Utica Production Places Ohio in Starring Role of Shale Revolution

By -
From Forbes:
Thanks to the Utica and even part of Pennsylvania's Marcellus shale plays (map here), Ohio is now one of our of major natural gas producing states. Despite low prices in the $3.00 range, producers in the Utica have added 10 rigs since early-March to now total 29. The Ohio Department of Natural Resources reports that 2Q gas production hit 4.3 Bcf/d, up 5% or so from the prior quarter and up 16-17% from the 2Q 2016. Four counties - Belmont, Harrison, Monroe, Carroll, and Jefferson - account for nearly 90% of the state's output, with Belmont leading at 1.9 Bcf/d. 
Looking forward, Ohio has many more gas opportunities: I've already documented the Northeast gas pipeline build-out primed to bring gas to more markets, here. Delivering over 0.6 Bcf/d in recent days, the massive $4.2 billion, 713-mile greenfield Rover pipeline (map here) finally started Phase 1 operations Friday, September 1. Rover's Phase 2 will lift the project to its full 3.25 Bcf/d capacity and could come online by early-December. Rover will ship Appalachia Basin gas to markets in the Midwest, Gulf Coast, and eastern Canada.

With construction slowed by multiple delays and pressure from regulators, the gas market has been excitedly waiting for Rover's arrival. This is the largest pipeline project since the beginning of the shale boom, so vital that regulatory policies surrounding it move the needle for the U.S. gas market, here. 
Rover will have major effects on regional Northeast basis gas pricing, such as Dominion South. But be careful how you view new pipelines on gas prices, since they have a dual impact: pipelines can lower basis by increasing gas-on-gas competition but they can also increase production. Meaning that to a large degree, the price impact of gas pipelines for prices isn't certain. For example, now that Rover is up and running, Northeast gas production has ramped up past the 25 Bcf/d.
Read the whole article by clicking here.

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be...
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividen...
Read more

Do You Know The History of Fracking?

By -
Image
  In 2018, 59% of total oil production in the U.S came from hydraulic fracking, which means it accounted for more than two-thirds of domestically manufactured gas. By 2024, fracking will reach an astounding $68 billion market value! Of course, fracking is not a new drilling method as you can trace it back hundreds of years. That's why we want to consider the history of hydraulic fracturing (fracking). We will be stating historical facts about it and focusing on the major historical occurrences that have influenced modern-day fracking. Pre-Fracking Days The idea of fracking started back in 1862 when Edward A.L. Roberts (Civil War veteran) witnessed Confederate soldiers exploding artillery rounds into a canal that obstructed a battlefield. At the time, Edward A.L. Roberts called it superincumbent fluid tamping. On April 26th, 1865, Edward A.L. Roberts began experimenting with exploding torpedoes, which consisted of lowering a torpedo containing an amount of powder from fifteen to tw...
Read more