Helmerich & Payne Inc. (H&P), the largest U.S. land drilling rig contractor, has agreed to buy directional drilling technology expert Motive Drilling Technologies Inc., whose drillbits hone in on unconventional oil and natural gas deposits.
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As they continue to pursue rules on hydraulic fracturing (fracking), California oil/gas officials are not seeing the increase in exploratory activity or permitting as other shale basins around the nation have experienced. Drilling activity is down slightly compared to this time last year, a spokesperson for the state Division of Oil, Gas and Geothermal Resources (DOGGR) told NGI’s Shale Daily Wednesday.
As part of its strategy to create a major natural gas supply hub in northeastern Pennsylvania, Williams Partners has formed an interstate pipeline joint venture with Cabot Oil & Gas Corp., one of the top producers in the Marcellus Shale.
The Bureau of Land Management (BLM) recently opened a 30-day comment period on the environmental assessment (EA) for EOG Resources’ plans for directional drilling of production wells in an already developed area in the central portion of the Uinta play in northeast Utah. The comment period ends Jan. 13.
As of last Friday Enterprise Products Partners was awaiting a permit from the U.S. Army Corps of Engineers to perform a directional drill at a pipeline crossing of the Missouri River at Decatur, NE, to enable inspection and repairs of two natural gas liquids pipelines that were shut in Aug. 13 following damage caused by flooding on the river. The eight-inch diameter pipelines — one carrying propane and one carrying natural gasoline — run from Conway, KS, to Minnesota and are expected to be out for at least two months. The pipelines are on the western leg of the Conway North System, which is part of Enterprise’s Mid-America Pipeline.
Futures rose but traders saw the advance as devoid of any directional factors and noted active spread trading. Trading of outright futures and options was light. At the close April had added 6.6 cents to $3.930 and May futures were up 6.2 cents to $3.986. April crude oil fell 64 cents to $104.38/bbl.
Futures were mixed in light pre-inventory report trading Wednesday. Short-term traders noted little in the way of directional trading and cited forecasts of warmer eastern weather expected to take some of the edge off any weather-driven advances. At the close February futures fell one-tenth of a penny to $4.287 and March added 1.1 cents to $4.298. February crude oil fell 37 cents to $91.12/bbl.
Rockies Express Pipeline LLC (REX) expects to begin service to Clarington, OH, on Nov. 1 on REX-East, provided horizontal directional drilling between Lebanon, OH, and Clarington at Deer Creek goes as planned, which might not happen, REX said late last week.
Rockies Express Pipeline (REX) Thursday revised its estimate for in-service of REX-East due to delays in completing its Illinois River horizontal directional drill (HDD), which has been complicated by adverse weather. Service to all REX-East interim service delivery points is expected to begin in late May. REX affirmed its previously projected in-service dates for Lebanon, OH, of June 15 and Clarington, OH, of Nov. 1. The Illinois River HDD has caused repeated delays of REX-East work (see NGI, April 27). Initial REX-East service is projected to commence in late May into Zone 3 at 1,600 MDth/d. This includes all interim service delivery points, which are NGPL (Moultrie County, IL), Trunkline (Douglas County, IL), Midwestern (Edgar County, IL) and PEPL (Putnam County, IN). In addition, the Ameren (Moultrie County, IL) delivery point is expected to commence service contemporaneous with interim service. Service to Lebanon is projected to commence June 15 with an initial capacity of 1,600 MDth/d to the Lebanon delivery points. Capacity will later increase to 1,800 MDth/d. In-service of the fully powered REX-East to Clarington is projected to be Nov. 1, capacity following necessary operational approvals will be 1,800 MDth/d. For more information visit www.rexpipeline.com, “Rockies Express — East,” “REX-East — Informational Posting.”