8-21-13

(Today's Commentary: Xtra)

Dave Harbour

Today's Energy In Depth FRACK Clips:

NATIONAL

Report: Oil and gas can boost economies and outdoor recreation. Houston Chronicle/Fuel Fix. “Energy and amenity development are not mutually exclusive,” said Southern Utah University political science professor Ryan Yonk and Utah State University economics professor Randy Simmons. “Because both energy and amenity resources provide value to a county, when counties have both resources they tend to develop both, and in a way that allows both sectors to grow.”

West Texas town's water woes highlight growing debate over drilling practices. Platts (sub req’d). David Blackmon, an analyst with Energy In Depth, said it is unfair to blame the industry for Barnhart's water-supply problems. "Barnhart is in a desert, where water has always been a precious resource and where it's not uncommon at all for the shallow underground water reservoirs to go dry. This is a fact of life in that part of West Texas forever," Blackmon said. Like much of Texas, Irion County has been under severe drought conditions this year.

GOP bill would gut federal HF regulation. Platts (sub req’d). “Environmental regulators from some of America’s largest oil- and gas-producing states once again affirmed the proven safety record of hydraulic fracturing,” Dana Bohan, a spokeswoman for Energy In Depth said. “That proven record is proof enough that new federal requirements would not only be costly, but also entirely unnecessary.”

Report: Fracking not endangering W.Va. air quality. Associated Press. A state study says no new rules are needed to protect West Virginia’s air quality from natural gas drilling. State lawmakers were presented with the study’s results during an interim committee meeting Tuesday. The report was created by the West Virginia Department of Environmental Protection’s Office of Oil and Gas.

Banning Shale in Pa. Would be a Costly Mistake. Houston Chronicle/Fuel Fix, Op-Ed. A new trend has taken hold in the development of our nation’s natural gas resources. From Josh Fox’s controversial films, Gasland and now Gasland Part II, to the “Stop the Frack Attack” demonstration in Washington, anti-development movements have fueled a negative perception of shale gas and hydraulic fracturing. Now activists around the nation are urging communities to ban the process.

McClendon Bets Big on Ohio Shale. Wall Street Journal. Mr. McClendon's new company, American Energy Partners LP, struck a deal earlier this month to buy drilling leases on more than 22,500 acres in southeastern Ohio for $284.3 million from closely held EnerVest Ltd. and its publicly traded unit EV Energy Partners LP, according to people familiar with the deal.

Spreading the good news about shale. Washington Times, Op-Ed. Mastering the shale issue would make Republicans leaders of the American manufacturing renaissance. Oil and gas, like no other sector, can turn around the decades of U.S. manufacturing decline. Shale’s double-digit growth rate translates directly into a huge demand for machine tools alone.

PwC US: Eagle Ford, Marcellus most active plays for 2Q M&A. Oil & Gas Journal. Transactions involving unconventional oil and gas assets remained a key driver for deal activity in the second quarter, and midstream shale assets values beat upstream shale deal total for a second consecutive quarter, PwC reported in an analysis of industry's merger and acquisition activity.

View From The Front Lines Of The Shale Boom. Forbes. As one independent operator observed, “A supermajor couldn’t find shale with a shale detector.” While this may be hyperbole, a common affliction among oil and gas entrepreneurs, it is true that the shale boom was sparked and led by independent operators like the “father of fracking,” the late George Mitchell.

Light Louisiana Oil Weakens to Lowest Level Since 2010. Bloomberg. Light Louisiana Sweet oil on the spot market weakened to its lowest premium to West Texas Intermediate since October 2010 as tropical weather faded and more light shale oil makes its way to the Gulf Coast.

Activist's petition takes aim at BLM HF rule. E&E News (sub. req’d). An anti-fracking activist has launched a petition demanding the Bureau of Land Management throw out its contentious draft rule overseeing hydraulic fracturing on federal lands. Mary Russell of Carbondale, Colo., is calling instead for an immediate ban on fracking.

INTERNATIONAL

Balcombe landlord publicly reveals support for HF. The Guardian. The owner of the drilling site in Balcombe that has become the focus of the UK's biggest anti-fracking protests has told the Guardian he supports fracking on the West Sussex site if it is economically viable.

Cameron has become HF’s biggest cheerleader. The Guardian. The government were already bullish about exploration, but David Cameron has chosen to become the industry's biggest cheerleader. He hasn't asked us to keep an open mind, he's been determined to "win the debate" so that the public "get behind fracking".

Ukraine region rejects Chevron shale gas deal draft. Reuters. A shale gas deal in Ukraine hit a setback on Tuesday when a local council rejected the government's draft production-sharing agreement with U.S. energy company Chevron amid warnings by nationalists regarding likely damage to the environment.

Is shale too good an opportunity to miss? The Guardian, LTEs. There is an argument that, as we move to a low-carbon energy policy in the UK, we need to adopt a "least worst" approach. Conventional gas may not be as low-carbon as renewables, but it is better than coal.

Anti-HF protest in southern England. Washington Post, Video. Protesters holding signs attend a march against hydraulic fracturing operations near the Cuadrilla Resources site in Balcombe, England.

Drilling set to resume at site as protesters quit. Daily Mail. Cuadrilla had hoped to carry out exploratory drilling to assess if it is worth applying for a licence to extract shale gas that might involve fracking.

ALASKA

Arctic development trajectory is irreversible – analysts. E&E News (sub. req’d). The importance of the Arctic to world economic, political and military policy is increasing and irreversible, according to a recent analysis by Chatham House, a British think tank.

CALIFORNIA

Green group seeks to sway key lawmakers before vote on HF bill. E&E News (sub. req’d). Only one measure on hydraulic fracturing survives in California this legislative session, and its fate will be determined shortly. Environmental groups, which have great sway in Golden State politics, are divided on the bill. Sierra Club California and Physicians for Social Responsibility oppose it because they believe it lacks sufficient protections. The Environmental Working Group and NRDC are lobbying for passage, saying some regulations are better than none.

COLORADO

Employment up, economic output down for Colo.'s fickle oil industry. E&E News (sub. req’d). Colorado oil fields have drawn thousands of new workers in recent years, even as the oil and gas industry's overall economic output has declined, according to a recent analysis by the University of Colorado.

Fort Collins voters to decide HF moratorium. The Coloradoan. An initiative that would impose a five-year moratorium on hydraulic fracturing, or fracking, within city limits will appear on the Nov. 5 ballot. The City Council on Tuesday approved sending the proposal to voters. The council’s only other choice was to approve the initiative’s ordinance as written.

NORTH DAKOTA

Peregrine continues activities in North Dakota shale plays. Oil & Gas Financial Journal. Texas-based Peregrine Petroleum LLC is continuing its oil and gas exploration and development activities in the Bakken and Three Forks shale plays in North Dakota's Williston Basin region following last year's acquisition of 3,210 acres of producing leases from Colorado-based Ranch Oil Co.

Pipeline celebrated, leaders call for more. The Dickinson Press. Enbridge Pipelines employees paused Monday to mark the completion of two projects that nearly doubled the amount of oil the company transports out of North Dakota. State and federal officials joined the celebration, but urged Enbridge to move forward with additional projects to move even more Bakken crude.

Lightstream Expands Budget for Saskatchewan Bakken Unit. NGI Shale Daily (sub. req’d). Lightstream Resources Ltd. is expanding its well optimization budget in its Bakken Shale business unit by $25 million and is deferring some drilling activity in its Cardium Formation business unit, the Calgary-based company said.

NORTHEAST

Gov. Corbett is making sure drilling is safe. Patriot-News, LTE. Under the governor’s leadership, inspections of natural gas drilling sites doubled – to 10,000 – in his first year in office, and have increased since then. The governor has demonstrated his administration’s commitment to holding operators accountable, including levying the largest fine against an oil and gas operator in the state’s history.

Cuomo won't join Obama at HF hotbed sites. Associated Press. Obama supports the hydraulic fracturing as an economic windfall that helps make the country more energy independent. He's expected to find supporters as well as protesters from environmental groups when he visits Syracuse and Binghamton late this week.

Marcellus gas production rising fast in Pa., W.Va. Associated Press. Marcellus Shale natural gas production is rising even faster this year than energy experts had predicted, and that's having a national impact on energy.

West Virginia lawmakers to travel to North Dakota to study Legacy Fund. Grand Forks Herald. West Virginia Senate President Jeff Kessler says his state has a second shot at saving tax revenue from energy development and it's looking to oil rich-North Dakota for advice.

Sterne Agee ups estimates for WesBanco. Pittsburgh Business Times. Sterne Agee & Leach raised its estimates for WesBanco Inc.’s earnings for 2013 and 2014 to reflect its improved performance and its geographic reach spanning Marcellus Shale territory.

Gas wastewater treatment facility to begin operations. Williamsport Sun-Gazette. City-based Eureka Resources will add another gas well wastewater treatment facility to meet the growing needs of the Marcellus Shale industry. Construction has already begun on the first phase of a 10,000 barrel per day oil and gas wastewater treatment plant at 208 Catawissa Ave.

Ag Progress Days provides a good education. Farm and Dairy. Another popular venue was the Energy Exhibit Showcase, where nearly a dozen energy-themed discussions were held on opening day. Rob Boulware, of America’s Natural Gas Alliance, talked about what’s happening in Pennsylvania as a result of shale gas drilling.

Cecil supervisor releases info on private Marcellus Shale meetings. Washington Observer Reporter. The Worstell water impoundment in Cecil Township was the topic of discussion earlier this month when township officials met privately with a Marcellus Shale driller and environmental regulators in separate gatherings.

OHIO

Shale boom keeping paving crews busy in Mahoning County. WFMJ News. Several major oil and gas companies have agreements in the areas where they are drilling; meaning they will pay for, reconstruct and repave county and township roads.

Lawmaker pushes for shale industry to benefit from hiring Ohioans. Akron Legal News. Introduced as the Hire Ohio bill, House Bill 63, marks the second attempt from a Bellaire lawmaker to establish a tax credit for certain oil and gas industry practices.

One injection well linked to rash of Ohio quakes in new study. E&E News (sub. req’d). Even small and slow injections of brine into Class II injection wells in Ohio sharply increased seismicity, according to a new study. The study suggests that in some cases, very little can be done to stop the shaking. U.S. EPA suggested as much in its draft report on induced seismicity obtained earlier this summer by EnergyWire.

Lawmaker pushes for shale industry to benefit from hiring Ohioans. Daily News. The proposed legislation, sponsored by Rep. Jack Cera, would carve out a nonrefundable commercial activity tax credit for companies that hire Ohio residents for oil and gas production services. “Last year, the governor stated he wanted to encourage companies to hire Ohioans,” Cera, a Democrat, said in a statement. “My bill provides an incentive to do just that. We have many highly trained, skilled workers in our area of the state and I hope HB 63 encourages the energy industry to take note and hire locally as shale development moves forward.”

TEXAS

Eagle Ford shale's ripple effect could impact Boerne. San Antonio Express. Hill Country communities with access to Interstate 10 such as Boerne could be well-positioned to benefit from oil and gas production in Texas even if there's no drilling in their jurisdictions, an expert said Friday. NOTE: San Antonio Business Journal also reports.

Barnett Shale production dips below 5 billion cubic feet a day. Fort Worth Star Telegram. Powell Shale Digest, an online industry newsletter, said its analysis of Texas Railroad Commission monthly reports shows that the big North Texas gas field produced an average 4.84 billion cubic feet a day in June. That's down 16.5 percent from a year earlier and down 20.8 percent from two years earlier.

State puts gravel road plan on hold. San Antonio Express-News. A plan to convert some drilling-affected roads in rural areas, particularly the Eagle Ford Shale zone, to gravel is slowing down after lawmakers raised serious concerns.

Harrison Gypsum buys Eagle Ford Shale aggregate producer. San Antonio Business Journal. Harrison Gypsum, a company that specializes in supplying gypsum and plaster products, has bought the assets of Pinnacle Materials LLC’s Eagle Ford Division in South Texas for an undisclosed sum.

Mapped: Where Natural Gas is in Texas. StateImpact TX. Texas holds about 23 percent of the country’s natural gas reserves. And thanks in large part to the advent of drilling techniques like horizontal drilling and hydraulic fracturing, or “fracking,” Texas is producing more of it than any other state.

Texas water crisis. Houston Chronicle, Editorial. In Barnhart, where a severe and lingering drought already had put a strain on the water supply, minds are focused these days, though not so wonderfully.

WISCONSIN

Wis. county OKs moratorium on frac sand mining. E&E News (sub. req'd). Citing health concerns, Wisconsin's Trempealeau County Board approved a temporary ban on frac sand mining Monday.

WYOMING

Buoyed by companies, University of Wyoming draws record funding. E&E News (sub. req’d). University of Wyoming Foundation President Ben Blalock announced that the school netted a record $56 million from private donors in the fiscal year ending June 30, driven in large part by contributions from the energy industry. Oil and gas companies have pledged millions of dollars to support UW research in the sector. Hess Corp. gave $4.4 million to the school in January, and Exxon Mobil Corp. donated $2.5 million in February.