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Ohio Utica Shale

Needed pipelines for Utica, Marcellus gas are couple years away

By Bob Downing Published: August 6, 2014

From Bloomberg News today:

By Alex Nussbaum

It could take a "couple of years" to build enough pipelines to handle surging natural gas production from the Marcellus and Utica shale formations, the chief executive officer of Spectra Energy Corp. said.

Spectra, which owns 22,000 miles (35,400 kilometers) of oil and gas pipes, is rushing to alleviate a glut that has helped depress profits for drillers unable to get their product to market, CEO Greg Ebel said today in a phone interview.

Lack of pipeline capacity to New England should have the region "very concerned" about a repeat of shortages last winter that drove up prices for gas and propane, Ebel said after the Houston-based company announced quarterly earnings.

"There's no doubt that the challenge producers have at getting gas out of Marcellus and Utica is having an impact on the margins they are realizing," Ebel said. "The industry is moving about as fast as it can to put pipe in the ground."

His company is seeking commitments from drillers to build four new pipelines from the Utica and Marcellus shales to the Midwest, Canada, the Southeast and the Northeast.

Chesapeake Energy Corp. said today that its profit plunged in the second quarter thanks to an oversupply in the Marcellus that slashed gas prices by 51 percent. Gas production in the region, which stretches across Pennsylvania and West Virginia, hit a record in July, topping 15 billion cubic feet a day, the U.S. Energy Department reported yesterday.

Spectra approved six projects worth $2 billion in the second quarter, much of it devoted to moving supply from the Marcellus and the Utica, the shale formation in Ohio. Spectra's TEAM 2014 pipeline, which would connect Marcellus production with customers to the east and south, is expected to be in service on Nov. 1, the company said in a statement.

"In the next couple of years, we'll fill in the infrastructure that's needed," Ebel said.

Second-quarter profit slipped to $146 million, or 22 cents a share, from $199 million, or 30 cents, a year ago, because of higher maintenance costs, the company said. The amount of money available for paying unitholders, known as distributable cash flow, rose 12 percent to $277 million, the company said.

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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.