Shale Daily

The United States lost 48 more land drilling rigs as of Friday, down 37 for oil and 11 for natural gas, which cut the domestic count to 1,250, versus 1,696 a year ago, Baker Hughes Inc. reported. Twenty-two rigs also were lost in Canada.

Continued shale gas development can be a win for consumers and the economy if industry and policymakers more aggressively address the negative externalities of the production boom, according to a University of Wyoming (UW) economic research paper to be published later this year.

Permian Basin and Midcontinent operator Cimarex Energy Co. reported record quarterly production for 4Q2014, as it cut its capital expenditures by half for 2015 and unveiled a plan to reduce its operated rig count to six during 2Q2015.

San Antonio-based Tesoro Corp., a major player in the Bakken and other shale plays through its midstream unit, Tesoro Logistics LLP (TLLP), said it will pursue nearly $400 million in two projects at its Anacortes, WA, refinery. One project could enhance future exports of refinery products to Asian markets.

A group of Pennsylvania landowners has filed a lawsuit asserting that Chesapeake Energy Corp. and Access Midstream Partners LP, now part of Williams, conspired to constrain trade for natural gas market services in Bradford County, in violation of federal antitrust laws.

The U.S. rig count may level off by August to about 1,000 following the rapid decline this year, which included 200 that were dropped in the first two weeks of February, Wood Mackenzie Ltd. said Thursday.

With falling commodities prices putting a dent in the operational gains made by Rex Energy Corp. during the fourth quarter, the company is heading into the new year looking to monetize a series of assets to offset its growing leverage as oil and gas prices remain depressed.

Ultra Petroleum Corp. nearly tripled its annual oil production in 2014, and it plans to continue focusing on Wyoming’s Pinedale Anticline with a capital expenditure (capex) budget trimmed by more than two-thirds to $460 million.

Two more Appalachian operators announced significant cuts to their 2015 budgets this week, adding to a growing list of companies in the region planning to slash year-over-year spending by roughly 40% or more and try to remain flexible as commodities prices remain low.