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Showing posts from 2013

Utica Shale 3rd Quarter 2013 Production Report Show Major Gas Production in Belmont, Monroe Counties

We've had a little bit to look over some of the numbers from the production report released by the Ohio Department of Natural Resources for shale drillers in the third quarter of 2013, and here are some of the tidbits that jumped out. As was noted in the ODNR press release, the total production was 1,332,477 barrels of oil and 33,606,075,000 cubic feet of natural gas from 285 wells (only 245 of which reported production results).  To put that in perspective, there were 87 wells reporting when the ODNR last gave us a production report.  That report covered all of 2012, and for the entire year there were 635,896 barrels of oil and 12,836,662,000 cubic feet of natural gas produced.  That means that over twice as much oil was produced from Ohio shale wells in the third quarter of this year than in all of last year.  There was also 261% more natural gas produced in the third quarter of 2013 than in all of 2012. A couple further details: The top 5 wells for natural gas producti

Ohio DNR Releases Shale Production Data for Third Quarter of 2013

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COLUMBUS, OH - Production results from Ohio’s horizontal shale wells for the third quarter of 2013 were released today by the Ohio Department of Natural Resources (ODNR). The report lists 285 wells, 245 of which reported production results. Forty wells reported no production as they are waiting on pipeline infrastructure. The 245 wells produced 1,332,477 barrels of oil and 33,606,075 Mcf (1,000 cubic feet) of natural gas. Of those 245 wells: The average amount of oil produced was 5,439 barrels. The average amount of gas produced was 137,168 Mcf. The average number of days in production was 55. The highest producing oil well was the Gulfport Energy "Boy Scout" well in Harrison County at 41,617 barrels of oil during 70 days of production. The highest producing gas well was the Gulfport Energy "Stutzman" well in Belmont County at 1,249,739 Mcf during 89 days of production. Passed in Sub. House Bill 59, and effective Sept. 29, operators of horizontal o

New Pipeline Standards for Ohio Complete; Wastewater Recycling Regs Close

From NGI: The Ohio Department of Natural Resources (ODNR) has updated its pipeline standard and construction specifications, and its work to finalize draft regulations on rules for wastewater recycling is nearly complete.   Shale gas development continues to accelerate in the state and as a result midstream companies plan to spend about $40 billion on infrastructure projects over the next three to five years in Ohio, West Virginia and Pennsylvania, according to one analysis by Marcellus Drilling News  (see  Shale Daily ,  Oct. 25 ). At the same time, increasing volumes of fracking waste, mostly trucked in from out of state, and a desire from operators to recycle more of that waste for reuse found state legislators approving the use of wastewater storage impoundments over the summer, leading ODNR to craft new rules for the temporary pits and recycling facilities (see  Shale Daily ,  Oct. 11 ). You can read the rest of that article here. Connect with us on Facebook and Twitter

WHPacific Opens Office in Cadiz

From Columbus Business First: Ohio engineering firms working in the Utica shale play have a new competitor with roots in the oil fields of Alaska. WHPacific Inc. , which describes itself as the largest Alaska Native-owned professional services company in the United States, said it has opened an office in Cadiz in eastern Ohio to serve the needs of oil and natural gas clients in the Utica and Marcellus shale plays. Read the whole article here.  Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Anti-Drillers Ready to Push for Youngstown Fracking Ban Yet Again

Having failed twice to get voters on board with passing a fracking ban in Youngstown, activists are holding true to their promise to try again. From The Morning Journal: A spokeswoman says ban supporters in Youngstown and neighboring Niles are now gathering signatures for another ballot attempt in March 2014. Spokeswoman and geologist Susie Beiersdorfer (BEERZ'-dohr-fuhr) said supporters believe they can win this time because public understanding of the issue is growing. She noted that voter support for the issue increased from spring to fall. You can read more here.  Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Landmark Home Rule Case Set for February 26 by Ohio Supreme Court

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We have been bringing you the latest on an important case that has steadily progressed to the Ohio Supreme Court for some time now.  Beck Energy is battling the community of Munroe Falls over the permits that the company is being required to obtain from the city, and the case has become a rallying point for the industry and anti-drillers alike.  Now the court has set a date for oral arguments in the case. From the Stow Sentry: The Ohio Supreme Court is scheduled to hear oral arguments Feb. 26 in connection with a case filed by the city last March challenging a state law on the drilling of oil and natural gas wells. The case stems from an attempt by Ravenna-based Beck Energy to drill a well on private Munroe Falls Avenue property without building and zoning permits from the city. You can read the rest of the brief article here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Air Quality Study to Be Conducted in Carroll County

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From Carroll Concerned Citizens: The University of Cincinnati (UC) and Oregon State University’s (OSU) College of Medicine are teaming up on a new air quality study to understand air quality impacts from shale gas operations. The National Institute of Environmental Health Sciences, a part of the Federal Government’s National Institutes of Health, has funded the study that will place passive air sampling devices near shale gas pads. These devices capture chemical readings for many of the air pollutants often associated with drilling, hydraulic fracturing, completion and ongoing production of shale gas wells. According to Erin N. Haynes, DrPH and Assistant Professor at UC’s Department of Environmental Health, “As Ohio’s shale gas boom continues, thousands of new pads will be installed many of which will be in close proximity to homes and businesses. Understanding if significant air quality changes occur during the various shale gas operations is important to understanding health ris

Pipeline Companies Working to Improve Leak Detection

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From Fuel Fix: In a large green container in a climate-controlled warehouse in Canada, pipeline owners TransCanada and Enbridge are researching new ways to detect oil leaks.  The companies are using the $3 million container, which is fitted with real pipe and filled with soil, to learn how oil spreads in different environments and how quickly the newest leak detection devices can sound alarms.  The companies plan to fill the container with different soils as they progress through the tests, said Ray Philipenko, senior manager of leak detection for Enbridge, in an interview with FuelFix.  “We want to be perfect in finding all leaks,” Philipenko said. Read the rest of that article here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

EPA Could Open Infamous Water Contamination Case

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We've detailed the long story of Steve Lipsky and his claims that Range Resources contaminated his water well with their drilling operations in Texas - only to later have a court determine that he intentionally made a deceptive video in order to get the EPA involved - many times on the blog before ( click here for a summary of the saga ). From the Huffington Post: The U.S. Environmental Protection Agency was justified in immediately barring residents in North Texas from using water contaminated with explosive methane and cancer-causing benzene, but additional testing and work needs to be done to assess whether a risk still exists, according to an internal investigation released Tuesday. The report by the federal agency's Office of Inspector General concludes a yearlong probe into a case that has been mired in politics and a persistent back-and-forth between Texas and the EPA over how to oversee oil and gas drilling operations. It also left residents in the affected are

8 New Permits Issued for Utica Shale Drilling Last Week

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According to the latest weekly report from the Ohio Department of Natural Resources it was another slow week for Utica shale permitting. 8 new permits were issued.  4 of those were for Harrison County wells, 3 of which were to Aubrey McClendon's new company, American Energy Utica.  2 were issued for Columbiana County, and 1 each for Belmont and Monroe counties. This activity brings the cumulative permit total to 1,030.  658 wells have been drilled, while the number of wells producing actually dropped 1 on this week's report, to 249.  The Utica rig count is 40. View the report here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

The Debate Continues on Proposed Severance Tax in Ohio

From The Intelligencer/Wheeling News-Register: Industry leaders believe changing the way Ohio collects severance taxes for oil and natural gas production will promote more fracking in the state's vast Utica Shale field. According to supporters of the measure introduced in the Ohio House this month, it could also lead to a break for those paying income tax in the Buckeye State by raising up to $1.7 billion over 10 years. "We believe this will provide some much needed clarity for those who have invested in our state," Penny Seipel, vice president of public affairs for the Ohio Oil and Gas Association. "Some people are hesitant to invest because they are not sure about the tax rates." Read more about this story here.  Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Carroll County Fracking Waste Plant Opens in Advance of Updated State Regulations

From The Columbus Dispatch: Michael McKenzie couldn’t wait for the state to devise new rules and a permit for the fracking-waste recycling plant he wanted to build in Carroll County. So the owner of Youngstown-based Iron Eagle Enterprises shared his plant designs with the Ohio Department of Natural Resources officials as they worked this year to draft regulations to oversee recycling operations. He said he wanted to meet the state’s standards before they were set. “We didn’t want to have to reinvent the wheel with this,” McKenzie said of the plant, which can clean as many as 14,000 barrels of fracking wastewater per day. Iron Eagle’s plant at Sherrodsville, east of New Philadelphia, started recycling last week. Natural Resources officials are still working on the rules. Read the rest of the article here.  Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Midstream Giant Kinder Morgan Continues to Expand Utica and Marcellus Shale Presence

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HOUSTON--( BUSINESS WIRE )--Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Targa Resources Partners LP (NYSE: NGLS) today announced they have signed a letter of intent to form a joint venture to construct new natural gas liquids (NGL) fractionation facilities at Mont Belvieu, Texas, to provide services for producers in the Utica and Marcellus Shale resource plays in Ohio, West Virginia and Pennsylvania. “Targa’s market connectivity, storage, and expertise in fractionation and in LPG export infrastructure and services on the Gulf Coast may provide the Utica and Marcellus producers with maximum value and optionality at the largest NGL hub in the United States.” In order to allow producers and shippers sufficient time to assess their Gulf Coast fractionation and pipeline needs, a binding open season currently under way for the Utica Marcellus Texas Pipeline (UMTP), a proposed joint venture between MarkWest Utica EMG, L.L.C. and KMP, will be extended until Feb. 28, 2014. T

Oil Industry Teaming Up With Disney for "Rocking in Ohio"

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From the Huffington Post: Radio Disney, "home of the hottest kids' music," is teaming up with Ohio's oil and gas industry to teach school kids that pipelines are awesome. "Rocking In Ohio" is an interactive, game show-like presentation  entirely funded by the Ohio Oil and Gas Association  and presented jointly with Radio Disney. This "special partnership," as they call it, "highlights the importance of Ohio’s oil and gas industry, and why science, technology, engineering and math (STEM) are crucial in developing energy resources in Ohio," according to the association. Hosted by a master of ceremonies and three staffers from Cleveland's Radio Disney affiliate WWMK, the hour-long event challenges kids, families and dads to head-to-head games that explain the science behind resource extraction and tout the benefits of products made from fossil fuels. Children run, dance and answer questions, and are given prizes from Disney movi

Amish in Ohio Choosing to Take Future Royalty Payments and Leave the State with Tax Break

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From The Columbus Dispatch: ST. CLAIRSVILLE, Ohio — Amish farmers in this community who eschew electricity and most technology are among landowners capitalizing on a new financial trend in the United States energy boom: selling decades of future oil and natural gas royalties for an immediate pile of cash. Gulfport Energy Corp., Chesapeake Energy Corp., Anadarko Petroleum Corp. and others have spent billions developing oil and gas reserves on land in Ohio’s Utica shale formation — often by agreeing to give landowners years of royalties, or a cut of future production, in exchange for the right to drill on their land. Some Amish, traditionalist Christians numbering about 280,000 across the U.S., are sitting on prime drilling land in eastern Ohio, but many say the rapid development is encroaching on their pastoral way of life. Already this year, several oil trucks have been involved in fatal collisions with Amish horse-drawn buggies on the region’s narrow and winding roads. Re

General Partner of Summit Midstream Partners, LP to Acquire Interest in Utica Shale Gathering System in Southeastern Ohio from Blackhawk Midstream

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- Joint development with MarkWest Utica EMG of natural gas gathering infrastructure in the core of the Utica Shale play in southeastern Ohio - Joint development with MarkWest Utica EMG Condensate of condensate transportation, storage and stabilization facility in the core of the Utica Shale play in southeastern Ohio - Investment in Ohio Gathering substantially increases the inventory of assets available for future drop down into Summit Midstream Partners, LP - Acquisition of equity interests in Ohio Gathering will be fully funded by Summit Investments, the General Partner of Summit Midstream Partners, LP DALLAS ,  Dec. 20, 2013  /PRNewswire/ -- Summit Midstream Partners, LLC ("Summit Investments"), the privately held company that owns and controls the general partner of Summit Midstream Partners, LP (NYSE: SMLP), announced today that it has executed a definitive agreement with Blackhawk Midstream, LLC ("Blackhawk"), to acquire its equity interest i

Solid But Not Overwhelming Results Reported From 3 Monroe County Wells

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From The Intelligencer/Wheeling News-Register: According to Magnum, Triad Hunter drilled three wells on the Ormet pad. Approximate daily natural gas production rates for each of the three wells are: 2.68 million cubic feet per day, 5.1 million cubic feet per day and 3.88 million cubic feet per day. In addition, Magnum states the wells are producing about 1,788 barrels of natural gas "condensate" per day. Condensate is a hydrocarbon liquid dissolved in saturated natural gas that comes out of solution when the pressure drops below the dewpoint. "The bulk of this is gathered at the well pad. Some of it drops off into the pipeline, while some drops off in compressor stations," Paul Weissgarber, senior vice president of Crosstex Energy said of condensate, further referring to the material as "a very light oil." You can read that entire article by clicking here.  Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Central Ohio Business Finds Ways to Benefit From Shale Boom

From Columbus Business First: Hull & Associates Inc.  is a good example of a Central Ohio business that’s been able to stake a claim in the Utica and Marcellus shale plays, but the engineering firm’s strategy has always extended beyond just oil and natural gas. Led by CEO  Craig Kasper , the Dublin-based firm markets all its consulting services – waste management, environmental, brownfield redevelopment, alternative energy and oil and gas – instead of concentrating solely on shale development in eastern Ohio, western Pennsylvania and northern West Virginia. “With all the investment happening in that region,” Kasper said, “just doing oil and gas really didn’t make sense. ... What we said was, ‘Let’s try to vertically integrate with the (oil and gas) industry and provide all the services it needs.’” Read more about this here.  Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Links for 12/21/13: Keystone XL Debate Continues, Ohio Updates Best Practices for Pipelines, and Much More

Oil Sands:   Five Year Anniversary: List of Reasons to Build Keystone XL is "Now Nearly as Long as the Pipeline Itself" Ohio Department of Natural Resources:   Ohio Updates Best Management Practices for Pipeline Installation and Soil Health Akron Beacon Journal:   Mogadore youngsters get dose of science from Radio Disney Columbia Daily Tribune:   Group calls "fracking" study "inflammatory" Telegraph:   Fracking report changed to include "more negative effects" following lobbying from green groups Institute for Energy Research:   Is the Administration trying to regulate Hydraulic Fracturing through OSHA? The Times-Tribune:   Chief acquires Chesapeake leases for $500 million Energy in Depth:   Science Doesn't Back the Methane Blame Game Project Syndicate:   Robert Skidelsky questions whether Larry Summers's "secular stagnation" thesis has teken adequate account of the rise of shale energy in the US EPA:   Energy

Utica Shale Test Well Expected in First Quarter of 2014 From 1st NRG

A portion of a release from 1st NRG: The Company also previously announced an agreement for the development of prospective acreage in SE Ohio particularly seeking Utica Shale potential on an initial block of acreage of approximately 7,000 acres. The Utica shale play continues to grow. The State of Ohio has issued over 1,000 permits for horizontal drilling in the Utica since 2009, and 551 of those permits were issued in 2013. The Company will not operate, but will be carried in the initial vertical test well and participate in future development with a 20% working interest. Currently due diligence is being completed on the leasehold along with the drilling plan for the test well. The Company expects the test well to be drilled in Q1 2014.  Read the rest of the release here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

EQT Has Big Plans for Marcellus Shale, More Modest for Utica Shale

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From an EQT press release: EQT Production:   EQT Production 2014 CAPEX is projected to total $1.9 billion, excluding land acquisitions. The breakdown is $1.6 billion for well development; $50 million for developmental geological and geophysical activities, and the remainder for capitalized overhead, well maintenance and compliance. The 2014 drilling program is expected to support 2015 sales volume of 575 – 600 Bcfe. Marcellus Development The Company plans to spend approximately $1.1 billion on Marcellus well development in 2014 – drilling 186 Marcellus wells with an average lateral length of 4,800 feet. All of the wells will be on multi-well pads to maximize operational efficiency and well economics. Approximately 90% of the Marcellus drilling program will focus on the Company’s two core development areas of southwestern Pennsylvania and northern West Virginia; with the remainder in central Pennsylvania to further de-risk this future development area. EQT Production ow

Ohio House Considers Proposal for New Increased Severance Tax

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From The Gateway News: Columbus -- The Ohio House began deliberations Dec. 10 on legislation to revamp taxes charged on oil and gas produced in eastern Ohio's emerging shale oilfields. House Bill 375 calls for lower taxes on existing conventional wells and increasing rates on those drilled horizontally, with excess proceeds devoted to plugging abandoned wells and potentially cutting income tax rates. "I believe this comprehensive tax reform proposal is a fair and balanced approach that will provide oil and gas producers with more certainty," Rep. Matt Huffman (R-Lima) told members of the House Ways and Means Committee. "Certainty is an important factor to companies when weighing their tax burden and deciding whether or not to invest billions into energy exploration and development within our state." He added, "Taxpayers, of course, will benefit from this proposal as the creation of two new offsets will impact royalty owners while additional reven

Ohio Community Shifts From Banning Drilling to Voting in Favor of Pipeline

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From the Tribune Chronicle: NILES - City Council voted unanimously during Wednesday's regular meeting to allow a Houston-based driller to use a portion of city land for the installation of a pipeline. Halcon Field Services was given access to about 60 feet of land near Salt Springs Road along the Niles Greenway Bike Path. It will stretch into Weathersfield Township, officials said. Niles is one of several Trumbull County communities that was given a proposal by the driller for what is expected to be a 14-mile long pipeline stretching from Vienna to Lordstown. Halcon will pay the city a total of $1,462 for use of the property, according to Mark Hess, the city's engineering, grants and development coordinator. Read the whole article here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Ohio Department of Natural Resources Has Tripled Gas and Oil Regulatory Staff

From the Alliance Review: Zehringer was brought on board by Gov. John Kasich a little more than two years ago, after previously serving as the director of the Ohio Department of Agriculture. "Ohio is blessed with natural resources. Along with gas and oil, we have coal, water and public lands," said Zehringer. "Our goals, as the division of the ODNR in charge of resources, are: 1) to safeguard the water quality; 2) clean up our 74 state parks; 3) and to regulate oil and gas responsibly, which is pretty important because we have to do this right. We have nine divisions in the ODNR, and Oil and Gas Resource Management is one." Zehringer pointed out there has been a shift to southern Ohio recently, in Noble and Belmont counties in particular, in terms of oil and gas exploration and production, and he said there has been some pretty staggering results. Also, a new well in Monroe County is breaking records for oil and gas production, grossing $1 million per week. &qu

PA Supreme Court Sends Shockwaves Through Shale Industry With Controversial Ruling

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From the Philadelphia Inquirer: The Pennsylvania Supreme Court on Thursday struck down provisions of the state's Oil and Gas Act that stripped municipalities of the power to determine where natural gas drilling activity could occur within their boundaries.   The long-awaited decision is a blow to a 2012 law known as Act 13 that was promoted by Gov. Corbett and the Marcellus Shale natural gas industry as a means to create a uniform statewide standard for gas development.   By a 4-2 vote, the court ruled that the zoning provisions in the law were unconstitutional, though the court disagreed on the grounds for striking down the law.   "The bottom line is that the majority of the court agreed that Act 13 is unconstitutional, and that local governments can zone oil and gas drilling like they do other activities," said Jordan B. Yeager, a Doylestown environmental lawyer who argued the case on behalf of several municipalities.   Corbett, Republican legislati

Magnum Hunter Resources Provides Operational Update

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From a Magnum Hunter press release: Appalachian Basin Drilling Update: The Company has now drilled and completed three 100% (approximately) owned wells located on the Ormet Pad in Monroe County, Ohio. The Ormet 1-9H Well tested at 2,676 Mcf/d and 216 Bbl/d of condensate, the Ormet 2-9H Well tested at 5,117 Mcf/d and 816 Bbl/d of condensate and the Ormet 3-9H Well tested at 3,876 Mcf/d and 756 Bbl/d of condensate. Eureka Hunter is continuing to install gathering system pipelines to these wells which are approximately 80% complete. Additionally, sufficient surface liquids handling equipment has been ordered and is scheduled to be installed by mid-March. On the Collins Pad located in Tyler County, West Virginia, the Company has drilled four 100% owned wells. The Collins 1118H Well has tested at 10,000 Mcf/d and 472 Bbl/d of condensate and the Collins 1119H Well has tested at 9,850 Mcf/d and 470 Bbl/d of condensate. The Company is in the process of moving this test equipment to t