Category Archives: Shale

New Energy Report Underscores Need for Cathodic Protection Systems to Prevent Corrosion

Energy Report - Gas Regions in US
Source: U.S. Energy Information Administration

In a recent update to its drilling productivity energy report, the Energy Information Agency revealed that there are now three US oil fields that are producing more than one million barrels of oil a day (BPD). In North Dakota, the Bakken Shale has been a major economic boon for the region while in Texas the Permian Basin and Eagle Ford Shale have both exceeded predictions. As oil and natural gas continues to expand in these regions, the need for cathodic protection systems to prevent corrosion grows.

The three fields are so prolific that they now account for at least a third of the total US daily oil production. In fact, Mark Perry of the American Enterprise Institute found that the output of the three combined fields now surpasses 4 million BPD.

Each of these regions has seen rapid growth that is nearly unprecedented in the United States. The Bakken oil production was less than 200,000 barrels per day in 2008 and is now producing around 1,100,000, an increase of 450% in just over five years.

Meanwhile, in Texas, Eagle Ford’s natural gas production has tripled in the last three years and oil production has also flourished in recent years. The region was producing less 100,000 BPD in 2010 to more than 1,400,000 BPD in 2014.

Finally, wells that had been previously drilled in the Permian zones have found new life with the development of horizontal drilling techniques. Historically, wells had a 34 percent recovery rate, but that benchmark is being challenged with new technologies.

“This Energy Information Agency report is yet another reminder that oil and gas production in the United States will continue to flourish in the years to come,” said Chris Sheldon, utilities practice lead at MATCOR. “With such rapid growth, however, it’s vital that infrastructure is built to accommodate the changes. That means building it fast, but also building it right.”

“Cathodic protection systems, like those produced by MATCOR, ensure the safety of oil and natural gas production and delivery assets.”

Learn More About Cathodic Protection Systems

MATCOR is a corrosion prevention firm that engineers, manufactures, installs, commissions and maintains a proven range of turnkey proprietary cathodic protection and AC mitigation systems worldwide for the oil & gas, power, water/wastewater and other infrastructures industries.

Contact a MATCOR corrosion expert by completing our contact form or calling +1-215-348-2974.

Elite oil fields redefine meaning of crude’s ‘Big Three’,” CNBC, July 27, 2014.

Marcellus and Utica Shale Gas Production Projected to Continue Rising

Marcellus and Utica Shale Gas Updates It’s no secret that the Marcellus and Utica Shale formations are generating huge economic boons for the states in which they reside. Even as exploration and production increase in both Pennsylvania and Ohio, future projections show that the estimated ultimate recovery (EUR) for the region will outpace recent expansions.

A new study by ICF International projects that between the Marcellus and Utica Shale, natural gas production will expand to 34 billion cubic feet (Bcf) per day by 2035. This is a 36% growth from the 2014 estimations of 25 Bcf.

Since 2009, the production levels in both the Utica and Marcellus Shale have increased at an exponential rate. These natural gas reserves are vital to the future of American energy independence. These formations, along with the Bakken formation in North Dakota, are driving America’s energy sector forward.

As scientists research the full potential of the formations, technological improvements are drastically changing our ability to recover their stored energy. This increased efficiency is a major factor that is driving up the estimated ultimate recovery (EUR) per well.

“The Utica and Marcellus Shale represent some of the most exciting areas of national growth over the next 20 years,” said Glenn Shreffler, executive vice president of engineering at MATCOR. “As production levels grow rapidly, it’s important to plan for the future and build the infrastructure to accommodate the increased capacity.”

“In both regions, as well as the Bakken Formation, corrosion engineering is an important element in public safety and for the protection of significant capital investments. MATCOR’s custom-designed cathodic protection systems ensure that infrastructure is designed to last. We encourage manufacturers in the Marcellus and Utica Shale to build with the future in mind.”

Utica Shale Facts

• The Utica Shale is estimated to be nearly twice as large as it’s more famous neighbor, the Marcellus Shale.
• Through 2015, Ohio is expected to create over 200,000 jobs and add $22 billion to the economy as a result of the Utica Shale.
• The Utica Shale supports 5,000 jobs directly, and almost 13,000 indirectly in the state of Ohio.

Marcellus Shale Facts

• The Marcellus Shale contains an estimated 84 trillion cubic feet of natural gas. Some geologists theorize that it could hold up to 500 trillion cubic feet of natural gas, which would make it the second largest field in the world.
• The Marcellus natural gas developments contributed $1.1 billion in tax revenue for Pennsylvania in 2010.
• Drilling in the Marcellus Formation has only affected .5% of the land mass in Pennsylvania – just 15,400 acres.

MATCOR, established in 1975, is one of the most experienced providers of corrosion technology. Our engineering and cathodic protection solutions are best in class. Call 800-523-6692 to contact us today.

Natural Gas Production in the Utica Shale Formation to Expand

Utica Shale Petrochemical Plant

Blue Racer Midstream, a new joint venture, has announced long-term agreements with producers in Ohio and West Virginia that will expand processing capacity in the Utica Shale formation.

Several producers working with Blue Racer Midstream have plans to increase natural gas production through new wells within the year. For new drill sites, cathodic protection for wells prevent long term investments from rusting.

Blue Racer is developing 600 miles of pipeline that will cross 24 counties and will have the capacity to transport over 1.5 billion cubic feet of natural gas every day.

As companies like Blue Racer Midstream are investing significant assets to extract natural gas from the Utica Shale Ohio region, the need for cathodic protection equipment is paramount.

“Increased natural gas production and capacity in the Utica Shale formation in Ohio and West Virginia regions provides new opportunities for jobs and investment.  Increased domestic production of low cost, clean burning natural gas will lead to new investments in chemical and petrochemical plants in the region as reliable energy sources are extremely important for the chemical processing industry,” said Ted Huck executive vice president, practice lead – plants/facilities, at MATCOR. “With hundreds of miles of new pipeline and the development of next generation of plants and facilities in the region, cathodic protection has never been more vital to protect significant investment in the region.”

What is Cathodic Protection?

Cathodic protection is used to combat corrosion of metal surfaces. MATCOR’s use of mixed metal oxide (MMO) anode cathodic protection has become an industry standard in cathodic protection.

Blue Racer expands its midstream infrastructure,” Vindy.com, March 1, 2014.

Enbridge Energy applies to build pipeline from North Dakota

Enbridge Energy has applied to build the largest oil pipeline yet from western North Dakota’s booming oil patch and will soon begin courting oil producers to reserve space, a key step in a $2.6 billion project that would move millions of gallons of oil to Minnesota and Superior, Wis.

Enbridge Energy, based in Calgary, Alberta, is proposing the 612-mile Sandpiper pipeline to carry 225,000 barrels of oil each day to a hub in northern Minnesota and 375,000 barrels to one in northwestern Wisconsin. If approved by regulators, it would be the largest pipeline moving oil out of North Dakota, the nation’s second-leading producer of oil behind Texas.

North Dakota has more than doubled its oil production in the past two years, closing in on a million barrels of oil a day. But because of the lack of pipeline capacity in the state, about 60% of the state’s daily oil production is being shipped by rail. A barrel is equivalent to 42 gallons.

Enbridge Energy comments that the project is “needed and in the public interest.”

Oil shipped to Superior would be shipped through Wisconsin on a network of pipelines already in place. Enbridge Energy has proposed an expansion that would not add pipe in the state, but would expand pump stations to allow more oil to flow through the Wisconsin pipelines.

The pipeline is the biggest project yet to come before North Dakota regulators to move oil from the rich Bakken and Three Forks formations in the western part of the state, said Brian Kalk, who heads the North Dakota Public Service Commission. The three-member commission oversees a slew of public interests, from pipelines to grain elevators, though much of its recent work has involved the oil and natural gas industry.

A spokesperson for Enbridge Energy said the new pipeline would provide “a timely, cost effective and long-term transportation solution, thereby serving the public’s interest in improved access to an abundant, secure, and reliable crude oil supply to satisfy consumers’ demand for refined products.”

Kalk said the commission is reviewing the application and that at least three public hearings will be held in communities along the pipeline’s proposed route in North Dakota.

If it is approved, the two-phase expansion project for Wisconsin entails construction or upgrades at 13 Wisconsin pumping stations, along with three in Illinois, that would permit the pipeline from Superior to Illinois to triple its capacity to 1.2 million barrels a day from 400,000 barrels a day.

Enbridge Energy operates about 50,000 miles of pipelines in North America, and several hundred miles of pipelines in North Dakota, including one that runs between Minot, N.D., and Clearbrook, Minn. The line, built in 1962, has the capacity to ship 210,000 barrels of North Dakota crude daily, or about 8.8 million gallons.

SOURCE: http://www.jsonline.com/business/canadian-firm-applies-to-build-pipeline-from-north-dakota-to-superior-b99135995z1-230738391.html

Marcellus Shale Coalition names David Spigelmyer as president succeeding Katie Klaber

The Marcellus Shale Coalition has tabbed one of its founders and past chairmen to be its new president.

David Spigelmyer, former vice president of Chesapeake Energy Corp.’s Appalachia division, succeeds Katie Klaber, who had worked as CEO since 2009.

Mr. Spigelmyer will oversee a growing coalition, formed in 2008, that works as an advocate for oil and gas developers in the Marcellus region.

The Pittsburgh-based organization has grown to include 45 full member companies and more than 200 associate members.

“I am deeply honored to have this organization’s trust instilled in me and grateful for the talented team of professionals that we have in place at the MSC,” Mr. Spigelmyer said in a press release.

At Chesapeake, Mr. Spigelmyer oversaw government relations, regulatory policy and communications, among other responsibilities.

His position there was one of several eliminated this summer in a massive corporate reorganization plan.

Before working for Chesapeake, he had similar roles at EQT Corporation and Dominion Resources.

He was chairman of the Marcellus Shale Coalition until this August, after he left Chesapeake. He previously served as the coalition’s vice chairman and as lead of its legislative committee.

Mr. Spigelmyer is a Penn State University graduate.

MATCOR is a proud member of the Marcellus Shale Coalition.

SOURCE: http://www.post-gazette.com/stories/business/news/marcellus-shale-coalition-named-david-spigelmyer-as-president-succeeding-katie-klaber-708595/

Kinder Morgan – Eagle Ford Pipeline Expansion Project

Kinder Morgan Energy Partners is adding 18 miles of lateral pipeline in the Eagle Ford Shale.

Kinder Morgan’s pipeline extension will carry crude and condensate from its DeWitt County, Texas station to a new facility it will build northwest in Gonzales County.

The company’s $74 million pipeline addition would allow it to reach markets along the Houston Ship Channel and a pipeline that services a Phillips 66 refinery in Brazoria County.

Kinder Morgan said Wednesday it struck a deal with a large producer in the Eagle Ford to extend the 178-mile pipeline in the South Texas shale play, but did not disclose the company.

The expansion provides “much needed optionality to Eagle Ford producers and Houston market consumers,” said Don Lindley, Kinder Morgan’s president for natural gas liquids business development, in a written statement.

The new pipeline will be able to transport 300,000 barrels of oil equivalent per day to the new station in Gonzalez County, which will have 300,000 barrels of storage capacity, a pipeline pump station and truck offloading facilities.

It’s a drop in the bucket for the Houston pipeline operator, which currently plans to invest $900 million in Eagle Ford projects and joint ventures. Kinder Morgan’s general partner, Kinder Morgan Inc., owns the largest pipeline network in North America at 80,000 miles, according to data compiled by Bloomberg.

Earlier this year, Kinder Morgan said it would expand another pipeline 31 miles from the DeWitt Station to a ConocoPhillips facility in Karnes County. That investment would amount to $107 million.

SOURCE: http://fuelfix.com/blog/2013/10/09/kinder-morgan-expanding-eagle-ford-pipeline-to-new-facility/

Utica Shale – Plans For A New 38 Mile Natural Gas Pipeline

Utica Shale News: A Columbia Gas sister company released plans  to build a 38-mile pipeline that will transport natural gas liquids from Ohio’s Utica shale.

Pennant Midstream said the pipeline will connect the Hickory Bend processing plant in Mahoning County to the Utica East Ohio Kensington plant in Columbiana County. It will cost about $60 million and have the capacity to deliver 90,000 barrels per day.

This is one of several projects in northeastern Ohio that will provide ways to get natural gas liquids such as ethane and propane to market. The liquids have a wide array of uses; among them, ethane is a key ingredient in chemical manufacturing, and propane is a fuel for home heating.

The liquids often need a dedicated pipeline, the construction of which is an important part of developing the Utica, said Ben Ebenhack, associate professor of petroleum engineering at Marietta College.

“You don’t want to move vast quantities of liquids in a gas pipeline,” he said. “They will tend to accumulate in the pipeline and block the flow of the gas.”

The Utica is rich in liquids, which is helping to drive much of the investment there.

While the market price of natural gas has been low for several years, the liquids sell for a much higher price.

Pennant Midstream is operated and co-owned by a subsidiary of NiSource, which is the Indiana-based parent company of Columbia Gas of Ohio.

“The construction of new infrastructure is critical to unlocking the potential of the Utica shale play in Ohio,” Jimmy Staton, Columbia Pipeline Group and NiSource Midstream Services CEO, said in a statement.

“This partnership will not only provide a key link in that infrastructure, it will provide economic-related benefits for companies and residents of Ohio and the Appalachian basin.”

Harvest Pipeline Co., a subsidiary of Houston-based Hilcorp Energy Co., also co-owns Pipeline Midstream. Steve Jacobs, president of Harvest Pipeline, said the project is “an important milestone in advancing the development of the Utica shale.”

Construction has already begun on the project, with plans to finish by July.

SOURCE: http://www.dispatch.com/content/stories/local/2013/09/30/new-northwest-ohio-pipeline.html

Natural Gas Well Drilled at Texas Motor Speedway

As the first natural gas well at Texas Motor Speedway was being drilled Tuesday, Hideki Makihara was more than a casual observer.

Natural Gas is at a premium  explained the Japanese lawmaker since Japan shut down its last nuclear reactor last week, a casualty of the Fukushima disaster in 2011. Since then, he said, electricity prices have doubled and Japan is paying some of the highest prices in the world for the natural gas needed to fuel its remaining power plants.

Natural gas that will eventually flow from Quicksilver Resources wells at the giant racetrack in far north Fort Worth should contribute to the surge in U.S. gas production, which has driven down prices domestically and could eventually provide relief for Japan.

“We want to import shale gas as soon as we can to reduce the price of electricity in Japan,” Makihara told the Star-Telegram. “So far, the cheapest natural gas in the world is U.S. shale gas.”

Makihara, a member of Japan’s House of Representatives, on Tuesday visited Quicksilver’s drill site on the north side of Texas Motor Speedway, where the Fort Worth-based producer started drilling this month. Quicksilver holds the lease on the 1,450-acre property, as well as on much of the neighboring Alliance development.

Quicksilver plans five wells at the current drill site on the edge of the racetrack’s sprawling parking lot, plus two additional drill sites on the west side with similar numbers of wells planned. It will also drill under the speedway from the east side of Interstate 35, something it did when it drilled at Alliance Airport, said Steve Lindsey, Quicksilver’s head of government and community affairs.

But race fans won’t see any rigs at the speedway next month. Drilling will cease and the rig will be moved for the race weekend starting in late October, Lindsey said.

The shutdown of nuclear power plants after the tsunami disaster is costing Japan billions. Japan’s industry ministry has estimated that the nation’s cost to import extra coal, gas and oil to run its non-nuclear plants will hit $93 billion by the end of 2013.

The crisis sent Japanese energy interests looking to the U.S. for solutions.

In March, Tokyo Gas, Japan’s biggest natural gas utility and a diversified global energy company, bought a 25 percent stake in Quicksilver’s Barnett Shale holdings, including the speedway land. Makihara was accompanied by Koji Yoshizaki, general manager of of Tokyo Gas America, based in Houston.

Tokyo Gas has also agreed to buy liquefied natural gas from a planned terminal in Maryland that recently won an export license from the federal government. And the utility continues to seek production in the United States, Yoshizaki said.

Under an agreement reached in 2008, the Fort Worth Sports Authority and the speedway will share royalties from production on the property, with much of the money going toward improvements at the facility.

SOURCE: http://www.star-telegram.com/2013/09/24/5191188/first-gas-well-being-drilled-at.html

Utica Shale – New $125M Pipeline Planned

PVR lands Hess deal to build Utica shale pipeline

PVR Partners LP, an Eastern Pennsylvania midstream company, is teaming with Hess Corp. (NYSE: HES) as it expands into the Utica Shale play in eastern Ohio.

PVR (NYSE: PVR) has been tapped to build, own and operate a 45-mile natural gas trunkline and gathering pipelines and facilities for Hess. The company is expected to have a total capital investment of between $125 million to $150 million. The project should be online in late 2014, according to a statement from PVR.

“PVR is pleased to announce this strategic expansion of our midstream business into the Utica Shale and we welcome the opportunity to serve Hess Corp., a world-class energy provider,” said Bill Shea, president and CEO of PVR, in a written statement. “We believe Hess’s selection of PVR as their midstream provider in the Utica Shale is another validation of our growing reputation for supplying reliable high-quality midstream services to meet the needs of shale gas producers.”

The project consists of a minimum 20-inch diameter trunk line with anticipated minimum capacity of 450 million cubic feet per day and connections with the Texas Eastern and Rockies Express interstate pipelines, according to PVR. Additional connections could also be added to other interstate pipelines. The project also includes constructing compression stations, dehydration and other facilities.

PVR is expected to invest $10 million in this project during the rest of 2013 and another $50 million during the first half of 2014. An additional $50 million will be invested in the second half of 2014 and the remainder in 2015, according to the company.

SOURCE: http://www.bizjournals.com/pittsburgh/blog/energy/2013/09/pvr-lands-hess-deal-to-build-utica.html

MATCOR’s Insights that Work

This is great news for the Utica Shale region with this natural gas pipeline. However, there is a large responsibility for pipeline safety, cathodic protection management and more.

MATCOR, Inc. is a leading cathodic protection and corrosion prevention engineering design firm, providing environmentally beneficial systems and services to global clients for nearly 40 years. An ISO 9001:2008 certified expert in the field of cathodic protection, MATCOR offers proprietary corrosion protection design, engineering, manufacturing, installation, cathodic protection testing, annual surveys, maintenance and complete corrosion protection project management. We specialize in protecting the infrastructure of the oil and gas, utility, transportation and construction industries.

New Refinery Project for Texas – Eagle Ford Shale

Worldwide Energy Consortium, Inc. (WEC) announced it will begin the initial Engineering/Permitting phase for its new refinery located near Gardendale in La Salle County Texas. The site was chosen to take advantage of the oil production from the Eagle Ford Shale play, considered to be one of the largest Oil and Gas fields in the world.

This is the first of several planned operations by WEC in the region. Working closely with local officials, producers, land owners, and state agencies, WEC has identified multiple production sites that will allow it to take advantage of the abundant resources being developed in the area.

This first project, The Whitetail Refinery, will begin immediately. The facility is expected to be operational by the last quarter of 2014.

“The rapid deployment of modern, cost efficient refining operations directly into the new production regions will positively impact the producers, consumers, and the investors in our projects.” – Dave Martinelli, CEO Worldwide Energy Consortium, Inc.

MATCOR is a leading provider of ISO 9001:2008-certified cathodic protection products that project many refineries within the Eagle Ford Shale play. Learn more about our services and cathodic protection installation that carry a 10 year guarantee. MATCOR offers the latest insights on anodes for cathodic protectioncathodic protection equipment and more.