Showing posts from December, 2019

Rig Count Rises in Utica Shale for 2nd Straight Week

WEEK ENDING 12/14/19 New permits issued last week:   15  (Previous week:  9 )   +6 Total horizontal permits issued:  3205  (Previous week:  3217 )    -12 Total horizontal wells drilled:  2725  (Previous week:  2740 )   -15 Total horizontal wells producing:  2422  (Previous week:  2421 )   +1 Utica rig count:  12  (Previous week:  11 )   +1

Utica Shale 3rd Quarter Production Figures for 2019 Released

From the ODNR: COLUMBUS, Ohio  – During the third quarter of 2019, Ohio's horizontal shale wells produced 7,200,304 barrels of oil and 673,962,146 Mcf (674 billion cubic feet) of natural gas, according to the figures released today by the Ohio Department of Natural Resources (ODNR). These totals are new state records for quarterly oil and natural gas production since quarterly reporting began in 2013.   Compared to a year ago, oil production increased by 29.84% and natural gas production showed a 11.27% increase over the third quarter of 2018.                           The ODNR quarterly report lists 2,470 horizontal shale wells, 2,419 of which reported oil and natural gas production during the quarter. Of the wells reporting oil and natural gas results:   • The average amount of oil produced was 2,977 barrels. • The average amount of natural gas produced was 278,612 Mcf. • The average number of second quarter days in production was 87.   All horizontal production re

Latest ODNR Report Shows Large Jump in Number of Utica Wells in Production

WEEK ENDING 12/07/19 New permits issued last week:   9  (Previous week:  10 )   -1 Total horizontal permits issued:  3217  (Previous week:  3216 )    +1 Total horizontal wells drilled:  2740  (Previous week:  2736 )   +4 Total horizontal wells producing:  2421  (Previous week:  2367 )   +54 Utica rig count:  11  (Previous week:  11 )   +-0

Coverage of Carnegie Mellon Study Omits Clean-Air Facts

by Nicole Jacobs, Energy in Depth Over the weekend, the  Pittsburgh Post-Gazette  published an  article  detailing a Carnegie Mellon University study that claims to have calculated cumulative environmental and employment impacts of the shale revolution that has positively transformed Pennsylvania and surrounding states in the Marcellus and Utica Shale basins. The research focuses on finding negative consequences; however, numerous studies – including a state Department of Environmental Protection  report  covered by the  Post-Gazette  last summer – have found an abundance of environmental, economic, and public health benefits that are attributed to natural gas development. Here are just a few examples of the science and data that contradict this latest attempt to detract attention to these benefits: Energy Information Administration  data released last month found 2,823 million metric tons in U.S. CO2 emissions reductions are credited to the shift in natural gas usage for power

Gas Lobby Striking Back as Environmentalists Try to Ban New Gas Hook-Ups

From Bloomberg: With moves to ban new natural gas hook-ups growing in popularity as a means of tackling climate change, the industry is fighting back. The American Gas Association , which represents distributors, is seeking to forge new alliances to counter a trend started by Berkeley -- which became the first U.S. city to require new buildings to be all electric from January -- that has spread elsewhere in California and is on the verge of going national. “We are well down that path of pulling in natural allies who can share the message that taking away options -- without understanding the implications -- is not fair to communities,” said Scott Prochazka, the new chairman of the AGA, who’s also the chief executive officer of CenterPoint Energy Inc. For more on natural gas bans, click here The AGA cited as a recent example a proposal put forward in Seattle to adopt a ban on gas in new construction. The resolution was tabled after a diverse group of restaurant owners, labor unions, re

OVOGA Holiday Party Full of Optimism About Future of Oil and Gas in Ohio Valley

From WTRF: The Ohio Valley Oil and Gas Association hosted it’s annual Holiday Party Dinner Discussion and Happy Hour on Wednesday night. The event was held at Wheeling Island Resort & Casino for the second year in a row. Industry professionals had the chance to reunite with old friends, learn new tricks of the trade and expand their network. “The biggest benefit to coming to these events for our members is the networking,” said AJ Smith, President of Hull & Associates. “Getting to talk to each other, Toby Rice with EQT who is our speaker tonight and others in the industry to try to do business together and do more business for the oil and gas industry.” The natural resources of the tri-state area position this region as a leader in global energy production. Oil and gas is a thriving industry in the United States and it’s continuing to expand all around us. Click here to view the original article. 

Chevron Becomes Latest Driller to Plan Exit From Utica and Marcellus Drilling

From Bloomberg: Chevron Corp. expects to write down as much as $11 billion in the fourth quarter, more than half of it from its Appalachia natural gas assets after a slump in prices. The U.S. oil major is considering the sale of shale-gas holdings, according to a statement Tuesday. The company said separately it intends to exit its stake in the Kitimat liquefied natural gas project in Canada. And Chevron also plans to keep its 2020 capital budget at $20 billion, the third consecutive year it hasn’t boosted spending.  The company’s actions come from a chief executive officer, Mike Wirth, whose mantra has been capital discipline. Wirth earlier this year earned $1 billion for the company by walking away from a bidding war for Anadarko Petroleum Corp. San Ramon, California-based Chevron is the best performer among the five Western oil majors this year, but it has faced mounting costs at its Tengiz project in Kazakhstan. “The Appalachia writedown should be baked in, but the others a

December 2019 Shale Activity Maps Published by ODNR

Carnegie Mellon Study Claims Shale Drilling is a Net Negative

From the Pittsburgh Post-Gazette: Although the massive shale gas build-out in the Appalachian Basin has produced significant economic benefits, a new Carnegie Mellon University study says all the drilling, fracking and cracking isn’t worth the environmental, health and climate damage.  The study estimates air pollution from shale gas development activities in Pennsylvania, Ohio and West Virginia from 2004 to 2016 resulted in 1,200 to 4,600 premature deaths in the region, and while most of the added employment occurred in rural areas, most of the health impacts were felt in urban areas.  “It’s a rural job phenomenon with urban health impacts,” said Nicholas Muller, associate professor of economics, engineering and public policy at CMU and one of five study authors. “That’s the trade-off. How are regulators able to evaluate that trade?”  Advocacy groups on either side of the issue reacted to the study with a mix of skepticism and praise. The Marcellus Shale Coalition, which repre

Ohio Supreme Court Rules That 21-Year Statute of Limitations Applies to Oil and Gas Leases Terminated for Lack of Production

From VORYS: On November 26, 2019, the Supreme Court of Ohio clarified that a declaratory judgment claim that an oil and gas lease terminated for lack of production is subject to the 21-year statute of limitations for recovery of title to or possession of real property in R.C. 2305.04. See Browne v. Artex Oil Co., Slip Op. No. 2019-Ohio-4809. In Browne, the lessee argued that an action like the case at bar was subject to the 15-year statute of limitations for actions upon written contracts in former R.C. 2305.06. The Court disagreed. The Court noted that the lessors were not alleging a breach of the oil and gas lease, but were simply requesting a declaration that the oil and gas lease had terminated by its terms through operation of law. This claim was was more akin to an action to quiet title than one upon a written contract, the Court found, as the lessee had no obligation to produce under the lease and the parties did not dispute the lease’s provisions. Click here to read the

Rig Count Up One on Latest Utica Permitting Report

WEEK ENDING 11/30/19 New permits issued last week:   10  (Previous week:  9 )   +1 Total horizontal permits issued:  3216  (Previous week:  3206 )    +10 Total horizontal wells drilled:  2736  (Previous week:  2734 )   +2 Total horizontal wells producing:  2367  (Previous week:  2366 )   +1 Utica rig count:  11  (Previous week:  10 )   +1

Rover and NEXUS Seek to Have Their Taxes Slashed

One of the selling points touted by the companies behind the NEXUS and Rover pipelines as they sought approval and community support was the amount of property tax revenue that would be generated by their operation in Ohio.  Now the companies are seeking to have the amount of taxes they pay out be drastically reduced.  From the Canton Repository: Stark County Auditor Alan Harold said the state told him last week that Rover was seeking to cut its 2019 assessment by roughly 50 percent.  In an email, spokeswoman Alexis Daniel wrote that the pipeline was a major project with many nuances and Rover is working with the state to determine an accurate valuation.  NEXUS is seeking to cut its statewide taxable value 30 percent from $1.4 billion to roughly $996 million, according to a copy of the appeal provided by spokesman Adam Parker.  NEXUS argues it needs the reduction because the $2.6 billion pipeline cost $400 million than expected and it lost market share to other pipelines duri

FirstEnergy Case Gets Tossed by Ohio Supremes, But Company Declares Victory; Fight Continues

FirstEnergy has been fighting an ongoing battle against those looking to introduce a referendum overturning the nuclear bailout the company was handed by Ohio lawmakers.  The company has employed dishonest fear-mongering ads , workers who physically tried to block people from signing the referendum , putting a different petition in front of people interested in signing the referendum to try and confuse them, and of course legal maneuvering (which has included doing a 180-degree turnaround from an earlier stance of refusing to call the ratepayer fees that will line the company's pockets a tax to now stating that it is a tax in order to get a favorable legal ruling). The fight continues. From RTO Insider: The Ohio Supreme Court last week rejected FirstEnergy Solutions’ attempt to block a referendum to repeal $150 million in subsidies for its two nuclear plants.  Four of the court’s seven judges dismissed FES’ lawsuit, citing a “lack of justifiable controversy.” While the cour

Multiple Meetings Held on Proposed Cracker Plant; Still No Final Decision

It's been well over 4 years since we first posted about Belmont County being the site selected for a potential cracker plant.  Despite the fact that site preparation and property acquisition has been ongoing in preparation of constructing the plant, there still is no final decision.  Reports of multiple recent meetings being held about the project may perhaps provide an indication that this may change in the near future. From WTOV News: A private meeting was held in Belmont County on Tuesday regarding the proposed ethane cracker plant project. Members of PTT Global Chemical and Daelim met with state and local leaders at the site in Dilles Bottom. The meeting was held at a garage on the site, and there is no word on what took place inside. No official announcement has been made regarding the ethane cracker plant that would be built on hundreds of acres in Dilles Bottom. Read on by clicking here.  And from WHIO: Ohio's Republican governor and lieutenant governor