Ineos bullish on imports of natural gas from Ohio, Pennsylvania
Importing natural gas from the United States, including from Ohio and Pennsylvania, to the United Kingdom and Europe “makes perfect geopolitical and commercial sense," Ineos official Tom Crotty told the International Business Times during a recent visit to a Consol Energy shale gas drilling site in eastern Ohio. “A key facet of our commercial agreement with American gas exporters is security of supply, with the UK becoming a net importer of natural gas,” he said. In partnership with Consol and pipeline companies, Ineos is transporting natural gas from eastern Ohio and western Pennsylvania via the Mariner East pipeline to the Marcus Hook terminal near Philadelphia and then shipping it to the United Kingdom and Norway. For more, read the full story.
Dorfman Production looks to sell Ohio oil and gas assets
Oil and Gas Investor reports that Dallas-based Dorfman Production Co. intends to sell its interest in certain oil and natural gas assets in Ohio. The news site says the assets include 339 producing wells and 13,640 gross acres located in Carroll, Columbiana, Mahoning, Portage and Stark counties. For more, read the full story.
Moody’s: Oil and gas debt defaults ‘catastrophic’
Moody’s Investors Service says the oil-market crash may leave behind as much financial wreckage for lenders as the telecom bust in the early 2000s, reports FuelFix.com. On average, banks and bond investors have recovered only about $1 of every $5 they put into U.S. oil and gas companies that went bankrupt in 2015, according to the credit rating agency. Moody’s says that amount is about a third of what creditors historically have pulled out of energy companies that default on debt and “can only be described as catastrophic.” For more, read the full story.
Ohio Courts of Appeals affirm survey access rights for natural gas pipeline
Two Ohio Courts of Appeals have affirmed that natural gas pipeline company NEXUS Gas Transmission, LLC has legal authority to conduct land surveys for the NEXUS pipeline project. On September 12, 2016, the Ohio Ninth District Court of Appeals affirmed a 2015 ruling from the Medina County Court of Common Pleas, which held that an interstate natural gas pipeline company has authority to access private property to conduct surveys required to construct a 250-mile natural gas pipeline. Earlier this year, the Sixth District Court of Appeals reached a similar conclusion in an appeal from the Erie County Court of Common Pleas. These are the only appellate decisions on the statutory survey access issue. For more, read a summary of the rulings by Bricker & Eckler’s oil and gas team.
FERC rules on Columbia Gas Transmission pipeline project
The U.S. Federal Energy Regulatory Commission (FERC) has issued a final environmental impact statement on Columbia Gas Transmission's Leach XPress natural gas pipeline project, reports Argus Media. The news site says FERC concluded that while construction and operation of the project would have some environmental impacts, they can be reduced to “less than significant levels with the use of some mitigating measures.” The $1.4 billion project will connect production areas in the Marcellus and Utica shale plays to Columbia Gas’s mainline system. For more, read the full story.
Discovery of ‘Frackibacter’ has implications for shale drillers
Researchers analyzing the genomes of microorganisms living in shale oil and gas wells have found evidence of sustainable ecosystems taking hold that are populated in part by a never-before-seen genus of bacteria they have dubbed “Frackibacter,” reports Bakken magazine. Citing a report by Ohio State University researchers and their colleagues in the September 5, 2016 online edition of the journal Nature Microbiology, the magazine says the new genus was found living in two hydraulically fractured wells in the Utica and Marcellus shale formations. One implication of the study is that methane produced by microbes living in shale wells could possibly supplement the wells’ energy output. For more, read the full story.
Total acquires Chesapeake properties in Barnett shale play
Total E&P USA, which has a stake in Ohio’s Utica shale play, is exercising its right to acquire Chesapeake Energy Corp.’s 75% interest in jointly held Barnett shale play properties near Fort Worth, Texas, reports Oil and Gas Journal. The news site says Total, which already owns the other 25% interest of the Barnett holdings, will become the operator for properties that include 215,000 net developed and undeveloped acres. Total also holds a 25% interest in a Chesapeake-operated Utica shale joint venture, according to the Journal. For more, read the full story.
Oil and gas driller Halcón emerges from bankruptcy
Houston-based oil and natural gas company Halcón Resources Corp., which has operations in Ohio’s Utica shale play, has announced it has completed its financial restructuring and emerged from bankruptcy, according to the Houston Business Journal. The newspaper says that when Halcón filed for bankruptcy protection on July 27, 2016, it listed debts of nearly $3.15 billion and assets of almost $2.85 billion. The restructuring eliminated approximately $1.8 billion of the company’s debt and more than $200 million in future annual interest expenses, the Business Journal reports. For more, read the full story.
Saudis eye purchase of oil refinery in Houston area
Saudi Arabia’s national oil company is making a bid to “significantly expand its operations in the United States at a critical moment in the always uneasy relations” between the two countries, reports the New York Times. The newspaper says Saudi Aramco wants to strengthen its position on the Gulf of Mexico coast by buying a large oil refinery in the Houston Ship Channel that LyondellBasell is selling. Saudi Aramco sees the potential acquisition as a way to shore up its exports at a time of decline in the oil business on which the Saudi economy remains largely reliant, according to the Times. For more, read the full story.
Magnum Hunter hires John Reinhart to serve as CEO
Texas-based Magnum Hunter Resources Corp., which has operations in Ohio’s Utica shale play, has hired former Ascent Resources and Chesapeake Energy executive John Reinhart as president and CEO, reports Oil and Gas Investor. The news site says Reinhart has more than 22 years of experience in the oil and gas industry and has focused on upstream exploration, development and production in the Marcellus and Utica shale plays in Ohio and West Virginia for the last 10 years. For more, read the full story.