Several large natural gas interstate pipeline projects have come online in recent years to support the shifting geography of domestic natural gas production. The Marcellus and Utica shale plays in the Northeast, where production has grown and resources are abundant, are major drivers for pipeline development. In 2016, the Federal Energy Regulatory Commission (FERC) certificated 17.6 billion cubic feet per day (Bcf/d) of new natural gas pipeline capacity. So far in 2017, FERC certificated more than 7 Bcf/d of new pipeline capacity before losing its quorum following the departure of one commissioner in February, which left just two sitting commissioners and three vacant seats.FERC oversees the interstate transmission of natural gas, which includes the regulation of interstate transportation rates and services for natural gas pipelines, natural gas pipeline construction, and related pipeline environmental matters. Pipeline certification involves reviewing applications for the construction and operation of natural gas pipelines and ensuring that applicants comply with safety standards.Receiving a certificate is just one step in the process of building and operating a new pipeline; pipelines receiving certification in 2017 will not necessarily come online in 2017.The seven projects certificated during the first few weeks of 2017 include more than 1,500 miles of natural gas pipeline construction and expansions, involving combined additions of more than 7 Bcf/d of capacity. The pipeline projects are concentrated in the eastern half of the United States to improve access to markets for growing eastern natural gas production, and they have projected 2017 and 2018 in-service dates.
Source: FERC certificates several new natural gas pipelines in 2017 – Today in Energy – U.S. Energy Information Administration (EIA)
Gulfport Energy Corp. has plans this year to get familiar with the South Central Oklahoma Oil Province (SCOOP), hoping to transfer what it’s learned during the last five years in Ohio’s Utica Shale to the Midcontinent’s stacked pay potential.The company acquired 46,400 net surface acres last year in a deal that’s soon expected to close. Once it does, Gulfport plans to run four rigs in the SCOOP with the Woodford and Springer shales as its primary targets. Other than legacy assets on the Gulf Coast, Gulfport has been focused in recent years on its more than 200,000 net acres in the Utica.
Source: Gulfport Scoping Out SCOOP, Still Eyeing Utica in 2017 | 2017-02-15 | Natural Gas Intelligence
The correction in U.S. natural gas production has finally arrived. Volumes are down close to 5% since peaking in late 2015, driven by declines in associated gas and higher-cost legacy areas as well as ongoing curtailments and pipeline constraints across the Northeast United States. Natural gas prices have rallied as a result, with 2017 Henry Hub futures increasing almost 15%, to an average of $3 per thousand cubic feet.
With record power burn set to moderate, however, and as new pipelines are put into service across the Northeast, tight supply conditions should ease. By 2018, we expect prices to once again be governed by the considerable productive capacity of low-cost shale plays like the Marcellus, Utica, and Haynesville. Long-term demand tailwinds still appear favorable, although we continue to believe that at our midcycle prices of $3/mcf Henry Hub and $55/barrel West Texas Intermediate, there is more than enough economically profitable resource to meet growing consumption needs. The temporary spike in natural gas prices appears to be just that: temporary. Our long-term price assumption of $3/mcf is unchanged.
Source: U.S. Shale Boom Finally Runs Out of Gas
Clean-energy and community activists have been able to stall or kill most new natural gas pipeline proposals in New England, but one expansion project has made it.The Algonquin Incremental Market project went into service last month. It increased the region’s pipeline capacity for the first time since 2010, and represents the largest venture since 2007, according to the U.S. Energy Information Administration. The $972 million project expanded the major pipeline carrying gas from the Appalachian shale deposits into the region by upgrading compressor stations and increasing pipe size in some places.The expansion will provide an additional 342 million cubic feet of gas a day. The region burns roughly 4.5 billion cubic feet on a winter’s day – equal to 31 million gallons of heating oil – so the contribution isn’t a game changer.
Source: Despite opposition, project expands New England natural-gas pipeline capacity – The Portland Press Herald
The Baker Hughes rig count stats show the number of rigs operating in Pennsylvania has jumped nearly 70% since June! The Baker Hughes rig count, watched closely by those in the industry (the benchmark used across the world) has been trending up in the U.S. since July and in Pennsylvania since June. Baker Hughes released its venerable count for September on Friday and once again the counts have gone up—very good news indeed.Baker Hughes is reporting an average of 509 active rigs in the U.S., up 28 from August. MDN performs its own rig count for the Marcellus/Utica, using Baker Hughes numbers for Pennsylvania, Ohio and West Virginia. The Marcellus/Utica rig count was up for the second month running. In September the Marcellus/Utica rig count jumped up by 7. The biggest gainer was Pennsylvania, up by 5. West Virginia was up by 2, and Ohio stayed even.
Source: PA Rig Count Has Jumped Nearly 70% Since June
DENVER, July 14, 2016 /PRNewswire/ — Antero Resources (NYSE: AR) (“Antero” or the “Company”) today provided its second quarter 2016 operations update.
Source: Antero Resources Announces Second Quarter 2016 Operations Update | BOE Report
Consol Energy Inc.’s strategy is going to include a lot more dry-gas development in the Utica Shale as some of the economics of the basin have shifted away from the wet-gas areas of the Marcellus Shale.”We believe the Utica will make up a larger portion of Consol’s development plans in the future,” COO Timothy Dugan told a crowd of industry executives at the DUG East natural gas conference in downtown Pittsburgh.Consol (NYSE: CNX) halted its drilling program in 2015 as commodity prices declined. It has yet to resume drilling in Pennsylvania, Ohio or West Virginia, where it has one of the largest acreages among exploration and production companies in the Appalachian Basin. Consol has signaled that it is close to making a decision as to when it will resume drilling, perhaps as early as the second half of this year. But no announcement was made today, and Dugan declined to say when drilling might resume or whether a rig would first go into the Utica or Marcellus shales.
Source: Consol puts focus on dry Utica play as wet-gas prices decline – Pittsburgh Business Times
The Utica Shale and associated hydrocarbon-rich rock zones hold significantly more potentially recoverable natural gas than early estimates predicted, according to research released Tuesday at a workshop in Canonsburg.
It turns out, according to the new study’s estimates, the total Utica Shale play could hold technically recoverable volumes of 782 trillion cubic feet of natural gas and nearly 2 billion barrels of oil.
The estimates from a research partnership organized by West Virginia University represent the average of a wider range of possibly recoverable amounts of oil and gas in the Utica, which stretches beneath parts of Ohio, West Virginia, Pennsylvania and other states and includes neighboring oil- and gas-bearing geologic layers.
A 2012 U.S. Geological Survey assessment of the Utica Shale and underlying Point Pleasant formation pegged the technically recoverable undiscovered resources at 38 trillion cubic feet of gas, 940 million barrels of oil and 208 million barrels of natural gas liquids such as ethane, butane and propane.
The new assessment is also higher than estimates the researchers had calculated a year ago, when they determined that 188.6 trillion cubic feet of natural gas and 830 million barrels of oil could be extracted from the Utica play using existing technology. Those year-old numbers also were released publicly for the first time Tuesday.
The research partnership organized by WVU includes members from oil and gas companies, the U.S. Geological Survey and four state geological surveys, universities, a consulting company and the U.S. Department of Energy’s National Energy Technology Laboratory.
via New study shows greater potential for Utica Shale.
Posted in Utica
Consol Energy Inc. on Tuesday confirmed its second round of layoffs since the beginning of the year, again citing depressed commodity prices as an impetus for its decision to this time cut 470 jobs in its natural gas and coal divisions.
Tuesday’s announcement comes in addition to a move earlier this year to lay off more than 160 workers in its gas division, CNX Gas Co., a company spokesman said (seeShale Daily, April 10).
“We continually evaluate our workforce based on current and anticipated activity levels,” said spokesman Brian Aiello. “These are very difficult but prudent decisions given the depressed nature of commodity prices. We are taking aggressive action so that Consol can continue to operate from a position of strength through the downturn and quickly capitalize on the up-cycle when it returns.”
Once a traditional coal producer, Consol has been focused on growing its gas division, with its assets in the Marcellus and Utica shales increasing in recent years as retrenchment in its coal operations has led to thousands of job cuts over the last decade on that side of the business. The company’s core gas operations are in Ohio, West Virginia and Pennsylvania, where it produced 235.7 Bcfe of natural gas last year, a 37% increase from 2013 (see Shale Daily, Jan. 30). That was followed by a record-setting first quarter in which the company produced 71.6 Bcfe (see Shale Daily, April 28).
The company confirmed that it would lay off 290 employees working in administrative positions and in its gas division. Another 180 jobs would be cut in its coal division, Consol said. Combined, the layoffs account for about 10% of the company’s workforce. At the beginning of the year, Consol said it would cut its capital budget by $80 million from 2014 spending of $1 billion.
Consol has taken other general and administrative cost-cutting measures as well this year, announcing in June that it would accelerate a plan announced last year to stop paying health benefits for more than 4,000 retirees.
Posted in Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Uncategorized, Utica
Tagged Bakken, Eagle Ford, Haynesville, Marcellus, Niobara, Permian, Utica