NATIONAL/EID

 

Help Wanted: Energy Firms Competing For Hires. Dow Jones. Despite a big drop in oil and stock prices in recent days, U.S. energy companies bearing down on the country's shale fields have yet to waver from plans to add staff this year to boost domestic production. The industry is hiring as it brings new U.S. supply on line and demand grows from power-generation companies switching to natural gas from coal or fuel oil. … The Independent Petroleum Association of America projects as many as 200,000 new jobs in the energy patch from hundreds of oil and gas producers in 2011. "I don't think the threat of a double-dip recession will stop many companies from hiring," said Jeff Eshelman, spokesman for the trade group of oil and gas producers, once known as "wildcatters."

Pro-gas landowners group forming. Towanda Daily Review. Approximately 35 people gathered at the Wysox Fire Hall on Tuesday to discuss forming a coalition of landowners in northeastern Pennsylvania that would promote the development of the Marcellus Shale. Several of those who attended the meeting said a landowners' coalition is needed to prevent the installation of gas pipelines from being delayed or blocked. "One of the primary reasons you need a landowners organization is that there are some very determined people who are using pipelines as targets of opportunity," said Tom Shepp, who is a member of the group Energy in Depth. "They're playing the regulatory agencies, and they are creating a lot of problems."

N.Y. Enviro Commissioner Expects Little From EPA Fracking Study. ProPublica. When Joe Martens became commissioner of New York's Department of Environmental Conservation in March, he expected an unusual challenge. The department oversees everything environmental in the state, from managing 4.5 million acres of land to regulating ship ballast water in the Great Lakes. … There is no evidence that we found that fracking fluids can migrate through that ... distance and those zones. That is not to say that there aren't shallow migration problems. We just don't see any risk from the deep horizontal well that is very far underground and migration up to the lowest level of fresh water.

The friends of Tom DiNapoli. New York Post, Editorial. DiNapoli -- who makes no bones about the fact that he owes his election to a full term last year to union support -- yesterday proposed what he’s calling “a response for New Yorkers in case of natural gas accidents.” … That might be reasonable if there were any credible evidence that fracking posed a real environmental threat. There is none. Indeed, even a greenie bomb-thrower like federal EPA Administrator Lisa Jackson has told Congress she is “not aware of any proven case where the fracking process itself has affected water.”

Duke Researchers Returning to Pennsylvania Water Wells. NGI Shale Daily. Researchers from Duke University plan to return to Pennsylvania next week to conduct additional testing of residential water wells in the northeastern part of the state, including wells that are not currently near any Marcellus Shale natural gas drilling. … Travis Windle, spokesman for the Marcellus Shale Coalition, said "In admitting that they did not establish any baseline data in their five-page report, the researchers fundamentally put the cart before the horse in their claims that gas development and hydraulic fracturing were responsible for elevated levels of methane in selectively chosen private water wells.”

Cheap Shale Gas Means Record U.S. Chemical Industry Expansion. Bloomberg. Dow Chemical Co. spent a decade moving chemical production to the Middle East and Asia. Now it’s leading the biggest expansion ever seen back home in the U.S. as shale gas revives the industry’s economics. Dow is among companies planning to build crackers, industrial plants typically costing $1.5 billion apiece that process hydrocarbons into ethylene and other synthetic materials.

INTERNATIONAL

Lack of fracking court cases a misleading fact. Times & Transcript, LTE. People in the oil and gas industry commonly say 'fracking' to describe just one part of the whole gas exploration and production process, not so much a part of the 'drilling' phase, but actually the 'completion' phase. Outsiders lump drilling and fracking together; therein lies the confusion. If the fracking phase is not responsible for groundwater contamination in over one thousand documented court cases in the US, the culprit is poorly sealed well casings, installed during the drilling phase of the process.

Trican Well Service posts record results. Calgary Herald. U.S. expansion in key shale plays during spring breakup in Canada helped Trican Well Service Ltd. achieve record revenues and profit in the second quarter. Revenues from operations south of the border increased 82 per cent during the quarter compared with the same period last year while revenues from the Canadian business declined by 49 per cent during a wet spring that caused a 67 per cent decrease in rig utilization industry-wide in the country.

High hopes for Polish shale. UPI. The Polish prime minister said he wanted to make a potential shale gas boom in his country a reality, increasing energy security and lowering pollution. The U.S. Energy Information Administration estimates that Poland may have the largest deposits of shale gas in Europe. Poland gets more than 60 percent of the natural gas it uses each year from Russia. However, Poland could become a net exporter of natural gas if it can find a way to exploit its shale reserves, the Financial Times reports.

 

Lloyds Plans to Help Finance Investments in Australian Shale Gas.

Bloomberg. Lloyds Banking Group Plc (LLOY), the London-based lender, said it is in talks with U.S. energy companies to help finance shale gas investments in Australia. “The next shale gas opportunity will be Australia,” Andrew Moorfield, managing director and global head of oil and gas at Lloyds, said in a phone interview from Sydney. “We believe it’s the next big play and that the shale gas story in Australia is going to happen faster than people expect.”

 

There will be no hydro-fracking in city - mayor.

Daily Gleaner. Mayor Brad Woodside is reiterating that New Brunswick's capital city is off-limits to companies that want to employ hydro-fracking techniques to search for shale gas or petroleum. Friends of the UNB Woodlot attended a council-in-committee meeting Monday night to voice their fears that an exploration permit issued to SWN Resources Canada Inc., which has embarked on a search for the natural resources in the province, could allow it to explore within city limits.

 

Atlantic provinces agree to share information on controversial fracking.

Winnipeg Free Press. Atlantic environment ministers have agreed to share work and research on the contentious issue of hydraulic fracturing. The petroleum industry practice, known as fracking, involves pumping a mixture of water and chemicals into the ground to fracture rock and allow natural gas to come out. The fracking issue has sparked protests in the region by people who believe it will harm the environment.

 

Shale gas opponents plan to protest 'as long as it takes'.

Times & Transcript. Organizers of a blockade that surrounded several pieces of equipment used in the exploration of shale gas say they won't move until they have met senior cabinet ministers and heard that the province has banned hydrofracking. The protest, which began around 11 a.m. yesterday, was still underway last night. At 6 p.m. about 50 protestors were still surrounding five Geokinetics "thumper trucks" on a gravel section of Route 625 about 10 minutes north of Stanley.

 

CALIFORNIA

A Big Shale Play In CA Could Boost An Oil Patch. Platts. California stands poised for a crude rejuvenation of sorts, as development of the Monterey.  Shale play holds a key to reversing the state’s decades-old trend of declining production. Call it a "California revolution," as does Phil McPherson, a senior research analyst with Global Hunter Securities. Bakken and Eagle Ford, the all-stars of the U.S. shale crude plays, draw the headlines -- and the investment dollars -- but it is the Monterey that could hold the greatest potential.

COLORADO

New state oil and gas rules could lead to more horizontal drilling in Weld. Greeley Tribune. The state oil and gas regulatory agency has approved rules that give energy producers more leeway in how they drill horizontal wells in the Wattenberg Field, which covers a large portion of Weld County. The rules likely will lead to more horizontal drilling. Operators sought the changes that offer more flexibility for well spacing in the region that has seen steady growth in horizontal drilling. With more than 18.6 million barrels of oil produced a year, the Greater Wattenberg Area accounts for more than half of the state’s oil production since 2006.

LOUISIANA

Sheriff unveils new amphibious vehicle. Shreveport Times. The DeSoto Parish Sheriff's Office will unveil its recently purchased HydraTrek vehicle at 8 a.m. today . The amphibious vehicle will aid the agency in future search and rescue missions throughout the parish. The acquisition was made possible through donations from companies operating in the Haynesville Shale, including Chesapeake, EnCana, EXCO, Shell, BP and Enterprise Products Partners.

 

NORTH DAKOTA

Dickinson plans for growth. KXMB-TV. As North Dakota's oil Industry flourishes, numerous cities in western North Dakota are seeing economic gains. City Officials in Dickinson expect their population size to nearly double by 2015. Megan Lowry reports on the communities plan to manage the rapid growth. In the middle of North Dakota's oil patch, Dickinson is sitting at a cross road. "It's very important that we keep a standard of living that's very acceptable to people we have prided ourselves as a place where people want to live."

NORTHEAST

Pennsylvania Marcellus Passes Yearly 1,000-Well Mark. NGI Shale Daily. Operators drilled more than 1,000 wells into the Pennsylvania Marcellus Shale through the end of July, a milestone not reached until mid-September in 2010 and not at all in 2009. The Pennsylvania DEP issued 286 Marcellus permits and operators reported drilling 207 wells into the formation in July. Through the first seven months of the year, the DEP issued 1,915 permits -- up from 1,721 in 2010 and 999 in 2009 -- and operators reported drilling 1,015 wells -- up from 822 in 2010 and 263 in 2009.

Commission presents outline to get it right. Allentown Morning Call, MSC’s Klaber. If Pennsylvania's deep history has taught us anything, it's that compromise is crucial, particularly in the public policy arena. Nearly 225 years ago in Philadelphia, the Great Compromise of 1787 was struck during the Constitutional Convention, ensuring that all states — irrespective of population — had an equal voice in the Senate. And while the Great Compromise was hatched in 1787 — the same year Pennsylvania followed Delaware into statehood — the art of compromise indeed remains critical.

Wellsburg Lifts Gas Drilling Ban. Wheeling Intelligencer. Wellsburg City Councilman Ron Michaux said he was "inundated" with calls from residents who were upset that council members planned to repeal the ban against natural gas drilling. "Why the rush to get this repealed right now?" Michaux said during the Tuesday council meeting. "There is outrage that the city appears to be being bullied into this repeal."

W.Va. cities should not ban prosperity. Charleston Daily Mail, Editorial. Unfortunately, New Martinsville and three other cities in West Virginia have banned drilling within their city limits. Their concern is over fears of water well contamination, but for now that seems to be based more on fear than on fact. The New Martinsville ban is particularly embarrassing since that town has been mentioned as one of the possible sites for a billion-dollar cracker, a plant that would convert natural gas into feedstock for the petrochemical industry.

Council, mayor spar over Pa. drilling referendum. Associated Press. The mayor of Pittsburgh says he will delay action on a proposal to codify a natural gas drilling ban into the city charter but council members are trying a legal maneuver to get around the mayor. Mayor Luke Ravenstahl cited business and legal concerns in telling council members Monday night that he will not sign legislation that would put the referendum on the November ballot. The deadline to make the ballot was Tuesday.

NY plan promotes fund to cover gas-drilling accidents. Press & Sun-Bulletin. The natural gas industry and business groups are pushing back against a bill proposed Tuesday that would create a company-funded reserve to cover the cost of damages from any future gas-drilling accidents. The bill, proposed by Comptroller Thomas DiNapoli, would allow the state to create the fund by tacking on a surcharge to permit fees for natural gas companies and other production facilities. NOTE: The AP also reports.

Marcellus drilling is our economic future. Binghamton News, LTE. Lady Luck has come to our doorstep in the form of gas in the Marcellus Shale. Many want to deny her entry because she is not what they hoped for and her reputation is tarnished. However, she did arrive on our doorstep without any gifts or tax exemptions. I say she should be welcomed with open arms once she has cleaned up her act. One should realize that some of the problems that occur because of her presence should be regarded as business opportunities.

Oil-company owner explains Utica Shale to Trumbull officials. Youngstown Vindicator. First off, when talking about the gas boom that is starting to strike Northeast Ohio, the proper geological terminology for it is the Utica Shale. It is the rock layer and gas reservoir that has the potential to create great growth and industry here, said William Kinney of Twinsburg, owner of Summit Petroleum. The Utica Shale is about 6,000 to 8,000 feet down and is 200- to 300-feet thick, and its total organic carbon level is about 3 percent, making it attractive to drillers, Kinney said.

Pre-planning for fracking a smart move. Auburn Citizen, Editorial. State Comptroller Thomas DiNapoli on Tuesday suggested that a fund be created to clean up any environmental damage caused by the controversial natural gas drilling  method. The money would come from bonds posted by drilling operators. Drillers say that hydrofracking can be done safely. Critics argue that it poses a great risk of groundwater contamination. Having listened to both sides, the state DEC has proposed regulations that would allow the practice on private land outside specified watersheds and aquifers.

 

Shale plays big in gas, oil industry deals.

Pittsburgh Post-Gazette. In the past three months, seven of the top 10 biggest deals in the oil and gas industries have been related to shale plays, according to a report released today by the analysis arm of New York-based PricewaterhouseCoopers LLP. Two of those transactions involved the Marcellus Shale natural gas formation that underlies much of Appalachia -- the two deals alone totaled $2.3 billion of the $7.5 billion spent on shale activity.

Peters council OKs gas drilling regulations. Washington Observer-Reporter. Companies applying for permits to drill for natural gas in Peters Township must now comply with a set of regulations approved Monday by Peters council. Peters is one of a handful of local municipalities attempting to regulate natural gas drilling in the Marcellus Shale. While admitting the most recent amendment to the mineral extraction ordinance is not perfect, council members said the regulations are the best they can do and still remain within state law.

Seismic testing planned in North Fayette. Pittsburgh Post-Gazette. A company working for Range Resources is asking North Fayette officials and private property owners for permission to conduct seismic surveys to help map underground features in preparation for drilling the Marcellus Shale. North Fayette has received a letter from Texas-based Dawson Geophysical Co. requesting permission to drill holes and use small explosives in the township's two parks, Manager Bob Grimm said Tuesday night.

SOUTH DAKOTA

 

State streamlines oil efforts amid criticism. Argus Leader. As part of a push to encourage South Dakota's fledgling oil and gas industry, state officials are reorganizing its oil and gas division and rewriting rules for minerals extraction. But a senior employee who resigned to take a job in private industry and a group of county commissioners in South Dakota's tiny oil patch say the move instead could hinder development.

 

TEXAS

Houston oil company merging with Paris-based business. Houston Business Journal. Houston-based ZaZa Energy LLC and Paris-based Toreador Resources Corporation have agreed to combine their companies into a Houston-based business. The companies’ combined portfoilio includes the Eagle Ford and Eagle Ford/Woodbine shale plays in Texas and the Paris Basin in France for a total of 423,000 acres. Under terms of the transaction, ZaZa equity holders will receive about 76 million shares, or 75 percent of the new company, ZaZa Energy Corp.

SEC asks Quicksilver Resources for gas-production documents. Fort Worth Star Telegram. Quicksilver, which produces most of its gas from North Texas' Barnett Shale, said in the filing that the SEC "has informed us that their investigation arises out of recent press reports questioning the projected decline curves and economics of shale gas wells."  Decline curves refer to the rate of decline in production from wells. "We understand from the SEC that a number of other shale-gas producers received similar subpoenas," Quicksilver said in its filing.

LC City Council to vote to allow drilling near residences. ABC-13. We have the latest developments non a story we've been following closely since last year. It's a battle over plans to drill near a neighborhood in League City and we're expecting this fight to finally have a conclusion. The plans call for natural gas drilling near the Magnolia Creek subdivision.

Texas flare may be hitting campaign trail. Nueces County Record Star, Op-Ed. I don’t know if Texas’ growth these last few years was because of Perry. It could be because of our lower than average unemployment numbers, which totaled 8.2 percent in June, according to the Texas Workforce Commission. Or it could be due to exploiting natural resources effectively, such as with the Eagle Ford Shale. Everyone in the Coastal Bend has seen firsthand the positive effect that area has had to our economy. What I will give Perry credit for is that he, for the most part, stayed out of the way when it came to business in Texas.