Showing posts from July, 2014

Links for 7/31/14: Company Opens Office in Ohio, Utica Shale Draws Comparison to Eagle Ford, and More

Marcellus Drilling News:   Towns that Ban Fracking Could be Bankrupted by Takings Lawsuits (subscription required)   -    "One study mentioned in the NARO announcement says that bans and moratoria in Boulder County, CO could result in more than one billion dollars of “takings” lawsuits by landowners. In other words, the lawsuits will bankrupt the towns and villages stupid enough to enact a ban. Are you listening..." PRWeb:   All Over the Map: Fenstermaker Extends Locational Reach to the Ohio Region   -    "Fresh on the heels of announcing the ribbon cutting ceremony for its office in Lakes Charles, Louisiana , Fenstermaker confirms that a new location has been established in Cambridge, Ohio. Providing energy services to a growing number of clients in the Utica Shale Play since October 2013, the company..." Columbus Business First:   Utica shale production comparable to Eagle Ford’s startup, EIA says   -    "Initial natural gas production from the

Gulfport Production Sags With Slowdown in Utica Shale

From NGI: Gulfport Energy Corp.'s second quarter production dropped by a little more than 1% from the first quarter after it pulled back the reins in the Utica Shale.  The company produced a total of 2.4 million boe, or 26,725 boe/d in the second quarter, down from the 27,087 boe/d in the first quarter. The Utica accounted for 79% of second quarter production, or 1.9 million boe.  Although it has a sizeable patchwork of assets in Southern Louisiana and the Bakken Shale and Niobrara formation, Gulfport has increasingly focused on 179,000 net acres in eastern Ohio. However, shortly after CEO Michael Moore was appointed in April, he said a close review of the company's operations revealed that earlier assumptions used to determine the pace of development in Ohio were too careless (see Shale Daily, April 24 ). Read more by clicking here (subscription required). Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Study: States With Fracking Have Better Economies

New research shows states with hydraulic fracturing and horizontal drilling saw faster economic turnarounds after the recession in 2008 when compared to those who have no drilling activity. New research has been released by Bernard L. Weinstein, an associate director of the Maguire Energy Institute at Southern Methodist University's Cox School of Business, that explained U.S. states with hydraulic fracturing and horizontal drilling saw faster economic turnarounds after the recession in 2008 when compared to those who have no drilling activity, Oil and Gas Journal reported. Weinstein explained that job demands in shale developments have shifted dramatically. According to the source, he believes the need for petroleum engineers, environmental specialists, drilling managers, equipment manufacturers and other natural resource workers has increased as the sector grows larger in active drilling states. "But these high-paying specialties are not the only ones to benefit from the

20 New Utica Shale Permits Issued Last Week

The Ohio Department of Natural Resources has issued its latest weekly update on permitting activity in the Utica shale. 20 new permits are listed for last week.  The breakdown by county:  Guernsey (6), Monroe (5), Harrison (3), Belmont (2), Noble (2), and Washington (2).  Gulfport Energy was the most active driller on the report, with 6 of the 20 permits issued.  Eclipse Resources was right behind, with 5. This activity moves the cumulative numbers to 1,421 permits issued, 970 wells drilled, and 487 wells producing.  The Utica rig count is 49. Click here to view the report. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Investment Company Behind New Utica Shale Hotels Moving On to Other Plays

From Columbus Business First: Drill Capital LLC, the investment company that has opened one hotel in the Utica shale and is working on a second, has plans for one more eastern Ohio hotel.  Then it’s on to other emerging oil and gas areas.  Drill Capital’s 80-room Microtel Inn and Suites, part of the Wyndham Hotel Group , opened in Carrollton last Wednesday, founder Farid Guindo told me.  The New York-based firm had hoped to lure a restaurant chain to Carrollton, the county seat of Carroll County and home to oil and gas activity and related travel . But Guindo said restaurants want to wait to ensure there’s enough people staying at the hotels. A restaurant is off the table for now. Click here to read the whole article. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Gates Mills Residents Looking to Ban Oil and Gas Drilling

From Energy in Depth: The highly questionable use of the community “bill of rights” is making headlines again this week in Ohio. While there is a petition being circulated in Gates Mills, two operators are taking action against these costly initiatives.  In Gates Mills, activists are attempting to circulate a petition to get a community “bill of rights” on the November ballot, which of course is an attempt to ban shale development in the city limits. This comes after the Mayor came up with the idea to put together a land trust for landowners to maximize their bargaining position. You can learn more about what the community “bill of rights” entails here .  There is currently no Utica Shale development taking place near Gates Mills, and more than likely will never take place anywhere near the village. However, that doesn’t change the fact that the community “bill of rights” has been soundly defeated three times in Youngstown. In Bowling Green, a similar measure was defeate

State Rep. Hagan Renews Call For Fracking Chemicals Disclosure

Today, State Rep. Robert F. Hagan urged Gov. Kasich to support his legislation that would better inform communities and local agencies about chemicals used in regional fracking projects. In 2013, Rep. Hagan introduced legislation, House Bill 42, to require oil and gas companies in Ohio to disclose a full list of chemicals used in the fracking process to better serve local medical professionals and responders during spills and other accidents. Recent reports indicate that Halliburton delayed for five days the disclosure of a list of harmful chemicals that spilled into the Ohio River. The chemical information is typically used by emergency responders to make efficient decisions regarding the health and safety of community members and the surrounding environment. “While this is not the time for ‘I told you so,’ it is disheartening to me that this disaster could have been better controlled if this piece of common-sense legislation was enacted,” said Rep. Hagan. “We have been told to tr

Benesch Releases Quarterly Ohio Shale Update

Benesch Shale Industry Report - Quarterly Summary Q2 2014 from Marcellus Drilling News Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Rex Energy Announces That Estimated Mid-Year 2014 Proved Reserves Exceed 1.0 Tcfe

Estimated mid-year 2014 proved reserves reach 1,057.8 Bcfe, highest level in company's history PV-10 of approximately  $1.0 billion  represents a 56% increase over year-end 2013 PV-10 Increased acreage position in the Butler Operated Area by ~ 2,200 net acres since year-end 2013 Butler Operated Area well costs decreased by ~7% during first half of 2014 STATE COLLEGE, Pa. ,  July 21, 2014  (GLOBE NEWSWIRE) --  Rex Energy Corporation  ("Rex Energy") (Nasdaq:REXX) today announced total estimated proved oil, NGL and natural gas reserves as of  June 30, 2014 . Estimated Mid-Year Proved Reserves Rex Energy  reported total estimated proved reserves as of  June 30, 2014  of 1,057.8 Bcfe, an increase of approximately 208.0 Bcfe, or 24%, from total estimated proved reserves reported at year-end 2013. The estimated proved developed portion of the reserves as of  June 30, 2014  increased approximately 90.7 Bcfe, or 25%, from proved developed reserves as of  December

EPA Reports on Statoil Well Site Fire in Ohio

More than 70,000 fish and wildlife died in the aftermath of a Monroe County well pad fire From The Columbus Dispatch: A fracking company made federal and state agencies that oversee drinking-water safety wait days before it shared a list of toxic chemicals that spilled from a drilling site into a tributary of the Ohio River.  Although the spill following a fire on June 28 at the Statoil North America well pad in Monroe County stretched 5 miles along the creek and killed more than 70,000 fish and wildlife , state officials said they do not believe drinking water was affected.  But environmental advocacy groups said they wonder how the state can be sure. Read the rest of that article here. Here is the EPA report: EPA Statoil Eisenbarth Well Response - Jun 28 - Jul 5 from Marcellus Drilling News Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Shale Boom Has Wide-Ranging Benefits in Ohio

From Columbus CEO: It may seem like a stretch to say Honda is part of Ohio’s shale-gas boom.  But a close look shows that the automaker is using the steady supply and low price of natural gas to improve its bottom line at plants in Marysville and East Liberty.  Similar stories are taking place across the state, in places and at companies that may seem far removed from the drilling, refining and delivery of oil and gas.  “There is no question that the benefits of shale go far beyond the energy industry,” says Jack Partridge, president of Columbia Gas of Ohio.  The state average gas price has fallen for five years in a row, dropping last year to 45 percent less than it was in 2008, according to the Energy Information Administration.  The price cut is a simple matter of supply and demand. Supply is way up, thanks to a flood of gas from domestic shale formations, and demand has been slow to recover from the economic downturn.  In addition, the price of natural gas is a key

MarkWest Gives Utica Shale Updates

From a MarkWest press release: In the Utica Shale, MarkWest Utica EMG, L.L.C. (“MarkWest Utica EMG”), a joint venture between MarkWest and The Energy and Minerals Group (“EMG”), is in startup mode for its third cryogenic processing plant at the Seneca complex in Noble County, Ohio. The 200 MMcf/d Seneca III plant will increase total processing capacity at the complex to 600 MMcf/d. The Seneca complex is supported by long-term, fee-based contracts with Antero Resources Corporation (NYSE: AR), Gulfport Energy Corporation (NASDAQ: GPOR), Rex Energy Corporation (NASDAQ: REXX), PDC Energy Inc. (NASDAQ: PDCE), and other producers. MarkWest Utica EMG continues to expand capacity at the Seneca complex and will complete a fourth 200 MMcf/d plant in the second quarter of 2015.  In addition to the Seneca complex, MarkWest Utica EMG’s Cadiz complex in Harrison County, Ohio, also continues to grow rapidly. MarkWest Utica EMG recently completed a 40,000 barrel per day de-ethanization facility

Family Makes Deal With MWCD for Mineral Rights

Tappan Lake From the Akron Beacon Journal: The Muskingum Watershed Conservancy District has received a strange Utica shale leasing donation.  Jeff and Kathleen Paravano who own 35 acres at Tappan Lake in Harrison County have offered the district a 20 percent interest in their mineral rights.  The district accepted the offer.  The donation is being made with the expectation that the district will, in good faith, attempt to include the Paravano property in any lease negotiations with drillers for adjacent MWCD property.  The request was prompted by an appreciation of the district's ability to negotiate an environmentally friendly leases.  The district has not leased any of its lands at Tappan. Read the original article by clicking here. This is an interesting arrangement, especially considering that it was "prompted by an appreciation of the district's ability to negotiate...environmentally friendly leases."  With the way environmental groups lambaste

Apologies for Lack of New Posts

I apologize for the lack of new posts over the past week.  I have been out of town, and while I hoped to find time to post some of the latest stories while I was away, it just didn't materialize. There were not a lot of new happenings in the Utica shale over the past few days, although there are some notable stories.  I will be posting them this morning to get our readers caught up, and then things will get back to normal for the rest of the week. Thank you for making The Daily Digger your one-stop source for quick access to the latest Utica shale news! Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Utica Shale Passes 1,400 Permits, Closes in on 500 Producing Wells

The latest weekly update of permitting activity in Ohio's Utica shale shows that another milestone number has been passed. 15 new permits were issued last week.  The key spot was Harrison County, with 7 of the 15 issued for wells there - all to Chesapeake Energy.  The other 8 permits were spread across 5 different counties: Belmont (2), Carroll (2), Guernsey (1), Jefferson (1), and Monroe (2). With these 15 there have now been 1,410 permits issued for horizontal drilling in Ohio's Utica shale.  The number of wells drilled increased to 971, and the number producing jumped to 483.  The Utica rig count also increased, to 48. View the report by clicking here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Links for 7/21/14: Lies About Fracking, Bans Rejected, and More

Bloomberg:   Fracking Sends Northeast Natural Gas Output to Record   -    "Record natural gas production from the Marcellus shale deposit in the Northeast is helping send U.S. output to an all-time high, as hydraulic fracturing and horizontal drilling unlocked underground supplies. Gross output from the region will average 15.235 billion cubic feet a day this month, up 28 percent from a year earlier, and..." Natural Gas Now:   100 or So Lies About Fracking – Part I   -   "There was a news conference the other day where the usual suspects, operating under one their various aliases, the Concerned Health Professionals of NY (CHPNY), attacked natural gas yet again with a new “study.” It’s anything but a study, of course. Rather, it is a collection of allegations and anecdotes; the sort of pseudoscience we’ve come to expect from this gang. Their latest report is pompously titled as a..." ABC News:   North Texas City Rejects Partial Fracking Ban   -    "The

Article Details the Park Foundation's Scheme to Stop Shale Drilling

A small sampling of the many anti-drilling articles financed by The Park Foundation From The Philanthropy Roundtable: It’s hard to believe that natural gas was a favored fuel of leading environmental groups as recently as six years ago. In 2008, the Pew Center on Global Climate Change heralded its promise: “We also need to consider…how to better support natural gas as a bridge fuel to a more climate-friendly energy supply,” said president Eileen Claussen in a widely circulated speech. This was a common view and had been for years. In 1997, when shale-gas reserves were beginning to be identified, the progressive D.C.-based Renewable Energy Policy Project waxed optimistic. “Natural gas is inherently cleaner than coal or oil,” the nonprofit wrote. “Since renewables will be unable to meet most energy needs for some time, gas is an essential bridge to a renewable energy era.”  Natural gas used to be seen as a marriage of enlightened capitalism and pragmatic progressivism. It was w

BP Gets Approval to Plug Trumbull County Well

From the Akron Beacon Journal: BP America has won approval from the Ohio Department of Natural Resources to plug one of its producing wells in Trumbull County.  The company won approval on July 10 to plug its Jewett IH well in Johnston Township, said ODNR spokesman Mark Bruce.  Last April, the company said it was abandoning its efforts in the Utica shale and putting its 105,000 leased acres up for sale.  That was due to poor results in its Trumbull County wells in the northern section of the Utica shale.  The company announced that it was taking a $521 million write-off for the Ohio Utica shale. Read the original article here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog