The Energy Information Administration (EIA) has an interesting (and brief) report on new drilling in the Eagle Ford over the last several months: "New well starts in the Eagle Ford region in Texas increased 110% from January through March 2012 compared to the same period in 2011, according to reporting and analysis by BENTEK Energy LLC (Bentek)."
The Energy Information Administration (EIA) has published new information on planned additions to pipeline capacity and natural gas storage. The accompanying graphic:
This is interesting. Testimony from the U.S. Government Accountability Office before the U.S. House Subcommittee on Energy and Environment:
The Green River Formation *** contains the world’s largest deposits of oil shale. USGS estimates that the Green River Formation contains about 3 trillion barrels of oil, and about half of this may be recoverable, depending on available technology and economic conditions. The Rand Corporation, a nonprofit research organization, estimates that 30 to 60 percent of the oil shale in the Green River Formation can be recovered. At the midpoint of this estimate, almost half of the 3 trillion barrels of oil would be recoverable. This is an amount about equal to the entire world’s proven oil reserves. (Emphasis is ours.)
That seems to contradict the President's oft repeated statement that we have only 2% of the world's oil reserves ... and with only one shale formation!
The University of Texas at San Antonio’s Institute for Economic Development recently released an economic impact study for resource development out of the Eagle Ford shale: "'The Eagle Ford Shale has proven to be one of the most important economic engines in the state,' said Dr. Thomas Tunstall, director of the UTSA Center for Community & Business Research, and the study’s principal investigator. 'In 2011 alone, the play generated over $25 billion in revenue, supported 47,000 full-time jobs in the area, and provided $257 million in local government revenue.'"
Hit the link for a copy of the study.
The Chicago Tribune has an article reporting on recent test results showing that groundwater contamination claims are linked to shallow, naturally occurring methane and not the producer's operations: "The analysis, a form of chemical fingerprinting, studies stable isotopes in the methane for signs of its origin.The procedure has become a frequent tool for regulators and companies seeking to distinguish between deep gas harvested by drillers, shallow gas caused by the breakdown of organic material and gas trapped in middle rock layers closer to the surface than the mile-deep Marcellus. *** Susan Oliver, a spokeswoman for WPX, said in an email that 'the characteristics of the methane in the three water wells match the characteristics of the shallow methane that has been in Franklin Forks and the Salt Springs area for many decades. The results do not match the chemical footprint of the natural gas coming from the Marcellus Shale.'"
Don't expect that to end the issue, though ...
The Star-Telegram is reporting that two Texas associations have filed suit to protect their members against discriminatory fees imposed by one local government (Arlington). "The Texas Oil & Gas Association and the Texas Independent Producers and Royalty Owners Association argue that the city, which has more than 300 gas wells, is trying to unfairly 'expand its revenues by taxing a single industry.' *** 'It's seven times higher than any other permit fee they charge to a particular business,' said Justin Furnace, president of the royalty owners association. 'We're really left with no alternative but to seek relief from the court.'"
It's to protect the people ... (and fund the local fire department)
Delaware Online is reporting on a recent study concluding that producers in Pennsylvania generated $3.5 billion in gross revenues last year. The interesting part for residents is buried in later paragraphs, however: "Patrick Creighton, a spokesman for the Marcellus Shale Coalition *** estimated that it costs the industry about $5 million to bring a well into production. With about 2,200 active wells in the state, that comes to $11 billion in additional investments, mostly over the last four years. [Moreover,] *** Creighton said the minimum royalty in Pennsylvania is 12.5 percent of well revenues, meaning property owners here were paid more than $400 million last year." And - "Gheit [an analyst with Oppenheimer & Co.] said the real value of shale gas is that the lower energy cost is making American industry more competitive around the world. That opens doors for long-term investments, such as Shell Oil’s plan to build a huge petrochemical plant in western Pennsylvania."
Should be viewed as good, if not great, news, right?
Today the ODNR's Division of Oil and Gas Resource Management submitted its long expected Well Construction Package to the Ohio Joint Committee on Agency Rule Review. These rules will implement the well construction provisions within Ohio Revised Code section 1509.17, and establish minimum standards for the construction and mechanical integrity monitoring of oil and gas wells drilled in Ohio. The rules are expected to take effect August 1, 2012.
U.S. Environmental Protection Agency (EPA) has issued a draft guidance document to be used when "permitting the underground injection of oil- and gas-related hydraulic fracturing using diesel fuels where EPA is the permitting authority." From the related press release: "Today, the U.S. Environmental Protection Agency (EPA) released draft underground injection control (UIC) program permitting guidance for class II wells that use diesel fuels during hydraulic fracturing activities. EPA developed the draft guidance to clarify how companies can comply with a law passed by Congress in 2005, which exempted hydraulic fracturing operations from the requirement to obtain a UIC permit, except in cases where diesel fuel is used as a fracturing fluid."
Comments are due 60 days from its publication in the Federal Register.
The Bureau of Land Management (BLM) has issued a draft rule governing hydraulic fracturing on federal lands. See here. Not all the environmental groups are happy - "'This is a free pass to the oil and gas industry at the expense of public health,' Jessica Ennis, a Washington-based legislative associate for the environmental group Earthjustice, said today in an e-mail." (from BusinessWeek). But then again, they never are.
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