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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Goodrich sells proved reserves

Goodrich sells proved reserves, piece of Eagle Ford leasehold in $118 million dealIndependent oil and gas producer Goodrich Petroleum said Monday it’s selling to an unidentified buyer its proved reserves and associated leasehold in the Eagle Ford Shale for $118 million.The Houston, Texas-based company is retaining approximately 58% (roughly 17,000 acres) of its undeveloped leasehold in the play in Texas’ LaSalle and Frio counties for future development or sale, Kallanish understands.Assets being sold produced an average of roughly 2,850 barrels of oil-equivalent per day (BOE/d, approximately 75% oil) during the first quarter.The company said it expects to book a gain of roughly $50-60 million on the sale at closing, with the funds used to pay off its bank revolver, retaining the difference in cash. The monetization of our proved reserves and associated acreage from our drilling efforts to date greatly improves our liquidity while maintaining a position in the Eagle Ford for future
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Fairway Energy Partners to construct crude oil storage in Houston

Crude oil storage company Fairway Energy Partners on Thursday announced the closing of an undisclosed amount of private equity financing from Haddington Ventures, with proceeds to be used to construct the first phase of the Pierce Junction crude oil storage facility.Fairway will convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston, Texas, into crude oil storage service and will build-out all requisite pipelines, brine ponds, interconnects and pumping capacity to put the facility into commercial service, Kallanish learns.The initial phase of the project is expected to be in service by the end of 2016 and has been designed to allow for storage of roughly 10 million barrels (MMBbl). Overall, Fairway has expansion rights up to a total of approximately 20 MMBbl at Pierce Junction.Phase I also includes the construction of two separate bi-directional, 24-inch pipelines to connect the facility to the existing Houston area crude oil grid, adding
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