Shale Daily

Wyoming’s Oil and Gas Conservation Commission (OGCC) on Tuesday established a baseline groundwater testing rule for oil and natural gas operators to following in their exploration and production (E&P) work.

MarkWest Energy Partners LP reported weaker-than-expected profits in the third quarter, partly on continuing operational constraints in the Marcellus Shale, as well as weak results from the Utica Shale segment, issues that management expects to remedy once most of the 22 growth projects are completed in 2014.

The Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana has the potential to “become the next best thing in U.S. oil production” due to its proximity to pipelines and refineries on the Gulf Coast, but exploration and production (E&P) companies will need to overcome the play’s challenges to be successful, according to a consultant.

Natural gas production in the Marcellus Shale continues to surge higher, with 12.9 Bcf/d expected to come out of the prolific play in December, a 3.3% increase from 12.5 Bcf/d in November, according to EIA’s second Drilling Productivity Report (DPR) for key tight oil and shale gas regions.

FirstEnergy Corp.has announced that it plans to invest an additional $2.8 billion over four years to expand its previously announced “Energizing the Future” transmission initiative, with the main focus of the initial construction effort being the 69 kV transmission power lines and substations in the Ohio Edison, Cleveland Electric Illuminating Company, Toledo Edison and Penn Power areas. The program is expected to be expanded into other FirstEnergy service territories during the next several years. Overall, the new transmission projects are designed to increase FirstEnergy’s load serving capability in areas where future economic growth is anticipated, particularly in Ohio’s shale gas regions; improve reliability of service; create more flexibility to restore service following storms; reduce line losses; and lower the company’s overall transmission maintenance costs. Many of the projects — including new or rebuilt high-voltage power lines, new substations, and the installation of specialized voltage regulating equipment — are needed to help support system reliability as coal-fired power plants in the region are deactivated based on the U.S. EPA Mercury and Air Toxics Standards and other environmental rules.

Tesoro Corp.’s two refineries handling Bakken crude in North Dakota and Washington state were not affected by the company’s controversial pipeline spill late in September in a wheat field northeast of Tioga, ND, Tesoro CEO Greg Goff said last Thursday during a quarterly earnings conference call.

Executives at Continental Resources Inc. said the third quarter of 2013 was a “milestone” for the company, with record total net production and the first of four density tests completed in the Middle Bakken/Three Forks formation.

Onshore powerhouse EOG Resources Inc. expects to ramp up 2014 activity and capital spending in the Eagle Ford and Bakken shales, assuming oil and natural gas prices are similar to current New York Mercantile Exchange (Nymex) prices, outgoing Executive Chairman Mark Papa said last week.

Property assessments in West Virginia have increased 49.5% in the last eight years — to $86.6 billion from $57.9 billion in 2005 — with the highest growth coming in counties that experienced natural gas development over the same period, according to the West Virginia Center on Budget & Policy (CBP).