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Sept

Ohio Grad Students Pen Report on Avoiding Shale Boom/Bust

Two graduate students at The Ohio State University say their state’s policymakers should levy appropriate taxes on the oil and gas industry, be wary of hidden shale extraction costs and commit to good governance if they want to avoid the perils of boom-and-bust cycles common to other regions of the country rich in natural resources.

June 11, 2012

NGL Energy, High Sierra Groups to Merge in $693M Deal

Propane player NGL Energy Partners LP announced Monday that it has signed merger agreements with two High Sierra (HSE) entities, creating a diversified company through a cash and stock deal valued at $693 million, less assumed net debt.

May 23, 2012

Industry Briefs

Williams Olefins LLC has awarded CB&I a $300 million contract for expansion of ethylene production capacity in Geismer, LA (see Shale Daily, Sept. 21, 2011). The award includes the license and basic engineering for the ethylene technology, the supply of the cracking furnaces and engineering, procurement, and construction of the expansion. Plant capacity is expected to be increased from 1.35 to 1.95 billion pounds per year. “The petrochemicals market is re-emerging in the U.S. due to the abundance of lower-cost ethane feedstock, directly attributable to increased shale gas production,” said CB&I CEO Philip K. Asherman. Ethylene, mainly produced via steam cracking, is the primary building block for the chemical industry and is used to produce a variety of products including plastics, fibers and rubbers.

April 10, 2012

Crestwood Buys Marcellus Midstream Assets from Antero

A new joint venture formed by Crestwood Midstream Partners LP and Crestwood Holdings Partners LLC has acquired a Marcellus Shale gathering system in northern West Virginia owned by Antero Resources Appalachian Corp., the companies announced Monday.

February 28, 2012

Gastar Signs Lease, Will Drill on Bayer Site Touted for Cracker

Gastar Exploration Ltd. has signed a lease with Bayer AG to drill Marcellus Shale gas wells on 1,400 gross acres in New Martinsville, a site that is being touted as a possible location for an ethane cracker in West Virginia.

February 17, 2012

Pennsylvania DEP Fines Chesapeake $565K for Multiple Incidents

The Pennsylvania Department of Environmental Protection (DEP) has fined a Chesapeake Energy Corp. subsidiary $565,000 for three incidents that occurred in the northern part of the state in the Marcellus Shale, including a blowout at a Bradford County well last April (see Shale Daily, April 25, 2011).

February 13, 2012

EPA Wyoming Test Well Report Draws Congressional Reviews

A Congressional subcommittee on Wednesday will question a representative from the Environmental Protection Agency (EPA) and others regarding a controversial draft EPA report which concluded that groundwater in Pavillion, WY, contains chemicals that are normally used in natural gas production practices, including hydraulic fracturing (fracking).

January 31, 2012

Penn Virginia Working Toward New Marcellus Pipe

In what it said was the first step to develop a new pipeline to move Marcellus Shale natural gas out of northeast Pennsylvania, Penn Virginia Resource Partners LP (PVR) has acquired an option to purchase an easement along a 28.8-mile long right-of-way corridor in Susquehanna County, PA.

January 13, 2012

Gas Bubble II? Sub-$2 Futures A Possibility

February natural gas put in another low Thursday that had not been seen since Sept. 8, 2009 when October futures were as low as $2.628. The day’s price drivers included the release of storage data by the Energy Information Administration (EIA) that showed a 95 Bcf pull from inventories, well off the seasonal pace but greater than what the market was expecting.

January 13, 2012

PDC’s 2012 Trio: Wattenberg, Marcellus, Utica

Denver-based Petroleum Development Corp. (PDC) has agreed to sell its Permian Basin assets and intends next year to focus on the Wattenberg Field in Colorado, the Marcellus Shale in West Virginia and the Utica Shale in Ohio.

December 27, 2011