Kalnin Ventures adds to Marcellus shale portfolio with $16 million purchase
Denver-based investment firm Kalnin Ventures LLC has acquired more Marcellus shale assets in Pennsylvania on behalf of Banpu Pcl, a Thailand-based coal mining and power generation company, reports the Pittsburgh Business Times. The newspaper says Kalnin has reached a $16 million purchase agreement with Radler 2000 LP - Tug Hill Marcellus LLC for 177 wells in Bradford, Sullivan, Susquehanna, Lycoming, Tioga and Wyoming counties. Kalnin had previously acquired Marcellus wells from Chief Exploration and Development LLC and Range Resources-Appalachia. For more, read the full story.
Study: Marcellus, Utica shale region could support four more ‘ethane’ crackers
A new study says production of natural gas liquids (NGL) in the Marcellus and Utica shale plays could support up to four additional ethane “cracker” plants in the region in addition to the one that Royal Dutch Shell is building in Beaver County, Pennsylvania. The report, released by Pennsylvania Governor Tom Wolf’s office and the Team Pennsylvania Foundation, forecasts $2.7 billion to $3.7 billion in investments in NGL assets as well as the opportunity to attract additional cracker plants, petrochemical businesses and plastics manufacturing facilities. For more, read the full report.
Oil and gas rig count keeps rising including in Marcellus shale play
The U.S. oil and natural gas drilling rig count jumped 21 units to 789 during the week ending on March 17th, continuing a rally that dates to May 27, 2016, reports Oil and Gas Journal. Citing data from Baker Hughes Inc., the news site says the most recent rig count increases were concentrated in Oklahoma and North Dakota. The rig count in the Marcellus shale play increased by one unit to 42, which is double the number on August 12, 2016. For more, read the full story.
Natural gas production increases 10% in Pennsylvania
Pennsylvania posted a 10% increase in natural gas production from shale gas plays in 2016 in a year marked by a slow recovery in commodity prices and well drilling, reports the Pittsburgh Business Times. Citing data from the state’s Department of Environmental Protection, the newspaper says 5.05 trillion cubic feet of natural gas was produced in Pennsylvania shale plays last year. For more, read the full story.
Company plans to build natural gas power plant in southwestern Pennsylvania
Hatfield's Ferry, a shuttered coal-burning power plant in Greene County, Pennsylvania, has drawn the attention of a New Jersey developer that plans to build a natural gas-fueled power plant on the site, reports the Pittsburgh Post-Gazette. The newspaper says APV Renaissance Partners, a subsidiary of American Power Ventures, plans to submit a permit to the Pennsylvania Department of Environmental Protection within the next month for a combined-cycle power plant at Hatfield’s Ferry near Masontown. The site is owned by Ohio-based FirstEnergy Corp, which closed the Masontown plant in 2013 because it was losing money, according to the Post-Gazette. For more, read the full story.
U.S. shale expansion runs counter to OPEC’s global oil strategy
Reuters reports that U.S. shale producers are plotting “ambitious production growth outside the red-hot Permian Basin in Texas, widening a resurgence that could confound” a strategy by OPEC to tighten global supplies. As U.S. shale producers rebound from a two-year price war with OPEC, many are planning to expand production in North Dakota, Oklahoma and other regions such as the Utica and Marcellus shale plays, according to the new service. Reuters notes that Hess Corp., Chesapeake Energy Corp., Continental Resources Inc. and other companies recently detailed expansion projects that would result in a “steady supply of American crude exports through the next decade.” For more, read the full story.
Microbes in Marcellus shale could boost natural gas regeneration
Scientists at the U.S. Department of Energy’s National Energy Technology Laboratories (NETL) have found that the Marcellus shale formation may be a rich source for microbial life that “could help refill the important domestic natural gas reservoir by producing methane,” reports Oil and Gas Journal. The news site says NETL research suggests that some species of tiny “worker microbes” known as extremophiles that live in the extreme conditions of the Marcellus shale formation may also be methanogens (meaning they produce methane). NETL said this discovery has important implications for energy production because a biogenic source of methane would mean faster regeneration of natural gas in shale and the potential for secondary gas recovery. For more, read the full story.
Lawrence County makes bid to benefit from Shell ‘cracker’ plant
Public officials, development specialists and businesses in Lawrence County, Pennsylvania want to make sure their county is “on the radar screen" of any manufacturer or supplier considering a home near Royal Dutch Shell’s $6 billion ethane “cracker” plant now under construction in neighboring Beaver County, reports the Youngstown Business Journal. The newspaper says Lawrence County leaders recently launched a marketing initiative that targets site selectors, real estate brokers and companies related to the petrochemicals industry. For more, read the full story.
Pipeline additions likely to boost profits for natural gas producers in Appalachian Basin
A surge in pipeline capacity for natural gas from the Appalachian Basin this year and in 2018 is expected to boost profits for energy producers and hold down prices for Midwest and East Coast buyers, reports Bloomberg BNA. The news service says natural gas producers in Pennsylvania, West Virginia and eastern Ohio are eager for the $13.8 billion pipeline build-out “because they have been hurt by depressed prices in pockets of inadequate pipeline infrastructure, compounded by a nationwide two-year slump in [natural] gas prices.” Gas producers in the region are likely to see substantial increases in profitability because of the pipeline additions, Andrew Weissman of EBW Analytics Group told Bloomberg. For more, read the full story.
Stone Energy emerges from bankruptcy reorganization
Louisiana-based Stone Energy, which recently sold its Appalachian Basin oil and natural gas assets to ETQ Corp. at a bankruptcy auction, reported on February 28 that it has emerged from Chapter 11 reorganization. A federal judge in Texas had earlier approved a revised, pre-packaged voluntary bankruptcy plan for the company as part of a restructured support agreement with Stone’s key noteholders, according to the Kallanish Energy news site. Stone, which had filed for Chapter 11 reorganization in December 2016, said the bankruptcy plan has eliminated about $1.2 billion in debt. For more, read the full story.