Recovery

The upstream oil and gas industry, which has managed to stay afloat this year through mergers, debt and derivatives, is poised to hit even choppier seas in 2016 as acquisition activity slows and leveraged companies face increased probabilities for defaulting, according to a cadre of energy experts.

A shakeup in the shale gas industry involving the acquisitions of technology providers and developers is coming this year, along with grudging growth in the enhanced oil recovery (EOR) sector, according to Mountain View, CA-based consulting/research firm Frost & Sullivan (F&S).

Bolstered by record production, especially in the southwest Pennsylvania portion of the Marcellus Shale, and revisions to its estimated ultimate recovery (EUR) curves, Range Resources Corp. reported net earnings of nearly $144 million for the second quarter of 2013.

Bolstered by record production, especially in the southwest Pennsylvania portion of the Marcellus Shale, and revisions to its estimated ultimate recovery (EUR) curves, Range Resources Corp. reported net earnings of nearly $144 million for the second quarter of 2013.

XTO Energy Inc.’s natural gas liquids (NGL) recovery facility in Butler County, PA, has entered service processing wet gas from Marcellus and Utica shale drilling in southwestern Pennsylvania.

EQT Corp. released updated information for its investors on Friday, including higher projections for estimated ultimate recovery (EUR) at wells in its core Marcellus Shale acreage, thanks to reduced cluster spacing, longer laterals and a pending deal with Chesapeake Energy Corp.

Dover, OH-based Dennison Disposal LLC has applied for a permit to drill a Class II wastewater injection well in Union Township in Tuscarawas County, OH, to support oil and natural gas drilling in the Utica Shale. The well would be drilled to a depth of 7,900-9,000 feet, according to the permit application with the Ohio Department of Natural Resources (ODNR) The well, classified as a saltwater injection well, would have an average disposal capacity of 5,000 barrels a day of wastewater, and a maximum disposal capacity of 8,000 barrels a day. An ODNR spokesman said a public comment period on the proposed well is to end April 24. Last July, Gov. John Kasich signed an executive order temporarily giving the ODNR power to regulate injection wells (see Shale Daily, July 13, 2012). Specifically, the chief of the Division of Oil Gas Resources Management, currently Rick Simmers, has the authority to enact rules for injection wells, including requiring additional testing before drilling and possibly setting a maximum allowable injection pressure. The ODNR currently has an inventory of 151,000 Class II injection wells, including saltwater injection, enhanced oil recovery and annular disposal wells.

North American oilfield services activity in the first three months of this year has been less promising than expected, according to Schlumberger Ltd. CEO Paal Kibsgaard.

Drilling demand from North America’s shale boom, as well as the beginnings of a recovery in the Gulf of Mexico, revved the four biggest domestic oilfield service companies in 2010 and 2011, but this year has been a different story, according to a review by IHS Inc.