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  • Unconventional Oil & Gas

    Shale plays first come to mind when one considers unconventional resources. These unconventional resource plays may yield natural gas, gas condensates, and crude oil. Some of the more noteworthy shale plays in North America include the Bakken, Eagle Ford, Marcellus, Fayetteville, Woodford, Niobrara, Haynesville, Horn River, and Utica formations. Tight gas, coalbed methane, oil sands, and heavy oil are non-shale unconventional resources.

    SECTIONS

    Eagle Ford | Marcellus | Cline | Permian | Utica | Bakken | Woodbine & Eaglebine

    Marcellus

    Marcellus Shale ImageThe Marcellus shale play runs through northern Appalachia, primarily in Pennsylvania, West Virginia, New York, and Ohio. It is part of the Devonian black shale and the thickness of the gas-producing rock is as much as 900 feet. The formation runs an estimated 600 miles north to south, and is estimated to hold as much as 500 trillion cubic feet of natural gas, about 50 tcf of which is recoverable using current technology. It is one of the richest gas fields in North America.

    The proximity to customers in Eastern urban centers is what makes the Marcellus so desirable. Fort Worth-based Range Resources was one of the early players in the Marcellus and still has a huge position in the play. Norway’s Statoil has signed a joint venture with Chesapeake Energy to work together in the Marcellus, and other US and foreign companies also are involved in drilling and infrastructure development.

    Marcellus

    Marcellus Shale News

    Shale deals drive strong US market, up 9% in Q3 as international M&A struggles

    Nov 17, 2014

    PLS reports that Q3 2014 global deal activity lost the gains made the previous quarter, dropping 32% to $39.2 billion from $57.6 billion in Q2.

    Eastern gas basis: pipeline pain or gain?

    Nov 17, 2014

    Takeaway capacity additions and their impact on basis prices

    GCA: Falling oil price to have uneven effect on US unconventional plays

    Nov 11, 2014

    Falling oil prices will have an uneven effect across US unconventional plays based on the qualities of reservoirs within any given play, Gaffney Cline & Associates said in a recent report, noting there exists a complex relationship between the pace of shale production and falling futures prices for light, sweet crude oil.

    US ethane exports ‘imminent’ amid flood of supply from shale plays

    Nov 11, 2014

    US ethane production, forecast to reach 2.5 million barrels per day (b/d) by 2024, will cause supply to exceed domestic demand, making exports “imminent,” according to a report from Bentek Energy, an analytics and forecasting unit of Platts.

     

    Sunoco Logistics to invest $2.5B for Mariner East 2

    Nov 7, 2014

    Sunoco Logistics Partners LP reports a successful open season for Sunoco Pipeline LP’s Mariner East 2 project, the second phase of the company’s broader plan to provide critical pipeline transportation from the Marcellus and Utica shale plays.

    FTSI to acquire J-W Wireline

    Nov 4, 2014

    FTS International has signed a definitive agreement to acquire J-W Wireline Co., a subsidiary of J-W Energy Co., which is an independent cased-hole wireline company in North America.

    Rover pipeline now fully subscribed

    Oct 31, 2014

    Energy Transfer Partners LP has secured additional long-term binding shipper agreements on its Rover natural gas pipeline project to connect Marcellus and Utica shale supplies to markets in the Midwest, Great Lakes, and Gulf Coast regions of the US and Canada.

    EnLink Midstream LLC drops down E2 entities to Enlink Midstream Partners LP

    Oct 22, 2014

    EnLink Midstream Partners LP has acquired equity interests in E2 Appalachian Compression LLC and E2 Energy Services LLC from EnLink Midstream LLC for total consideration of $193 million, including a cash payment of $163 million and approximately 1.0 million ENLK units.

    Crestwood concludes non-binding open season for MARC II pipeline

    Oct 21, 2014

    Crestwood Midstream Partners LP reports that its subsidiary, Central New York Oil & Gas Co. LLC (CNYOG), which owns the North-South and MARC I pipelines and the Stagecoach storage facility, has concluded a non-binding open season to solicit interest for firm transportation of natural gas on a proposed new 30-mile pipeline extending CNYOG’s system to the proposed PennEast pipeline, a new interconnect on Transco’s Leidy Line, and Transco’s proposed Atlantic Sunrise expansion project in Luzerne County, Pennsylvania.

    Southwestern Energy acquires Marcellus and Utica assets

    Oct 17, 2014

    Southwestern Energy Co. has signed a purchase and sale agreement with Chesapeake Energy Corp. to acquire certain oil and gas assets covering  413,000 net acres in West Virginia and southwest Pennsylvania targeting natural gas, natural gas liquids, and crude oil contained in the Upper Devonian, Marcellus, and Utica shale plays for $5.375 billion. The transaction is expected to close by year’s end.

    Chesapeake to sell Marcellus and Utica shale assets for $5.375B

    Oct 16, 2014

    Chesapeake Energy Corp. has executed a purchase and sale agreement to sell assets in the Southern Marcellus shale play and a portion of the Eastern Utica shale play in West Virginia to Southwestern Energy Co. for aggregate proceeds of $5.375 billion.

    Mountaineer Keystone acquires PDC Mountaineer

    Oct 16, 2014

    Mountaineer Keystone Energy LLC, a portfolio company of First Reserve, a private equity firm exclusively focused on energy, has completed the acquisition of the equity interests in PDC Mountaineer LLC, a Marcellus joint venture between PDC Energy Inc. and Lime Rock Partners LLC, with an effective date of Jan. 1, for an aggregate purchase price of $500 million.

    September US natural gas production up 7.4%, breaking record

    Oct 9, 2014

    Natural gas production in the US Lower 48 states averaged 69.1 billion cubic feet per day (Bcf/d) in September, breaking its previous monthly average high for the ninth consecutive month, according to Bentek Energy, an analytics and forecasting unit of Platts.

    Private company update

    Oct 9, 2014

    Independent research firm IHS has provided OGFJ with updated production data for our periodic ranking of US-based private E&P companies. The rankings are based on operated production only within the US.

    Stranded ethane can power gas turbines

    Oct 9, 2014

    Using ethane on site can avoid poor transport options

    ConocoPhillips CEO on shale boom: We've only scratched the surface

    Technology innovation has expanded the world’s energy resource base and the oil and gas industry will continue to working to supply that growth, said ConocoPhillips (NYSE:COP) chairman and CEO Ryan Lance.

    ©2014 Michael Stravato. Provided courtesy of the James A. Baker III Institute for Public Policy, Rice University.

    Read the full article here. 


    US tight oil production averaged 3.22 day MMbbl/d in 4Q13, according to US EIA estimates. This level was enough to push overall crude oil production in the US to an average of 7.84 MMbbl/d, more than 10% of total world production, up from 9% in the fourth quarter of 2012. Read more here

    Can the shale gas rBart Willigers, Palantir Solutions Ltd. evolution currently taking place in the US be repeated elsewhere? Although significant volumes of unconventional gas deposits are present in Poland, France, Germany, Hungary, Sweden, Turkey, and the UK, shale gas developments are running many years behind their counterparts in the US. Skeptics have pointed out that differences in geology, taxes, public acceptance, environmental regulations and other factors in Europe vs. the US make for a tougher environment in which to develop unconventional resources. 

    Read the article by Bart J. A. Willigers of Palantir Solutions Ltd. here

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