The price swings in the oil market are making it difficult for companies to plan on numerous levels. While the price swings are daunting enough, in many states and on the federal level, the more regulations and new taxes are making the decision-making more vexing. The only way for businesses to cope in this environment is to keep informed. This fall there are a number of expos, conferences and seminars with industry speakers and government officials. The focus of these events deals with all facets of the supply chain – upstream, midstream and downstream in the Marcellus, Utica and Eagle Ford Shale Plays. One of your key takeaways from these events should be to support the industry. It seems the industry is under attack more than ever with a special focus on the midstream business. Many communities and businesses through the east coast want the lower priced Marcellus and Utica natural gas, but when it comes to pipeline construction, the “NIMBY” (Not In My Backyard) effect takes h
As you know, I’m relatively new to the oil and gas industry. We started Shale Directories in November 2009. This sharp price decline in oil is the first one I experienced since we started Shale Directories. We saw a deep price decline in natural gas in 2012 when it went under $2.00. It has recovered somewhat, but seems to be locked in a trading range from $2.65 to $3.00. In fact, natural gas has weathered the current declines pretty well. In looking at the current state of the oil and gas industry, here are some of my thoughts: • The price of oil. It dipped below $40 this week, but seems to be rebounding. The question is where is the new “norm.” I’ve heard $60 a barrel is the new $100 a barrel. How long can the Saudis continue to keep pumping to keep prices depressed? It may not too much longer. Here are some observations: o The Saudis have issued bonds recently for the first time in since 2007 and more bond issues could be in the future. (Shale Directories, 8/15/15) o Saudi
As part of our partnership with the folks at Sunoco Logistics to explore the similarities and differences between wet and dry natural gas, today we are taking a look at the use possibilities. If you missed the first infographic, be sure to check out this post which explains the difference between the two types of natural gas produced in the Marcellus. Natural gas liquids are the building blocks of many products When wet natural gas is produced, it must be processed to separate the different components it contains, such as water and hydrocarbons. Natural gas liquids, such as butane, ethane and propane, are other forms of hydrocarbons, which can be used for many different products. Butane is commonly known as the flammable liquid in handheld lighters, propane is often used for heating in homes or as a fuel source for grills and propane is a chemical building block found in many different kinds of plastic products we use every day. The average American citizen will come into contact wi
Schlumberger, the world’s largest oilfield services company, and fellow services firm Cameron, originator of the oilfield blowout preventer, said Wednesday they’re merging in a $14.8 billion cash and stock deal. Under the terms of the agreement, Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 in exchange for each Cameron share. Based on the closing stock prices of both companies on Aug. 25, the deal values Cameron at $66.36 per share – a 37% premium to Cameron s 20-day volume weighted average price of $48.45/share, and a 56.3% premium to Cameron s most recent closing stock price of $42.47/share. Upon closing, Cameron shareholders will own roughly 10% of Schlumberger s outstanding common shares, Kallanish calculates. We believe that the next industry technical breakthrough will be achieved through integration of Schlumberger s reservoir and well technologies with Cameron s leadership in surface, drilling, processing and flo
The following was originally posted to the Commonwealth Foundation‘s blog on July 13, 2015 by Bob Dick and Nathan Benefield. Although posted more than a month ago, this information is still extremely relevant and worth sharing.You can follow the Commonwealth Foundation on Twitter at @Liberty4PA.——-America Works USA, an affiliate of the union-funded Democratic Governors Association, recently launched an ad campaign in support of Gov. Wolf’s effort to raise taxes on middle- and low-income people.
Guest Post: America Works (On Misleading the Public)The following was originally posted to the Commonwealth Foundation‘s blog on July 13, 2015 by Bob Dick and Nathan Benefield. Although posted more than a month ago, this information is still extremely relevant and worth sharing.You can follow the Commonwealth Foundation on Twitter at @Liberty4PA.——-America Works USA, an affiliate of the union-funded Democratic Governors Association, recently launched an ad campaign in support of Gov. Wolf’s effort to raise taxes on middle- and low-income peopleThe group, bolstered by a war chest of at least $500,000, took to the airwaves with radio and TV ads slamming the Republican budget and touting Gov. Wolf’s budget as a practical alternative. Regrettably, the ads are chock-full of misinformation. Although the ads aren’t very long, we identified seven erroneous claims, each of which are corrected below.Claim #1: The Republicans’ budget lets oil and gas drillers “of the hook.”R
Oil and gas independent Antero Resources has contracted with Veolia Water Technologies to design-build a $275 million wastewater treatment complex in Doddridge County, West Virginia.The complex includes a 60,000 barrel per day (BPD) facility that will allow Antero to treat and reuse flowback and produced water rather than permanently dispose of the water via injection wells, Kallanish understands. Denver, Colorado-based Antero will own the treatment assets including ancillary facilities. The complex will be centrally located in Antero s footprint in the southwestern core of the Marcellus Shale play with the ability to serve the company s development in both the Marcellus and Utica Shale plays.One of the largest players in the Marcellus and Utica, Antero owns roughly 410,000 acres in the Marcellus in northern West Virginia/southwesten Pennsylvania. In the Utica, Antero owns more than 149,000 acres in eastern Ohio. Our concentrated acreage position in the core of the Marcellus and