Shale Daily

The makeover at Devon Energy Corp. to become an oil heavy proved its worth in the first quarter, fueled by a new midstream arm and production gains driven almost exclusively by the Permian Basin and Eagle Ford Shale.

Chesapeake Energy Corp. is more than making do with its smaller portfolio and reduced spending plans, with its first quarter natural gas and oil production increasing by 11% and revenues surging 47%.

The U.S. Transportation Department (DOT) issued an emergency order Wednesday advising against the use of older, more vulnerable railroad tank cars for shipment of Bakken Shale crude, and requiring railroads operating trains carrying large amounts of Bakken oil to notify State Emergency Response Commissions (SERCs) when the trains are moving through their states.

Ultra Petroleum Corp. ramped up production of crude oil and condensate during the first quarter, keeping its sights trained on oil targets in Wyoming’s Pinedale Anticline and Utah’s Uinta Basin while continuing to spin down its activity in the Marcellus Shale.

Onshore specialist EOG Resources Inc. has moved four horizontal plays into drilling mode from exploration in the Denver-Julesburg (DJ) and Powder River basins (PRB), joining a pot of development efforts ongoing in the Eagle Ford and Bakken shales and the Permian Basin.

Concluding there could be a tie to oil and natural gas production activity, U.S. and Oklahoma Geological Survey officials jointly reported Monday that 145 3.0-magnitude or stronger earthquakes have occurred in the state so far this year.

Carrizo Oil & Gas Inc. raised its oil production guidance for the rest of the year as 1Q2014 oil and natural gas production beat guidance and acreage was bolted on in the Eagle Ford and Utica shales. The company said it may have the best condensate-producing well in the entire Utica.

A rally organized by the Marcellus Shale Coalition to tout the benefits of shale gas development in Pennsylvania, attracted more than 2,500 participants, according to estimates from the capital police force in Harrisburg, PA, where the rally took place on Tuesday. It was one of the largest rallies the capital has seen in years, police officials said. Before the event, the MSC, which represents hundreds of exploration and production companies, midstream operators and supply chain businesses throughout the state, said the rally would be the largest in its roughly six-year history (see Shale Daily,May 1). A spokesman for the organization said business leaders, local government officials and residents from communities across the state had signed up. Many of the participants were bused to the capital and then marched to the stairs of the statehouse to voice their support for the industry as it faces headwinds from environmentalists and policy proposals calling for increased taxes on production. Local news media reports said dozens of people participated in a small counter-protest. No clashes between the two groups were reported.

Rail crude oil shipments to California were up sharply compared to the same period last year, according to statistics kept by the California Energy Commission (CEC).