Tuesday, February 4, 2014

Throwing People Under The Train -- Literally; Phoenix Rising; XOM Acquires Acreage In The Permian, Ohio Utica


February 8, 2014: more on the XOM/XTO story in the Permian. MRT.com is reporting:
Exxon Mobil Corporation has reached an agreement to enhance its Permian Basin portfolio managed by its XTO Energy subsidiary.
Through an agreement with Endeavor Energy Resources LP, XTO will fund development to gain substantial operating equity in about 34,000 gross acres in the prolific liquids-rich Wolfcamp formation in Midland and Upton counties. Endeavor will continue to operate shallow production while XTO will drill and operate horizontal wells in the deeper intervals. 
The agreement increases XTO’s holdings in the Permian Basin to just more than 1.5 million net acres, enhancing the company’s significant presence in one of the major U.S. growth areas for onshore oil production. 
“The Wolfcamp shale is a vast, tight oil resource with tremendous potential,” said Randy Cleveland, president of XTO Energy. “The presence of multiple, stacked pay zones creates the potential for capital-efficient horizontal development, and the proximity to XTO’s ongoing Wolfcamp operations will offer operating cost efficiencies.”

Original Post

RBN Energy: Marcellus natural gas heading to Florida, Part 2
The idea of using natural gas produced in Pennsylvania to generate power in South Florida would have been considered implausible or even unthinkable just a few years ago. But now it seems likely that by mid-2017 Marcellus-sourced gas will, in fact, be moving deep into the Southeast. Williams’ planned Atlantic Sunrise project will make its Transco mainline bi-directional as far south as Station 85 in southwestern Alabama. From there, Spectra Energy and NextEra Energy’s Sabal Trail pipeline will move Marcellus and other gas into central Florida, and NextEra’s Florida Southeast Connection line will take gas still further south. Today In the second of a two part series, we conclude our analysis of the transformational Atlantic Sunrise project.
John Kerry: without Keystone, six (6) railroad deaths per year.
Replacing the Keystone XL pipeline with oil-laden freight trains from Canada may result in an average of six additional rail-related deaths per year, according to a U.S. State Department report that is adding to pressure for President Barack Obama to approve the line.
The long-awaited study, released on Friday, focused on the environmental impact of TransCanada's $5.4 billion pipeline, but also spent several pages analyzing the potential human impact of various ways to transport oil, using historical injury and fatality statistics for railways and oil pipelines.
Although it excluded the runaway oil train derailment that killed 47 people in Lac Megantic, Quebec, last summer, the tragedy that first shone a critical light on the rapidly expanding trend in shipping crude by rail, the findings highlight the risks or railway transport versus pipes. Shipping another 830,000 barrels per day (bpd) of crude "would result in an estimated 49 additional injuries and six additional fatalities for the No Action rail scenarios compared to one additional injury and no fatalities" per year if Keystone XL is built, according to the report.
The president has thrown a lot more folks than "six per year" under the train during the past five years. I doubt this report will influence him one way or the other.


Phoenix rising! Ex-Chesapeake CEO -- Aubrey McClendon -- doubles his acreage in the Ohio Utica.
Former Chesapeake Energy Corp CEO Aubrey McClendon's American Energy Partners said on Monday that it had struck three deals in Ohio's Utica shale region, doubling its holdings there.
The company said it would buy about 130,000 acres in the southern part of the Utica shale from Hess Corp, Exxon Mobil Corp and privately held Paloma Partners. It said the three deals would bring its total acreage in the region to about 260,000 acres.
American Energy did not disclose how much it is paying for the acreage, but Hess said previously that it sold its 74,000 acres in the Utica for $924 million.
$924 million / 74,000 acres = $12,500/acre  -- and that's for natural gas


XOM acquires acreage in the Permian and Ohio
Exxon Mobil Corporation announced Monday enhancements to its U.S. oil and natural gas portfolio managed by subsidiary, XTO Energy Inc., through separate agreements in the Permian Basin in Texas and Utica shale in Ohio.
XTO: 34,000 gross acres in liquids-rich Wolfcamp in Midland and Upton counties.
XTO: 30,000 net acres in Ohio -- recently initiated development in the Utica

Summertime Sadness, Lana Del Ray

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