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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

    HEP expands into Marcellus with pipeline acquisition

    Mar 20, 2015

    Howard Midstream Energy Partners LLC, dba Howard Energy Partners (HEP), has executed a definitive purchase and sale agreement with Southwestern Energy Co. to purchase the company’s northeast Pennsylvania natural gas gathering assets in Bradford and Lycoming counties in Pennsylvania for $500 million. The gathering systems serve the Marcellus shale region.

     

     

    Williams seeks FERC approval for pipeline expansion

    Mar 20, 2015

    Williams said March 19 that Transco has filed an application with the US Federal Energy Regulatory Commission for its Dalton Expansion Project, which would support providing Marcellus shale gas to the Southeast for electricity generation and local natural gas distribution.

    WGL Midstream acquires interest in Mountain Valley Pipeline JV

    Mar 12, 2015

    Mountain Valley Pipeline LLC, a joint venture between affiliates of EQT Corp. and NextEra Energy Inc., says that a subsidiary of WGL Holdings Inc., WGL Midstream, has acquired a 7% ownership interest in the joint venture, and that a subsidiary of Vega Energy Partners Ltd., Vega Midstream MVP LLC, has acquired a 3% interest.

    Statoil and Southwestern complete Marcellus transaction

    Feb 3, 2015

    Statoil and Southwestern Energy Co. have completed their transaction in the Marcellus shale play, whereby Statoil has reduced its average working interest in the non-operated US southern Marcellus onshore asset from 29% to 23%.

    WPX completes sale of Northeast Pennsylvania assets

    Feb 3, 2015

    WPX Energy has completed the sale of its operations in northeast Pennsylvania, including the release of certain firm transportation capacity, to Southwestern Energy Co.

    Eclipse Resources completes $440 million equity raise

    Jan 30, 2015

    Eclipse Resources Corp. has closed its private placement of 62,500,000 shares of common stock. The shares were sold to selected institutional and accredited investors, including affiliates of EnCap Investments LP and entities controlled by members of the company’s management team, at a price of $7.04 per share.

    Fitch: Gas rig uptick illustrates capital allocation optionality

    Jan 30, 2015

    The recent uptick in gas-directed rigs illustrates the capital allocation optionality and potential value available to some North American exploration and production companies, according to Fitch Ratings.

    US O&G deal values reached 10-yr high of $321.5B in 2014

    Jan 29, 2015

    Mergers and acquisitions in the oil and gas industry hit 10-year highs in terms of deal value and volume in 2014, according to PwC US.

    Range Resources reduces original 2015 capital budget to $870 million

    Jan 16, 2015

    Range Resources Corp. has reduced its capital budget for 2015 to $870 million from the previously reported $1.3 billion, which already represented an 18% cut compared with the 2014 budget.

    BakerHostetler expands energy/shale team in Denver office

    Jan 15, 2015

    Energy attorney and geologist Michael P. Joy has joined the Denver, Colorado, office of BakerHostetler as a partner in the Litigation Group and the Energy and Shale team. He comes to BakerHostetler from the Pittsburgh, Pennsylvania, office of Reed Smith LLP.

    American Energy Appalachia Holdings adds CEO to executive leadership

    Jan 14, 2015

    American Energy Partners LP reports that Jeffrey A. Fisher has been named CEO of American Energy Appalachia Holdings LLC (AEA). Completing AEA's executive leadership team are COO John K. Reinhart and CFO Jeffrey A. Agosta. Aubrey K. McClendon will continue as AEA’s chairman of the board. 

    GE to invest up to $10M in Penn State

    Jan 13, 2015

    New center will combine disciplines to advance natural gas supply systems

    TPH Partners Announces Investment in Laurel Mountain Energy

    Jan 12, 2015

    TPH Partners, a middle-market energy private equity funds manager, has partnered with a management team led by Clark and David Nicklas to form Laurel Mountain Energy LLC, an independent upstream company headquartered in Pittsburgh, Pennsylvania.

    US natural gas production in December hits new record

    Jan 7, 2015

    Natural gas production in the US Lower 48 increased by 2.2 billion cubic feet per day (Bcf/d) during  December 2014, according to Bentek Energy, the Platts oil and gas analytics unit.

    Statoil realizes $394 million from Marcellus asset

    Dec 24, 2014

    Statoil has agreed to reduce its working interest in the non-operated US southern Marcellus onshore asset from 29% to 23%, following a $394 million transaction with Southwestern Energy Co.

    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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