Focus

NiSource Midstream Services (NMS) is in “advanced discussions with a producer counterparty” about a potential joint venture (JV) to focus on gathering, processing and transporting in eastern Ohio’s Utica Shale, NiSource Inc. officials said Tuesday.

(The following is reprinted with permission of Jim Willis, editor of Marcellus Drilling News (MDN). Jobs in the shale gas industry were the focus of the first ever Natural Gas Career and Education Expo held at Broome Community College in Binghamton, NY Wednesday. MDN editor Jim Willis attended and published a very interesting account. Unfortunately, NGI wasn’t there, but, thanks to MDN, our readers won’t miss out.)

Shale talk and action are both picking up in Illinois as oil/gas exploration and production (E&P) companies and state officials are getting more involved in the fields and in the state capital in Springfield. As the energy companies seek more leases from farmers, the lawmakers have a proposed state law (SB 3280) covering hydraulic fracturing (fracking).

Houston-based NorTex Gas Storage Co. has changed its name to NorTex Midstream Partners LLC to reflect its new midstream energy market focus and asset acquisition strategy. “NorTex is in an active acquisition mode, committed to securing a full range of midstream assets and creating an unrivaled set of commercial solutions,” said CEO Robert Foss. NorTex owns and operates Worsham-Steed Gas Storage and Hill-Lake Gas Storage, high-deliverability, multi-cycle facilities serving the greater Dallas-Fort Worth market. These assets are in the Barnett Shale region and have multiple interconnections with several major pipelines serving energy markets from the Permian Basin at Waha to East Texas at Carthage, TX.

Fort Worth, TX-based Range Resources Corp. plans to focus 75% of its $1.6 billion capital budget for 2012 on liquids-rich plays in Appalachia and the Midcontinent. Range is adding five “enhancements” this year: the “super-rich” Marcellus Shale, the “super-rich” Upper Devonian Shale, the wet Utica Shale, the horizontal Mississippian plays and the Cline Shale in the Permian Basin. In the fourth quarter Range recorded a net loss of $3 million (minus 2 cents/share) versus a net loss of $318 million (minus $2.02) in the year-ago quarter. Range said the increase in quarterly net income from a year ago was driven by a 46% increase in production and lower costs per Mcfe. The company earned $58 million for full-year 2011 (36 cents/share) compared with a net loss of $239 million (minus 52 cents) in 2010. Cash flow from operations increase 28% to $737 million from $577 million in 2010. Although it lost 20% of its production by selling its Barnett Shale assets in 2011, Range posted a 12% increase in production to 554 MMcfe/d. The company expects 30-35% production growth this year.

As Appalachian Basin operators cut back dry gas investments to focus on liquids, MarkWest Energy Partners LP is accommodating with a major expansion of its Marcellus, Utica and Huron shale operations.

As Appalachian Basin operators cut back dry gas investments to focus on liquids, MarkWest Energy Partners LP is accommodating with a major expansion of its Marcellus, Utica and Huron shale operations.

Consol Energy Inc. said last week it has too much of a good thing — natural gas — and low prices will lead to reduced spending and well drilling in the Marcellus Shale this year.

Consol Energy Inc. said Thursday it has too much of a good thing — natural gas — and low prices will lead to reduced spending and well drilling in the Marcellus Shale this year.