Gulfport rumored to be shutting down all Utica drilling

http://marcellusdrilling.com/2015/11/rumor-gulfport-energy-suspends...

Ray Charles could have seen this coming.

Maybe they need to stockpile/purchase some more leases they can't drill.  Yuck, yuck. 

Gulfport spent a ton of money on financially wretched prospects other Okies generated.  When I would read about the transactions I always thought to myself: "these Okies are flinging billions of dollars between themselves, saving each others hides by finding new victims and wasting other peoples money.  There is something very wrong/toxic here."

There has to be a reckoning.  A terrible reckoning!

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Permalink Reply by Shower Bath on November 10, 2015 at 11:51am

If you listen to the earnings call which is available on their website, they said they are continuing to drill with four rigs. They advanced the completions (fracked) of a number of wells this Fall, and will not frack any wells in the 1st quarter (Winter months). They are also curtailing production from Nov1 thru early 2016 due to low prices and more gas than they have takeaway. They didn't say whether they are shutting in wells or using restricted chokes. Based on their presentation they have moved their drilling away from the condensate and wet gas zones and are concentrating their drilling in the dry gas zone (primarily in Belmont county).

SB

Permalink Reply by Joseph-Ohio on November 10, 2015 at 1:38pm
Shower Bath,

Wet Gas (which you cite as GPOR backing off of) has constituents that can be used as / in 'diluent' as I understand (for one thing) as well as all of the other goodies that the plastics and fuel industries use.

I've always made the connection between the Canadian Oil Sands, Keystone XL, Wet Gas and Diluents and each as very important to the others.

If we had an administration that viewd these connections the same way Keystone XL would have been implemented by now and things here at home would have been better. How much better I don't know but, I think better.

Way past time to change the administration.

Let's hope the next is better and more concerned about domestic issues - especially Natural Gas and Oil Development.
Permalink Reply by Bluflame on November 11, 2015 at 2:59am

J-O,

   The oil price decline has made Oil Sands production unprofitable, and most locations have been shut down. Therefore the need for diluents is greatly reduced. Also, NGL prices have tanked along with the other commodities, and we are literally swimming in ethane, the prime cracker feedstock. Therefore, while NGL's formerly provided a "lift" to the financial returns of wet gas wells, they are now a boat anchor.

BluFlame

Permalink Reply by Joseph-Ohio on November 11, 2015 at 3:42am

When do you think NGLs will make a comeback Blu ?

What do you think it would / will take ?

A bigger market and time seems to me.

Can legislation help create a bigger market and minimize the times factor do you think ?

Permalink Reply by Bluflame on November 11, 2015 at 3:55am

J-O,

 IMHO, not any time soon. The following events COULD help prices:

1. A Polar Vortex winter……not looking likely according to "experts", which do not include me.

2. Lots of rain in the corn belt, requiring mucho propane for drying……coming to the end of harvest season, and we'd need monsoon-like weather starting NOW.

3. A catastrophic Mideast event…..always a possibility with the likelihood of unintended side effects. Not something to wish for!

4. Continuing low drilling activity in the wet gas zones…..this is definitely occurring. The challenge is the trend can quickly be reversed, since the rigs are waiting and midstream processing is in place and continuing to expand.

5. Bottom line…..not looking good for improving NGL prices.

  Please do not regard this as "gospel", only one person's opinion.

BluFlame

Permalink Reply by Joseph-Ohio on November 11, 2015 at 4:24am

The opinion of one person I've grown to trust over the years spent reading and writing on these pages.

Thanks Blu .

J-O

Permalink Reply by Joseph-Ohio on November 12, 2015 at 2:45am

BluFlame,

I'm thinking like the election of a pro Gas & OIl development Administration that would implement Keystone XL opening up commerce would spur things on.

I know you've also written earlier (just a few replies above) underlining that  currently the market is awash with NGLs; but, I think that could change quickly with the Keystone implementation.

Politics mean a lot in this I think .

Permalink Reply by Bluflame on November 12, 2015 at 3:23am

J-O,

  I think you are referring to diluent usage. 

1. Diluents require condensate, which is only one NGL component and usually the smallest.

2. MW has built a condensate splitter in Harrison County, Ohio, which splits condensate into marketable components. I'm guessing, but do not know, that this is more profitable (or less unprofitable) than sending condensate to Western Canada either by rail or pipeline.

3. Finally, as I said earlier, tar sands oil production has become unprofitable in this pricing environment. Most, if not all, oil sands production has ceased.  Therefore diluent needs are greatly reduced, rendering the entire argument mute.

4. I have little faith in politicians to make enlightened decisions.

BluFlame

Permalink Reply by Joseph-Ohio on November 12, 2015 at 4:05am

Yeah Blu, thinking some about NGLs / Condensate - mostly in the context of Canada needing them to use to dilute their Tar Sands to then pipe to our LA and TX refineries to use as feedstock to make gasoline to sell on our domestic market as well as foreign markets.  If all of that were to happen and we (the USA) could also compete selling Petroleum on the world market I'd expect a pretty quick turn around domestically and Natural Gas and Oil Exploration and Development to burgeon.

I'd then like to see more emphasis on Natural Gas use domestically across all markets domestic (power generation, freight and transportation) and foreign (LNG & CNG).

During all of that happening domestically we should also concentrate on wind, solar and renewables.

I think coal loses big time unless gasification become inexpensive / competitive.

Seems to me any of that can't even start to happen unless Keystone is approved however, and as you know  our current POTUS stopped that from happening in his Administration.  I also think that if another Dem gets elected we can expect more of the same.

Like you I have little faith in Politicians but no faith at all anymore in the Dems who ought to change the name of the party they belong to - to the Socialist Party.  Dems as I knew them are long gone.

However, watching the Rep Debates I've a little faith left in them. That is if some team made up of Rubio, Fiorina, Jindal and Christie end up with the nomination.  If not I think we're all in for a major poop storm.  One big strike against them that they may even lose the election over is their negative position on the minimum wage increase to $15.00 per hour - which I would term as a 'living' / 'subsistence' wage these days. It's nice to be idealistic (if you can afford it) but, if you lose the war over it - not so much.

BTW, I  think we should just kiss M E / S A Oil goodbye and good riddance as I think China and Russia have that all sewed up - thanks to us - the benevolent but stupid USA.

Way passed time to concentrate on our own headaches if you ask me.

Just my opinions like always.

Permalink Reply by martin on November 11, 2015 at 4:47am

So do you want government involved or don't you? It seems like you hate the current administration but you want legislation to further the industry. This administrations anti coal stance is actually good for the gas industry. As much as you want to you cant blame everything on this current administration.

Permalink Reply by Joseph-Ohio on November 11, 2015 at 5:04am
Unfortunately government seems to be a necessary evil.

I prefer to keep it as small as possible.

To me I only tolerate it.

To me it's only use is to protect each of our right to life liberty and pursuit of happiness without infringing on the same right of others.

Included in my right to life liberty and pursuit of happiness is the right of private ownership which is seemingly under assault by the very mechanism (government) that I turn to for protection.

Sad set of twisted circumstances.

All only IMHO.
Permalink Reply by dennis elias on November 10, 2015 at 12:37pm

Whether this is rumor or facts , The companying aren't going any place . I live right in the middle of Hopedale plants ( Mark West which was recently bought out by marathon ) in Cadiz and the former Midstream in Scio . They are producing and loading tank cars like crazy. I have friend in these plants and they are telling me Hopedale is shipping 75 to 80 rail tank cars per day and Cadiz up to 100 tank cars and Scio around 55 rail tank cars . This is all Utica ... and Sunoco are soon to make their right away in or about Nov 15th in front of our place . Don't know where these rumors starts . But these major companies aren't pulling out , Slow ,yes , leaving , no ... The one' that may fold up, was the once that came in late . Billions have been spend and more building is still going on . That's all folks !        

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