LNG Energy has an agreement to drill and test an exploratory well in the Middle Jurassic Etropole Shale of Northwestern Bulgaria. Gas sells for about $10/Mcf in Bulgaria.
More in the Oil and Gas Journal.
Drilling Activity
Ohio: The Lowest Number of New Wells Since 1887
An article in Cleveland.com reports that there were 651 new oil and gas wells drilled in Ohio during 2010 – the smallest number of wells drilled since 1887. Low natural gas prices are blamed.
More at Cleveland.com.
Oil Rig Count Exceeds Natural Gas Rig Count
The number of oil rigs drilling in the United States has surpassed the number of natural gas rigs for the first time in 18 years. Low natural gas prices discourage drilling and the discovery of oil in shale plays such as the Utica Shale, Bakken Shale and Eagle Ford Shale has attracted attention.
More in the Houston Chronicle.
Will Natural Gas Investments Drive Down Prices?
Major capital investments in the North American gas shales sector could accelerate rates of drilling and production to cause downward pressure on prices. An article on the Reuters.com website explores gas shale investments and their potential impact upon prices.
Tuscaloosa Marine Shale: Hydraulic Fracturing Hearings
Public hearings are being scheduled related to the use of hydraulic fracturing to tap natural gas in the Tuscaloosa Marine Shale near Baton Rouge, Louisiana. More in an article on TimesUnion.com.
Drilling for Shale Gas in Ohio State Parks?
The Marcellus Shale, Utica Shale and Upper Devonian Shales are beneath many of Ohio’s State Parks. Some members of Ohio State Government would like to obtain the lease and royalty monies from those lands while environmentalists oppose that drilling. More in the Columbus Dispatch.
17,000 Marcellus Shale Gas Wells?
Statoil ASA and Chesapeake Energy project that they could drill as many as 17,000 natural gas wells into the Marcellus Shale over the next twenty years. More in the West Virginia Gazette.
Shareholders Want Hydraulic Fracturing Risk Disclosure
A few oil and gas companies have received shareholder resolutions calling for disclosure of risks associated with hydraulic fracturing. Some resolutions even specify field operating methods for the fracking procedure. More in an article titled “Investors Seek Disclosure of Fracking Oil, Gas Risks” at BusinessInsurance.com.
Can the Nitrogen Content of Natural Gas Determine Its Source?
Natural gas has been found in two private water wells in Parker County, Texas. The nitrogen content of the gas may determine if Barnett Shale drilling activity by Range Resources is the source or if the source is shallower rock units. More in the Washington Examiner.
Mineral Rights – Basic Information
“If we go back in time to the days before drilling and mining, real estate transactions were fee simple transfers. However, once commercial mineral production became possible, the ways in which people own property became much more complex. Today, the leases, sales, gifts and bequests of the past have produced a landscape where multiple people or companies have a partial ownership of or rights to many real estate parcels.” Quoted from the Geology.com article.
Acceleration of Activity in the Eagle Ford Shale
The successes of 2010 in the Eagle Ford Shale will probably make it one of the fastest growing oil and gas targets of 2011. Shell, BP, Statoil and CNOOC have all made major acquisitions in the Eagle Ford. More at FuelFix.com.
Chesapeake Will Drill Over 300 Barnett Wells in 2011
Last year Chesapeake Energy paid out nearly $300 million in Barnett Shale royalties and this year plans to drill over 300 new wells.
Utica Shale: The Natural Gas Giant Beneath the Marcellus
A rock layer below the Marcellus Shale could prove to be another incredible source of natural gas. The Utica Shale is thicker, more geographically extensive and has already proven its ability to support commercial production.
Marcellus Shale Road Damage Complaints
Damage to roads caused by vehicles used to develop the Marcellus Shale is getting attention at the Pennsylvania Department of Transportation. More at the Pittsburgh Tribune-Review.
Ways to Manage the Marcellus Shale Resource
Over the past few years natural gas companies have been drilling the Marcellus Shale in Pennsylvania but have been blocked from drilling in New York because of environmental concerns. An article in the Pittsburgh Post-Gazette offers several different perspectives on the two methods of resource management.
The Work of a Geophysicist
An article on the NewsOK.com website gives you a glimpse of what Ryan Miller, a geophysicist with Devon Energy Company, does on the job. He works on a team that investigates subsurface rock units for oil and natural gas.
Harvesting Natural Gas with a 2-3% Footprint
In a recent letter to the editor of the Daily American, Lou D’Amico, President of the Pennsylvania Independent Oil and Gas Association explains how drilling multiple horizontal wells from a single drilling site allows the natural gas of an area to be harvested with only 2 to 3 percent of the total surface acreage being disturbed.
Natural Gas Output to Drop Slightly in 2011
The United States Department of Energy expects natural gas drillers to cut back on new drilling in response to lower natural gas prices. Some companies such as Chesapeake Energy are moving their focus toward drilling for oil. More at Bloomberg.com.
Shale Gas Pushes US Proven Reserves to Highest Level Since 1971
“Shale gas development drove an 11 percent increase in U.S. natural gas proved reserves last year, to their highest level since 1971, demonstrating the growing importance of shale gas in meeting both current and projected energy needs,” said Richard Newell, EIA’s Administrator. “Louisiana, Arkansas, Texas, Oklahoma, and Pennsylvania were the leading states in adding new proved reserves of shale gas during 2009,” he said. Quoted from the EIA Summary: U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves, 2009.
GAO Grieves Over Lost Gas
Sometimes drilling companies release natural gas into the atmosphere because they don’t have the ability to capture the gas and transport it to market. The Government Accountability Office says that 50 billion cubic feet of natural gas is lost this way each year from federal lands – that could be worth over $23 million in tax dollars. More at Forbes.com.
What is Hydraulic Fracturing?
“Hydraulic fracturing is a procedure that can increase the flow of oil or gas from a well. It is done by pumping liquids down a well into subsurface rock units under pressures that are high enough to fracture the rock. The goal is to create a network of interconnected fractures that will serve as pore spaces for the movement of oil and natural gas to the well bore.” Quote from the Geology.com article.
Video below by Chesapeake Energy.
Rig Count is Up 50% Compared to One Year Ago
The Baker Hughes Rig Count stands at 1687 for November 24, 2010. That is 550 more rigs working compared to just one year ago on November 25, 2009.
If you are not familiar with the Baker Hughes Rig Count, it is a weekly tally of the number of oil and gas rigs drilling in the United States. Their website features an interactive map and graphing tools. Check it out.
The Many Uses of Directional Drilling
Horizontal drilling has been one of the most important methods for developing natural gas shales in many parts of the world. Before it was paired with hydraulic fracturing these shales were not considered to be commercial sources of gas. Horizontal drilling is just one variation of directional drilling which has many other useful applications.
Drilling Companies Still Considering Luzerne and Columbia Counties
Encana recently announced that they are finished drilling the Marcellus Shale in Luzerne and Columbia Counties, Pennsylvania. Other companies are still considering the area or trying to sell their leases. A geologist at the Pennsylvania Survey says that at least some of the rocks there have been heated enough to advance the coal seams to anthracite rank. The Marcellus Shale was buried deeper than the coal. More at CitizensVoice.com.
Natural Gas “Impact Fees”
Local government units in Pennsylvania want to charge “Impact Fees” when certain natural gas activities take place within their jurisdictions. These “taxes” would be charged for drilling a well or for each foot of gathering line. More in TheTimes-Tribune.com.
Hunters Will Be Shocked by the Natural Gas Disturbance
A Penn State wildlife expert says that hunters going into the woods this year will be shocked to find the amount of land that has been disturbed by roads, pipelines and drilling pads used to develop the Marcellus Shale. More at the TimesLeader.com.
Bakken, Three Forks-Sanish Break North Dakota Records
North Dakota should set an all time record for oil production this year and account for more than 6% of total US crude production. Ninety-Five percent of the State’s drilling activity is in the Bakken Shale and the Three Forks-Sanish Formation. More at the StarTribune.com website.
Protecting Canada’s Water Supplies from Hydraulic Fracturing
The University of Toronto’s Munk School of Global Affairs published a report urging Canadian governments to promptly improve their oil and gas drilling regulations to protect water supplies from hydraulic fractuiring activities. More at the Winnipeg Free Press.
Tioga County (PA) Farmers on Gas Wells
Farmers in all of the natural gas plays see the impact of natural gas drilling more closely than most folks who live in town. An article on the Lancaster Online website reports on farmers in Tioga County, Pennsylvania who have wells on their lands.
More Opinions on Forced Pooling in PA
State legislators in Pennsylvania are debating proposals that will place hold-out landowners in a “poll” of owners who will receive royalties when a horizontal well is drilled on adjacent properties. Some believe that this is a taking of private property. More at KDKA.com.
