Active Rigs Holding Steady At 182 -- December 15, 2014; Range Resources May Have Set Utica Record For An IP

Active rigs:

	12/15/2014	12/15/2013	12/15/2012	12/15/2011	12/15/2010
Active Rigs	182	191	181	198	165

RBN Energy: finding markets for US tsunami of condensates. 

The U.S. has a surplus of light hydrocarbon liquids – much of it in the form of field condensate produced at the wellhead and plant condensate extracted from natural gas at processing plants. Declining domestic demand leaves both field and plant condensate increasingly reliant on export markets. Trouble is those export markets are far from secure and the oil price crash isn’t making things any easier. Today we preview RBN’s latest Drill Down report – a deep dive into the supply and demand balance for field and plant condensate.

What follows is based on our latest Drill Down report – available exclusively to RBN Backstage Pass subscribers. The report describes the extraction and production of both field and plant condensate in the U.S. We provide actual and forecast production data as well as an explanation of markets for condensate today and over the next five years. We explain why both types of condensate are headed for a surplus in the domestic market and evaluate possible export markets that could soak up that surplus. Finally we discuss the increasing possibility that export markets may not be able to absorb the U.S. condensate surplus and how that likelihood has increased following the recent oil price crash.

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From Yahoo!In-Play

Summit Midstream Partners announces its General Partner develop natural gas gathering system for XTO in the Utica Shale:

• Summit Midstream Partners, the privately held company that owns and controls the general partner of Summit Midstream Partners, and also owns a 49.5% limited partner interest in SMLP, announced that it has reached an agreement with XTO Energy to develop and operate a new natural gas gathering system servicing XTO's natural gas production from Belmont and Monroe counties in southeastern Ohio. 
• The $400 million, multi-year development of the Summit Utica gathering system is currently underway and first flows to Regency Utica Ohio River are expected in the second half of 2015.

Range Resources announces 2015 capital budget and record Utica Well Results; sets 2015 capital spending at $1.3 bln, down 18% YoY : Co announced today its 2015 capital budget and the initial results from its Utica/Point Pleasant well located in Washington County, Pennsylvania. 

• Range has set its 2015 capital spending budget at $1.3 billion, a decrease of 18% versus its 2014 capital budget. 
• As a result of improving capital efficiencies from its Marcellus activities, Range expects to continue to deliver year-over-year production growth in the 20% to 25% range despite the reduction in its capital budget.

Range Resources also announced that its Utica/Point Pleasant well located in Washington County, Pennsylvania achieved an average 24-hour test rate of 59.0 Mmcf per day against simulated pipeline pressure and conditions during the initial flow back.

• Initial calculations indicate a 0.88 psi/foot pressure gradient. This initial production rate equates to a 10.9 Mmcf per day IP rate per 1,000 foot of lateral. 
• Co believes this is a record for any horizon drilled in the Appalachian Basin and also represents the highest IP rate of any Utica well.

Comment: I believe 59 mmcf converts to about 10,000 boe. If accurate, this is quite a record.

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Japan In Texas

Texas is now home for bargain-hunting Japanese oil buyers.