The tenacious natural gas production growth that has characterized the Appalachian Basin over the last decade finally appears to be slowing as an epic pipeline buildout nears its conclusion, demand ebbs and operators realign their visions for the future.
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Articles from Appalachia
Antero Slashes Appalachian Spend on Lower Oil, NGL Prices
Appalachian pure-play Antero Resources Corp. plans to cut its capital spending and development activity this year in response to sliding oil and natural gas liquids (NGL) prices.
NGI The Weekly Gas Market Report
DOE Highlights Case for Appalachian NGL Storage Hub in Report to Congress
The Department of Energy (DOE) on Tuesday unveiled a long-awaited report demonstrating the feasibility of developing a natural gas liquids (NGL) storage hub in the Appalachian Basin that it says would increase supply and geographic diversity for the nation’s petrochemical and plastics industries.
Marcellus/Utica De-Bottlenecking on the Horizon, Barclays Says
The opening of the Mariner West I ethane pipeline and new processing plants should provide some relief to current wet gas constraints in the Marcellus and Utica shales, and the plays should be largely de-bottlenecked by the end of next year, according to analysts at Barclays.
Eclipse Doubling Down in Utica Shale
Two-year-old Appalachia-based upstart Eclipse Resources I LP, under the management of several shale veterans, has more than doubled its holdings in the Utica Shale in a deal to acquire Oxford Oil Co. LLC, and with it 184,000 net acres and 13.8 Bcfe of proved developed producing reserves.
Industry Brief
An affiliate of Chesapeake Energy Corp. is being sued by the U.S. government for failing to pay taxes in 2001 through 2003. Chesapeake Appalachia LLC is the successor company of Triana Energy Inc., which Chesapeake purchased in 2005 as part of a transaction with Columbia Natural Resources LLC. The deal gave Chesapeake entry into the relatively unexplored Marcellus Shale, with acreage in Pennsylvania, West Virginia, Ohio, New York and Kentucky. According to a complaint filed in U.S. District Court for the Southern District of West Virginia, the United States assessed taxes against Triana in 2001 through 2003 for a total of $431,988, which as of May 17 it “has failed, neglected or refused to pay” (U.S. District Court for the Southern District of West Virginia at Charleston, No. 2:13-cv-11988). Federal officials are seeking the tax assessment and statutory additions accrued.
EQT Dropping LDC for Midstream, E&P
Now that it’s getting out of the local distribution company (LDC) business, Appalachia-focused EQT Corp. will have more time and money to devote to the Marcellus Shale, America’s emerging natural gas breadbasket.
West Virginia City Enacts 6% Tax on Natural Gas Drillers
A West Virginia city in the Marcellus Shale has enacted a 6% business and occupation (B&O) tax on natural gas companies operating within the city limits, reportedly to raise revenue to fix roads and bridges that could be damaged by drilling there.
Industry Briefs
Enterprise Products Partners LP is holding a binding open commitment period through Sept. 27 for capacity on the Appalachia-to-Texas (Atex Express) pipeline. The 1,230-mile system will deliver ethane from the Marcellus and Utica shale areas of Pennsylvania, West Virginia and Ohio to Mont Belvieu, TX (see Shale Daily, Jan. 5). “While the long-term commitments we already have are more than sufficient to proceed with the development of Atex Express pipeline, we continue to receive steady interest from other producers seeking long-term transportation capacity,” said Jim Teague, chief operating officer of Enterprise’s general partner. For information contact Russ Kovin at (713)381-7925, or rkovin@eprod.com.
Cabot Given Green Light to Frack — Not Drill — in Dimock, PA
The Pennsylvania Department of Environmental Protection (DEP) has notified Cabot Oil & Gas Corp. that the company has satisfied the terms of a 2010 settlement and may resume hydraulic fracturing (fracking) and completion activities at seven Marcellus Shale natural gas wells in Dimock Township. However, the producer is still barred from drilling new wells in the area.