Expect

Six major producers in the Marcellus Shale say they expect to recycle or inject all of their wastewater by the end of the year, according to information released by the U.S. Environmental Protection Agency (EPA) on Wednesday.

Pennsylvania Gov. Tom Corbett signed a state budget last Thursday that did not include a tax or fee on Marcellus Shale development, but lawmakers expect to revive the issue this fall.

The lingering effects of a recent La Nina event “mean no summer for the Great Lakes” this year, according to AccuWeather.com forecasters, who also expect drought conditions to expand out of the southern Plains and flooding in the Midwest this summer.

Companies that aim to export domestic shale gas can expect to face a tough spot market, according to Terry Engelder, the Penn State University geosciences professor who helped prove the value of the Marcellus Shale.

A Duke University study released Monday found high levels of leaked methane in well water collected near shale gas drilling and hydraulic fracturing (fracking) sites in the Marcellus Shale play. However, Duke researchers said there was no evidence that fracking fluids contaminated the water wells.

Australian energy giant BHP Billiton Petroleum has become the latest international energy heavyweight to buy into U.S. shale plays with a transaction to acquire Chesapeake Energy Corp.’s Fayetteville Shale portfolio for $4.75 billion cash.

Range Resources Corp. said its estimated unproved resource potential at the end of 2010 reached 35-52 Tcfe, versus 2009’s estimate of 24-32 Tcfe, which was fueled by stronger drilling results. By itself, the resource potential in the Marcellus Shale leasehold jumped to 20-31 Tcfe on higher per/well reserves.

Merger and acquisition (M&A) activity in the midstream sector last year got back to the all-time high level of 2006. Nearly all (94%) of the activity last year was driven by spending on gas pipelines and gas gathering and processing facilities in the United States, and shale gas plays featured prominently in that activity, according to the “IHS Herold 2011 Global Midstream M&A Review.”

Shale gas plays have been a magnet for energy deals, and that was even more true last year, which saw a record dollar value for upstream energy mergers and acquisitions (M&A), driven largely by shale-related activity, according to consultancy Wood Mackenzie.