Mouse Over to Stop Rotation & Read Ad

Friday, June 24, 2016

Belmont County Farmers Discuss How Drilling Has Affected Them

From The Intelligencer:
Belmont County farmers Lova Ebbert and Larry Cain work their fields daily, just as they did before receiving significant checks for Marcellus and Utica shale drilling on their property a few years ago.

These farmers continue growing a variety of crops south of Bethesda, including corn, hay and tomatoes. 
Ebbert also raises beef cattle, while Cain raises dairy cows. 
“Farming is our livelihood. It’s what we do,” said Ebbert, who serves as co-operator of Ebbert Farm Market in St. Clairsville. “We certainly have not changed our day-to-day lives much.” 
Betsy Anderson, organization director for the Ohio Farm Bureau, acknowledged some farmers made adjustments upon receiving significant checks for their oil and natural gas deals.
Read the whole article by clicking here.

Connect with us on Facebook and Twitter!

Thursday, June 23, 2016

EIA Projects That Utica Shale Natural Gas Production Will Decline in June

From the Energy Information Administration's latest Drilling Productivity Report:



Up until now the Utica shale had been the one play that wasn't following the decline trend.  But for the first time, the EIA says June will see the natural gas production from the Utica decline from the previous month.

View the full report below:




Connect with us on Facebook and Twitter!

Wednesday, June 22, 2016

Two New Utica Shale Permits Last Week; 2,184 Permits Issued, 1,751 Wells Drilled, 1,327 Wells Producing

The latest weekly report from the Ohio Department of Natural Resources shows another slow week in Utica shale permitting.  Just two new permits are listed, both for Chesapeake Exploration in Jefferson County.  The Utica rig count is 11.

View the report below or by clicking here.


Connect with us on Facebook and Twitter!

Tuesday, June 21, 2016

Breaking Down the 1st Quarter 2016 Ohio Utica Shale Production Data

The Ohio Department of Natural Resources has now released the production data from the Utica shale for the first quarter of 2016. As always, we are going to give you a look at how the numbers compare to past quarters, past years, and how they break down among the various drillers who are active in Ohio and the counties where they are drilling. We also have the top 10 oil and gas wells detailed below. The latest production figures give the clearest view yet of how the downturn in oil and natural gas prices has affected production, with oil production declining from the previous quarter for the first time since the Utica shale boom began.

First up, let's take a look at how the quarterly data compares from the 1st quarter of 2014 through the first quarter of 2016.  As a reminder, all oil figures are 42-gallon barrels, and all gas production is measured in MCF:


QUARTER# OF WELLS/# WITH DATAOILGASDAYSOIL/DAYOIL/WELLGAS/DAYGAS/WELL
2014-1 476/4181,950,97967,333,94528,019704,6672,403161,086
2014-2562/5042,467,28388,673,74137,922654,8952,338175,940
2014-3717/6743,013,667132,017,38650,858594,4712,596195,871
2014-4828/7793,558,836164,815,00862,527574,5682,636211,573
2015-1926/8774,432,304183,585,25569,745635,0192,632209,333
2015-21020/9785,594,633221,860,16980,724695,7042,748226,851
2015-31134/10875,709,858245,747,68684,283685,2422,916226,079
2015-41265/12306,249,116302,505,428102,378615,0812,955245,939
2016-11351/13035,485,854329,537,838110,699504,2102,977252,907

The prevailing trend continued with oil production, as the rates per day in production and per well continued to fall - this time to levels we haven't seen in a couple of years. Gas production continues to be on the rise, though, reaching new peaks both in total production and in rate of production.

Next we have a look at all of the production in the Utica shale since the start of 2011, broken down by year and then adding in the production year-to-date in 2016:


YEAROILGAS
201146,3262,561,524
2012635,87412,831,292
20133,677,734100,119,054
201410,990,765452,840,080
201521,985,911953,887,763
2016 YTD5,485,854329,537,838
TOTALS42,822,4641,851,777,551

Next up, here are the top 10 oil-producing wells from quarter four:


OPERATORCOUNTYWELL NAME/NO.OILOIL/DAY
ANTERO RESOURCES CORPORATIONNOBLEHALL UNIT 1H57160628
ASCENT RESOURCES UTICA LLCGUERNSEYEGGLESTON WLS GR 4H56955633
ASCENT RESOURCES UTICA LLCGUERNSEYEGGLESTON WLS GR 2H52057578
ANTERO RESOURCES CORPORATIONNOBLEHALL UNIT 2H48665535
CHESAPEAKE EXPLORATION LLCHARRISONWILLIAM DENOON 17-12-6 2H43267528
ASCENT RESOURCES UTICA LLCGUERNSEYRED HILL FARM MDS GR 1H42490467
ASCENT RESOURCES UTICA LLCGUERNSEYRED HILL FARM MDS GR 3H41963461
ASCENT RESOURCES UTICA LLCHARRISONRH HAMILTON N MRF HR 7H40881449
CHESAPEAKE EXPLORATION LLCHARRISONWILLIAM DENOON 17-12-6 4H40011465
CHESAPEAKE EXPLORATION LLCCARROLLSAUERS 8-14-6 210H38912428


This represents the most even division of top-producing oil wells across different counties we have seen in a while. Guernsey County had 3 of the top 10 wells in the fourth quarter of 2015, but is back to having 4 this time.

Next, here are the top 10 gas-producing wells from the fourth quarter of 2015:


OPERATORCOUNTYWELL NAME/NO.GASGAS/DAY
RICE DRILLING D LLCBELMONTMOHAWK WARRIOR 12H1,629,077 52,551
RICE DRILLING D LLCBELMONTMOHAWK WARRIOR 8H1,621,869 52,318
RICE DRILLING D LLCBELMONTMOHAWK WARRIOR 10H1,515,077 48,873
ASCENT RESOURCES UTICA LLCBELMONTSMITH A 1H-121,345,080 14,945
ASCENT RESOURCES UTICA LLCBELMONTEUREKA SMT BL 6H-A1,325,913 14,732
RICE DRILLING D LLCBELMONTKRAZY TRAIN 4H1,320,931 42,611
RICE DRILLING D LLCBELMONTKRAZY TRAIN 2H1,280,914 41,320
RICE DRILLING D LLCBELMONTSON-UVA DIGGER 1H1,270,300 40,977
ANTERO RESOURCES CORPMONROEDELONG UNIT 4H1,263,024 13,879
RICE DRILLING D LLCBELMONTSON-UVA DIGGER 3H1,238,906 39,965


As has been the pattern on these production reports, Rice Drilling and Belmont County dominate the top gas-producing wells.

Now take a look at the production by county in the fourth quarter, along with charts that will show the comparison in production rates between the 4th quarter of 2015 and the 1st quarter of 2016:


COUNTY# OF WELLS TOTAL# OF WELLS PRODUCINGOILGASDAYSOIL/WELLOIL/DAYGAS/WELLGAS/DAY
Belmont175155104,06599,235,38412,2766718640,2288,084
Carroll4294271,292,46656,741,24337,3233,02735132,2641,520
Columbiana666028,16310,469,5895,3134695174,4931,971
Coshocton1147513,95391475513,953153
Guernsey1071051,182,20311,360,1449,39111,259126108,1921,210
Harrison2572552,238,90344,154,27921,8098,780103173,1542,025
Jefferson24201468,360,628164070418,0315,098
Mahoning13122,275741,558799190361,797928
Monroe13413164,13963,316,43610,3464906483,3326,120
Morgan226,65381,3731823,3273740,687447
Muskingum1157910,41291579610,412114
Noble116116537,32534,225,60010,2534,63252295,0483,338
Portage41143,403141413,403243
Stark221,45235,069182726817,535193
Trumbull441,80992,712278452723,178333
Tuscarawas7520,164108,9652714,0337421,793402
Washington965,023587,0904408371197,8481,334



And finally, breaking down the data by operator:

OPERATORTOTAL # OF WELLS# OF PRODUCING WELLSOILGASDAYSOIL/WELLOIL/DAYGAS/WELLGAS/DAY
Antero Resources Corporation129128426,28451,244,81311,3423,33038400,3504,518
Artex Oil Company663,892131,513546649721,919241
Ascent Resources Utica LLC84831,260,29729,954,2227,12215,184177360,8944,206
Atlas Noble LLC121217,1251,844,52910921,42716153,7111689
Carrizo (Utica) LLC4351,513261,97919017,17127187,3261379
Chesapeake Appalachia LLC64331688657329804221645133
Chesapeake Exploration LLC6085952,453,86986,385,52452,2224,12447145,1861,654
Chevron Appalachia LLC6684,818388,12743014,13619764,688903
CNX Gas Company LLC4241118,0839,615,9272,9042,88041234,5353,311
Eclipse Resources I LP5454334,96711,798,8044,8606,20369218,4962,428
EM Energy Ohio LLC221,099978,1121465508489,0566,699
Enervest Operating L553,86059,044455772811,809130
EQT Production Company6610,471102,7815371,7451917,130191
Gulfport Energy Corporation180180281,14677,532,84015,1981,56219430,7385,102
Halcon Operating Company Inc552,440123,010369488724,602333
Hess Ohio Developments LLC5451149,95218,685,1034,1382,94036366,3754,515
Hilcorp Energy Company101001,728,24483700172,8242,065
Mountaineer Keystone LLC200000000
NGO Development Corp.1147513,95391475513,953153
PDC Energy Inc2323145,325872,4232,0726,3187037,931421
Protégé Energy III LLC111,889276,776401,88947276,7766919
R E Gas Development LLC353584,5162,936,6152,6862,4153183,9031,093
Rice Drilling D LLC3316018,292,160553001,143,26033,078
Statoil USA Onshore Prop Inc9727,986396,6053573,9987856,6581,111
Triad Hunter LLC12822,8682,154,1137282,85931269,2642,959
XTO Energy Inc.22212,94612,071,96414551402574,8558,297




Click here to download the spreadsheet containing all fourth quarter production data.


Connect with us on Facebook and Twitter!

Monday, June 20, 2016

ODNR Publishes 1st Quarter 2016 Utica Shale Production Data

From the Ohio Department of Natural Resources:

"During the first quarter of 2016, Ohio’s horizontal shale wells produced 5,485,854 barrels of oil and 329,537,838 Mcf (329 billion cubic feet) of natural gas, according to figures released today by the Ohio Department of Natural Resources (ODNR).
Quarterly production from the first quarter of 2016 shows a significant increase from quarterly production from the first quarter of 2015.
2015 QUARTER 1 (SHALE)2016 QUARTER 1 (SHALE)INCREASE
Barrels of oil:4,432,1885,485,85424%
Mcf of gas:183,585,251329,537,83880%
The ODNR quarterly report lists 1,351 horizontal shale wells, 1,302 of which reported oil and gas production during the quarter. Of the 1,302 reporting oil and gas production results:
  • The average amount of oil produced was 4,213 bbls.
  • The average amount of gas produced was 253,101 Mcf.
  • The average number of first quarter days in production was 85.
All horizontal production reports can be accessed at oilandgas.ohiodnr.gov/production.
Ohio law does not require the separate reporting of Natural Gas Liquids (NGL) or condensate. Oil and gas reporting totals listed on the report include NGLs and condensate."

We will break down the data in our typical fashion in a later post, but a couple of quick notes: for the first time since the Utica shale boom started, oil production declined from the previous quarterly report. In the 4th quarter of 2015 there were 6,249,116 barrels of oil produced. Natural gas production did increase from the previous quarter.

Stay tuned for an in-depth look at the numbers tomorrow!

Connect with us on Facebook and Twitter!

Friday, June 17, 2016

06/17/16 Links of the Day: Donations, Pipeline Updates, Price Recoveries, Mergers, and More

Gas & Oil:  Utica Shale Academy Has Second Graduation   -   "The number of graduates is growing at the Utica Shale Academy. Members of the Utica Shale Academy Board of Directors was to confer degrees to 18 seniors during commencement on May 26, preceded by a dinner for the graduates and their families. Keynote speaker will be Rhonda Reda, executive director of the Oil and Gas Energy Education Program and Ohio Oil and..."

Alice-Echo News Journal:  Oil and Gas Recovery in the Horizon   -   "Expect a rise in the oil and gas industry by the end of this year is what experts from Invesco shared during the Fifth Annual Eagle Ford Consortium in San Antonio. Darrin Turner, Managing Directors with Invesco who performs quantitative and fundamental research on real asset securities addressed the consortium about the future of the..."

Press release:  Antero Resources to Acquire 55,000 Net Acres in the Core of the Marcellus Shale   -   "Antero Resources Corporation (NYSE: AR) ("Antero" or the "Company") today announced that it has signed a definitive agreement with a third party to acquire approximately 55,000 net acres in the core of the Marcellus Shale for $450 million. Approximately 75% of the 55,000 net acres contains dry Utica rights. The acquisition includes undeveloped properties located primarily..."

The Motley Fool:  Has Oil Risen Too Far Too Fast?   -   "Crude oil has been on a remarkable run since bottoming out earlier this year. After crashing into the mid-$20s to start the year, crude has rocketed higher passing $50 a barrel this week despite the fact that OPEC hasn't done a thing to help the oil market. Instead, what has fueled crude's surge is a combination of..."

Food & Water Watch:  Activists Deliver 90,000+ Petitions Calling on DNC to Add Fracking Ban to Party Platform   -   "A coalition of climate and environmental justice groups delivered over 90,000 petitions to the Democratic National Committee demanding that a ban on fracking be included in the party platform. The DNC platform committee is holding a public forum to receive input on this year’s platform today in Washington D.C. Petitions were collected and delivered by Food & Water Watch, Climate Hawks Vote, Environmental..."

Forbes:  In Some Corners of the American Oil Patch, $50 a Barrel Really is the New $100   -   "Oil is back at $50 a barrel. Militant attacks in Nigeria have cut that country’s oil output to a 20-year low. China’s output is collapsing. Even OPEC sees the world oil market tipping into undersupply this year. All of a sudden things are looking up for America’s frackers. A few American companies are feeling good enough about their prospects that they’ve even put drilling rigs back..."

Gas & Oil:  Do I Need More Than Insurance to Protect My Oil and Gas Interests?   -   "I have had a number of clients ask me if insurance is enough to protect their real property interests and specifically their oil and gas interests. I agree that insurance should be your first line of defense, but is it enough? In many cases in order to achieve proper asset protection, insurance must be used in conjunction with a proper legal entity, such as a Limited Liability Company (LLC). The question becomes “does the insurance I have or what I can buy, sufficiently protect..."

Seeking Alpha:  Prepare Yourself for a Clinton/Sanders Fracking Ban   -   "We still aren't exactly sure why we did it but we went ahead and followed Donald Trump, Hillary Clinton and Bernie Sanders on Twitter (NYSE:TWTR). Since we did that, we have been bombarded with a lot of, well, let's call it information. Investors might want to pay attention to what Clinton and Sanders are saying. They both have fracking directly in their..."

Market Realist:  Utica Shale's Natural Gas Production Rose 46% in a Year   -   "According to the EIA (U.S. Energy Information Administration), the Utica Shale in eastern Ohio has become one of the fastest-growing natural gas–producing regions in the US. In its Drilling Productivity Report released on June 13, 2016, the EIA estimated that the Utica Shale’s natural gas production reached 3.7 Bcf (billion cubic feet) per day in..."

The Medina County Gazette:  NEXUS Contracts Awarded for Pipeline   -   "A Texas-based company has awarded four contracts for the construction of a proposed 250-mile pipeline that includes a portion of the route through Medina County, a company spokesperson said. The awarding of the construction contracts in February for the proposed NEXUS Gas Transmission Pipeline comes in advance of an awaited approval from the Federal Energy Regulatory Commission on the $2 billion..."

Press release:  Leading Proxy Advisory Firm ISS Recommends Williams Stockholders Vote “FOR” the Merger Agreement with ETE   -   "The Williams Companies, Inc. (NYSE:WMB) (“Williams”) today announced that Institutional Shareholder Services (“ISS”), a leading independent proxy voting and corporate governance advisory firm, recommends that Williams stockholders vote “FOR” the merger agreement with Energy Transfer Equity, L.P. (NYSE:ETE) (“ETE”) at Williams’ special meeting of stockholders scheduled..."

FX News Call:  Natural Gas Prices in U.S.: Large Stockpiles Choking Price Rally   -   "Recovery in US natural gas prices has been hit by heavy stockpiles. On Wednesday, natural gas July delivery settled 0.9 percent, or 0.3 percent down at $2.595 a million British thermal units on the New York Mercantile..."

Akron Beacon Journal:  Kinder Morgan Provides $15,000 to Wooster YMCA   -   "The YMCA of Wooster on Wednesday got a $15,000 gift for its youth fitness program. The grant for a new climbing room at the recently renovated gymnastics center came from Texas-based Kinder Morgan, a giant pipeline conglomerate. The company is building a cross-Ohio pipeline for..."

Press release:  OPEC Income Drops from $753 Billion to $404 Billion, EIA Says   -   "For 2015, the U.S. Energy Information Administration (EIA) estimates that members of the Organization of the Petroleum Exporting Countries (OPEC) earned about $404 billion in net oil export revenues (unadjusted for inflation). This represents a 46% decline from the $753 billion earned in 2014, mainly as a result of a precipitous fall in average annual ..."

Marcellus Drilling News:  Deloitte: Drillers Face a $2 Trillion Funding Gap Next 5 Years   -   "Consulting and accounting powerhouse Deloitte has just issued an important new report that sounds the alarm that upstream (i.e. drillers) are not spending enough money to replace proved reserves. Deloitte says there is a “funding gap” of $2 trillion over the next five years! Natural gas is more at threat than oil, because natural gas “reserves shortfall is bigger than oil since the commodity is yet to see its best years of demand growth in the..."

Bloomberg:  EPA Fracking Report Needs Qualifiers, Scientists Say   -   "A much-debated summary on the risks posed by hydraulic fracturing to drinking water was kicked around again June 14 by scientists discussing recommendations to improve an Environmental Protection Agency report. The EPA draft report said it found no “widespread, systemic impacts” on drinking water..."


Connect with us on Facebook and Twitter!

Thursday, June 16, 2016

Group Railing Against NEXUS Pipeline Says Opposition Remains Strong

From the Akron Beacon Journal:
Only 240 easements have been filed across northern Ohio for routing the $2 billion Nexus Pipeline, and there remains staunch opposition to the pipeline in Medina County, according to a grass-roots group. 
The Coalition to Reroute Nexus reviewed easement filings with local county recorders. 
The easements are deals between the pipeline company and individual landowners, giving the company access for building the 250-mile natural gas pipeline. The landowners are paid negotiated fees for use of their land. 
Pipeline opponents are proud that the number of signed easements is low, said CORN spokesman Paul Gierosky of York Township in Medina County. 
Pipeline supporters appear to have signed easements and opponents are holding out, he said. “Most of us won’t sign until we’re forced to,” he said. 
CORN is urging landowners not to sign such agreements.
Click here to read more.

Connect with us on Facebook and Twitter!

Rig Count Rises Again on Latest ODNR Report

The Utica rig count rose for the second straight week on the latest permitting report from the Ohio Department of Natural Resources, going from 11 to 12.  Only one new permit was issued, going to Enervest for a Carroll County well site.  There are now 2,183 permits issued for drilling in Ohio's Utica shale, with 1,751 wells drilled and 1,328 producing.

View the report below or by clicking here.


Connect with us on Facebook and Twitter!

Follow by Email