How to Keep Your Business Current on Oil and Gas Developments?

The price swings in the oil market are making it difficult for companies to plan on numerous levels. While the price swings are daunting enough, in many states and on the federal level, the more regulations and new taxes are making the decision-making more vexing. The only way for businesses to cope in this environment is to keep informed. This fall there are a number of expos, conferences and seminars with industry speakers and government officials. The focus of these events deals with all facets of the supply chain – upstream, midstream and downstream in the Marcellus, Utica and Eagle Ford Shale Plays. One of your key takeaways from these events should be to support the industry. It seems the industry is under attack more than ever with a special focus on the midstream business. Many communities and businesses through the east coast want the lower priced Marcellus and Utica natural gas, but when it comes to pipeline construction, the “NIMBY” (Not In My Backyard) effect takes h
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Observations on Oil and Natural Gas Price Swings

As you know, I’m relatively new to the oil and gas industry. We started Shale Directories in November 2009. This sharp price decline in oil is the first one I experienced since we started Shale Directories. We saw a deep price decline in natural gas in 2012 when it went under $2.00. It has recovered somewhat, but seems to be locked in a trading range from $2.65 to $3.00. In fact, natural gas has weathered the current declines pretty well. In looking at the current state of the oil and gas industry, here are some of my thoughts: • The price of oil. It dipped below $40 this week, but seems to be rebounding. The question is where is the new “norm.” I’ve heard $60 a barrel is the new $100 a barrel. How long can the Saudis continue to keep pumping to keep prices depressed? It may not too much longer. Here are some observations: o The Saudis have issued bonds recently for the first time in since 2007 and more bond issues could be in the future. (Shale Directories, 8/15/15) o Saudi
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Wet vs. Dry Gas – What can you do with it?

As part of our partnership with the folks at Sunoco Logistics to explore the similarities and differences between wet and dry natural gas, today we are taking a look at the use possibilities.  If you missed the first infographic, be sure to check out this post which explains the difference between the two types of natural gas produced in the Marcellus. Natural gas liquids are the building blocks of many products When wet natural gas is produced, it must be processed to separate the different components it contains, such as water and hydrocarbons. Natural gas liquids, such as butane, ethane and propane, are other forms of hydrocarbons, which can be used for many different products. Butane is commonly known as the flammable liquid in handheld lighters, propane is often used for heating in homes or as a fuel source for grills and propane is a chemical building block found in many different kinds of plastic products we use every day. The average American citizen will come into contact wi
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Schlumberger acquiring Cameron in $14.8 billion cash and stock deal

Schlumberger, the world’s largest oilfield services company, and fellow services firm Cameron, originator of the oilfield blowout preventer, said Wednesday they’re merging in a $14.8 billion cash and stock deal. Under the terms of the agreement, Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 in exchange for each Cameron share. Based on the closing stock prices of both companies on Aug. 25, the deal values Cameron at $66.36 per share – a 37% premium to Cameron s 20-day volume weighted average price of $48.45/share, and a 56.3% premium to Cameron s most recent closing stock price of $42.47/share. Upon closing, Cameron shareholders will own roughly 10% of Schlumberger s outstanding common shares, Kallanish calculates. We believe that the next industry technical breakthrough will be achieved through integration of Schlumberger s reservoir and well technologies with Cameron s leadership in surface, drilling, processing and flo
http://www.shaledirectories.com/blog/schlumberger-acquiring-cameron-in-14-8-billion-cash-and-stock-deal/

Canada’s Encana selling Haynesville natural gas assets for $850 million

Canada’s Encana said Tuesday its Encana Oil & Gas (USA) unit is selling for $850 million its Haynesville natural gas assets to a joint venture formed by GeoSouthern Haynesville and GSO Capital Partners-managed funds. Through transfer of current and future obligations, Calgary-based Encana will reduce its gathering and midstream commitments by roughly $480 million on an undiscounted basis. Buyer and seller also have agreed to Encana transporting and marketing GeoSouthern s Haynesville production on a fee-for-service basis for the next five years. Encana said it will use the cash to reduce its net debt. This transaction delivers significant proceeds that we ll use to strengthen our balance sheet,” said Doug Suttles, Encana CEO. “In addition, it eliminates our midstream commitments in the Haynesville and captures ongoing revenue upside through a gas marketing arrangement. Encana s Haynesville natural gas assets include roughly 112,000 acres of leasehold, plus additional fee mineral
http://www.shaledirectories.com/blog/canadas-encana-selling-haynesville-natural-gas-assets-for-850-million/

America Works on Misleading the Public

The following was originally posted to the Commonwealth Foundation‘s blog on July 13, 2015 by Bob Dick and Nathan Benefield. Although posted more than a month ago, this information is still extremely relevant and worth sharing.You can follow the Commonwealth Foundation on Twitter at @Liberty4PA.——-America Works USA, an affiliate of the union-funded Democratic Governors Association, recently launched an ad campaign in support of Gov. Wolf’s effort to raise taxes on middle- and low-income people.
http://www.shaledirectories.com/blog/america-works-on-misleading-the-public/

America Works (On Misleading the Public)

Guest Post: America Works (On Misleading the Public)The following was originally posted to the Commonwealth Foundation‘s blog on July 13, 2015 by Bob Dick and Nathan Benefield. Although posted more than a month ago, this information is still extremely relevant and worth sharing.You can follow the Commonwealth Foundation on Twitter at @Liberty4PA.——-America Works USA, an affiliate of the union-funded Democratic Governors Association, recently launched an ad campaign in support of Gov. Wolf’s effort to raise taxes on middle- and low-income peopleThe group, bolstered by a war chest of at least $500,000, took to the airwaves with radio and TV ads slamming the Republican budget and touting Gov. Wolf’s budget as a practical alternative. Regrettably, the ads are chock-full of misinformation. Although the ads aren’t very long, we identified seven erroneous claims, each of which are corrected below.Claim #1: The Republicans’ budget lets oil and gas drillers “of the hook.”R
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Antero contracts for $275 million wastewater treatment complex in West Virginia

Oil and gas independent Antero Resources has contracted with Veolia Water Technologies to design-build a $275 million wastewater treatment complex in Doddridge County, West Virginia.The complex includes a 60,000 barrel per day (BPD) facility that will allow Antero to treat and reuse flowback and produced water rather than permanently dispose of the water via injection wells, Kallanish understands. Denver, Colorado-based Antero will own the treatment assets including ancillary facilities. The complex will be centrally located in Antero s footprint in the southwestern core of the Marcellus Shale play with the ability to serve the company s development in both the Marcellus and Utica Shale plays.One of the largest players in the Marcellus and Utica, Antero owns roughly 410,000 acres in the Marcellus in northern West Virginia/southwesten Pennsylvania. In the Utica, Antero owns more than 149,000 acres in eastern Ohio.  Our concentrated acreage position in the core of the Marcellus and
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Expanded Dry Gas Gathering System in Utica Shale Play

MarkWest, EMG expanding Utica gas-gathering capabilities via new $1 billion projectMarkWest Energy Partners and The Energy & Minerals Group (EMG) late Wednesday announced development of a new $1 billion dry gas gathering system in the Utica Shale, Kallanish reports.The system will be underpinned by a long-term, fee-based contract with Ascent Resources–Utica, a subsidiary of former Chesapeake Energy CEO And co-founder Aubrey McClendon’s Ascent Resources. The producer has dedicated roughly 100,000 acres in northern Belmont and Jefferson counties, Ohio, to the system.Dry-gas production from Ascent’s acreage is expected to support the system’s initial growth; however, the new system will also gather dry gas from other producers, according to the partners.“Our system will be a critical new gathering option, and we anticipate total investment could exceed $1 billion over the next three years,” said Frank Semple, MarkWest CEO.The system will be designed to gather more than 2 bi
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Marcellus Shale Play Creates Need For Pipelines

Marcellus creates need for restructured existing & new pipelinesWith the recent shale natural gas production success in Pennsylvania, more pipelines and added infrastructure are needed to get the gas from where it is extracted to the customer in a timely manner. Due to this growing need, a new wave of natural gas pipeline projects are set to break ground in the next three years in order to transport this gas to citizens in Pennsylvania, Ohio, West Virginia and beyond.In addition, other destinations for this gas “are varied, and in addition to New England, some are targeting the Midwest, eastern Canada and the South” said Matthew Piatek, Associate Director of North American Natural Gas for IHS, which tracks current energy markets. The needs for these new pipelines are especially great in New England and New York in order to heat homes during their harsh winters.New Waves of PipelineIn the past, natural gas pipelines have traditionally flowed from extraction areas in the south and w
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Crude oil, natural gas production projected to fall between August, September: EIA

All the job cuts, all the rig laydowns, all the cuts in capital expenditures by producers continue to negatively impact America’s oil and natural gas industry.Overall crude oil production is projected to drop 93,000 barrels per day (BPD), from 5.36 million barrels per day (MMBPD) in August, to 5.27 MMBPD in September, Kallanish finds.Total production in June reached 5.58 MMBPD, according to the U.S. Energy Information Administration’s Drilling Productivity Report for August. The monthly report examines production in the country’s seven most prolific plays, including the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Utica.New well production is expected to rise from an estimated 433,000 BPD this month, to 434,000 BPD in September. Production from new wells was pegged at 404,000 BPD in June.Since June, total production has dropped 31,000 BPD and new production has risen by 30,000 BPD. The productivity report shows natural gas production from August to Septemb
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Working-rig count edges up in latest Baker Hughes survey

The number of drill rigs working onshore in the Lower 48 States last week rose less than 1%, led by an 8-unit increase in Texas, the weekly Baker Hughes rig survey reveals.At Aug. 7, the number of rigs working onshore excluding Alaska and Hawaii totaled 832, up from 826 on July 31, Kallanish finds.Looking at week-to-week comparisons, 12 areas of the country tracked by Baker Hughes reported an uptick in rigs working, while 11 areas recorded a drop, and another 11 areas saw no change.Texas, where 46% of all Lower 48 onshore rigs are working, reported eight more rigs working last week compared to two weeks ago.The state is divided into 12 areas for the Baker Hughes weekly survey. Last week, three in-state areas each reported a one-rig decrease, another three reported no change, and six areas recorded an increase in working rigs.Excluding Texas, Kansas reported the largest increase in working rigs, three, moving to 10 rigs drilling, up from seven one week earlier.The biggest decrease in w
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Wet vs. Dry Natural Gas – What is the difference?

As most people know, Pennsylvania has unique geology that has helped make it the home of some of the largest-producing shale plays in the world. Roughly 75 percent of the Commonwealth sits on top of the Marcellus and Utica shales, each with their own distinct characteristics. Even across Pennsylvania the Marcellus varies in structure, depth, thickness and even the type of gas produced.One of the most interesting differences in the Marcellus is whether the natural gas produced is considered “wet” or “dry” when produced. That will make a difference in the end usage and products which can be created from the natural gas. Cabot’s operations are in an area of dry gas therefore to get a full perspective, we’ve partnered with the folks at Sunoco Logistics to gain a better understanding of the complexities and possibilities of the shale beneath our feet. Over the next few weeks we will be working with them to share infographics detailing the differences of wet and dry gas in the M
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Rice reports strong production increase, but quarterly loss jumps

Cecil Township, Pennsylvania-based independent producer Rice Energy has been on the proverbial roll for more than 18 months.The company raised more than $1 billion in its IPO, it continues to successfully expand operations in the Marcellus and Utica Shale plays, and is a definite crowd favorite at conferences when sharing its success story.Unfortunately, low commodity prices are not a respecter of good companies. Rice on Thursday reported second-quarter production jumped by triple digits, but it lost $69.68 million, nearly nine times more red ink than the year-ago $7.92 million loss.Year-over-year production increases were huge. Natural gas production more than doubled, to 47.56 billion cubic feet (Bcf), and oil/natural gas liquids production jumped to 90,000 barrels from 1,000 Bbls.Net production averaged 529 million cubic feet-equivalent per day (MMcfe/d), a 120% year-over-year increase. We had a tremendous quarter operationally, significantly surpassing our expected production by c
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