Report: Appalachia could become major petrochemical center

A new report from the American Chemistry Council says the Appalachian region could become a major petrochemical and plastic resin manufacturing center similar to the Gulf Coast. According to Oil & Gas Journal, the report presents a scenario that includes development of a storage hub for natural gas liquids and chemicals, a 500-mile pipeline distribution network and associated petrochemical, plastics, energy and manufacturing facilities in West Virginia, Pennsylvania, Ohio and Kentucky. The report also estimates that by 2025, the four-state region could see 100,000 permanent new jobs from such development. For more, read the full story.

Ohio, Pennsylvania, West Virginia

Oil production continues to rise in Utica shale play

Oil production in Ohio’s Utica shale play has been "showing a slow ramp up" in 2017, reports the Youngstown Business Journal. Citing data from the U.S. Energy Information Administration (EIA), the newspaper says wells across the shale play are projected to produce 54,807 barrels of oil per day in June, an improvement of 1,000 barrels per day compared with May. In addition, EIA projects that Utica wells will produce 4.431 billion cubic feet of natural gas per day in June, an increase of 49 million cubic feet per day versus output in May. For more, read the full story.


Eclipse drills another record lateral in Utica shale play

Eclipse Resources has again drilled what it says is North America's longest lateral for an oil and natural gas well, according to Kallanish Energy. The news site says Eclipse's "Great Scott 3H" well in eastern Ohio's Utica shale play stretches 27,400 feet from the surface to its endpoint, including a lateral that is nearly 1,000 feet longer than the previous record at the company's "Purple Hayes" well in Ohio. For more, read the full story.


Ohio Supreme Court accepts oil and gas appeal involving implied covenants

The Ohio Supreme Court has accepted a landowner’s appeal in Alford v. Collins-McGregor Operating Co., which seeks to expand Ohio’s implied covenants for reasonable development to include deeper and unexplored formations. The case itself involves approximately 74 acres in Washington County, Ohio that were leased in 1980 and have been held by production by one conventional well. The landowner did not dispute the production from that well, but rather argued that the oil and gas company was not capable of developing any formations deeper than the Gordon Sands Formation. As a result, the landowner requested that all geologic formations below the Gordon Sands be released based on the implied covenant for reasonable development. The 4th District Court of Appeals (Washington County) rejected the landowner’s arguments. Click here for the District Court of Appeals decision.

Ohio, Oil & Gas Litigation

Consol Energy bullish about drilling in Utica shale play

Consol Energy CEO Nick DeIuliis recently told the Pittsburgh Post-Gazette that his company is optimistic about its ability to drive down the cost of producing natural gas in the Utica shale play. The newspaper says that is the case even though oil and gas companies believe the Utica cannot yet compete economically with the Marcellus shale play. For more, read the full story.

Ohio, Pennsylvania, West Virginia

Rex Energy to step up drilling program in Carroll County

Rex Energy will be getting busier soon in Carroll County, Ohio, where it plans to drill 12 oil and natural gas wells in the Utica shale play in the second half of 2017, reports the Canton Repository. The newspaper says the Pennsylvania-based company had planned to drill five wells in Carroll County, but a new financing agreement will allow Rex to drill seven additional wells there. Most will begin production in early 2018, according to the Repository. For more, read the full story.


Rice Energy may sell part of Ohio-based midstream subsidiary

The Pittsburgh Business Times reports that Rice Energy Inc. is looking at selling part of its Ohio-based natural gas gathering service provider to Rice Midstream Partners, its publicly traded master limited partnership that owns midstream assets in the Appalachian basin. The newspaper says the Rice Olympus Midstream gas gathering and compression system, which serves Ohio drilling companies, has its center of operations in central Belmont County. For more, read the full story.


Titan Energy sells 8,400 wells to Diversified Gas & Oil

Titan Energy, which entered the Marcellus shale play in 2016 with the acquisition of Atlas Resource Partners’ assets, is selling wells in Pennsylvania, West Virginia and Ohio for $84.2 million to Alabama-based Diversified Gas & Oil PLC, reports the Pittsburgh Business Times. The sale includes 8,400 conventional wells in Pennsylvania, West Virginia, Ohio, Tennessee and New York. The Business Times says Texas-based Titan Energy will retain its Utica shale play portfolio as well as coal-bed methane assets in West Virginia and Indiana. For more, read the full story.

Ohio, Pennsylvania, West Virginia

Lawsuit challenges oil and gas leases in Wayne National Forest

Several conservation groups have filed a lawsuit in the U.S. District Court for the Southern District of Ohio in an attempt to void oil and natural gas leases and halt hydraulic fracturing operations in the Wayne National Forest, reports the Herald-Dispatch in Huntington, West Virginia. The complaint was filed against the U.S. Forest Service and U.S. Bureau of Land Management by the Center for Biological Diversity, Ohio Environmental Council, Heartwood and Ohio Sierra Club. The Herald-Dispatch says the plaintiffs claim the federal agencies “failed to analyze threats to public health, endangered species and the climate” before auctioning leasing rights to more than 670 acres in the Wayne National Forest in southeast Ohio. For more, read the full story.

Ohio, Oil & Gas Litigation

NEXUS donates $50,000 for Stark State scholarships

NEXUS Gas Transmission has made a $50,000 scholarship donation to Stark State College in North Canton, Ohio in support of students pursuing careers in the oil and natural gas industry, reports the Canton Repository. Stark State, which is located near the proposed NEXUS natural gas pipeline route, offers associate degrees and certificate programs for oil and gas-related careers. For more, read the full story.

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