Marcellus Drilling News editor Jim Willis moderated an all-star Utica Shale media panel at an industry event held on Feb. 27, 2013 in Columbus, OH. On the panel were Rick Stouffer, editor of Gas Business Briefing, Bob Downing, reporter for the Akron Beacon Journal, and Peter Behr, reporter for EnergyWire. Our media panel took a look at the most important and most interesting stories of 2012 for the Utica Shale. This is a variation of the slide deck used to discuss the big news in the Utica.
A research report from McKinsey & Co. done for the Ohio Business Roundtable supporting the BRT's conclusions that the state urgently needs a comprehensive energy plan that pushes new natural gas pipeline construction.
An update on the effort in New York State to get shale drilling legalized--issued by the Joint Landowners Coalition of New York (JLCNY). This June 2013 newsletter provides a quick legislative update, a review of a recent seminar held in Albany, FrackNation screening update, and most importantly, an update on the lawsuit being undertaken by the JLCNY to force New York to compensate landowners if they will not allow drilling--a legal concept called "takings".
Federal Reserve Beige Book for March 6, 2013 - Current Economic ConditionsMarcellus Drilling News
The "Beige Book" issued every two months by the Federal Reserve. This edition (dated March 6, 2013) highlights expanding shale drilling in regions III and IV as one of the reasons for economic expansion in those regions. The Marcellus Shale in Pennsylvania is specifically identified as a major economic force in the northeast.
A new study published by global research company IHS titled "America's New Energy Future: The Unconventional Oil and Gas Revolution and the US Economy - Volume 3: A Manufacturing Renaissance". This is the third and final volume in a series that started in October 2011. The study finds that the average American household saved $1,200 in 2012 directly due to shale energy--through lower utility bills and through lower cost of goods purchased because manufacturing costs have dropped from lower energy costs. The study also finds that by 2025 the shale revolution will have directly created 3.9 million jobs in the U.S.--a truly staggering number.
Landscape Consequences of Natural Gas Extraction in Fayette and Lycoming Coun...Marcellus Drilling News
A report published in June 2013 by the U.S. Geological Survey titled, "Landscape Consequences of Natural Gas Extraction in Fayette and Lycoming Counties, Pennsylvania, 2004–2010." The USGS considers the effects of both conventional and unconventional (shale) drilling and their combined affect on local forestlands and vegetation in two PA counties.
A research report from McKinsey & Co. done for the Ohio Business Roundtable supporting the BRT's conclusions that the state urgently needs a comprehensive energy plan that pushes new natural gas pipeline construction.
An update on the effort in New York State to get shale drilling legalized--issued by the Joint Landowners Coalition of New York (JLCNY). This June 2013 newsletter provides a quick legislative update, a review of a recent seminar held in Albany, FrackNation screening update, and most importantly, an update on the lawsuit being undertaken by the JLCNY to force New York to compensate landowners if they will not allow drilling--a legal concept called "takings".
Federal Reserve Beige Book for March 6, 2013 - Current Economic ConditionsMarcellus Drilling News
The "Beige Book" issued every two months by the Federal Reserve. This edition (dated March 6, 2013) highlights expanding shale drilling in regions III and IV as one of the reasons for economic expansion in those regions. The Marcellus Shale in Pennsylvania is specifically identified as a major economic force in the northeast.
A new study published by global research company IHS titled "America's New Energy Future: The Unconventional Oil and Gas Revolution and the US Economy - Volume 3: A Manufacturing Renaissance". This is the third and final volume in a series that started in October 2011. The study finds that the average American household saved $1,200 in 2012 directly due to shale energy--through lower utility bills and through lower cost of goods purchased because manufacturing costs have dropped from lower energy costs. The study also finds that by 2025 the shale revolution will have directly created 3.9 million jobs in the U.S.--a truly staggering number.
Landscape Consequences of Natural Gas Extraction in Fayette and Lycoming Coun...Marcellus Drilling News
A report published in June 2013 by the U.S. Geological Survey titled, "Landscape Consequences of Natural Gas Extraction in Fayette and Lycoming Counties, Pennsylvania, 2004–2010." The USGS considers the effects of both conventional and unconventional (shale) drilling and their combined affect on local forestlands and vegetation in two PA counties.
The arguments put forth by the American Petroleum Institute (API) against a proposed fracking rule from the Dept. of Interior's Bureau of Land Management (BLM). The API says the rule is unnecessary, duplicative of state rules, and would add a burdensome layer of bureaucracy not needed and that will not add any additional protection of the environment.
A slide presentation issued by pure play Marcellus driller Trans Energy Inc. Their operations are mostly located in the northern panhandle region of West Virginia. The presentation is full of useful charts and maps detailing Trans Energy's operations in WV. We especially like the Competitive Market Position map on Slide 8.
The "Technical Support Document for Long-Term Ambient Air Monitoring Project Near Permanent Marcellus Shale Gas Facilities Protocol" issued by the Pennsylvania Dept. of Environmental Protection on August 1, 2013. The document details the scientific procedures they are using in an ongoing 1 1/2 year study of the air in and around Chariters Township in Washington County, PA. The study is sampling air quality to ensure nearby drilling and a natural gas processing facility are not polluting the air for residents.
A PowerPoint slide deck summarizing Chesapeake Energy's on-shore U.S. oil and gas investments. Both the Utica and Marcellus Shale areas play a prominent role in Chesapeake's short- and long-term strategy. This deck is full of useful maps and bullet points summarizing their operations and plans.
WV Study: Air Quality Impacts Occurring from Horizontal Well Drilling and Rel...Marcellus Drilling News
The West Virginia Natural Gas Horizontal Well Control Act, passed and signed into law in December 2011, directed the WV Dept. of Environment Protection (DEP) to conduct three studies. This is the third and final study on air quality. The WV DEP has recommended no new regulations based on the findings of the study.
A presentation made at the Howard Weil Energy Conference in New Orleans, LA on March 18, 2013 by Cabot Oil & Gas. The presentation contains important information about their drilling cost structure--showing they have some of the lowest shale drilling costs in the industry.
A presentation from Jared VanMeter from Range Resources showing maps and background information on the emerging Upper Devonian Shale formation--a layer of shale that sits a few hundred feet above the Marcellus Shale in the northeastern U.S. Range and several other drillers are now targeting the Upper Devonian, part of a "stacked play" strategy that includes drilling three layers in the same well: Upper Devonian, Marcellus and Utica.
Report: Shale Gas Roundtable: Deliberations, Findings, and RecommendationsMarcellus Drilling News
A 139-page report issued by the Shale Gas Roundtable, a group of 26 individuals organized by the University of Pittsburgh’s Institute on Politics. The group's aim is to develop a framework to improve unconventional oil and gas production, transport, and use in Southwestern Pennsylvania. The report contains a list of recommended changes to laws and industry practices with respect to shale drilling.
“Wheel Tracks” is the official monthly publication for Vermont Automobile Enthusiasts (VAE) by the VAAS. Wheel Tracks is a monthly newsletter published in print and electronically for the public and it’s membership in ten states and two provinces. The newsletter began in May 1953.
Report chock full of very cool graphs and tables and useful information--in particular about the unconventional (shale) drilling industry in the state, but also about the conventional oil and gas industry in PA. Issued in 2014.
Published by the Pennsylvania Dept. of Environmental Protection, this is the first annual report from the DEP about the drilling industry in the state. The report celebrates the miracle of fracking shale in PA and the DEP's hard work to keep it safe. Along with the report the DEP has released a video starring some of the hard-working people for the Office of Oil and Gas Management. It is a FABULOUS video: https://www.youtube.com/watch?v=27xMOiwvrLk&feature=youtu.be
A fact sheet published by the Ohio Dept. of Natural Resources in June 2015. The fact sheet gives an overview of the history and potential future for oil and gas drilling in the Clinton Sandstone layer in Ohio. Recent developments in shale fracking are now being tried in the Clinton Sandstone.
The arguments put forth by the American Petroleum Institute (API) against a proposed fracking rule from the Dept. of Interior's Bureau of Land Management (BLM). The API says the rule is unnecessary, duplicative of state rules, and would add a burdensome layer of bureaucracy not needed and that will not add any additional protection of the environment.
A slide presentation issued by pure play Marcellus driller Trans Energy Inc. Their operations are mostly located in the northern panhandle region of West Virginia. The presentation is full of useful charts and maps detailing Trans Energy's operations in WV. We especially like the Competitive Market Position map on Slide 8.
The "Technical Support Document for Long-Term Ambient Air Monitoring Project Near Permanent Marcellus Shale Gas Facilities Protocol" issued by the Pennsylvania Dept. of Environmental Protection on August 1, 2013. The document details the scientific procedures they are using in an ongoing 1 1/2 year study of the air in and around Chariters Township in Washington County, PA. The study is sampling air quality to ensure nearby drilling and a natural gas processing facility are not polluting the air for residents.
A PowerPoint slide deck summarizing Chesapeake Energy's on-shore U.S. oil and gas investments. Both the Utica and Marcellus Shale areas play a prominent role in Chesapeake's short- and long-term strategy. This deck is full of useful maps and bullet points summarizing their operations and plans.
WV Study: Air Quality Impacts Occurring from Horizontal Well Drilling and Rel...Marcellus Drilling News
The West Virginia Natural Gas Horizontal Well Control Act, passed and signed into law in December 2011, directed the WV Dept. of Environment Protection (DEP) to conduct three studies. This is the third and final study on air quality. The WV DEP has recommended no new regulations based on the findings of the study.
A presentation made at the Howard Weil Energy Conference in New Orleans, LA on March 18, 2013 by Cabot Oil & Gas. The presentation contains important information about their drilling cost structure--showing they have some of the lowest shale drilling costs in the industry.
A presentation from Jared VanMeter from Range Resources showing maps and background information on the emerging Upper Devonian Shale formation--a layer of shale that sits a few hundred feet above the Marcellus Shale in the northeastern U.S. Range and several other drillers are now targeting the Upper Devonian, part of a "stacked play" strategy that includes drilling three layers in the same well: Upper Devonian, Marcellus and Utica.
Report: Shale Gas Roundtable: Deliberations, Findings, and RecommendationsMarcellus Drilling News
A 139-page report issued by the Shale Gas Roundtable, a group of 26 individuals organized by the University of Pittsburgh’s Institute on Politics. The group's aim is to develop a framework to improve unconventional oil and gas production, transport, and use in Southwestern Pennsylvania. The report contains a list of recommended changes to laws and industry practices with respect to shale drilling.
“Wheel Tracks” is the official monthly publication for Vermont Automobile Enthusiasts (VAE) by the VAAS. Wheel Tracks is a monthly newsletter published in print and electronically for the public and it’s membership in ten states and two provinces. The newsletter began in May 1953.
Report chock full of very cool graphs and tables and useful information--in particular about the unconventional (shale) drilling industry in the state, but also about the conventional oil and gas industry in PA. Issued in 2014.
Published by the Pennsylvania Dept. of Environmental Protection, this is the first annual report from the DEP about the drilling industry in the state. The report celebrates the miracle of fracking shale in PA and the DEP's hard work to keep it safe. Along with the report the DEP has released a video starring some of the hard-working people for the Office of Oil and Gas Management. It is a FABULOUS video: https://www.youtube.com/watch?v=27xMOiwvrLk&feature=youtu.be
A fact sheet published by the Ohio Dept. of Natural Resources in June 2015. The fact sheet gives an overview of the history and potential future for oil and gas drilling in the Clinton Sandstone layer in Ohio. Recent developments in shale fracking are now being tried in the Clinton Sandstone.
Quarterly legislative action update: Marcellus and Utica shale region (4Q16)Marcellus Drilling News
A quarterly update from the legal beagles at global law firm Norton Rose Fulbright. A quarterly legislative action update for the second quarter of 2016 looking at previously laws acted upon, and new laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia.
An update from Spectra Energy on their proposed $3 billion project to connect four existing pipeline systems to flow more Marcellus/Utica gas to New England. In short, Spectra has put the project on pause until mid-2017 while it attempts to get new customers signed.
A letter from Rover Pipeline to the Federal Energy Regulatory Commission requesting the agency issue the final certificate that will allow Rover to begin tree-clearing and construction of the 511-mile pipeline through Pennsylvania, West Virginia, Ohio and Michigan. If the certificate is delayed beyond the end of 2016, it will delay the project an extra year due to tree-clearing restrictions (to accommodate federally-protected bats).
DOE Order Granting Elba Island LNG Right to Export to Non-FTA CountriesMarcellus Drilling News
An order issued by the U.S. Dept. of Energy that allows the Elba Island LNG export facility to export LNG to countries with no free trade agreement with the U.S. Countries like Japan and India have no FTA with our country (i.e. friendly countries)--so this is good news indeed. Although the facility would have operated by sending LNG to FTA countries, this order opens the market much wider.
A study released in December 2016 by the London School of Economics, titled "On the Comparative Advantage of U.S. Manufacturing: Evidence from the Shale Gas Revolution." While America has enough shale gas to export plenty of it, exporting it is not as economic as exporting oil due to the elaborate processes to liquefy and regassify natural gas--therefore a lot of the gas stays right here at home, making the U.S. one of (if not the) cheapest places on the planet to establish manufacturing plants, especially for manufacturers that use natural gas and NGLs (natural gas liquids). Therefore, manufacturing, especially in the petrochemical sector, is ramping back up in the U.S. For every two jobs created by fracking, another one job is created in the manufacturing sector.
Letter From 24 States Asking Trump & Congress to Withdraw the Unlawful Clean ...Marcellus Drilling News
A letter from the attorneys general from 24 of the states opposed to the Obama Clean Power Plan to President-Elect Trump, RINO Senate Majority Leader Mitch McConnel and RINO House Speaker Paul Ryan. The letter asks Trump to dump the CPP on Day One when he takes office, and asks Congress to adopt legislation to prevent the EPA from such an egregious overreach ever again.
Report: New U.S. Power Costs: by County, with Environmental ExternalitiesMarcellus Drilling News
Natural gas and wind are the lowest-cost technology options for new electricity generation across much of the U.S. when cost, public health impacts and environmental effects are considered. So says this new research paper released by The University of Texas at Austin. Researchers assessed multiple generation technologies including coal, natural gas, solar, wind and nuclear. Their findings are depicted in a series of maps illustrating the cost of each generation technology on a county-by-county basis throughout the U.S.
Annual report issued by the U.S. Energy Information Administration showing oil and natural gas proved reserves, in this case for 2015. These reports are issued almost a year after the period for which they report. This report shows proved reserves for natural gas dropped by 64.5 trillion cubic feet (Tcf), or 16.6%. U.S. crude oil and lease condensate proved reserves also decreased--from 39.9 billion barrels to 35.2 billion barrels (down 11.8%) in 2015. Proved reserves are calculated on a number of factors, including price.
The monthly tabulation and prediction from the U.S. Energy Information Administration on production and activity in the largest 7 U.S. shale plays. All 7 shale plays will experience a decrease in natural gas production from the previous month due to low commodity prices.
Velocys is the manufacturer of gas-to-liquids (GTL) plants that convert natural gas (a hyrdocarbon) into other hydrocarbons, like diesel fuel, gasoline, and even waxes. This PowerPoint presentation lays out the Velocys plan to get the company growing. GTL plants have not (so far) taken off in the U.S. Velocys hopes to change that. They specialize in small GTL plants.
PA DEP Revised Permit for Natural Gas Compression Stations, Processing Plants...Marcellus Drilling News
In January 2016, Gov. Wolf announced the DEP would revise its current general permit (GP-5) to update the permitting requirements for sources at natural gas compression, processing, and transmission facilities. This is the revised GP-5.
PA DEP Permit for Unconventional NatGas Well Site Operations and Remote Piggi...Marcellus Drilling News
In January 2016, PA Gov. Wolf announced the Dept. of Environmental Protection would develop a general permit for sources at new or modified unconventional well sites and remote pigging stations (GP-5A). This is the proposed permit.
Onerous new regulations for the Pennsylvania Marcellus Shale industry proposed by the state Dept. of Environmental Protection. The new regs will, according to the DEP, help PA reduce so-called fugitive methane emissions and some types of air pollution (VOCs). This is liberal Gov. Tom Wolf's way of addressing mythical man-made global warming.
The monthly Short-Term Energy Outlook (STEO) from the U.S. Energy Information Administration for December 2016. This issue makes a couple of key points re natural gas: (1) EIA predicts that natural gas production in the U.S. for 2016 will see a healthy decline over 2015 levels--1.3 billion cubic feet per day (Bcf/d) less in 2016. That's the first annual production decline since 2005! (2) The EIA predicts the average price for natural gas at the benchmark Henry Hub will climb from $2.49/Mcf (thousand cubic feet) in 2016 to a whopping $3.27/Mcf in 2017. Why the jump? Growing domestic natural gas consumption, along with higher pipeline exports to Mexico and liquefied natural gas exports.
A sort of "year in review" for the gas industry in the northeast. If you could boil it all down, the word that appears prominently throughout is "delay" with respect to important natgas pipeline projects. From the Constitution, which should have already been built by now, to smaller projects, delays were the prominent trend for 2016.
The Pennsylvania Public Utility Commission responded to each point raised in a draft copy of the PA Auditor General's audit of how Act 13 impact fee money, raised from Marcellus Shale drillers, gets spent by local municipalities. The PUC says it's not their job to monitor how the money gets spent, only in how much is raised and distributed.
Pennsylvania Public Utility Commission Act 13/Impact Fees Audit by PA Auditor...Marcellus Drilling News
A biased look at how 60% of impact fees raised from PA's shale drilling are spent, by the anti-drilling PA Auditor General. He chose to ignore an audit of 40% of the impact fees, which go to Harrisburg and disappear into the black hole of Harrisburg spending. The Auditor General claims, without basis in fact, that up to 24% of the funds are spent on items not allowed under the Act 13 law.
The final report from the Pennsylvania Dept. of Environmental Protection that finds, after several years of testing, no elevated levels of radiation from acid mine drainage coming from the Clyde Mine, flowing into Ten Mile Creek. Radical anti-drillers tried to smear the Marcellus industry with false claims of illegal wastewater dumping into the mine, with further claims of elevated radiation levels in the creek. After years of testing, the DEP found those allegations to be false.
FERC Order Denying Stay of Kinder Morgan's Broad Run Expansion ProjectMarcellus Drilling News
Several anti-drillers filed an appeal of the Federal Energy Regulatory Commission's Certificate for the Kinder Morgan Broad Run Expansion Project, asking for a stay claiming a removal of 40 acres of forest for a compressor station would irreparably harm Mom Earth. FERC has ruled against the stay and told the antis Mom Earth will be just fine.
In a May 9, 2024 paper, Juri Opitz from the University of Zurich, along with Shira Wein and Nathan Schneider form Georgetown University, discussed the importance of linguistic expertise in natural language processing (NLP) in an era dominated by large language models (LLMs).
The authors explained that while machine translation (MT) previously relied heavily on linguists, the landscape has shifted. “Linguistics is no longer front and center in the way we build NLP systems,” they said. With the emergence of LLMs, which can generate fluent text without the need for specialized modules to handle grammar or semantic coherence, the need for linguistic expertise in NLP is being questioned.
हम आग्रह करते हैं कि जो भी सत्ता में आए, वह संविधान का पालन करे, उसकी रक्षा करे और उसे बनाए रखे।" प्रस्ताव में कुल तीन प्रमुख हस्तक्षेप और उनके तंत्र भी प्रस्तुत किए गए। पहला हस्तक्षेप स्वतंत्र मीडिया को प्रोत्साहित करके, वास्तविकता पर आधारित काउंटर नैरेटिव का निर्माण करके और सत्तारूढ़ सरकार द्वारा नियोजित मनोवैज्ञानिक हेरफेर की रणनीति का मुकाबला करके लोगों द्वारा निर्धारित कथा को बनाए रखना और उस पर कार्यकरना था।
‘वोटर्स विल मस्ट प्रीवेल’ (मतदाताओं को जीतना होगा) अभियान द्वारा जारी हेल्पलाइन नंबर, 4 जून को सुबह 7 बजे से दोपहर 12 बजे तक मतगणना प्रक्रिया में कहीं भी किसी भी तरह के उल्लंघन की रिपोर्ट करने के लिए खुला रहेगा।
role of women and girls in various terror groupssadiakorobi2
Women have three distinct types of involvement: direct involvement in terrorist acts; enabling of others to commit such acts; and facilitating the disengagement of others from violent or extremist groups.
03062024_First India Newspaper Jaipur.pdfFIRST INDIA
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Jim Willis slides from 2nd Utica Shale Development & Growth Forum
1. Utica from the Media’s Perspective
Jim Willis - Marcellus Drilling News
Bob Downing – Akron Beacon Journal
Rick Stouffer – Gas Business Briefing
Peter Behr – EnergyWire
2. I’d like you to go on a little tour with me.
Last September I was invited to tour some shale well sites in Dimock, Pennsylvania.
Yes, that Dimock—a small township of 1,497 people in Susquehanna County in
northeastern PA made famous in the documentary Gasland and more recently in
FrackNation.
Dimock is about 40 minutes from where I live in Binghamton, New York.
3.
4. It was a perfect early fall day with blue skies and the temperature about 65 degrees.
I took this picture. This is the kind of scenery I was treated to as I meandered down
country roads to Dimock. Rolling hills, lots of farms, plenty of fresh air.
Cabot Oil & Gas had invited me to go on a tour of some of their operations around
Dimock. So I arrived at a small office building owned by Cabot and hopped into a
CNG-powered Chevy pickup with my tour guide Bill DesRosiers and we took off.
5.
6. Not far from the Cabot office we turned off onto State Route 2024 and went riding
cross country. Of course, it’s all cross country around Dimock.
This map doesn’t show it well but we went up and down hills. At one point we flew
by an intersection and Bill pointed to the right and said “that’s Carter Road.” THE
Carter Road, where some families sued Cabot for supposedly contaminating their
drinking water from fracking. About a mile after Carter Road Bill turned off and we
took a hard-pack gravel drive up a short hill to this spot.
7.
8. As we crested a little knoll, this is what I saw. It’s a well pad completed about three
years ago. You can see three of four wells in this picture I took.
Bill told me what I was looking at. He explained the wellhead itself is called a
Christmas Tree because the valves and knobs on it make it look like a Christmas Tree. I
asked what those white containers are. Those hold a chemical used to make sure the
Christmas Tree valves don’t freeze up. The gas is under tremendous pressure and the
temperature of the gas is quite cold and when it hits the warm air topside it can
quickly lead to the formation of ice in the wellhead. Something like that. So those
white containers hold a chemical used to regulate the temperature of the Christmas
Tree wellhead.
Even though in this part of northeastern PA the gas coming out of the ground is “dry
gas” or methane only, it still contains a little bit of water in it. So this machinery back
here separates out the water and stores it in these tanks over here. Trucks come by
about once a week to empty the tanks.
Finally, the whole thing is monitored 24/7 with little radio transmitters that send a
signal back to the office. And yes, those transmitters are powered by solar panels!
9.
10. This is a closer pic of the Christmas Tree wellhead. If you’re more than a couple of
hundred feet away from it, you can’t even see it!
As we stood there Bill told me this. He said that Cabot drilled and still operates about
3,000 vertical gas wells in West Virginia. He said Jim, these four horizontal wells
you’re looking at here? They produce more natural gas in a single day than all 3000 of
those vertical wells in West Virginia produce in a day.
My jaw hit the ground. I don’t know about you, but I was shocked. Startled. I
remember thinking to myself, now I know why shale is not just another new energy
source—it’s an energy revolution. And that revolution has come to Ohio and the
Utica Shale.
If I turned around and faced the opposite direction away from the wells, this is what I
saw…
11.
12. Beautiful rolling hills. Hayfields. Farms and houses. Not an industrial waste land. Not
Love Canal come to Pennsylvania. I saw beautiful countryside.
There’s a little bit more to this story, but I’m going to make you wait until the end to
hear it.
13.
14. Who am I? My name is Jim Willis, and I’m the founder and editor of Marcellus Drilling News, what I call a news
slash blog site that covers the story of shale drilling in both the Marcellus and the Utica Shale.
Monday through Friday I read, research, curate, aggregate and write about what’s happening with shale gas
drilling in the Marcellus and Utica Shale, and I spend about 5 hours a day doing it—what I call my first full-time
job.
If you do something for five hours a day and you’re not getting paid for it, it’s an unhealthy obsession. If you
do something for 5 hours a day and you get paid for it, it’s a brilliant business model. So in May of last year I
started charging a monthly fee to read full stories--$5.95 a month. Today, 10 months later, I have 900 paying
subscribers. What that says to me is that this is a white hot issue and there’s a lot of people interested in it.
I get about 35,000 unique, different people each month visiting my site over 60,000 times and clicking to read
my stories over 100,000 times. Not all of them subscribe—quite a few find me from Google searches.
With MDN I try to inject some humor, sarcasm, and hopefully some whit in the writing I do. I take a side which
I guess is what makes my site different from a mainstream media or regular news site. I’m proudly pro- but
safe drilling. My shtick, my angle is to look at the drilling issue through the eyes of a landowner or small
businessperson. What would they be interested in knowing?
I guess if I could sum it up, I try to answer the “why” questions. Not just what happened, but why it
happened—what it all means. Make sense of it. And if it’s technical, break it down into understandable terms.
So I’ve been watching this space for a few years now—I’ve watched it take off in Pennsylvania and West
Virginia, and over the past year, I’ve watched it take off like rocket in Ohio.
16. With me today are three other people—experts—who have also been watching the
shale energy space in Ohio. I’ll let them introduce themselves in a few minutes.
I’ll just mention we have Bob Downing, a reporter with the Akron Beacon Journal. I’m
a fan of Bob’s writing and I follow it closely. He’s broken some extremely important
Utica stories—one in just the past couple of weeks that he’ll share with you.
And we have Rick Stouffer, editor of Platt’s Gas Business Briefing—really one of the
must-have publications for the energy industry. Rick is an expert and he’ll have some
great material to share with us.
And late-breaking, Peter Behr is also joining us on the panel. Peter is a reporter with
EnergyWire. He previously worked for 25 years covering energy for the Washington
Post.
18. When we were fleshing out ideas for what we might talk about on this panel, we
thought it would be interesting for us to put our heads together and talk about some
of the biggest and most important stories to happen in the Utica Shale in 2012.
From earthquakes to taxes to protests to hugely productive wells, there were a lot of
stories to come out of the Utica in 2012. Everyone will have their own opinion.
For me, the biggest story in the Utica was the sheer size of it. The enormous growth
that happened in 2012. I call it, “The Utica Shale grows up.”
19. What was THE biggest
Utica Shale story of 2012?
The Utica Shale Grows Up
20. We’ve seen quite a few maps yesterday and today. I’ll add a few more to provide
some context to what I believe is the #1 one story from 2012. This map is from a 3-
volume research report that I publish called the Marcellus and Utica Shale Databook.
This map shows the boundary of the Utica Shale, the dark purple line along the left.
The lighter purple area that’s shaded in shows where the Marcellus Shale can be
found.
As you can see, the shale play of interest—the Utica/Point Pleasant and to some
degree the Marcellus, is found in about the eastern 1/3 of Ohio.
21.
22. Let me illustrate the growth of drilling in Ohio with a few maps from the Databook.
Here’s a map that shows permits issued in Carroll County for all of 2011 (Databook
Vol. 1). As you can see, the only company receiving permits in 2011 for Utica
horizontal wells in Carroll for 2011 was Chesapeake Energy. The purple dots are well
pads or potential well pads. Each purple dot can have from 1 to 10 wells drilled in
that location.
Over on the right, the first number is the total number of permits, and the second
number in parentheses is for the number of unique well locations. So Chesapeake
had 19 permits issued for 19 different wells for all of 2011 in Carroll County.
23.
24. This map shows permits for horizontal wells issued for January through June 2012 in
Carroll County (Databook Vol. 2).
You can see Chesapeake picked up 63 new permits for that period and those 63
permits were for 58 unique, different locations or wells. We also have Enervest and
RE Gas picking up a handful of permits.
25.
26. And this map shows Carroll County permits issued for July through December 2012
(Databook Vol. 3). Chesapeake now gets another 101 new permits for 93 locations.
Some permits may be for wells previously permitted—it takes more than one permit
to drill a well. The point of these maps? It shows the progression of activity. If you
want to know where drilling is about to happen, watch where the permits are being
issued. Permits preceded drilling. When drilling begins, a lot of activity begins.
Permits precede drilling, and drilling precedes pipelines and infrastructure. One
follows the other like spring follows winter and summer follows spring. Again, permits
are the key signal to watch.
27.
28. Here’s one more example—this one is Harrison County. Just 2 permits in 2011.
29.
30. Things start to pick up in the first half of 2012. Chesapeake has 12 permits, Gulfport
has 7, and Hess 5.
31.
32. And by the second half of 2012, Gulfport has really picked up steam with 25 permits
for 13 locations and Chesapeake with 22 permits in 19 locations.
33.
34. Perhaps this chart will better explain just how much the Utica “grew up” in 2012. It
shows by year the number of horizontal Utica permits issued, and the current status
of the wells for which the permits were issued. Permits issued in 2012 jumped 443%
from 2011—or 4.4 times as many permits in 2012 as 2011.
Just to complete the rest of the data, for the first month and a half of 2013 another
60 permits were issued. So far, as of Feb 16th, there have been 529 permits issued
since 2010, and 242 of those wells have now been drilled—roughly half.
35. OH Utica/Pt Pleasant Shale Wells
Status of Wells as of Feb 16, 2013
2010 2011 2012
Drilled – 1 Drilled – 14 Drilled – 133
Producing – 1 Drilling – 1 Drilling – 13
Inactive – 2 Inactive – 1
TOTAL PERMITS: 2 Not Drilled – 2 Not Drilled – 4
Permitted – 22 Permitted – 197
Plugged – 6 Plugged – 4
2013 (1.5 months) Producing – 39 Producing – 29
Drilling – 1 TOTAL PERMITS: 86 TOTAL PERMITS: 381
Not Drilled – 1
Permitted – 58
Horizontal Permits: 529
TOTAL PERMITS: 60 Horizontal Wells Drilled: 242
36. Once wells are drilled, natural gas and gas liquids and oil starts to flow. I took a look at
just the natural gas portion for both the Marcellus and the Utica Shale and back in
January I went out on a limb and made some predictions. So far one of them has
come true. I predicted that Pennsylvania’s Marcellus Shale gas production would hit 2
trillion cubic feet for 2012. The numbers for PA came out last week and it was 2.1 tcf.
I said that West Virginia’s production of shale gas would double and hit 455 billion
cubic feet. Still waiting to hear on that one. And finally, my toughest prediction, but
one that I think will bear out: I said that the Ohio Utica Shale would see about 67
billion cubic feet of natural gas produced for 2012. Ohio’s numbers come out next
month, so keep a sharp eye out.
Permits are way up. Drilling is way up. And I believe production will be way up. That’s
why “the Utica Shale grew up” is the biggest story of 2012.
37.
38. Although we didn’t have time to cover all of these stories, here is a list of some of the
more interesting and important stories from 2012 for the Utica Shale. I threw out
some of these to the panel for comment...
39. Protesters Get Violent, Shut Down OH Frack Water Plant
http://mdn.bz/2zYsqS
GreenHunter brine storage/transfer facility in Washington County, near New Matamoras overrun by 100
protesters. One errected a 30' tower and climbed it and stayed there for hours. Vandalized the facility. May be
charged under the anti-terrorism act. Being a politically incorrect blogger, I call them nutjobs. 7 of the 10 people
arrested weren't even from Ohio! What do you guys know about it?
Big OH Company Will Leave Town if Anti-Drilling Resolution Passes
http://mdn.bz/2zHlDV
Philpott Energy & Transportation Company/Rubber company says if New Brunswick (near Cleveland) passes a
resolution calling on the state to support home rule, an overtly anti-drilling resolution--they will locate new
construction for a major expansion outside of the city limits denying the city a big future tax revenue source. Hard
ball? Justified? Not justified?
Patriot Water in Warren, OH Objects to ODNR Directive
http://mdn.bz/2z1RRx
Seems to me that there's been bad blood between the ODNR and Patriot Water Treatment of Warren, OH going all
the way back to June 2011. ODNR has been trying to shut down this shale wastewater treatment plant because
after they treat the water it's then taken to the Warren municipal water treatment plant for final disposal. ODNR
denied renewal of a permit, Patriot appealed... it's been a mess. The latest skirmish comes with the story about
D&L Energy and their wastewater dumping. Apparently D&L was sending some of its wastewater to Patriot and
ODNR ended that. What is the story between Patriot & ODNR?
Muskingum Watershed District Signs with Antero for $40.3M Bonus
http://mdn.bz/2ylxyH
The Muskingum Watershed District just signed a big deal with Antero Resources to least 6,500 acres around
Seneca Lake. But in June of last year the Watershed District first voted to sell water to shale drillers, then pulled
back and said they wouldn't sell any water until a study was completed by the U.S. Geological Survey. Then in
September they reversed again and said they would sell some water. What's the deal with the Watershed District?
Is someone yanking their chain? Did the U.S. Geological Survey ever complete the long-awaited water study?
40. Youngstown Shale Wastewater Dumper Faces Jail and Big Fines
http://mdn.bz/2y54SP
Hardrock Excavating and D&L Energy in Youngstown, OH, in the dead of night, dumped perhaps millions of gallons
of untreated fracking wastewater down a sewer drain outside of Youngstown that eventually ended up in the
Mahoning River. I mean, words can't even begin to express the outrage everyone feels about this. What's the
latest? Has there been long-term environmental damage? Is the owner Ben Lupo headed for hard time in a federal
pen?
Gulfport Purchases More Utica Shale Leases for $10K/Acre
http://mdn.bz/2xGvxY
Last December Gulfport bought leases for 30,000 acres in the Utica Shale for $10,000 per acres. They paid the
same per acre price two weeks ago for another 22,000 acres. That's some of the highest per acre prices I've seen.
Seems to me like Gulfport has a major crush on the Utica--would say that's a fair assessment?
Gulfport’s New Utica Well Produces Mind-blowing 28.5 Mmcf/d!
http://mdn.bz/2YGzR7
In August last year we got word that Gulfport's Wagner 1-28H well in Harrison County produced an initial flow rate
of 14 million cubic feet of natural gas per day, over 1800 barrels of natural gas liquids, and some 430 barrels of oil.
Astonishing. Then at the end of November Gulfport reported what I consider to be mind-blowing results for their
Shugert 1-12H well in Belmont County: an initial daily flow rate of 28.5 million cubic feet of natural gas, 300 barrels
of condensate, 2,900 barrels of natural gas liquids per day. I guess we know why Gulfport has a crush on the Utica.
Mind-blowing Earnings from a Single Utica Shale Well
http://mdn.bz/2sDZ4B
One more Gulfport story. A professor from West Virginia University ran some numbers for another Gulfport well--
the Stutzman well, also in Belmont County. That well is producing 21 million cubic feet of natural gas per day. At $3
Mcf, that's $63,000 per day in revenue. Add in the gas liquids and that one well has an earning power in excess of
$100,000 per day.
41. OH Appeals Court Strikes Down Home Rule for Drilling
http://mdn.bz/2w03Hd
I think one of the biggest ongoing stories across both the Marcellus and Utica Shale is that of home rule--the right
of local municipal governments to control--even ban--shale drilling in their borders. Drillers say it's next to
impossible to work if the ground rules are different in every town. Locals say they know best where drilling should
and should not be allowed. The Ohio Appeals Court just struck down home rule a few weeks ago. Where does this
go from here? Will it be appealed? Is this it for home rule in Ohio?
Details of OH Gov. Kasich’s Utica Shale Severance Tax Hike
http://mdn.bz/2vhw2c
Ohio Gov. John Kasich really really wants to raise the severance tax for oil and gas drilling in Ohio. The industry
(and yours truly) says he's nuts! If you tax it, it will mute the economic benefits the industry is creating in the state.
But he fires back that "hey, it's not all that much, especially when you look at the rates other states charge." Will
Ohio see a higher severance tax in this year's budget? What are you hearing?
Why More Ohioans Don’t Work in Utica Shale Industry? Drugs
http://mdn.bz/2n2J4Y
One of the things I regularly rap Gov. Kasich on the knucles over is his attitude about what he calls "foreigners"
coming in to work in Ohio's gas and oil fields. By foreigners he means people from Texas and Oklahoma and
Louisina. He wants Ohions in them thar jobs! Of course you need experienced people running equipment, and
skilled people welding and so on--at least at first, until others can be trained. But then we had an interesting story
not long ago about how half or more of all the Ohioans applying for oil and gas field jobs fail the drug test. What's
up with that? What of state are y'all runnin here?
Is Shale Brine Dumping Coming to OH Landfills?
http://mdn.bz/2sDVC7
Bob, update us on this story you broke at the end of January.
42. Utica Drilling in a Nutshell: Permits & Wells Drilled, by Driller
http://mdn.bz/2qjJWj
Who are the players in the Ohio Utica Shale? The #1 player is a no-brainer: Chesapeake Energy. In mid-January
when there were still only 498 wells permitted, Chesapeake had 325 of those permits--or 65%, spread across 10
counties. After them comes Gulfport with 28 permits in Belmont, Guernsey and Harrison Counties. CNX has 20
permits. HG Energy and EnerVest both had 16 permits, and Hess had 15. In all there are 23 different companies
with permits in the Ohio Utica Shale.
BP’s Big Utica Shale Deal, Leases 84K Acres in Ohio
http://mdn.bz/2QhKSg
In March 2012 BP signed a massive deal with the Associated Landowners of the Ohio Valley (ALOV) for 84,000
acres in Trumbull County. The deal gave landowners $3,900 per acre as a signing bonus and will give them 17.5%
royalties on anything produced. Yet BP hasn't even applied for a single permit yet. What's the deal with BP and the
Utica? Are they ever going to drill? What have you guys heard?
More than $1.2B & Counting on New Utica Drilling for 2013
http://mdn.bz/2qRsST
So far, more than $1.2 billion (that we know of) has been budgeted by Ohio’s Utica Shale drillers for 2013. A
whopping $7 billion has been allocated for pipelines and processing plants over the next several years. Seems to
me that the "big story" for the Utica in 2013 will be midstream and infrastructure. You guys agree with that?