil and gas development across the state in 2017, through taxes and royalties; in 2018, New Mexico’s state government alone collected an estimated $3 billion in royalties and taxes, giving the government a $1 billion budget surplus for the first time in its history.
More western states have seen exceptional economic benefits from development on public lands. Wyoming, for example, took in $902.6 million from oil and gas in 2017. Montana also enjoys nearly $250 million in annual state revenues and nearly 30,000 jobs created by the oil and gas industry. Colorado’s oil and gas industry supports 161,000 jobs – with an average salary of over $100,000 – and contributed nearly $500 million to government revenues in 2016.
These tremendous economic benefits have all been made possible in part by federal oil and gas leasing. Yet less than 10 percent of federal lands in the western U.S. are actually leased for oil and gas development. And the number of new acres leased has fallen off since 2012.
Just this small proportion of federal lands being made available for oil and gas development has had a profoundly beneficial impact on the American economy, which should be a priority for presidential candidates. Limiting production on federal lands would threaten the country’s current trajectory to become a net energy exporter by 2020.
Candidates embracing economically impractical and environmentally unhelpful KIITG policy positions are ignoring the economic growth, environmental benefits and geopolitical stability made possible by increased oil and natural gas production. We can export U.S. oil and gas resources to global markets, cutting into the market share of less environmentally friendly regimes like Russia, Iran and Venezuela Candidates who choose to embrace America’s newfound leadership position in global energy can work hand-in-hand with local communities to preserve and enhance the benefits of American oil and natural gas.

Permitting Remains Slow, Rig Count Holds at 17 in Utica Shale

WEEK ENDING 05/11/2019

New permits issued last week: 3 (Previous week: 4)  -1
Total horizontal permits issued: 3079 (Previous week: 3076 +3
Total horizontal wells drilled: 2600 (Previous week: 2584)  +16
Total horizontal wells producing: 2185 (Previous week: 2179)  +6
Utica rig count: 17 (Previous week: 17)  +-0

Tuesday, May 7, 2019

Rumor Central: Belmont County Cracker Plant Decision Could Be Coming in September, Project May Be Sold to New Company

Jim Willis of Marcellus Drilling News reported last week a rumor that was passed along to him by a trusted source regarding the cracker plant that has been in the planning stages for Belmont County for some time now.

Here is a small portion of what Jim reported:
Then our source added this, about the timing of an FID announcement:
PTT is saying that it likely will be September when an FID is announced. 
Finally, our source dropped a bombshell–that PTT may end up having to sell the project:
Multiple players are saying that PTT and Daelim are having enough trouble with the financing (causing the September timing) that they will be forced to sell the project to a bigger player. Two super majors are sniffing around, and there is some indication that a couple other major US and European players are sniffing too.
You can read the whole report, which has quite a bit more information on this, by clicking here (subscription required).