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Wednesday, August 20, 2014

Report: Over 20,000 Jobs Created by Oil & Gas Industry So Far This Year

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Youngstown Oil & Gas Conference Cancelled Due to Lack of Interest

From the Youngstown Vindicator:
YOUNG had three successful years, according to the chamber, but this year there was a decline in participation. 
“Some of the major oil and gas companies have reprioritized their areas of exploration, and there are other industry delays overall,” Vice President of Marketing and Business Services for the chamber Kim Calvert said in a statement. 
“We hold our events to the highest standards and did not feel that we could move forward with this particular event if it was going to be anything less than it has been the past three years or not meaningful or valuable to participants and attendees.”
Read the rest by clicking here. 

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Shale Boom Credited With Dropping Crude Oil Prices

From The Economic Times:
In a chat with ET Now, Narendra Taneja, Energy Expert, shares his view on oil prices. Excerpts:
ET Now: How are you looking at the Brent prices for 2014? It is down nearly 7.5% and still sliding.
Narendra Taneja: The Brent may slide even further. The demand is now growing and at the same time the market is very well supplied. Of course, the game changer has been America's Shale oil and Shale gas revolution which is the biggest consumer of hydrocarbon.
The US is no longer as dependent on imports as it used to be and increasingly you would see the US bringing down its dependence on oil imports and gas imports, particularly from the Middle East. So, what has happened is that their oil is now available for other fast growing economies such as India and China, and demand from India and China is not really going up, which means that plenty of oil is available in the market for others to consume it.
Click here to read the whole interview. 

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EnerVest Expresses Optimism Over Ability to Capitalize on Utica Shale Oil Window

From the Youngstown Vindicator:
EnerVest has found in Tuscarawas and Guernsey counties that by using more water and sand in the fracking process, there can be success in the oil-rich portions of the Utica, McKinney said. 
“Oil has different molecules than gas,” he said. 
Companies were using 200 feet to 250 feet spacing between injections, but for the oil area it needs to be shorter, about 150 feet, McKinney said. 
“It allows the oil to move more freely toward the well bore,” he said. 
If the tests for EnerVest are successful, there will be companies interested in leasing land in Trumbull and Stark counties, McKinney said. Trumbull and Stark counties are thought to be areas with oil-rich shale. 
The sections of the Utica can be divided into the dry-gas area, which is located around Belmont, Harrison and other counties in the southeast part of the state. Then there is the wet-gas area, which includes Carroll County and the sections of Ohio where most of the drilling activity has taken place. Finally, there is expected oil-rich section on the edge of the shale, which no company has successfully exploited at this time. 
The results of EnerVest’s first oil test wells will become public soon with the release of Ohio Department of Natural Resource’s second-quarter production reports. 
The results thus far have shown the new technique will produce economic and even “very profitable” wells, McKinney said.
Read more by clicking here.

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Tuesday, August 19, 2014

Gates Mills Community is Fighting About Fracking

From the Cleveland Plain Dealer:
Gates Mills Village Council refused on Tuesday to consider residents' petition for a bill of rights to ban additional fracking in the village. 
Residents formed the Citizens for the Preservation of Gates Mills when Mayor Shawn Riley announced his plans for villagers to pool their land to prepare for gas wells in the village. The group has gathered more than 130 signatures to have a bill of rights placed on the November ballot that would outlaw all new wells in the village. 
Council was supposed to vote on Tuesday whether to submit the issue to the Cuyahoga County Board of Elections. Council has until Sept. 6 to do it, but members "need more time to review the issue," Councilman Will Barnes said, refusing to comment further. 
On Friday, Law Director Margaret Cannon told petitioners they do not have enough valid signatures.
Click here to read the entire article.

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ODNR Responds to Concerns Over Brine Disposal Orders

From Business Journal Daily:
The Ohio Department of Natural Resources issued orders in January giving two Pennsylvania companies authority to dispose of brine at the Northstar Disposal Well #1, the well that officials say was responsible for a series of earthquakes that shook the Mahoning Valley in 2011 and early 2012.
Some were quick to sound off with grandstanding statements about how irresponsible it was for the ODNR to allow companies to bring frack waste to this site.  But the ODNR explained:
The separate orders to modify the two companies’ disposal plans each listed Northstar among the sites each had previously received approval to use. The orders approved adding the Barnesville #1 Well in Warren Township, Belmont County, to both companies’ lists. West Penn Energy’s order added the Kleese #1 and #2 wells in Vienna Township, Trumbull County, as well as sites in Guernsey and Morgan counties. 
The Northstar well, which had been operated by D&L Energy, was discovered to have triggered a series of earthquakes from March 2011 to January 2012. A moratorium has been in place since 2012 on injection wells within a five-mile radius of Northstar. 
The moratorium remains in place and Northstar is regularly inspected, ODNR spokesman Mark Bruce assured. 
Despite the moratorium, the Northstar well still has a legal permit, Bruce explained; as such, if a company requests the well in the event it is somehow reopened -- something Bruce does not see as likely in the near term -- ODNR can’t refuse the request. 
“Revoking a permit is a permanent thing. It is a permanent thing that cannot be undone,” Bruce added. “We’ve never felt that revoking the permit is the proper course of action,” in the event technology would be developed to permit the safe use of the well. That isn’t seen as likely in the near future but revoking the permit is “not the proper course of action either,” he said.
Read the whole article here.

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Shell Divests U.S. Onshore Gas Assets in Pinedale and Haynesville, Adds Acreage in Marcellus and Utica

Royal Dutch Shell plc (“Shell”) announces today two separate transactions whereby the company will exit its Pinedale and Haynesville onshore gas assets in exchange for approximately $2.1 billion of cash, plus additional acreage in the Marcellus and Utica Shale areas in Pennsylvania.
In one agreement with Ultra Petroleum, Shell will acquire 155,000 net acres in the Marcellus and Utica Shale areas in Pennsylvania and receive a cash payment of $0.925 billion from Ultra in exchange for 100 percent of Shell’s Pinedale asset in Wyoming, including associated gathering and processing contracts, subject to closing.
In a separate agreement with Vine Oil & Gas LP and its partner Blackstone, Shell has agreed to sell 100 percent of its Haynesville asset in Louisiana, including associated field facilities and infrastructure for $1.2 billion in cash, subject to closing.
“We continue to restructure and focus our North America shale oil and gas portfolio to deliver the most value in the longer term. With this announcement we are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions,” said Marvin Odum, Shell’s Upstream Americas Director.
The Shell net production from Pinedale in the second quarter 2014 was 190 million standard cubic feet per day (mmscf/d) of dry gas (32 thousand barrels of oil equivalent per day (kboe/d)). During the first half of 2014, Ultra’s net production from the assets Shell is acquiring in Pennsylvania averaged 109 mmscf/d (19 kboe/d).
“We first entered the Pinedale Anticline in 2001, and I am proud of our operational excellence, community engagement, and leadership in responsible energy development over that time,” said Odum.
Shell’s Pinedale asset (which includes 19,000 net acres of leasehold interest, 1,108 gross wells and associated facilities, and an average of 0.7 percent overriding royalty interest in 11,500 acres) will be exchanged for cash and Ultra’s 100 percent interest in the Marshlands area (63,000 net acres) as well as its entire interest (92,000 net acres) in the Tioga Area of Mutual Interest (AMI), an unincorporated joint venture with Shell.  After completion of this transaction, Shell will have a 100 percent interest in the Tioga AMI.  The agreement is effective 1 April 2014, and is expected to close this year.
Shell’s Haynesville asset includes 107,000 net acres in in north Louisiana.  The transaction includes 418 producing wells, 193 of them operated by Shell. As of 1 July 2014, the gross production from the Haynesville asset was approximately 700 mmscf/d of dry gas, with Shell’s net working interest share at approximately 250 mmscf/d (43 kboe/d).  The agreement is effective 1 July 2014, and is expected to close in the fourth quarter of this year.
“We very much appreciate the support we have had in north Louisiana, and we will continue to operate in the state, as we have for decades, through our downstream, retail, midstream, and New Orleans-based deep-water operations,” said Odum.

Utica Shale Blows Past Another Milestone in Latest Weekly Report

Ohio's Utica shale went flying past yet another milestone number in the latest weekly permitting update from the Ohio Department of Natural Resources.  This week the number to be reached was 500 producing wells.

19 new permits were issued last week.  8 of those were for Harrison County, 7 for Belmont County, and the remaining 4 for Carroll County.  10 of those permits were issued to Aubrey McClendon's American Energy Utica.

These 19 permits bring the cumulative total to 1,446.  The wells drilled number has grown to 1,025 after crossing over the 1,000 mark last week.  And after inching closer to 500 wells producing on last week's report, 52 new producing wells were added this week, bringing the new total of producing wells to 547.  The Utica rig count is 46.

View the whole report by clicking here.

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