New York may be on the edge of drilling new wells in the Marcellus Shale as Governor Andrew Cuomo’s plan to resume drilling gains support. It is estimated that drilling just 300 wells per year would produce an estimated 37,000 jobs.
Marcellus Shale
Major Oil Companies are Buying Up the Marcellus
Major oil companies are rapidly buying the small players in the Marcellus Shale gas play. Exxon Mobil Corporation just spent $1.7 billion to purchase Phillips Resources, Inc. and TWP Inc. This follows Chevron’s recent acquisition of Atlas Energy and other transactions. More on the FuelFix.com blog.
Ohio is Ready for Marcellus and Utica Shale Development
“Everything that made Ohio the ideal location choice for suppliers to the automotive industry is in place for Tier I and II suppliers to efficiently and affordably supply the Marcellus and Utica Shale gas industry.” Quoted from the Ohio Business Development Coalition press release.
Linking Methane in Drinking Water to Gas Extraction
The NPR Talk of the Nation program for May 13 investigates the occurrence of natural gas in household water supply wells in Pennsylvania. In a study of 68 wells, those within one kilometer of a natural gas well had 17 times the amount of methane in the water.
Who Owns the Mineral Rights?
An article in the Columbus Dispatch reports that the State of Ohio considers leasing state park lands for natural gas production from the Utica Shale. However, they only own the mineral rights to about 1/3 of the land and the mineral ownership for many more parcels is unknown.
Drilling the Marcellus Shale on Pennsylvania Game Lands
The Pennsylvania Game Commission hopes to generate millions of dollars in revenue by expanding the natural gas leasing program on Pennsylvania Game Lands. More in the Wall Street Journal.
Buffalo Common Council Bans Hydraulic Fracturing
Hydraulic fracturing was banned within the city limits of Buffalo, New York as the Buffalo Common Council passed the “Buffalo Community Protection from Natural Gas Extraction Ordinance”. An article on the EPOnline.com website reports on the vote and includes a video showing some of the public testimony that was received before passing.
Tom Corbett Speaks Against “Forced Pooling”
Pennsylvania Governor, Tom Corbett, says that he is against changes to laws governing oil and gas drilling that will enable “forced pooling” – which can require property owners to be participants in a consolidation of many neighboring properties into a single lease/royalty agreement. More at Forbes.com.
Are Ohio Severance Taxes on Oil and Natural Gas Too Low?
An article in the Lancaster Eagle Gazette explains how the State of Ohio is taking in very little from oil and gas drilling being done in the state and compares their income with that of other oil and gas producing states.
Chesapeake Energy: Land Acquisition Machine
A post on the Seeking Alpha blog details how successful Chesapeake Energy has been at rapidly leasing enormous acreages in all of the major natural gas shale plays in the United States. They author calls them a “land acquisition machine”.
Natural Gas Concerns Trigger Water Testing in Pennsylvania
Drinking water facilities and wastewater treatment plants will expand their water testing procedures out of concern for radioactive particles in wastewater produced during natural gas drilling. More in the New York Times.
No Marcellus Drilling Moratorium in West Virginia
Randy Huffman, Secretary of the West Virginia Department of Environmental Protection does not support a Marcellus Shale drilling moratorium for the state because… “If I ever felt the industry was so far out in front of our ability to properly regulate it, then I would consider such a thing.” More in The Register-Herald.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.
Radiation in Marcellus Shale Wastewater?
A New York Times article explores concerns about radiation levels in wastewater from Marcellus Shale drilling sites and how that water is being processed before discharge into the environment.
How Much Gas in the Utica Shale?
The Utica Shale has a larger geographic extent than both the Marcellus Shale of the Appalachian Basin and the Barnett Shale of Texas. It is also has a much larger total volume. Will its gas producing potential exceed that of the Marcellus and Barnett. An article on the Seeking Alpha blog explores this question.
“Triple Play” in the Appalachian Basin
John Pinkerton, CEO of Range Resources, explains the “Triple Play” in natural gas that can be had in parts of Pennsylvania, New York, Ohio and West Virginia. Shale gas can be produced from the Upper Devonian Shale, the Marcellus Shale, and the Utica Shale – all from a single drill pad. More in the Star-Telegram Blogs.
Natural Gas in the Upper Devonian Shales
From the PAGasDirectory Blog…. In an assessment of its lease holdings, Range Resources has included 10 to 14 trillion cubic feet of Upper Devonian natural gas as an unproven resource. The Upper Devonian is above the Marcellus Shale and includes multiple organic shales such as the Cleveland, Huron-Dunkirk, Rhinestreet, Middlesex and Geneseo-Burket Shales. See an article on SearchAndDiscovery.net for a generalized stratigraphic sequence.
Tax Breaks for Marcellus Shale Development in WV?
While many lawmakers in Pennsylvania are trying to get a severance tax passed, their counterparts in West Virgina are investigating tax breaks to jump-start Marcellus Shale development. More in the Boston Globe.
Two Year Marcellus Shale Drilling Delay in Maryland?
The Baltimore Sun has an article reporting that Maryland Governor Martin O’Malley’s administration wants to delay Marcellus Shale drilling in Western Maryland for two years – which is needed for a study of drilling risks.
Chevron Buys Atlas Energy for $4.3B
Chevron continues the stream of large diversified oil and gas companies who are buying up smaller companies with a heavy focus on natural gas shales. Atlas had lots of assets in the Marcellus Shale in Pennsylvania and West Virginia. Many of those leases probably give access to the deeper Utica Shale which is attracting more interest. More at Bloomberg.
No Hydraulic Fracturing or Waste Water Disposal in Buffalo
The Common Council of Buffalo, New York voted to ban the practice of hydraulic fracturing within city limits. In addition, it bans the disposal of drilling waste water anywhere within the city. More at Empire State News.
Preparing for Marcellus Shale Jobs in Pennsylvania
An article on the RigZone website explores what some communities in Pennsylvania are doing to prepare people for potential jobs in the Marcellus Shale natural gas play.
Local Government Groups Want to Cash in on Gas Shales
An article in the Business Journal Daily explains why many state, county and community governments are interested in offering their land for natural gas drilling. This article focuses on county governments in northeastern Ohio who consider leasing their Marcellus Shale and Utica Shale acreages.
Consol Will Cut Back on Shale Gas Drilling
In 2010 Consol Energy was drilling wells into the Utica Shale of eastern Ohio and into the high natural gas liquids portion of the Marcellus Shale. An article on Platts.com reports that Consol plans cut back on drilling in 2011 because of low natural gas prices.
WV Marcellus Shale Impact: Economic, Legal, Regulatory, Environmental
A study on the economic, legal, regulatory, and environmental issues related to development of the Marcellus Shale has been published by the West Virginia University College of Business and Economics, Bureau of Business and Economic Research.
Marcellus Shale Rock Sequence in WV
Don’t know the vertical sequence of rocks in the Marcellus Shale gas play? The West Virginia Geological and Economic Survey has published a stratigraphic nomenclature chart for the Marcellus Shale and associated rocks in West Virginia.
Outgoing Pennsylvania DEP Director Comments on the Marcellus
A blog post at BizJournals.com by Lauren Lawley Head includes a large number of quotes related to the Marcellus Shale from an “agency accomplishments” report by John Hanger, former director of the Pennsylvania Department of Environmental Protection.
Dominion to Build Natural Gas Liquids Plant
Dominion Transmission plans to build a processing plant at Natrium, West Virginia to separate natural gas liquids from Marcellus Shale gas. More in the Charleston Daily Mail.
More Local Governments Try to Ban Natural Gas Activity
Local governments are starting to ban natural gas drilling within their areas of jurisdiction. Here’s another example from Maryland. Some people believe this is a “protection” and others believe it is a “taking”… but it will probably produce horizontal drilling on the outskirts of town. More at Bloomberg.com.
Competition Between Coal and Natural Gas in the Marketplace
West Virginia has a wealth of energy resources. It has historically been a leading state for coal production and now much of northern West Virginia is over the Marcellus Shale natural gas field. An article in the Beckley Register-Herald titled “Will Natural Gas Replace Coal” explores how these two fuels might compete in the marketplace and how that competition might impact the West Virginia economy.
Natural Fracture Barriers Above and Below the Marcellus Shale
In a online presentation, Michael Arthur of Pennsylvania State University, reports that the Onondaga Limestone below the Marcellus Shale and the Tully Limestone above the Marcellus Shale, are competent rock units that block the migration of hydraulic fractures. In addition, the induced fractures do not migrate upwards into freshwater aquifers because of the great overburden stress and the horsepower limitations of the equipment.
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.
