Ohio Gov. John Kasich said the state should be prudent in developing the Marcellus and Utica shales, maintaining tough environmental regulations while looking to attract jobs and investment.
Shales
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Ohio Governor Calls for Prudent Shale Development
Ohio Gov. John Kasich said the state would be prudent in developing the Marcellus and Utica shales, maintaining tough environmental regulations while looking to attract jobs and investment.
Industry Briefs
Led by increases of 9% (0.37 Bcf/d) in the Federal Offshore Gulf of Mexico and 1.9% (0.37 Bcf/d) in other states, natural gas production in the Lower 48 states increased 1.4% (0.96 Bcf/d) in October compared with the previous month, according to the Energy Information Administration (EIA). The increases were partially explained by wells coming back online that had been shut-in due to Tropical Storm Lee and drilling activity in the Marcellus Shale play, according to EIA’s Monthly Natural Gas Production Report. Offshore production, which has also have suffered from the moratorium on drilling there that followed the blowout of BP plc’s Macondo well (see see NGI, April 26, 2010), remains well below year-ago levels. Gross production from the Federal Offshore Gulf of Mexico was 4.49 Bcf/d in October, a nearly 25% decline from 5.95 Bcf/d in the year-ago period, according to EIA. Overall, U.S. production climbed 1.3% (1.05 Bcf/d) in October from September to 80.10 Bcf/d and were up 6.4% (4.85 Bcf/d) from the year-ago period, according to EIA. Wyoming posted a gain of 2.9% (0.19 Bcf/d); Alaska climbed 1.0% (0.09 Bcf/d); Texas was up 0.5% (0.12 Bcf/d); and Oklahoma remained unchanged at 5.37%. At the same time, Louisiana experienced a 0.7% decline (minus 0.06 Bcf/d) and New Mexico posted a decline of 0.8% (0.03 Bcf/d).
No Pennsylvania Impact Fee This Year
Pennsylvania will end another year without an impact fee on natural gas drilling in the Marcellus and Utica shales.
Haynesville Water Pipeline Enters Service
Heckmann Corp. has begun transporting fresh water to hydraulic fracturing (fracking) customers in the Haynesville Shale through a partially completed pipeline. When the system is completed, it will be the largest fresh water pipeline in the Haynesville area, the company said.
Don’t Expect a Utica Boom in 2012, Panel Says
Despite the big players and big money pouring into the Utica and Point Pleasant Shales of Ohio over the past 90 days, don’t expect the play to boom next year, a diverse panel told attendees at Hart Energy’s 2011 DUG (Developing Unconventional Gas) East conference in Pittsburgh last Thursday.
TransCanada’s Growth Strategy Tied to North American Shales
If its Keystone XL oil pipeline is the foundation, major U.S. oil and natural gas shale plays will be the drivers for TransCanada Corp. greatly expanding its North America footprint, the Calgary-based company’s senior executives said during recent investor conferences in Toronto and New York City.
Industry Briefs
The Federal Trade Commission (FTC) has approved the proposal of Norway’s Statoil ASA, which already has significant holdings in the Marcellus and Eagle Ford shales, to acquire Austin, TX-based independent Brigham Exploration Co., which would give it access to the Williston Basin’s Bakken and Three Forks oily formations. The transaction has cleared the Hart-Scott-Rodino waiting period with the FTC imposing no restrictions. The transaction is valued at $4.4 billion (US$36.50/share) and is expected to close either later this year or early in 2012, Brigham said. The transaction would give Statoil access to more than 375,000 net acres in the Williston Basin, which holds potential for oil and gas production from the Bakken and Three Forks formations. Brigham also holds interests in 40,000 net acres in other onshore plays. In addition to the production assets, the transaction also provides Statoil with about 430 miles of oil, natural gas and water transportation systems in the Williston Basin, which not only secures wastewater offtake but reduces the environmental footprint in production operations.
FTC OKs Statoil’s Bid for Brigham Exploration
The Federal Trade Commission (FTC) has approved the proposal of Norway’s Statoil ASA, which already has significant holdings in the Marcellus and Eagle Ford shales, to acquire Austin, TX-based independent Brigham Exploration Co., which would give it access to the Williston Basin’s Bakken and Three Forks oily formations.
Pennsylvania Voters Nix Two Frack Bans; State College Ban Passes
Election Day in Pennsylvania turned out to be a mixed bag over the issue of hydraulic fracturing (fracking) in the Marcellus and Utica shales, with voters soundly defeating referendums that would have banned the practice in Peters Township and the City of Warren, but overwhelmingly supporting a similar measure in the Borough of State College.