Shale Play USA

Natural Gas, Ukraine, Russia and the Crimea

2014-03-03T09:14:00.001-08:00

This Is The Gas Pipeline Map That Shows Why The Crisis In Ukraine Affects All Of Europe

MICHAEL KELLEY Monday March 3, 2014 1112 central standard USA

If you question the strategic location of Ukraine, check out this map that Agence France-Presse made last in December — two months before protesters in Kiev forced President Viktor Yanukovych out of office.

Russia has now invaded the strategic Baltic Sea peninsula of Crimea, and markets are spookedat the possibility that Russian troops that are being built up on the border could enter eastern Ukraine.

As the international tug-of-war for Ukraine continues, the tension involving economic relations in the region — especially regarding gas flow from Russia to both Ukraine and Europe — will increase.

Germany is perhaps the best example of this, as described by Noah Barkin of Reuters: “Heavily dependent on Russian gas and closer to Moscow than any other leading western nation, Germany faces a major policy dilemma as the Ukraine crisis descends into a Cold War-style confrontation of tit-for-tat threats and ultimatums.”

Follow Business Insider Australia on Facebook and Twitter

ExxonMobil study US Shale Gas Potential

2013-05-24T04:10:00.001-07:00

permalink here: http://www.exxonmobilperspectives.com/2012/01/06/study-sums-up-the-extraordinary-performance-and-potential-of-u-s-shale-gas/?gclid=CLGVnO3MrrcCFVQV7AodyiUABA

Study sums up the extraordinary performance – and potential – of U.S. shale gas

January 6, 2012 | Posted by Ken Cohen

$76 billion share of U.S. GDP.
$33 billion in capital investments made.
$18.6 billion in federal, state and local government tax and federal royalty revenues.
600,000 jobs supported.

And that was just in 2010.

These impressive stats sum up the economic contributions of U.S. shale gas production in 2010, according to a recent study from IHS Global Insight.

But even better outcomes are yet to come, the study’s findings show.

The U.S. shale gas industry will continue to be a major generator of jobs, government revenue and economic stimulus for decades as production continues to increase. Researchers estimated that nearly $2 trillion in capital investments will flow into the U.S. shale gas industry between 2010 and 2035.

The benefits of such massive investment will spread throughout communities, businesses, and governments around the country. The study examined recent increases in shale gas production and modeled the growth trend into the future, finding that shale gas will grow from 27 percent of U.S. natural gas production in 2010 to 60 percent in 2035. As a result:

The jobs supported by the shale gas industry are expected to more than double by 2035, from 600,000 in 2010 to 1.6 million by 2035.
The annual government tax revenues will more than triple, from $18.6 billion in 2010 to $57 billion in 2035.
In total, the shale industry will generate more than $933 billion in federal, state and local government tax and federal royalty revenues over the next 25 years.
The value added to the U.S. GDP will nearly triple, from more than $76 billion in 2010 to $231 billion in 2035.

Those are a lot of large numbers that can be hard to fully grasp. A few comparisons may help:

The $2 trillion in shale gas capital expenditures to be invested by 2035 is an amount that would reduce the current U.S. national debt by about 13 percent.
The $933 billion in tax and royalty revenues from shale gas activity expected over the next 25 years is an amount that would come to close to paying for the 2011 Social Security and Medicaid budgets combined.
The $231 billion in value added to the U.S. GDP by the shale gas industry in 2035 is an amount that’s higher than the GDP of the majority of the world’s countries in 2010, including Ireland, New Zealand and Denmark, just to name a few.

The U.S. shale gas industry is already a sizable contributor to the U.S. economy, and as these numbers show, the industry’s contributions will only continue to grow. But this growth is not pre-determined – and, in fact, can be undermined if counterproductive policies and regulations are enacted by policymakers at the federal and state levels. Government policies that promote access to U.S. energy supplies and increased investment are necessary for the industry to continue its pattern of growth – as are the industry’s actions to maintain safe operations throughout the country.

With a focus on effective policy and responsible operations, the shale gas industry can play a major role in U.S. economic recovery and growth.

Facts on Fracks @ Fracknation

2013-01-21T15:15:00.001-08:00

FrackNation a documentary for Facts on Fracks

www.fracknation.com

JANUARY 22, 2013
@ 9 PM ET

A JOURNALIST'S SEARCH FOR THE FRACKING TRUTH

WELCOME TO OUR NEW WEBSITE!

Thanks for visiting. FrackNation is the film that will tell the truth about fracking. Our new website is designed to provide the most up to date information about the...Read More

Show me the Shale Money

2012-11-14T06:38:00.000-08:00

Eagle Ford Investing

BY YASMIN GHAREMANI

Some days the price of his stocks swing like a drunk in a bar fight. But Bruce Vanderveen keeps his cool.

A few weeks ago, the 63-year-old semi-retired Florida resident put $2,000 intoMagnum Hunter Resources Corp. and Carrizo Oil & Gas Inc. — investments he considers speculative but interesting. Both companies are producing in the Eagle Ford Shale, one of the hottest unconventional oil-and-gas plays today. Houston-based Magnum has 24,000 net acres in Eagle Ford; Carrizo, also headquartered in Houston, has 46,000 net acres.

As oil prices have slid in the past few weeks, so have the valuations of Magnum and Carrizo — down 12 percent to 14 percent since Vanderveen got in. But he’s not rattled.

In fact, if the price of oil falls even further — say, below $82 a barrel — Vanderveen plans to bargain shop, doubling his current positions and buying into a couple of larger, more stable companies.

Such is the lure of the Eagle Ford.

Vanderveen, who is also invested in North Dakota’s famous Bakken Shale, called the Eagle Ford “a driller’s paradise” in an article he wrote for the investment site Seeking Alpha in April. “I read that it’s cheaper to produce in he Eagle Ford than the Bakken, and that’s what got me interested,” he says.

He’s not the only one turning his attention to the Eagle Ford. Colorado-based research firm IHS reported in July that the Eagle Ford is a contender for the best shale oil play in the U.S., with drilling results so far beating the Bakken. Its South Texas location is also blessed with better weather and proximity to Gulf Coast refineries. “It’s just got the best economics of any of the shale oil plays,” says Dan Steffens, president of the Energy Prospectus Group, a Houston-based investor network. Many retail investors are now looking for ways to cash in on the region’s good fortunes.

http://www.bizjournals.com/sanantonio/news/2012/11/13/show-me-the-money-eagle-ford-shale.html?page=all

Obama Pays off Greenies for Voter Support

2012-11-11T07:09:00.004-08:00

WASHINGTON (November 9, 2012) — The Interior Department today moved to protect millions of acres of sensitive Western lands from oil shale and tar sands exploration, the Natural Resources Defense Council said.

“By significantly reducing the acreage of wilderness potentially available for leasing, Secretary Salazar is laying out a creative, thoughtful and more responsible approach in managing some of our most precious resources,” said Bobby McEnaney, senior lands analyst at NRDC.

The department's decision reverses plans issued in the waning days of the Bush administration that opened more than two million acres in Colorado, Utah and Wyoming to destructive exploration of oil shale and tar sands—with virtually no environmental safeguards.

Salazar's decision effectively screens off an additional 1.6 million acres of wilderness-quality lands, as well as lands with critical wildlife habitat, from such exploitation, thus significantly reducing the acreage available for commercial leasing.

Oil shale, which should not be confused with natural gas derived from shale formations, is a solid-state organic-rich, sedimentary rock, found largely in the Western United States. Its exploration requires massive amounts of electricity, often from coal-fired power plants that spew a smorgasbord of pollutants, including carbon dioxide, that fuels climate change. Oil shale production can generate more than twice the amount of carbon pollution than conventional gasoline.

"Seeking more and ever dirtier fuels is not the way to a clean energy future that Americans want and deserve. Rather, we need to accelerate investments in clean, renewable sources energy that are good for our economy and good for our heath and the health of our planet," McEnaney said.

What a bunch of crap, Natural Gas, "Is a Clean Burning, Efficient, Energy Source", we have abundant supplies.....

Eagle Ford Shale Economic Impact (Gonzales, DeWitt Co's)

2012-10-11T07:31:00.002-07:00

via Gonzales Cannon Newspaper

By Dave Mundy/manager@gonzalescannon.com
Posted November 1, 2012 - 8:20am

A new study estimates the economic impact of the Eagle Ford Shale on Gonzales and DeWitt counties was more than $3.3 billion in 2011 — and within 10 years that number will skyrocket to more than $14 billion.

The Center for Community and Business Research at The University of Texas at San Antonio Institute for Economic Development (UTSA) performed an economic study of 14 counties in the Eagle Ford Shale area that portrays a detailed image of the challenges and opportunities emerging from drilling and production activities in South Texas.

In 2011, the companies operating in the region had significant impacts in the 14-county area and in the surrounding counties.

These impacts translated into more than $19.2 billion in output; approximately $10.5 billion in gross regional product; $211 million in local government revenues; $312 million in state revenues; and 38,000 full-time jobs.

The study projects that by the year 2021, the Eagle Ford Shale could produce close to $62.2 billion in output and up to $34 billion in gross regional products.

Gonzales and DeWitt were two of the counties surveyed in the study, and the researchers note that both counties can expect massive economic impact over the next decade as the oil and gas field comes fully on-line.

The researchers noted a direct impact in 2011 of some $1.79 billion in Gonzales County and $1.63 billion in DeWitt County.

For Gonzales County, that number included a direct impact of some $1.5 billion in output, nearly $165 million in payroll and a total gross county product output of $892 million.

By 2021, the study suggests, the direct impact on Gonzales County would include $5.6 billion in output, a gross county product of nearly $3 billion, and oilfield-related payroll of more than $32 million.

DeWitt County’s numbers are similar, with a 2011 direct impact of $1.4 billion in output, nearly $800 million in gross county product and $163 million in payroll. Those numbers are expected to go up to $6.7 billion in output, $488 million in payroll and a gross county product of more than $4 billion.

The study also judges indirect and induced impacts because of the oilfield, as well as estimated tax revenue to local governments.

It is that local government tax revenue which may see the sharpest increase because of the Eagle Ford.

Gonzales County’s 2011 estimated local government revenue created because of the shale oil formation was $26.9 million; by 2021, that number is expected to be $114.4 million. In DeWitt County, those numbers ran $22.2 million in 2011 and are projected at $176.8 million by 2021.

The study also notes that more than 7,000 new jobs are expected to be created in the two counties diretcly and indirectly as a result of the development.

The Center for Community and Business Research at The University of Texas at San Antonio Institute for Economic Development (UTSA) also performed a workforce analysis for the 20 counties within the Eagle Ford Shale (EFS). Each of these counties have witnessed an increased supply of EFS-related jobs within certain industries and requiring specific job training.

Direct, indirect and induced economic impacts were examined for each of the counties in the 20-county region to determine workforce impact. Direct impacts primarily consist of the actual production and employment by firms operating directly in the EFS. Indirect impacts include the operational and personnel expenditure made by suppliers, or inter-industry transactions spurred by the direct economic activity. Induced impacts include income flows created when workers spend money on various goods such as food, housing, and other products or services in the counties the counties under analysis.

Researchers noted that development of the Eagle Ford Shale has distinct phases, during which individual industries will experience varying levels of labor demand and evolving types of labor demanded.

Thus, education and training requirements for workers will need to remain flexible enough to accommodate the vacillating needs of industry. For example, during the exploration phase counties will see a rise in the need for occupations dealing with mineral leasing, site construction/management, drilling rig support, and material transport.

As companies shift into the production and processing phase of operations, they require a workforce composed of business management, administrative support and the processing of gas, oil and condensates occupations.

Shale Exploration News Updates

2012-09-10T10:47:00.004-07:00

2012-08-17T14:59:00.001-07:00

MORGANTOWN, W.Va. (AP) -

A spark from a natural gas drilling operation in north-central West Virginia ignited methane gas several hundred feet underground early Friday, sending up a fireball and triggering a blaze that officials said burned for about an hour on the floor of the rig.

Three workers were injured, two seriously enough to be airlifted to a hospital after the fire at the Antero Resources site near Sycamore in Harrison County. The fire was quickly extinguished and the well pad was in a rural area, so it posed no danger to the public.

Al Schopp, a vice president at Colorado-based Antero, said two men were flown to a burn unit in Pittsburgh, but he did not have immediate word on their conditions. The third victim was treated at a Clarksburg hospital and released.

All worked for Antero's drilling contractor, Hall Drilling of Ellenboro. Officials with Hall didn't immediately return a telephone call.

State Department of Environmental Protection spokesman Tom Aluise said the crew was in the early stages of drilling a Marcellus shale gas well. The drill was about 400 feet deep when they began to withdraw it, creating a spark that ignited the methane.

That created more of a fireball than an explosion at the Cottrill No. 3 well on Antero's Southern pad, he said.

Aluise said Antero voluntarily shut down the operation, and a DEP investigation is under way. Schopp said the company is also investigating, but he had no further details.

WV Department of Environmental Protection

www.dep.wv.gov/

The rig was damaged badly enough that a new one may need to be brought in, Aluise said, "if and when they resume drilling."

In June, another Antero drilling operation triggered several backyard geysers when workers struck an aquifer in the Sardis area and inadvertently re-pressurized a handful of old water wells. Emergency management officials and residents said some were 10- to 12-feet high.

There was no interior damage in the affected homes. The residents' wells had long been disconnected from indoor plumbing because their homes are all on a public water supply.

On July 31, the DEP ordered Antero to provide a detailed incident report, including a chart outlining the pressures involved, a list of the water wells that were affected and the current status of those wells.

The DEP also wants pre- and post-water analyses for each of those wells, along with a map showing their locations in relation to the well pad.

The letter from Office of Oil and Gas Director James Martin also demands information about any water wells that Antero drilled and a report that cites "any direct or indirect cause" and lays out what Antero will do in the future to minimize the likelihood of another incident.

Schopp said at the time that workers were drilling an initial hole with just fresh water and air when the bit became stuck. Rather than turn the air flow off, the crew left it on as they tried to withdraw the drill. That recharged the aquifer and trapped the air, which then sought a place to escape.

That accident happened thousands of feet above the targeted oil and gas deposits.

Well Site Erosion Prevention SWPPP

2012-07-18T04:57:00.000-07:00

http://truegridpaver.com/environment

Seeking input on viability of this product for drilling, production, terminals, well sites, and Repair/Maint Facilities within the Energy Sector...

Email input to: energyehs@gmail.com

Environment

TrueGrid is designed and manufactured to be true to the specifications of your project, and true to the sustainability of our environment.

STORM WATER MANAGEMENT

Storm water runoff is generated when precipitation from rain and snowmelt events flows over land or impervious surfaces and does not percolate into the ground. As the runoff flows over the land or impervious surfaces (paved streets, parking lots, and building rooftops), it accumulates debris, chemicals, sediment or other pollutants that could adversely affect water quality if the runoff is discharged untreated.

TrueGrid is a pervious paving solution that allows the storm water to infiltrate through to the soil and replenish natural aquifers.

EROSION CONTROL

The installation of TrueGrid safeguards from erosion due to vehicle traffic, pedestrian traffic, rainfall, and flooding waterway currents. TrueGrid holds your filler material in place preventing displacement and interblending. The savings from constant repairs to an eroded environment and from the replacing of paving material is valuable to your company’s bottom line. However, the saving from more wear and tear to the environment is the true benefit of using TrueGrid as a paving solution.

HEAT ISLAND EFFECT

What is “Heat Island Effect”?
Heat Island Effect occurs in areas such as a city and industrial sites that have consistently higher temperatures than surrounding areas because of greater retention of heat. This retention of heat is due to buildings, concrete, and asphalt.
Using TrueGrid in these “hot spot” areas for pathways, parking lots, driveways, roofs…etc., reduces the absorbability of solar rays and thus helps steady and cool the natural environment.

MANUFACTURED FROM 100% RECYCLED PLASTIC

TrueGrid is made of 100% recycled plastic, and can also be recycled itself. Reducing the amount of new plastic and reusing existing plastic, is very important to the sustainability of the environment. The conscience effort to use products that add to the sustainability of the environment, gives a company a high level of credibility.

2012-07-17T11:30:00.001-07:00

Water Erosion

Water erosion comes in several different forms with various causes. No matter the differences, each form can be impacted by humans both negatively and positively. While the causes of erosion by water are generally natural, human impact will always play a role. It's becomes our job to assure it is a

NY DEC Fails to Track Low Volume HydroFrack Waste

2012-05-06T08:07:00.000-07:00

ALBANY —

An environmental lobbying group challenged the state Department of Environmental Conservation in a report Friday claiming that the state fails to keep track of waste generated by low-volume natural gas hydrofracking.

After examining DEC paperwork for 100 existing gas wells located in Western New York and the Finger Lakes region, researchers for Environmental Advocates of New York claimed the agency's records made it "nearly impossible" to track drilling waste from individual wells to disposal.

The report from the not-for-profit group was based on DEC records obtained under the state Freedom of Information Act. It claimed that "DEC does not know how much drilling waste is being produced or where it is going. Only the gas companies know, and they're not talking."

Low-volume vertical hydrofracking is legal in the state, unlike high-volume horizontal hydrofracking, which uses the same blend of chemicals, water and sand, but in much larger quantities over a much larger underground area.

Opponents fear the horizontal technique could pollute air and groundwater, but the industry argues it is safe. DEC has been studying the issue for more than three years amid an ever-louder debate. A state decision remains pending.

A vertical well could produce up to 200 gallons of wastewater a day, much less than the millions of gallons produced by a horizontal well. There are about 6,600 gas wells operating in the state, with about 90 percent using the low-volume technique, the report said.

State law exempts hydrofracking waste from being monitored under hazardous waste law, which would provide a clearer paper trail of what was in the waste, how much came from a well, and where it was disposed.

"The state is not ready to provide responsible oversight of the millions of gallons of wastewater high-volume fracking will dump on our doorstep, if Gov. Cuomo decides to permit it," said Katherine Nadeau, water and natural resources director of Environmental Advocates.

DEC officials were not immediately able to report how much hydrofracking waste is being produced each year in the state, telling a reporter such information could only be obtained under the state Freedom of Information Act.

"It is also important to note that if high-volume hydraulic fracturing moves forward in New York, it will do so with most stringent regulatory program in the nation," DEC spokeswoman Emily DeSantis said.

She said those requirements would include a process to monitor disposal of flowback water, production brine, drill cuttings and other drilling waste streams "similar to the scheme applicable to the handling, transport and disposal of medical waste."

DeSantis said state law for drilling wastes requires an annual report to be submitted at renewal time listing the volume of waste sent to each authorized treatment or disposal facility.

In 2010, according to DEC, there were about 23.6 million gallons of hydrofracking waste produced in the state, including salty brine water brought up from underground.

More than 10 million gallons were sent to municipal sewer treatment plants, and another 6.8 million gallons were spread on local roads to hold down dust or provide traction during winter months. Another 6 million gallons were sent to other states for treatment or disposal.

"The report is very light on facts and heavy on the innuendo, false assumptions and rhetoric," said John Holko, president of Lenape Resources and a board member of the Independent Oil & Gas Association of New York. "The natural gas industry, under the regulatory supervision of the (DEC), has a stellar track record of environmental safety and compliance."

2012-04-24T07:37:00.002-07:00

EAGLE FORD SHALE Drilling Permit Updates

April 24, 2012

There were no new drilling permits filed in Aransas, Brooks, Duval, Jim Wells, Kenedy, Kleberg, Refugio and San Patricio counties.

LIVE OAK COUNTY

Burlington Resources O & G Co. LP, of Houston, has filed for permits to drill a 12,800, a 12,900-foot and a 13,100 horizontal well in the Sugarkane (Eagle Ford) field. The #1 Rafter Two Unit C (12,900 feet) will be located 10.7 miles northwest of Three Rivers in Sec. 100 of the Poitevent J A-589 survey. The #1 Wernli Unit A (13,100 feet) and the #1 F. Malek Unit Y (12,800 feet) will be located 13.3 miles northeast of Three Rivers in Sec. 132 of the Owen S A-312 survey.

Choice Exploration Inc., of Arlington, has filed for a permit to drill a 6,200-foot well in the Wildcat field. The #1 Dirks will be located one mile north of Dinero in the Curry J. A-143 survey.

MCMULLEN COUNTY

Aurora Resources Corp., of Corpus Christi, has filed for a permit to drill a 15,000-foot horizontal well in the Eagleville (Eagle Ford-1) field. The #1H Peeler Efs will be located 8.7 miles northeast of Tilden in Sec. 531 of the Martin J M A-1116 survey.

Layline Petroleum I LLC, of Houston, has filed for a permit to drill a 10,800-foot well in the A.W.P. (Olmos) field. The #2 Lee Wheeler -C- will be located seven miles southeast of Tilden in the Ellis Lockridge A-299 survey.

Petrohawk Operating Co., of Houston, has filed for permits to drill five 14,000-foot horizontal wells in the Hawkville (Eagleford Shale) field. The #2H Karen Wheeler will be located 8.1 miles southeast of Tilden in the Vela M R A-483 survey. The #13H Gentry will be located 11.1 miles southeast of Tilden in the Fadden P A-4 survey. The #4-H Gentry, the #18H Gentry, and the #29H Gentry will be located 11.6 miles southeast of Tilden in the Fadden P A-4 survey.

Talisman Energy USA Inc., of Spring, has filed for a permit to drill a 12,000-foot horizontal well in the Eagleville (Eagle Ford-1) field. The #E 1H Y Bar Ranch will be located 6.1 miles northeast of Tilden in the Kimberly J A-289 survey.

NUECES COUNTY

Sue-Ann Operating L.C., of Victoria, has filed for a permit to drill a 6,700-foot well in the Minnie Bock North (Frio Cons) field. The #26 Dugger L.M. will be located 3.4 miles southwest of Robstown in Sec. 601 of the De Herrera J L A-607 survey.

EPA Final Rules For Natural Gas Wells

2012-04-19T10:12:00.002-07:00

EPA orders "Green Completions" for Frac Natural Gas Wells

Thursday, April 19, 2012

Breaking News – EPA Issues Final Air Rules for Oil and Gas Industry, but delays until January 2015 the requirement to reduce emissions during operations using so-called green completion equipment.

Here is Summary of Key Changes to EPA Air Rules

EPA’s Air Rules for the Oil & Natural Gas Industry

SUMMARY OF KEY CHANGES TO THE NEW SOURCE PERFORMANCE STANDARDS

On April 17, 2012, the U.S. Environmental Protection Agency (EPA) issued cost-effective regulations, required by the Clean Air Act, to reduce harmful air pollution from the oil and natural gas industry while allowing continued, responsible growth in U.S. oil and natural gas production. The final rules include the first federal air standards for natural gas wells that are hydraulically fractured, along with requirements for several other sources of pollution in the oil and gas industry for which there are currently no federal standards. The rules for fractured gas wells rely on proven, cost-effective technology and practices used by industry leaders today, including those in EPA’s Natural Gas STAR Program.

After considering the extensive comments received on the proposed rule, the final rule increases compliance flexibility for well owners and operators; streamlines notification, reporting, and recordkeeping; avoids unnecessary spending of state and private resources; enhances transparency and accountability; and maintains comparable environmental benefits.

KEY PROVISIONS IN THE FINAL RULE

Green completions, also called reduced emission completions (or RECs), continue to be identified as the best system of emission reduction, but EPA has identified a transition period (until January 1, 2015) to ensure green completion equipment is broadly available. During this transition period, fractured and refractured wells must reduce their emissions through combustion devices (flares). To recognize the leadership of owners and operators who have already adopted green completions as a best management practice and to encourage others to become early adopters, while at the same time eliminating unnecessary expenditures of state resources, the final rule redefines actions that constitute modifications under the New Source Performance Standard program (NSPS).

COMMENTS SUBMITTED ON THE PROPOSED RULE Substantive comments were received on the proposed rule including a significant amount of new data. This information focused on a number of key issues, including:

o The intended breadth and impact of the rule including clarification of the definitions of natural gas well and reduced emission completions;

o The technical feasibility and cost effectiveness of reduced emission completions, including the availability of equipment need to perform green completions;

o The rule’s alignment with existing state permitting programs;

o The advisability of pre-notification and annual reporting requirements; and

o A variety of technical issues related to proposed controls of pipeline gas, pneumatic controllers, and storage tanks.

CHANGES MADE IN THE FINAL RULE

The definition of natural gas well was clarified.

o In response to questions about the intended breadth of the rule, the definition of a natural gas well was expanded to provide more certainty to the regulated community as well as state regulators. Language was added to identify key indicators of natural gas wells, including the availability of appropriate gas collection infrastructure as well as drilling locations within the four geologic formation types generally accepted as gas-producing. The four formation types are high permeability gas, shale gas, other tight reservoir rock, and coal seam.

The definition of green completion was clarified to focus on performance rather than identifying specific required technology for these completions.

o The changes allow greater flexibility, lower costs, and reduced burden on equipment manufacturing and distribution, while maintaining the intended emission reductions.

Low-pressure wells were identified and exempted from green completion requirements.

o In addition to wildcat and delineation wells, the final rule exempts non-wildcat and non-delineation low-pressure wells from the need to conduct green completions because of technical infeasibility. Information gathered by EPA indicates that green completions are not feasible to conduct in approximately 87 percent of the natural gas wells fractured in coal bed methane formations. The change reduces approximately 10 percent of the fractured natural gas wells overall, which recognizes current technology limitations, lowers expected compliance costs of the rule and reduces anticipated burdens on equipment manufacturing and distribution.

A transition period was identified before green completions would be required.

o The final rule allows affected sources until January 1, 2015 before they need to conduct green completions, ensuring sufficient time for needed cost-effective control equipment and trained operators to become broadly availability. During this transition period, flaring will be required to reduce VOC emissions by 95 percent and thus preserves comparable environmental benefits.

Early adoption of green completions will be encouraged.

o The definition of modifications was revised to recognize the leadership of well owners and operators who have already adopted green completions as best management practices and to encourage others to become early adopters. Given that green completions minimize emission increases that would otherwise trigger requirements for modifications under NSPS, owners and operators of existing wells can choose to conduct refracturing activities without changing their state permit status. This revision also has the advantage of maintaining flexibility in the application of state permitting authority and resources without compromising emission reductions. Lastly, as an incentive for early installation of green completion equipment, this change could have the effect of increasing its availability in ways that benefit supply and price.

Pre-notification requirements were streamlined and annual reports were revised to enhance transparency and accountability.

o Pre-notification has been simplified to sending an email no later than 2 days prior to completion following the hydraulic fracturing or refracturing of a gas well. State pre-notification requirements were also determined to be sufficient for compliance as a way to avoid unnecessary duplication. Transparency and accountability have been enhanced by requiring a senior official to certify the accuracy of annual reports. In addition, the agency has provided more flexible and streamlined options for industry to structure their annual compliance reports, including allowing them to report emissions by company, not by source as was the case in the proposed rule.

Does not finalize requirements for compressors and pneumatic controllers in the transmission segment of this industry

o Based on public comment, the agency concluded it needed additional information in order to set cost-effective standards for compressors and controllers in this segment, where VOC content of the gas generally is low. A variety of changes were made to encourage leak reductions from existing equipment and from storage vessels in response to technical comments.

o A number of technical changes were made as a result of comments received. Most notably, the final rule exempted from regulation low-bleed controllers (with bleed rates below 6 standard cubic feet per hour) located between the well-head and the point where the gas enters the transmission line, to encourage a quicker transition from high-bleed controllers. The requirements for high-bleed controllers were also phased in over one year to give manufacturers of these devices the time needed to test and document the gas bleed rate. A different metric was also identified to simplify the determination of which storage tanks are covered by the standards. Instead of the proposed throughput measurement, the final rule identified a regulatory cutoff of 6 tons of VOC emissions annually for storage tanks. In addition, the final rule provides a one year phase-in for required storage vessel combustion devices to ensure equipment availability.

EPA Issues Final Air Rules for the Oil and Natural Gas Industry

On April 17, 2012, the U.S. Environmental Protection Agency (EPA) issued cost-effective regulations, required by the Clean Air Act, to reduce harmful air pollution from the oil and natural gas industry while allowing continued, responsible growth in U.S. oil and natural gas production. The final rules include the first federal air standards for natural gas wells that are hydraulically fractured, along with requirements for several other sources of pollution in the oil and gas industry that currently are not regulated at the federal level. Based on public comment, EPA made a number of changes to the proposed rules to increase compliance flexibility while maintaining comparable environmental benefits, streamline notification, recordkeeping and reporting requirements, and strengthen accountability.

Final rule (PDF) (588pp, 1.3 MB)
Overview fact sheet (PDF) (5pp, 354k)
Summaries of requirements for:
- Natural gas well sites (PDF) (5pp, 411k)
- Natural gas gathering and boosting stations (PDF) (3pp, 389k)
- Gas processing plants (PDF) (3pp, 395k)
- Natural gas transmission compressor stations (PDF) (2pp, 322k)
- The oil industry (PDF) (2pp, 320k)
Summary of key changes to the rule (PDF) (3pp, 320k)
Regulatory Impact Analysis (PDF) (224pp, 1.8 MB)

Deadline for Final Oil and Gas Rule extended to April 17, 2012
April 2, 2012 - EPA and parties have agreed to a two-week extension – until April 17, 2012 - on a consent decree to issue final air rules for the oil and natural gas industry. The agency requested the additional time to fully address the issues raised in the more than 156,000 public comments we received on the proposed rules.

Stipulation extending deadline for issuing final rule (PDF) (3pp, 10k) - filed April 2, 2012

EPA extends public comment period for oil and natural gas proposed rule
October 24, 2011 - EPA is granting requests for a 30-day extension to the public comment period for the Agency's proposed standards to reduce air pollution from oil and natural gas drilling operations. The public comment period will now close on November 30, 2011. The standards would rely on cost-effective existing technologies to reduce emissions that contribute to smog pollution and can cause cancer, while supporting the administration's priority of continuing to expand safe and responsible domestic oil and gas production. The standards would leverage operators' abilities to capture and sell natural gas that currently escapes into the air, resulting in more efficient operations while reducing harmful emissions that can impact air quality in surrounding areas and nearby states.
In addition, the litigants in the suit have agreed to a 35-day extension of the date for the final rule, which would extend the deadline from February 28, 2012 to April 3, 2012.

Proposed rule extension (PDF) (2pp, 147k) - Federal Register - October 28, 2011
Stipulation extending deadline for issuing final rule (PDF) (3pp, 11k) - filed October 28, 2011
Summary of topics on which EPA is seeking comments (PDF) (8pp, 129k) - Topics on which EPA is specifically seeking comment in the proposed regulations for the oil and gas industry. Comments are due by November 30, 2011.

Public Hearings
August 25, 2011 - EPA will hold three public hearings on the proposed standards to reduce air pollution from the oil and natural gas industry. The hearings will be Sept. 27, 28 and 29 in Pittsburgh, Denver and Arlington, Texas

Hearing Notice (PDF) (2pp, 184k) - Federal Register - August 26, 2011
List of preregistered speakers
- Pittsburgh, PA (PDF) (4pp, 213k)
  - Audio Recording of Hearing Part 1 (mp3) (21.3 MB)
  - Audio Recording of Hearing Part 2 (mp3) (17.0 MB)
  - Audio Recording of Hearing Part 3 (mp3) (13.3 MB)
  - Audio Recording of Hearing Part 4 (mp3) (13.2 MB)
  - Audio Recording of Hearing Part 5 (mp3) (20.2 MB)
  - Audio Recording of Hearing Part 6 (mp3) (25.1 MB)
- Denver, CO (PDF) (3pp, 166k)
- Arlington, TX (PDF) (3pp, 75k)
  - Audio Recording of Hearing Part 1 (mp3) (5.5 MB)
  - Audio Recording of Hearing Part 2 (mp3) (46.1 MB)
  - Audio Recording of Hearing Part 3 (mp3) (8.2 MB)
  - Audio Recording of Hearing Part 4 (mp3) (23.0 MB)

EPA proposes air rules for the oil and gas industry
July 28, 2011 - The U.S. Environmental Protection Agency proposed a suite of highly cost-effective standards to reduce emissions of smog-forming volatile organic compounds (VOCs) and air toxics from the oil and natural gas industry. The rules also would significantly reduce methane, a potent greenhouse gas.

Proposed rule (PDF) (106pp, 772k) - Federal Register - August 23, 2011
Fact sheet (PDF) (8pp, 419k)
Overview Presentation (PDF) (15pp, 250k)
Regulatory Impact Analysis (PDF) (204pp, 1.6 MB)

EPA Postpones New Air Standards on Frac NG Wells

2012-04-04T10:14:00.003-07:00

UPDATE: EPA Postpones New Air Standards For 'Fracked' Natural Gas Wells

--EPA postpones new air rules for wells drilled with hydraulic fracturing
--EPA says it needs more time to digest comments on the rule
--Energy industry says the rules are too burdensome
(Updates with details on concerns from industry and environmental groups.)
By Tennille Tracy
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The Environmental Protection Agency postponed its first rules aimed at reducing air pollution from oil and natural-gas wells drilled by hydraulic fracturing, following a last-minute push by energy companies to weigh in on the new standards.
The EPA said in a statement Monday it is postponing the rules by two weeks to April 17. The EPA said it needs more time to digest more than 150,000 comments submitted on the rule.
Earthjustice attorney Robin Cooley told reporters Monday that environmental groups are "disappointed that EPA hasn't gotten its act together," but said it is important for the agency to develop tighter standards.
Earthjustice sued the EPA to compel the agency to develop the rules, resulting in court-ordered deadlines for the EPA to do so.
The delay follows a last-minute push by energy companies and trade groups to weigh in on the rule's development. White House records show these companies and groups met at least three times with top administration staff in the last two weeks. Among them were Chesapeake Energy (CHK), Southwestern Energy (SWN) and the Western Energy Alliance.
The oil and natural gas industry says the rules are too prescriptive and require energy companies to use equipment that isn't readily available.
Environmental groups say the rules will eliminate a large source of air pollution, especially in regions where natural gas drilling is active.
The EPA's rules aim to reduce the amount of methane and smog-forming emissions coming from the oil and natural-gas industry. They represent the first time the agency is developing air standards for wells that are hydraulically fractured.
-By Tennille Tracy, Dow Jones Newswires; 202-862-6619; tennille.tracy@ dowjones.com

Marcellus & Utica Shale

2011-09-08T07:48:00.000-07:00

Sept 8, 2011

New York Proposes Marcellus Shale 'Construction Window' to Pace ...

‎
Bloomberg - Jim Polson - Mike Lee - 18 hours ago

The state is poised to issue permits to tap into the Marcellus Shale formation next year, once it adopts rules developed in a three-year review. ...

Local: Corbett skips shale conference to manage flood response‎ Pittsburgh Post Gazette
In-Depth: Shale gas CEO: Anti-drilling activists 'extremists' | Philadelphia ...‎ Philadelphia Inquirer
Blog: State DEC Predicts Jobs Boost from Natural Gas Drilling‎ New York Daily News (blog)
Philadelphia Daily News - Gas Business Briefing
all 449 news articles » TLM - CHK

CBC.ca

►

Ohio opponents to seek moratorium on gas drilling

‎
BusinessWeek - Julie Carr Smyth - 2 hours ago

Ohio would join New York and New Jersey among states above the fuel rich Marcellus shale if it imposes the ban. Calls for bans in West Virginia and Michigan ...

Highly Cited: First Impressions of New York's New Environmental Study of Fracking‎ Natural Resources Defense Council (blog)
In-Depth: Report Outlines Rewards and Risks of Upstate Natural Gas Drilling‎ New York Times
Hydrofracking to spur job boom: state‎ New York Post
Gothamist - YNN Hudson Valley
all 129 news articles »

FuelFix (blog)

Utica Shale Oil Play Update

‎
Seeking Alpha - 58 minutes ago

The Utica Shale is a huge rock unit with a footprint that basically overlaps the Marcellus Shale. The Utica is much deeper than the Marcellus, ranging from ...

Consol sells Utica Shale rights in Ohio for $593M‎ Wall Street Journal
CONSOL, Hess, to form Utica shale partnership‎ Reuters
Consol to split Ohio shale work with NY company‎ Pittsburgh Post Gazette
Monessen Valley Independent
all 134 news articles » CNX - HES - REXX

Proactive Investors USA & Canada

Marcellus Conference Panel: Altmire, Critz, Murphy and Pitts

‎
PoliticsPA - Greta Fenzl - 14 hours ago

Tom Reed (R-NY), drilled down into the issues surrounding the drilling of Marcellus Shale and its economical potential throughout the state. Rep. ...

Pennsylvania's US delegation offers bipartisan support to drillers‎ Platts
all 4 news articles »

Range Sets Ethane Biz In Motion

‎
Daily Markets - 22 hours ago

Range Resources Corporation (NYSE:RRC) will sell ethane from its Marcellus Shale operations in southwestern Pennsylvania to Canada-based NOVA Chemicals ...

RRC - ETR:IXU - MWE

Drilling rules move forward in Murrysville

‎
istockAnalyst.com (press release) - 3 hours ago

A motion was approved Wednesday to advertise an amendment that will regulate Marcellus shale drilling. Six members of council voted in favor of the motion, ...

UGI chief and state officials mull over future economic potential ...

‎
Scranton Times-Tribune - David Falchek - 11 hours ago

CEO John Walsh at the Marcellus Shale Coalition Conference in Philadelphia Wednesday. The largest natural gas utility serving Northeast Pennsylvania ...

City picks property for shale drilling

‎
Warren Tribune Chronicle - Matthew Steffy - 9 hours ago

The Marcellus shale, dense rock deep beneath Ohio, West Virginia, Pennsylvania and New York, contains enough natural gas that some experts predict it could ...

MarkWest, Sunoco Moving Forward with Marcellus Pipeline Plans

‎
NGI's Shale Daily (subscription) - 15 hours ago

Mariner West is an expansion of Project Mariner, designed to transport ethane produced in the Marcellus Shale to US Gulf Coast and international markets by ...

MarkWest Liberty Announces Major Milestones with Successful Open ...‎ Your Industry News (press release)
Sunoco Logistics Partners LP Announces Successful Open Season For ...‎ LogisticsWeek
all 20 news articles » SXL - MWE - ASX:EMA

US needs a national energy policy, former PA governor says

‎
Gas Business Briefing - 4 hours ago

The last eight presidents set mandates on energy independence, but little progress has been made, Ridge tells the Marcellus Shale Coalition's Shale Gas ...

Penn State study shows more modest economic impact from shale gas

2011-08-26T05:33:00.001-07:00

LAURA LEGERE (STAFF WRITER) Published: August 30, 2011For More Information: http://thetimes-tribune.com
PENN STATE STUDY SHOWS Modest Economic Impact from Shale Gas

A new Penn State study of the economic impacts of the Marcellus Shale has found that Pennsylvania natural gas development in 2009 created roughly half the jobs and economic activity reported in earlier, industry-financed studies.
The more modest findings were reported Monday by researchers at the Pennsylvania College of Technology and Penn State Cooperative Extension.
The study, which examined not only how much money Marcellus Shale drillers spend on wages, leasing and royalty payments in Pennsylvania but also where and how those dollars are spent, found that "a significant portion" of the money left the community where the land was leased or was not spent in the year it was earned. Previous economic studies did not consider those factors and instead "assumed that all the dollars accrue to Pennsylvania households and are spent like normal income," the authors wrote.
Because of that, the number of jobs supported by the industry - about 23,000 in 2009 - is smaller than earlier estimates, Penn State researchers wrote. The total economic activity generated by the industry that year is also smaller: $3.1 billion.
A 2010 study by other Penn State researchers and funded by the Marcellus Shale Coalition estimated that the industry supported about 44,000 jobs and generated more than $7.17 billion in economic activity in 2009.
"Our results confirm that where leasing and royalty dollars are going significantly influences the estimated overall impacts," said Timothy Kelsey, Ph.D., a professor of agricultural economics at Penn State and a lead author of the study.
Although the authors noted that mineral rights ownership is often separate from surface ownership and is nearly impossible to study, they looked at property ownership in counties with Marcellus activity and found that only about half the land is owned by residents who also live in those counties. A quarter is owned by Pennsylvania residents who live elsewhere in the state, about 8 percent is owned by residents of other states and about 17 percent is publicly owned.
"This would imply that a large portion of the economic benefits immediately leaves the communities being impacted by drilling," Dr. Kelsey said.
The Penn State researchers detailed other notable findings, including:
- Landowners save or invest about 55 percent of leasing bonus payments and about 66 percent of royalty payments instead of spending them immediately, according to surveys.
- 28 percent of business in Bradford and Washington counties that responded to surveys said their sales had increased because of the gas development and only 3 percent reported a decline in sales.
- And only 18 percent of municipalities directly experiencing drilling activities in the most active Marcellus counties said their tax revenues had increased, while 26 percent of the local governments indicated that their costs had increased.
"This confirms that considering both revenues and costs is critical for having a complete understanding of the impacts of Marcellus Shale," the authors wrote. "These findings from local officials contrast with prior economic studies which predicted that there would be large local tax impacts, but which did not verify what is actually occurring."
David Kay, a senior extension associate with Cornell University's Community and Rural Development Institute who has studied past Marcellus economic impact studies, called the new report "the most careful study of the issue that's been done to date" using a common analytical tool called an input-output model.
The researchers did "a lot of empirical, on-the-ground survey work," he said. "They still had to make a lot of assumptions, but they had to make many fewer assumptions than were made in many of the other studies."
Kathryn Klaber, president of the Marcellus Shale Coalition, pointed to the study's shortcomings, calling it "far from complete and based on years-old data," but said it "illustrates the Marcellus Shale's growing economic strength."
Sharon Ward, director of the liberal-leaning Pennsylvania Budget and Policy Center, welcomed the report, which she said "offers a better assessment of the economic effects and contemplates the uncompensated costs to paint a fuller picture of the role of gas drilling to the state's economy."
She added that although the report does not address the issue of a statewide drilling tax - a tax the center supports - it "makes the case" for such a tax by alluding to "a lack of direct revenue to local governments, plus human, health, and environment impacts."
"The report makes clear that gas drilling brings additional wealth to leaseholders," she said, "but that it also brings additional headaches, and costs, to municipal officials struggling with gas-related impacts for which many receive no offsetting tax income."
Contact the writer: llegere@timesshamrock.com

Read more: http://thetimes-tribune.com/news/penn-state-study-shows-more-modest-economic-impact-from-shale-gas-1.1195154#ixzz1WWMQymnh

Natural-gas data fuels ‘fracking’ battle

By Ben Geman - 08/25/11 01:15 PM ET

New federal estimates of the natural-gas resources beneath Eastern states are quickly touching off fresh battles over the controversial hydraulic fracturing drilling method.

The U.S. Geological Survey this week greatly increased its estimate of recoverable natural gas in the Marcellus Shale formation that underlies major areas of Pennsylvania, New York and other states.

But while USGS boosted its mean estimate from 2 trillion cubic feet to 84 TCF — almost enough to meet four years of current U.S. demand — the figure is far lower than the federal Energy Information Administration’s (EIA) most recent projection.

EIA, the Energy Department’s statistical arm, estimates 400 TCF in its most recent annual forecast in April, but the new data could lead to a lower projection. On Thursday, a spokesman said EIA’s next forecast would fold the USGS numbers into EIA’s modeling.

“Incorporating the new USGS resource assessment will lower the assumptions about the technically recoverable natural gas resources in the Marcellus that will be used in the next Annual Energy Outlook,” spokesman Jonathan Cogan said in an email.

But, he said, it’s too soon to say what EIA’s next estimate for Marcellus Shale resources will be.

“USGS has just begun to share details of their assessment with EIA. As we learn more about those details we will have a better understanding of how best to integrate the information into the projections presented in the next edition of our Annual Energy Outlook 2012,” he said of the study that surveys U.S. energy trends decades into the future.

The statistical nitty-gritty has big political implications.

Gas from shale formations is commonly tapped with hydraulic fracturing — or “fracking” — a method that advocates tout as a way to unlock vast supplies, boosting energy security and the economy in the process.

But environmentalists fear the U.S. shale-gas boom could lead to widespread groundwater pollution by expanding use of fracking, which involves high-pressure injections of water, chemicals and sand into gas-bearing rock formations.

Fracking foes pounced Wednesday on the USGS figure because it’s vastly lower than the EIA projection.

“It is clear that there is not, nor will there ever be, enough gas in the region to justify fracking, especially given the risks it poses to public health and the environment. It also goes to show why the natural gas industry shouldn't be given license to police its own fracking activity, or to write its own rules,” said Wenonah Hauter, executive director of Food & Water Watch, in a statement.

Rep. Maurice Hinchey (D-N.Y.), a fracking opponent on Capitol Hill, said the USGS estimate should prompt a review of plans for shale-gas development in his state, noting “it is important that we understand all of the environmental and economic impacts that would result if drilling were to move forward in our state.”

“That's why it is essential that the public, the markets and policy makers have unbiased shale gas reserve estimates,” he said.

Natural-gas companies say they employ safeguards to protect groundwater and that contamination concerns are vastly overstated.

The Marcellus Shale Coalition, an industry group, this week welcomed the new USGS data that showed a big increase from its 2002 projections.

“These new figures are further affirmation that the Marcellus Shale will continue to safely produce prolific amounts of clean-burning American natural gas for generations to come. While advent of shale gas development in the United States was only several years ago, its impact is proving to be profound and lasting,” said Kathryn Klaber, the group’s president, in a statement earlier this week.

On Thursday, a spokesperson for the group sought to focus on the USGS’s huge increase in its projections, rather than their size compared to EIA’s estimate.

“Technological advancements continue to help responsibly unlock enormous amounts of clean-burning American energy. Yet with reports that a 4,100 percent increase in Marcellus reserves somehow, strangely, represent a decrease, we also know that it’s silly season,” the spokesperson said.

The new USGS data comes at a time when U.S. shale gas development — which is booming in Pennsylvania, Texas and other states — is drawing wider scrutiny along a number of fronts.

New York State Attorney General Eric Schneiderman recently sent subpoenas to several energy companies seeking information about how they are representing the long-term productivity and profitability of their gas wells, according to several published reports.

The Securities and Exchange Commission has also sent subpoenas to multiple companies relating to gas wells and reserves.

Shale-gas production has soared in recent years as advances in horizontal drilling and hydraulic fracturing have enabled economic production.

EIA estimates that gas from shale formations will account for 47 percent of U.S. gas production in 2035, up from 16 percent in 2009.

EIA’s Cogan says total resource estimates are just part of the story when it comes to natural-gas development.

“Variation in factors related to drilling costs and well productivity can have a larger effect on projected natural gas production and prices than variation in the assumed amount of technically recoverable resources,” Cogan said in an email.

Comments (1)

In New Brunswick, Canada. SWN and our government having been making deals in private for the exploration of shale gas and yet have, in their words, informed the public. This is untrue by my findings and to my disappointment I have only found information that would lead me to believe that the potential devastation can range from low to extremely high for all that live near these types of shale gas developmental projects. Thank you for speaking out, all information on this subject must be considered.

Shale Play USA

2011-08-22T16:09:00.000-07:00

Aug 25, 2011 Thursday

Truth about Gasland
www.anga.us/TruthAboutGasland
Let's talk about natural gas in a fact-based way. Learn more.
►

Add "shale gas land lease" section to my Google News homepage

Search Results

Geologists Sharply Cut Estimate of Shale Gas

‎
New York Times - Ian Urbina - 8 hours ago

The shale formation has about 84 trillion cubic feet of undiscovered, ... where and whether to leasetheir land to drillers or invest in gas companies. ...

Cawley calls for improvements to drilling regulations‎ Citizens Voice
all 413 news articles »

WTF: What's This Fracking?

‎
IBTimes - 3 hours ago

This is done at very high pressures in order to fracture the gas (or oil) bearing shale or coal and increase the flow rate for economically efficient ...

Regulate fracking

‎
Toledo Blade - 7 hours ago

There's a land rush under way in Ohio, as drilling companies buy up leases on thousands of acres ofland that sit on potential natural gas riches. ...

Simmering for a century, Tipton, Lamborn want to put oil shale on ...

‎
The Colorado Independent - David O. Williams - 16 hours ago

Oil shale production – not to be confused with shale oil and gas (which is ... has offered three new parcels – one of which ExxonMobil is seeking to lease. ...

Drilling rights sales hit record $2.68B

‎
Calgary Herald - Dan Healing - 12 hours ago

The department is projecting revenue of $38.3 billion — $2.7 billion higher than forecast — due to record land lease sales along with higher oil prices and ...

Explorer for Natural Gas Loses Rights, Money Paid for Them

‎
New York Law Journal - 12 hours ago

Cabot is a Houston-based oil and gas drilling company. In the northeast, it has focused primarily on the Marcellus Formation, a ridge of shale that extends ...

COG

Aug 24, 2011

Letter of the day: Shale gas exploration doesn't warrant vandalism

‎
Times and Transcript - 3 hours ago

The response to the SWN's shale gas exploration in the province should make all New Brunswickers ashamed. This is a private company, who followed all proper ...

Take a stand for civility‎ CanadaEast.com
Alward plans education campaign on hydro-fracking‎ CBC.ca
all 5 news articles »

Fracking Advisory Panel Makes Final Report

‎
propane.pro - Lane Nichols - 1 hour ago

The panel gave a qualified endorsement for shale gas exploration, pointing out the numerous benefits on offer. But it called on companies to fully disclose ...

Haynes and Boone | Fracking Legal Landscape Updated in Haynes and ...‎ Linex Legal (press release) (registration)
all 4 news articles »

propane.pro

PHOTOS: Steve Earle Hits Political Notes in Sold-out State College ...

‎
State College News - Adam Smeltz - 22 hours ago

And he said gas-drilling advocates are "lying to you" about how many jobs will be created by MarcellusShale exploration. Areas outside New York state's ...

Study: Yield from shale understated

‎
Warren Tribune Chronicle - Matthew Steffy - 7 hours ago

Travis Windle, spokesman for the coalition, said the first wells targeting Marcellus shaleserved to gauge production, and the methods of drilling those ...

Shale gas declared a priority‎ China.org.cn
Geologists Preach Caution on Utica Shale‎ NGI's Shale Daily (subscription)
Marcellus Shale holds 84 TCF of undiscovered, recoverable natural ...‎ PennEnergy- Energy News (press release)
all 328 news articles »

West Virginia Public Broadcasting

Gas important to future of NB

‎
Times and Transcript - 3 hours ago

We have heard reports that protesters opposed to exploration for shale gas have intimidated and even physically assaulted the workers going about their ...

Senate drilling hearing draws crowd in Westchester County ...

‎
WAMC - 14 hours ago

State Senator Greg Ball's district isn't a hotbed for drilling activity, ... used by oil and gas companies to extract natural gas from shale formations. ...

WAMC

Ukraine to Auction Shale Gas Licenses Soon, Minister Says

‎
Bloomberg - 23 hours ago

... auction permits for shale-gas extraction, Coal and Energy Minister Yuriy Boyko said. ... gasexploration in Ukraine in September and November, Boyko said.

NB: Southwestern Resources stops shale gas tests over safety concerns

‎
Daily Business Buzz - New Brunswick - 23 hours ago

She said while some opponents may have exaggerated some information about shale gasexploration, the industry has not been completely open with the facts. ...

Daily Business Buzz - New Brunswick

RPC Inc.: A Hidden Gem In The Oil Well Services And Equipment Sector

‎
Seeking Alpha - 20 hours ago

RPC Inc. has also shown interest in entering the Bakken Shale, where large oil companies such as Brigham Exploration Company, Concho Resources Inc. (CXO) ...

RES - CXO - EOG

WVDEP issues ‘emergency’ rules on drilling

August 22, 2011 by Ken Ward Jr.

Here’s the release issued today by the West Virginia Department of Environmental Protection:

The West Virginia Department of Environmental Protection, as directed on July 12 by Gov. Earl Ray Tomblin in Executive Order No. 4-11, filed an emergency rule today with the Secretary of State’s Office to increase the DEP’s regulatory oversight of horizontal well development in the state.

The rule, which adds new permit application requirements for operators drilling horizontal gas wells, as well as new operational rules to protect the state’s water quality and quantity, will become effective after approval by the Secretary of State and remain in effect for 15 months.

The emergency rule is intended to help the DEP better regulate the state’s growing natural gas industry, which is benefitting from improved horizontal drilling techniques that allow operators to more easily access deep shale gas, such as that found in the Marcellus Shale. Those same drilling techniques involve significant surface area disturbances and large-volume hydraulic fracturing that uses millions of gallons of water per well.

I’ve posted a copy of the WVDEP rules here, previous posts on this topic arehere, here and here.

The WVDEP news release continued:

The rule adds specific language to the state Office of Oil and Gas regulatory program that requires operators to include an erosion and sediment control plan and site construction plan, certified by a registered professional engineer, and a well site safety plan for well work permit applications involving well sites that disturb three acres or more of surface.

The rule also requires permit applicants to submit a water management plan if they intend to use more than 210,000 gallons of water during any one-month period.

The water management plan shall include information such as type of water source — surface or ground water; the counties from which water withdrawals will be taken; latitude and longitude of each anticipated withdrawal location; anticipated volume of each withdrawal and anticipated months withdrawals will be made; planned management and disposition of wastewater from fracturing and production activities; a listing of anticipated additives to be used in the water for fracturing; and, upon well completion, the listing of actual additives that were used.

Permit applicants, drilling within the boundaries of any municipality, are also required to place a legal newspaper advertisement in the area where the well is proposed. No well work permit will be issued until 30 days notice has been provided to the public.

It continued:

In addition to permit application requirements, the rule adds operational language that instructs companies to protect the quality and quantity of surface and ground water systems both during and after drilling operations and during reclamation; requires operators to comply with record-keeping requirements for the quantity of flowback water from hydraulic fracturing and the method of management or disposal of the flowback; stipulates that all drill cuttings and drilling mud be disposed of in an approved solid waste facility; and adds casing and cementing standards to prevent the migration of gas and other fluids into fresh ground water and coal seams.

Gov. Tomblin said he remains optimistic about the potential of West Virginia’s emerging natural gas industry as a plentiful energy source for the state and nation, as well as its potential to create thousands of good-paying jobs and revitalizing the state’s chemical and manufacturing industries.

“Still, we must work hard to make sure our efforts to capitalize on opportunities such as the Marcellus Shale are regulated responsibly and done in ways that protect our citizens and the environment,” Tomblin said. “I believe this emergency rule is a key first step to accomplishing that goal, but there is much work to be done.”

DEP Cabinet Secretary Randy Huffman said:

“As Gov. Tomblin has pointed out, this is not the end of the debate, but only the first step in addressing the myriad of concerns our citizens have regarding this practice. There is much discussion and debate yet to take place. And we look forward to working with the legislature to ensure a comprehensive approach to regulating horizontal drilling is addressed.”

This entry was posted on Monday, August 22, 2011 at 3:52 pm and is filed under Oil and gas.

Noble falls victim to Shale Gas "Ponzi" scheme?

2011-08-22T06:55:00.000-07:00

August 22, 2011 Shale Play USA News Briefs via Google News

GreenHunter signs agreement to lease mineral rights in Eagle Ford Shale region
istockAnalyst.com (press release) - ‎6 hours ago‎
The highly active Eagle Ford Shale drilling in South Texas extends predominantly throughout fourteen counties to the north-east and south-west of the facility's location, the company said.
Heavy water use for "fracking" oil and gas wells hot topic in drought-plagued ... Fort Worth Star Telegram (blog)
all 3 news articles »
GRH - EGAS
Baker Hughes to build Eagle Ford operations center in Corpus Christi
Corpus Christi Caller Times - Mike D. Smith - ‎Aug 19, 2011‎
CORPUS CHRISTI - A Houston-based oil field services company plans a multimillion-dollar investment that will create 75 new jobs in Corpus Christi - the latest major investment tied to Eagle Ford Shale exploration.
BHI
This Natural Gas Play Is Blossoming
Motley Fool - Isac Simon - ‎Aug 18, 2011‎
The Eagle Ford shale play is a relatively new development compared to similar shale plays in the United States. Yet the promise this South Texas area holds is immense.
Papa preaches shale in 2011 HBJ Energy magazine Bizjournals.com (blog)
GreenHunter to build water treatment facility in Eagle Ford Gas Business Briefing
MarketWatch (press release) - DailyFinance
all 20 news articles »
GRH
Luxury in the oilfield
Houston Chronicle - Jennifer Hiller - ‎Aug 20, 2011‎
THREE RIVERS - Down a quiet, bumpy road in a neighborhood of modest homes, lunch is served to anyone between shifts in the Eagle Ford shale oil fields. The buffet includes lamb kabobs on a bed of black-eyed peas with ...
Poland's Shale Gas: Bonanza or Boondoggle?
KUHF-FM - Andrew Schneider - ‎7 hours ago‎
US energy companies are are looking at Poland as a possible source of shale gas to supply European markets. But extracting that gas may prove far more challenging than are similar operations in the Barnett or Eagle Ford Shales.
TexCom to Offer Class II Nonhazardous Waste Disposal to E&P Companies in the ...
MarketWatch (press release) - ‎Aug 16, 2011‎
Purchased from Manti Premier Waste Disposal, LP, the site will serve as the foundation to provide Class II non-hazardous oilfield waste disposal services to E&P companies operating in the Eagle Ford Shale, a prolific oil and gas producing region in ...
Public hearing regarding the Eagle Ford Shale reservoir Laredo Sun
all 6 news articles »
PINK:TEXC - PINK:CMTX
Houston Chronicle (blog)
Luxury in the oilfield
Houston Chronicle (blog) - ‎2 hours ago‎
(PHOTO BY EDWARD A. ORNELAS/eaornelas@express-news.net) THREE RIVERS - Down a quiet, bumpy road in a neighborhood of modest homes, lunch is served to anyone between shifts in the

via Seeking Alpha

Noble Energy Becomes the Latest 'Victim' of the Shale Gas Ponzi Scheme

http://seekingalpha.com/article/288805-noble-energy-becomes-the-latest-victim-of-the-shale-gas-ponzi-scheme| August 22, 2011 | includes: APC, BHP, BP, CEO, CHK, CNX, COP, CVX, DVN, ECA, EOG,MITSY.PK, MRO, NBL, PTR, PWE, RDS.A, STO, TLM, TOT, XOM

see complete article here....

Since late June when I saw this article and then this article in the New York Times on consecutive days alerting us to the fact that the shale gas boom in the United States is a giant rouse, I have been determined to spread the word.

The opening paragraphs from the first Times article cut to the chase:

“Money is pouring in” from investors even though shale gas is “inherently unprofitable,” an analyst from PNC Wealth Management, an investment company, wrote to a contractor in a February e-mail. “Reminds you of dot-coms.”
“The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work,” an analyst from IHS Drilling Data, an energy research company,wrote in an e-mail on Aug. 28, 2009.

When I saw the phrases referring to the dot-com bubble and Ponzi scheme I was outraged. I thought these independent gas companies must have accumulated a bunch of worthless shale properties, and are talking up those assets so they can inflate their stock prices and sell out before the scam is revealed.

Surely nobody with any oil and gas reservoir knowledge would be fooled like Joe Public who is buying shares of these independent natural gas producers. So I set to doing a little bit of internet investigation and came up with this list of poor old grandmas who have been duped by this scam:

(Anadarko (APC), BG, BHP Billiton (BHP), BP (BP), Chevron (CVX), CNOOC (CEO), ConocoPhillips (COP), Devon (DVN), EnCana (ECA), ENI, EOG Resources (EOG), Exxon Mobil (XOM), KNOC, Marathon (MRO), Mitsubishi, Mitsui (MITSY.PK), PetroChina (PTR), Reliance, Shell (RDS.A), Statoil (STO), Talisman (TLM), Total (TOT)).

Each one of these companies has purchased shale gas properties from independents over the past couple of years. Each individual purchase was in the billions, so cumulatively the amount is tens and tens of billions. I spent about ten minutes compiling the list, so I’m sure I missed the vast majority of transactions.

I asked myself, what does this group of companies know about oil and gas reservoirs, production and economics? The New York Times has anonymous e-mails, what could this group of companies have? And then I remembered, they have more data, more expertise and more at risk in buying into shale gas than anyone else.

That made me wonder if perhaps I should be a little skeptical about the New York Times article. Then I read about Exxon’s experience with their giant purchase of shale gas producer XTO. It turns out that shale gas production from the acquisition is just fine and that Exxon, now with even more data on shale gas and first-hand production knowledge, actually wants to make additional shale gas acquisitions. Buyer beware!

And then I saw BHP acquire shale gas independent Petrohawk for $15 billion which is subsequent to a previous BHP joint venture deal with Chesapeake Energy (CHK). Again, another shale gas acquirer coming back for round two with another multi-billion dollar cheque.

Now Noble Energy (NBL) ventures into the game with a $3.4 billion deal with Consol (CNX) to get in on the action in the Marcellus shale.

I’m as up for a conspiracy theory as the next guy, but at some point doesn’t common sense have to kick in? All of the top oil and gas companies have had deep dives into the production profiles of these unconventional shale gas plays, and know the economics cold. These oil and gas companies aren’t just hungry to get into the game, but once in the game they like what they see and are ready to increase their exposure. Combined, these companies have invested what must easily be $100 billion at this point, acquiring shale gas acreage. Wouldn’t this sort of interest, at these dollar amounts, from this many different companies, allow us to conclude that shale gas is likely not some sort of hype/con job?

Recently I read this article that spoke with Chairman Larry Nichols of Devon Energy. Devon has one of the longest histories with shale gas, being an early entrant into the Barnett Shale play - which really was the first major shale breakthrough. In the article Devon actually says that production declines are much lower than expected, and that production is flattening out after much sooner than modeled. Devon has been drilling the Barnett since 2002.

I think what gets some people confused about these unconventional plays, both shale gas and unconventional oil, is that production does decline extremely rapidly in the first year. Usually after one year, production is down as much as 60% from initial production rates. The industry is aware of this, though, and this is factored into the economics. Most unconventional wells, depending on the specific play, pay out all invested capital in 12 to 24 months. The next 20 or 30 years of production are the return on the initial investment.

What excites me about companies in the unconventional game, especially those with unconventional oil properties, is that the technology is relatively new. Most of the companies that I follow are improving their well results every year. The companies are learning how to become more efficient at drilling the wells (reduced costs) and drill wells at higher production rates. These companies are going to get more oil and gas out of the ground than we currently expect.

This recent market sell-off provides an excellent entry point into many of the companies that have locked up huge resource bases in these unconventional properties. If you are interested in a lower risk exposure to this unconventional revolution I’d recommend having a look at Penn West (PWE) which has a huge land base in Western Canada, to which it is just beginning to take horizontal drilling techniques. I don’t think the company is even certain just how much upside they have in reserves and production that are vastly underexploited.

Now don’t get me wrong. I don’t think that at $4 natural gas these shale plays are licenses to print money. The boys need to slow down drilling and let the market balance itself. I think that slow-down is happening as forced drilling due to lease expiries is ending. What I do think is crazy talk is the suggestion that these shale gas wells are radically underperforming production expectations. I believe the production is real, the market just needs to set the proper price for the product.

EPA Air Regulations Could Force Up Utility Costs

2011-08-21T11:29:00.000-07:00

Utilities warn of higher rates because of pollution rules

By Thomas Content of the Journal Sentinel

Aug. 19, 2011 |(70) Comments

Two state utilities said this week new federal pollution rules will lead to higher electricity costs come January.
Wisconsin Public Service Corp. of Green Bay said its residential customers can expect an increase of more than $4 a month next year, including about $2 linked to the new rules designed to limit air pollution from coal-fired power plants.
The utility said it would see higher costs of about $32.6 million in 2012 from the Cross-State Air Pollution Rule that was finalized recently by the U.S. Environmental Protection Agency. That will result in rates going up by 6.8% instead of 3.4%, the utility said.
The U.S. Environmental Protection Agency last month finalized stronger regulations for Wisconsin and 26 other states aimed at curbing air pollution from long-distance sources.
Environmental groups praised the new rule because it would reduce acid rain and air pollution as well as help curb health effects from dirty air linked to coal plants. The EPA projected the rule will save up to 34,000 lives a year and prevent more than 400,000 asthma attacks as well as 19,000 admissions to hospitals.
Nationwide, the EPA estimated that utilities are projected to spend $800 million on the rule in 2014, in addition to $1.6 billion a year that's been spent to satisfy an earlier version of the regulations.
But the EPA estimates the nation will see $120 billion to $280 billion in annual health and welfare benefits beginning in 2014.
The new rule has been in development for several years but the first phase of compliance hits utilities in 2012. WPS said it won't have time to install pollution controls by next year at its plants, but will be able to comply by purchasing credits from other utilities that have cut emissions.
The utility also said it plans to operate its coal plants less next year than it otherwise would have, and will buy more power from the Midwest wholesale power market as a result, a move that it said is also a factor in higher costs for customers.
"This is the best option we have to meet power supply needs for 2012 and comply with the new EPA rule at this time," said Karen Kollmann, WPS director of fuels management in a statement.
On Thursday, Wisconsin Power & Light Co. of Madison said it would face an additional $9 million in costs linked to the air pollution rule. With the change, the utility is now seeking an increase in 2012 of $20 million, or 2%, utility finance manager Martin Seitz said in a filing with state regulators.
Todd Stuart, executive director of the Wisconsin Industrial Energy Group, criticized the increases, and he noted that large energy users like paper mills will see higher than average increases, compared with homeowners and small businesses. Paper mills served by WPS could see a 9% hike, he said.
"The EPA's new rules have directly resulted in a major new cost for struggling homeowners and manufacturers," Stuart said in a statement. "Members of Congress should be taking a very hard look at the significant compliance costs of EPA's new mandates."
"Industry always cries wolf whenever EPA tries to reduce air pollution," said Katie Nekola, lawyer with the conservation group Clean Wisconsin. "The fact is, the new rule will affect old, inefficient, unnecessary coal plants that should have been shut down long ago. The continued operation of those old units is costing ratepayers money, but you don't hear industry complaining about that."

Find this article at:
http://www.jsonline.com/business/128109718.html

Shale Play USA News Briefs Friday Aug 19,2011

2011-08-12T02:03:00.000-07:00

Friday, August 19th 2011 Shale Play USA News Briefs via google news

Shale gas: Can we safely tap a huge resource?
Washington Post - John Deutch - ‎12 hours ago‎
The emergence of the North American shale-gas resource is the most positive event in the US energy outlook in 50 years. But realizing this opportunity will require cooperation between industry and regulators on a new commitment to ...
Consol selling some Marcellus interests for $3.4B
Newsday (subscription) - ‎14 hours ago‎
News Newsday > News Content Preview Newsday/Optimum Online ® subscribers click here for full access Not a Newsday or Optimum Online ® subscriber? Click here Consol selling some Marcellus interests for $3.4B Published: August 18, 2011 4:47 PM By The ...
Pa. natural gas production rises 60 percent
Wall Street Journal - Mary Esch - ‎14 hours ago‎
AP The state's 1632 working Marcellus wells produced 432.5 billion cubic feet of natural gas through the first six months of the year, a 60 percent increase over the amount of gas reported for the last six months of 2010, according to Department of ...
Halliburton, Nabors lead big energy sector dip
MarketWatch - Shawn Langlois - ‎15 hours ago‎
SAN FRANCISCO (MarketWatch) — Oil and gas stocks followed the broader market deep into the red Thursday, falling hard along with crude prices. Marketwatch.com columnist David Weidner discusses Berkshire Hathaway CEO ...
Noble Energy Buys Into Marcellus by Partnering With CONSOL
Toronto Star - ‎17 hours ago‎
by Morningstar Analysts | 18 Aug 11 Noble Energy NBL and CONSOL Energy CNX announced a joint venture Thursday to develop CONSOL's 663350 net acres in the Marcellus Shale. Noble Energy will buy a 50% stake in CONSOL's acreage for $1.07 billion and ...
All 111 related articles »
Blogs
Noble Energy CEO says CONSOL JV is "right transaction" with "right partner"
Bizjournals.com (blog) - Anya Litvak - ‎19 hours ago‎
For those who follow Texas-based Noble Energy Inc. (NYSE: NBL), which is taking a 50 percent stake in CONSOL 's oil and gas operations for $3.4 billion, the move may seem counter to some pronouncements from Chairman and CEO Chuck Davidson in recent ...
Consol Energy selling half of Marcellus shale interests in Pa., W.Va. to Noble ...
Washington Post (blog) - ‎Aug 18, 2011‎
By AP, PITTSBURGH — Consol Energy Inc. said Thursday that it will sell half of its interest in its Marcellus Shale holdings in Pennsylvania and West Virginia for $3.4 billion in a deal that gives Noble Energy Inc. access to the lucrative Marcellus ...
Noble Energy enters shale gas venture in $3.4 billion deal
FuelFix (blog) - ‎7 hours ago‎
Noble Energy will pay $3.4 billion to join Consol Energy's Marcellus Shale venture, staking its first claim in the Northeast's thriving natural gas region, the Houston oil and gas producer announced Thursday. The deal will create a joint venture in ...
All 6 related blogs »
United States
Noble CEO upbeat on Marcellus shale joint venture
MarketWatch - Ryan Dezember - ‎19 hours ago‎
HOUSTON (MarketWatch) -- Oil and natural gas explorer Noble Energy Inc. /quotes/zigman/303974/quotes/nls/nbl NBL -5.58% plans to shed some of its "non-core" US assets to help pay for its $3.4 billion acquisition of Marcellus Shale ...
CONSOL Energy Announces Commencement of Consent Solicitation From Holders of ...
MarketWatch (press release) - ‎Aug 18, 2011‎
PITTSBURGH, Aug. 18, 2011 /PRNewswire via COMTEX/ -- CONSOL Energy Inc. /quotes/zigman/190880/quotes/nls/cnx CNX +0.40% today announced that it is soliciting consents (the "Consent Solicitations") to proposed amendments (the "Proposed Amendment") from ...
Consol Rises After Scheduling 'Significant' Announcement on Gas
Bloomberg - Simon Casey - ‎Aug 17, 2011‎
Consol Energy Inc. (CNX), an Appalachian coal and natural-gas producer, rose 8.9 percent in after-hours trading in New York after saying it will make a “significant” announcement about gas tomorrow. ...
All 111 related articles from United States »
Pennsylvania
Noble enters Marcellus in 'smart, cautious' deal
Gas Business Briefing - ‎2 hours ago‎
Houston-based independent Noble Energy Inc expanded its US footprint from Mid-Continent and the Gulf of Mexico into the Marcellus Shale with the Consol Energy Inc deal (see previous story). The 50-50 joint venture with Pittsburgh-based Consol gives ...
Marcellus waste increase attributable to new rules, errors
Scranton Times-Tribune - Laura Legere - ‎4 hours ago‎
Marcellus Shale natural gas drillers in Pennsylvania reportedly produced vastly more fluid and solid waste in the first half of 2011 than the previous six-month period, but changes in reporting requirements and mistakes ...
Science should be bedrock of Marcellus Shale debate Mark Guydish Commentary
Wilkes Barre Times-Leader - Mark Guydish - ‎7 hours ago‎
“My plea to you is that we try to improve and increase the amount of science, the amount of objective information that we have going into Marcellus Shale policy,” he said. FOR A fuel that burns clean enough to use in your kitchen, natural gas has ...

Eagle Ford Shale Wells Coming Online At 700 to 1000 Barrels Of Oil ...
‎
The Wall Street Transcript - 17 hours ago

SP Johnson IV has been President and CEO of Carrizo Oil & Gas, Inc., since founding the company in 1993. Previous to that, he worked for 15 years at Shell ...
NGG - BP - XOM

Pa. shale gas production increasing
UPI.com - ‎1 hour ago‎
17 (UPI) -- Natural gas production from the Marcellus shale gas play in Pennsylvania increased substantially during the first six months of 2011, the government said.
Hydrofracking a boom-bust endeavor Albany Times Union
Sierra Club warns of side effects from gas drilling in Raleigh County Beckley Register-Herald
Penn State Live - NGI's Shale Daily (subscription) - PennLive.com - Gas Business Briefing
all 156 news articles »
Iowan Shale Play? Texas Gov. Rick Perry Thinks So.
StateImpact Pennsylvania - Susan Phillips - ‎11 hours ago‎
In fact, lots of people knew about the Eagle Ford Shale play long before they started to tap it for natural gas. And geologists knew about the Marcellus Shale. What gas industry engineers didn't know, was how to drill economically until they developed ...
ARCADIS Welcomes Steven Lewandowski to Company as Shale Gas Program Manager
Sacramento Bee - ‎17 minutes ago‎
17, 2011 -- /PRNewswire/ -- ARCADIS (EURONEXT: ARCAD), the international consultancy, design, engineering and management services company, announced today that Steven P. Lewandowski has joined the firm to lead the ARCADIS Marcellus Shale Gas program, ...
PINK:ARCAY
Petroleum Economist
Shale gas no game-changer for Europe
Petroleum Economist - ‎5 hours ago‎
The greatest potential lies in shale-gas development, but Europe's petroleum systems seem to be smaller in size compared with successful USplays: shales are often deeper and there has been a far greater degree of tectonic activity.
Investment U
Emerging Shale Oil Plays
Investing Daily - Peter Staas - ‎Aug 11, 2011‎
In The Future of Shale Gas is International, we opined that major international oil and natural gas companies were investing heavily in US shaleplays to gain experience that would translate to fields outside the US. Argentina's Neuquen Basin is home ...
Why It's the Perfect Time to Invest in Shale Oil Stocks Investment U
Oil drilling possible in 2012 Farmington Daily Times
ABQ Journal (subscription)
all 13 news articles »
Upstream Online
'Shale gale' to drive US energy deals
Upstream Online - ‎Aug 10, 2011‎
A significant area of growth, however, was shale plays with seven of the top 10 deals involving the growing sector. “Shale-gas assets continue to be very attractive acquisition targets as multinationals look to gain technical know-how and exploit the ...
Wood Mackenzie: Playing a smart shale gas hand PennEnergy- Energy News (press release)
Shale Plays, Midstream Assets and Foreign Investments Drive U.S. Oil & Gas M&A ... PR Newswire (press release)
Oil & Gas Journal
all 29 news articles »
PINK:SOOCY
Daily American Online
Hunting for balance in state gas regulation
Scranton Times-Tribune - ‎Aug 12, 2011‎
However, the footprint of the Marcellus Shale gas play in Pennsylvania mirrors much of our prime hunting and fishing areas.
NEOS GeoSolutions Launches Geoscience Program in Pennsylvania Business Wire (press release)
The Case for a Natural Gas Severance Tax Council on Foreign Relations (blog)
NGI's Shale Daily (subscription)
all 66 news articles »
Fort Worth Star Telegram
Devon Energy's Barnett Shale bet pays off
Fort Worth Star Telegram - Jack Z. Smith - ‎Aug 12, 2011‎
About 2500 are in "the liquids-rich portion of the play," Foster said. Natural gas liquids such as ethane, propane and butane generate higher profit margins.
DVN
The Southland Times
Just hot air?
The Southland Times - ‎Aug 15, 2011‎
Motels and stores do a roaring trade as drillers flood in to service the shale gas rigs scattered across the largely rural area, which happens to be atop the richest shale deposits yet discovered, known as the Marcellus play. Craig Sautner and his wife ...
Shaky U.S. economy won't benefit from natural gas expansion
phillyBurbs.com (blog) - Kate Fried - ‎Aug 7, 2011‎
China National Offshore Oil Corp (China, government-owned): Agreed to pay $2.2 billion for access to a shale play in south Texas in October 2010; agreed to pay $570 million in cash for a third of Chesapeake's Niobrara shale basin in Colorado and ...
Fiscal Impacts of Gas Activity on Municipal Governments Nominal Through 2009 ... Gant Daily
Fracking: Promise--and Peril Southern Pines Pilot
all 124 news articles »
ABN Newswire (press release)
Lloyds Plans to Help Finance Investments in Australian Shale Gas
Bloomberg - James Paton - ‎Aug 9, 2011‎
“The next shale gas opportunity will be Australia,” Andrew Moorfield, managing director and global head of oil and gas at Lloyds, said in a phone interview from Sydney.
Beach thinks big in Cooper shale-gas basin Petroleum Economist
Beach Energy Limited (ASX:BPT) Announce 2 TCF Resource Booking For Shale Gas Wells ABN Newswire (press release)
all 42 news articles »
ASX:BPT - LYG - PINK:BEPTF
Upstream Online
Derivatives tear Antero's net
Upstream Online - ‎Aug 15, 2011‎
This was despite revenue from gas sales booming from $92.51 million to $147.55 million as average gas prices grew 15% and total production was up 78% to 20.1 billion cubic feet equivalent as new wells were added in the Marcellus shale play.
Marcellus production gives Antero new record Gas Business Briefing
Antero Resources Reports Second Quarter 2011 Results, Net Resources and ... SYS-CON Media (press release)
all 10 news articles »

Chesapeake New Ohio Oil Discovery In Utica Shale

In a press release dated July, 28, 2011, Chesapeake Energyannounced a major new discovery of a liquids rich shale play in Eastern Ohio. The Utica shale is a rock layer located underneath the Marcellus shale and could be the “next big thing”. Geologists believe that the Utica shale could prove to hold enormous amounts of natural gas and liquids, even rivaling the massive Marcellus shale in terms of potential for oil and gas. Chesapeake Energy has significant holdings in the Utica shale and believes that it may hold more potential for the company than even the Eagle Ford shale in South Texas. The company has been referring to an “undisclosed shale play” for several months, now we have the official word. Chesapeake Energy holds over 1.25 million acres in the Utica shale.

“Having achieved successful results from recent drilling activities in eastern Ohio, Chesapeake is announcing the discovery of a major new liquids-rich play in the Utica Shale. Based on its proprietary geoscientific, petrophysical and engineering research during the past two years and the results of six horizontal and nine vertical wells it has drilled, Chesapeake believes that its industry-leading 1.25 million net leasehold acres in the Utica Shale play could be worth $15 – $20 billion in increased value to the company.

Chesapeake’s dataset on the Utica Shale includes approximately 2,000 well logs, full-suite petrophysical data on approximately 200 wells, 3,200 feet of proprietary core samples from nine wells and production results from three wells. As a result of its analysis, the company believes the Utica Shale will be characterized by a western oil phase, a central wet gas phase and an eastern dry gas phase and is likely most analogous, but economically superior to, the Eagle Ford Shale in South Texas.

Chesapeake is currently drilling in the Utica Shale with five operated rigs to further evaluate and develop its leasehold and anticipates increasing its rig count to eight by the end of 2011 and reaching at least a range of 16-20 rigs by year-end 2012.

Also, the company believes that its leasehold position in the Utica Shale will support a drilling effort of at least 40 rigs by year-end 2014. Chesapeake is currently conducting a competitive process to monetize a portion of its Utica Shale leasehold position, which will be through an industry joint venture process or through a number of other monetization alternatives. The company anticipates completing a Utica Shale transaction in the 2011 fourth quarter.” Source: Marketwire press release, July, 28, 2011.

Chesapeake Energy is already in a partnership agreement in the Eagle Ford shale with CNOOC, China’s national oil company. No disclosures have been made about partnership agreements in the Utica shale at this time.

Located approximately 3000′ below the Marcellus shale in Ohio, The Utica shale is proving to be another liquids rich shale play in the United States. We will bring you more Utica shale updates as the play evolves.

Shale Play USA News Capsules

2011-08-11T05:11:00.000-07:00

Shale Play USA News August 10, 2011

Is the Shale Gas M&A Market Ripe for a Correction?

Shale Gas to Drive Energy Deals

Shale Plays, Midstream Assets and Foreign Investments Drive U.S. Oil & Gas M&A Value to $39 Billion

Eagle Ford Shale

Carrizo 2nd Qtr Profits Rise Fourfold....on Production in Eagle Ford and Niobrara Shale Basins

Eagle Ford Shale Counties and Companies

San Antonio Business Have Eagle Ford Optimism

Eagle Ford Profit Helps Abraxas Raise Quarterly Profits

Fayetteville Shale

The Natural Gas Severance Tax of 2012 (Fayetteville Shale---Arkansas)

Shale Play USA News updates

2011-08-09T03:53:00.000-07:00

Results 1 - 10 of 244

EARNINGS WRAP-UP: Midwest, GC refiners held all the cards in Q2
... benefit for Valero came from WTI-type and Eagle Ford crudes pricing at a ... In recent quarters, with the addition of domestically-produced shale crudes becoming ...
Mon Aug 8, 2011 3:44pm EDT

UPDATE 2-EOG, Nustar to build shale oil facility
... LP said they signed a deal to build a rail offloading facility in Louisiana to receive oil from USshale oil prospects like the the Eagle Ford in South ...
Fri Aug 5, 2011 10:55am EDT

UPDATE 2-Shell considers reversing Houma-Houston line
... "Those crudes include the domestic crude oil production increases in Texas and the midcontinent including the Barnett, Eagle Ford and Bakken Shale plays, as ...
Thu Aug 4, 2011 4:10pm EDT

Utica Shale Play (Just Below Marcellus) Shale Gas Expansion

2011-08-09T03:32:00.000-07:00

As the federal government prepares to gut key programs to protect water and other natural resources through this week’s debt agreement, the Department of Energy (DOE) has announced plans to invest $12.4 million on programs to support shale gas development. Yet new analysis released by the national consumer advocacy group Food & Water Watch casts additional doubt on the viability of natural gas obtained through hydraulic fracturing. “Pipe Dreams: What the Gas Industry Doesn’t Want you to Know about Fracking and U.S. Energy Independence” shows that gas leases are not only generating less energy than once forecast, but also a significant portion of U.S. fracked gas will be exported overseas and the industry’s revenues will benefit foreign economies.

According to recent trade publication accounts, DOE will invest $1.6 million, outspending General Electric 4 to 1, on a project designed to remove radioactive material from wastewater from fracking operations in New York State. It will spend additional funds on projects to improve natural gas well performance in Colorado, Texas, California and New Mexico.

“For the past several weeks Americans have been bombarded by news of our government’s apparent financial struggles, yet the federal government is spending money to prop up the inherently unprofitable natural gas industry,” said Food & Water Watch Executive Director Wenonah Hauter. “Why cut money from resources to protect the environment while spending money in other places to support an industry that notoriously compromises the integrity of essential water resources? Meanwhile, a substantial portion of the gas and industry profits will actually flow overseas — blowing holes in the myth that gas will make the U.S. economically and energy secure.”

While U.S. natural gas consumption is actually expected to decline through 2015, it is expected to increase overseas-as much as 44 percent by 2035, with China and India leading that demand. Liquefied natural gas (LNG) facilities once conceptualized for importing gas are now being converted to export terminals to feed the Chinese and Indian markets; Chesapeake Energy is exploring selling some of its natural gas to the India-based Cheniere Energy. Included in this plan is a liquefaction plant in the Gulf of Mexico. Natural gas from the U.S. is attractive to foreign markets because it is less expensive than that from Asia.

As U.S. companies sell or lease their own holdings, many international players are increasing their share of the U.S. natural gas market:

Reliance Industries (India): In 2010 announced the purchase of a 40 percent stake in Atlas Energy’s Marcellus Shale operation for $1.7 billion; also acquired a 45 percent stake in Eagle Ford shale from Pioneer Natural Resources for $1.36 billion, including $210 million to Pioneer’s other partner Newpek LLC, a subsidiary of Mexican company ALFA SAB de CV.

China National Offshore Oil Corp (China, government-owned): Agreed to pay $2.2 billion for access to a shale play in south Texas in October 2010; agreed to pay $570 million in cash for a third of Chesapeake’s Niobrara shale basin in Colorado and Wyoming in January 2011.

BP (United Kingdom): In 2008, invested more than $3.6 billion in U.S. shale, including $1.9 billion for 25 percent of Chesapeake’s Fayetteville shale operations and $1.75 billion for all of Chesapeake’s Woodford Shale operations in Oklahoma.

Royal Dutch Shell (Netherla

Wed Aug 3, 2011 9:42am EDT

By Robert Campbell

Aug 3 (Reuters) - One of the big surprises in recent years for the oil market has been the reversion of the steady decline in U.S. crude output and the emergence of its shale sector as a nontrivial source of global supply growth.

New unconventional shale oil plays, such as the Eagle Ford Shale in Texas, have transformed within a few short years from highly speculative exploration projects to potentially major oil producers.

Eagle Ford, which as recently as 2009 was still often described as a new frontier in natural gas production, is now seen becoming a major crude oil production center.

Already the area is smashing through output forecasts as companies lever strong cash flows due to high oil prices to develop the technical expertise to drill more quickly and productively into the seemingly prolific play.

Most significantly for the global oil market, the shale plays have emerged as a source of non-OPEC production capacity growth. While these crudes will not enter into global trade flows, they will chip away at North America's crude oil import requirements.

Moreover, forecasters are only just getting a grip on the significance of shale oil. Projections for 2012 output are being ripped up as productivity in the sector exceeds all but the most aggressive forecasts.

The International Energy Agency forecast in mid-July that the United States would produce approximately 7.9 million barrels per day in 2012, with shale oil driving a modest increase in production from 2011.

But between June and July the U.S. Energy Information Administration boosted its own forecast for 2012 liquids production by a startling 170,000 bpd.

Further revisions may be in the offing. Consultancy Bentek said last week Eagle Ford output had more than doubled in the last two months to 160,000 barrels per day and was on track to grow fivefold by 2015. [ID:nN1E76Q250]

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Shale oil shreds US output forecasts [ID:nN1E76R0TI]

Chesapeake adding Utica shale acres [ID:nN1E76S0LU]

Chesapeake presentation: r.reuters.com/syj92s

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

THE NEXT EAGLE FORD?

Not surprisingly, the bounty at Eagle Ford has set the industry on the hunt for the next find. Chesapeake Energy (CHK.N), one of the most aggressive shale developers in the United States, claims to have it.

The company said its land position in the Utica Shale, a huge formation in Ohio that extends into Pennsylvania and north into Canada, could be worth up to $20 billion to shareholders.

To put that into perspective, that's roughly equivalent to Chesapeake's current market capitalization.

The company describes the Utica shale as being "analogous" to the Eagle Ford. Of course, one firm's claims, particularly those of a company with a substantial interest in the area, have to be taken with a grain of salt.

But if Chesapeake is the loudest player in the Utica shale, it is not the only one. Supermajor Chevron (CVX.N) holds acreage through its $3.8 billion takeover of Atlas Energy.

ExxonMobil (XOM.N) may also have gained exposure through its recent takeovers of companies with land holdings in the gas-rich Marcellus Shale in Pennsylvania as the Utica lies beneath the Marcellus in places.

Other industry players are looking closely as well, as evidenced by the conference on the Utica Shale organized by the Society of Petroleum Engineers earlier this year.

One of the attractions to operators could well be cost savings that may be found by sharing resources with gas drillers in the Marcellus.

Oil output from the Utica shale is also well positioned to be fed into refineries in the eastern portion of the Midwest. Marathon Petroleum (MPC.N), in particular, has indicated publicly it is interested in buying Utica crude.

Nearby river systems, such as the Ohio river, may also offer logistical flexibility that could help move Utica crude south to the Gulf down the Mississippi River by barge.

But substantial risks remain. Shale well productivity has not been observed on a mass scale for a long period of time. Output tends to drop off quickly from individual wells meaning operators must keep up the pace of drilling to maintain output.

Shale oil development may also face more resistance from communities in the more heavily populated northeast of the United States, where opposition to shale drilling and the associated hydraulic fracturing techniques needed to make wells productive is strongest.

But given the rapid rise at the Eagle Ford shale, the Utica, if indeed it is analogous, has the potential to upset the apple cart once again. (Editing by Alden Bentley)

Shale Play USA News Feed

2011-08-08T07:01:00.001-07:00

Are US Shale Gas Reserves Overstated?

2011-08-05T16:03:00.000-07:00

U.S. Shale Gas: Less Abundance, Higher Cost
Posted by aeberman on August 5, 2011 - 10:15am

Topic: Geology/Exploration
Tags: demand, economics, shale gas, supply [list all tags]
Arthur E. Berman and Lynn F. Pittinger

Lynn Pittinger is a consultant in petroleum engineering with 30 years of industry experience. He managed economic and engineering evaluations for Unocal and Occidental Oil & Gas, and has been an independent consultant since 2008. He has collaborated with Berman on all shale play evaluation projects since 2009.

Introduction

Shale gas has become an important and permanent feature of U.S. energy supply. Daily production has increased from less than 1 billion cubic feet of gas per day (bcfd) in 2003, when the first modern horizontal drilling and fracture stimulation was used, to almost 20 bcfd by mid-2011.

There are, however, two major concerns at the center of the shale gas revolution:

• Despite impressive production growth, it is not yet clear that these plays are commercial at current prices because of the high capital costs of land and drilling and completion.

• Reserves and economics depend on estimated ultimate recoveries based on hyperbolic, or increasingly flattening, decline profiles that predict decades of commercial production. With only a few years of production history in most of these plays, this model has not been shown to be correct, and may be overly optimistic.

These are not purely technical topics for debate among petroleum professionals. The marketing of the shale gas phenomenon has been so effective that important policy and strategic decisions are being made based on as yet unproven assumptions about the abundance and low cost of these plays. The “Pickens Plan” seeks to get congressional approval for natural gas subsidies that might eventually lead to conversion of large parts of our vehicle fleet to run on natural gas. This might commit the U.S. to decades of natural gas exports at fixed prices in the face of scarcity and increasing prices in the domestic market. Similarly, companies have gotten permits from the government to transform liquefied natural gas import terminals into export facilities that would commit the U.S. to decades of large, fixed export volumes. If reserves are less and cost is more than many assume, these could be disastrous decisions.

Executive Summary

Our analysis indicates that industry reserves are over-stated by at least 100 percent based on detailed review of both individual well and group decline profiles for the Barnett, Fayetteville and Haynesville shale plays. The contraction of extensive geographic play regions into relatively small core areas greatly reduces the commercially recoverable reserves of the plays that we have studied.

The Barnett and Fayetteville shale plays have the most complete history of production and thus provide the best available analogues for shale gas plays with less complete histories. We recognize that all shale plays are different but, until more production history is available, the best assumption is that newer plays will develop along similar lines to these older plays. There is now far too much data in Barnett and Fayetteville to continue use of strong hyperbolic flattening decline models with b coefficients greater than 1.0.

Type curves that are commonly used to support strong hyperbolic flattening are misleading because they incorporate survivorship bias and rate increases from re-stimulations that require additional capital investment. Comparison of individual and group decline-curve analysis indicates that group or type-curve methods substantially over-estimate recoverable reserves.

Results to date in the Haynesville Shale play are disappointing, and will substantially underperform industry claims. In fact, it is difficult to understand how companies justify 125 rigs drilling in a play that has not yet demonstrated commercial viability at present reserve projections until gas prices exceed $8.68 per mmBu.

CONTENTS

Production Volume and Reserve Growth vs. Profitability
Entry of Major Oil Companies Into Shale Plays
Evaluation of Shale Gas Well Performance
Well Performance Evaluation Methodology
Barnett Well Performance
Fayetteville Well Performance
Haynesville Well Performance
Comparison to Operator Claims
Matching Aggregate Production Profiles for Shale Gas Plays
Economics
Summary and Conclusions
Appendix

Production Volume and Reserve Growth vs. Profitability

Analysts, government agencies, academics and media pundits commonly equate large shale gas resource levels, production and reserve growth with commercial success. We do not dispute the impressive growth of shale gas resources, reserves or production. Examination of the balance sheets of the leading companies involved in shale gas development, however, reveals limited earnings or profit. We must ask the proponents of shale gas success to explain this fundamental discrepancy.

Some argue that price explains poor business results. First of all, whose fault is it that gas was over-produced to the point that prices were depressed other than the same companies that analysts praise for the shale gas revolution? Secondly, realized prices (the prices that results from hedging production volumes in advance of sales) over the past 5 or so years have never been higher because of high spot prices through mid-2008 and favorable hedge positions for much of the following period. This means that low prices cannot be blamed for lack of business success. The simple truth is that shale gas ventures are costly and profits are marginal at best.

Three decades of natural gas extraction from tight sandstone and coal-bed methane show that profits are marginal in low permeability reservoirs. Shale reservoirs have orders of magnitude lower reservoir permeability than tight sandstone and coal-bed methane. So why do smart analysts blindly accept that commercial results in shale plays should be different? The simple answer is found in high initial production rates. Unfortunately, these high initial rates are made up for by shorter lifespan wells and additional costs associated with well re-stimulation. Those who expect the long-term unit cost of shale gas to be less than that of other unconventional gas resources will be disappointed.

Entry of Major Oil Companies Into Shale Plays

Another common theme among shale advocates is that the entry of major oil companies into some of these plays proves that they are commercially viable. There are as many reasons for big companies to enter shale gas plays as there are big companies but the most obvious reason is reserves.

Reserve replacement has been a challenge for major oil companies for at least the last decade as opportunities in the international arena have contracted. North American shale gas plays offer a temporary solution. Whether big companies can find operational and technological ways to make these plays commercial is another question but, for the short term, shale plays provide a means to add reserves.

The notion that investment by large companies proves commercial success is disproved by recent history. We have to look no further than corn ethanol and other biofuel companies where optimistic claims of profitability are now seen to be unfounded. This is even with government mandated use, major subsidies, and import tariffs to protect domestic producers from competition. An excellent discussion of the details of this situation by Robert Rapier can be found at this link:

http://robertrapier.wordpress.com/category/pacific-ethanol/

Evaluation of Shale Gas Well Performance

Our analysis of shale gas well decline trends indicates that the estimated ultimate recovery (EUR) per well is approximately one-half of the values commonly presented by operators. The average EUR per well for the most active operators is 1.3 Bcf in the Barnett, 1.1 Bcf in the Fayetteville, and 3.0 Bcf in the Haynesville shale gas plays.

The primary difference between our analysis and the typical well profile proposed by operators is that we observe predominantly exponential (weak to moderate hyperbolic) decline in most of the individual well decline trends, rather than steadily flattening hyperbolic decline. For the Barnett and Fayetteville shale plays, we identify a two-stage exponential decline based on decline curve analysis (DCA) of individual wells; for the Haynesville Shale we observe predominantly exponential decline for individual wells.

Two-stage exponential decline is characterized by an initial ten- to fifteen-month period of steep decline followed by a stable, shallower rate of decline that continues up to the present life of wells (commonly for four or more years to date in the Barnett Shale). Our emphasis is on matching the relatively stable, shallower stage (Exhibit 1) because that is the portion of the decline history that best predicts future performance.

see complete article here....http://www.theoildrum.com/node/8212

Shale Play USA

Natural Gas, Ukraine, Russia and the Crimea

This Is The Gas Pipeline Map That Shows Why The Crisis In Ukraine Affects All Of Europe

ExxonMobil study US Shale Gas Potential

permalink here: http://www.exxonmobilperspectives.com/2012/01/06/study-sums-up-the-extraordinary-performance-and-potential-of-u-s-shale-gas/?gclid=CLGVnO3MrrcCFVQV7AodyiUABA

Study sums up the extraordinary performance – and potential – of U.S. shale gas

Facts on Fracks @ Fracknation

A JOURNALIST'S SEARCH FOR THE FRACKING TRUTH

Show me the Shale Money

Obama Pays off Greenies for Voter Support

Eagle Ford Shale Economic Impact (Gonzales, DeWitt Co's)

Shale Exploration News Updates

Well Site Erosion Prevention SWPPP

www.truegridpaver.com

Environment

STORM WATER MANAGEMENT

EROSION CONTROL

HEAT ISLAND EFFECT

MANUFACTURED FROM 100% RECYCLED PLASTIC

Water Erosion

NY DEC Fails to Track Low Volume HydroFrack Waste

EPA Final Rules For Natural Gas Wells

EPA orders "Green Completions" for Frac Natural Gas Wells

Thursday, April 19, 2012

Breaking News – EPA Issues Final Air Rules for Oil and Gas Industry, but delays until January 2015 the requirement to reduce emissions during operations using so-called green completion equipment.

Here is Summary of Key Changes to EPA Air Rules

EPA Postpones New Air Standards on Frac NG Wells

UPDATE: EPA Postpones New Air Standards For 'Fracked' Natural Gas Wells

Marcellus & Utica Shale

Penn State study shows more modest economic impact from shale gas

Natural-gas data fuels ‘fracking’ battle

Comments (1)

Shale Play USA

Aug 25, 2011 Thursday

Search Results

WVDEP issues ‘emergency’ rules on drilling

Noble falls victim to Shale Gas "Ponzi" scheme?

August 22, 2011 Shale Play USA News Briefs via Google News

via Seeking Alpha

Noble Energy Becomes the Latest 'Victim' of the Shale Gas Ponzi Scheme

EPA Air Regulations Could Force Up Utility Costs

Utilities warn of higher rates because of pollution rules

Shale Play USA News Briefs Friday Aug 19,2011

Friday, August 19th 2011 Shale Play USA News Briefs via google news

Blogs

United States

Pennsylvania

Chesapeake New Ohio Oil Discovery In Utica Shale

Shale Play USA News Capsules

Eagle Ford Shale

Shale Play USA News updates

Utica Shale Play (Just Below Marcellus) Shale Gas Expansion

Shale Play USA News Feed

Are US Shale Gas Reserves Overstated?