Shale Daily

Pennsylvania Gov. Tom Corbett is hoping to generate $75 million in extra revenue and additional oil and gas royalties for the state’s general fund by lifting a more than three-year ban on drilling in state-owned forests and allowing exploration and development for the first time ever in state-owned parks.

The growth of domestic U.S. oil production from places like the Bakken Shale in North Dakota and the Uinta Basin in Utah will continue to boost growth of West Coast refining and crude rail operations, according to San Antonio-based Tesoro Corp. CEO Greg Goff.

Heavy flooding in Colorado late last year did little to impact fourth quarter production for Noble Energy Inc.’s operations in the Denver-Julesberg (DJ) Basin, while volumes were driven higher by the Marcellus Shale during a quarter when the company spent heavily on onshore exploration and transportation costs.

Rex Energy Corp.’s proved reserves increased 37% to 849.8 Bcfe at the end of 2013, mostly due to its Marcellus Shale operations in central and western Pennsylvania, the company said.

Ceramic proppant leader Carbo Ceramics Inc. is attempting to get the word out that “low quality” products from China aren’t worth the lower price producers pay to increase oil and gas recoveries.

Appalachian heavyweight Range Resources Corp. increased its proved reserves last year by 26%, driven largely by improved well performance across its 955,000 net acres in the Marcellus Shale, where it has focused on completing wells with longer laterals and more hydraulic fracture (frack) stages.

While it has deemphasized natural gas production, Bismarck, ND-based MDU Resources Group is betting even bigger on oil/gas infrastructure centered in North Dakota’s Bakken Shale play in addition to its stable of four utilities spread over eight states.

Proppant consumption is increasing rapidly in the Anadarko and Denver-Julesburg basins, and the Bakken and Eagle Ford shales, as operators look to punch up reserves from horizontal well completions, PacWest Consulting Partners said in a new report.

The U.S. Transportation Department’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) has concluded an investigation launched last year looking at Bakken Shale crude rail shipments and said fines may be assessed against three shippers for allegedly not properly testing and classifying the crude.