Shell Picks Pennsylvania for Petrochemical Plant

"Shell Oil has tentatively chosen to put a new multi-billion dollar petrochemical plant in Pennsylvania to take advantage of an abundance of natural gas from the Marcellus shale. Both Ohio and West Virginia had tried hard to woo the company.

Shell said it has signed an option on land in Potter and Center Townships in Beaver County about 35 miles northwest of Pittsburgh. It said the site offers good access to transportation by water, rail and road as well as access to natural gas and gas liquids that the petrochemical complex would use both as a power source and feedstock."....

http://www.washingtonpost.com/business/economy/shell-to-build-petro...

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Permalink Reply by buggs on March 16, 2012 at 7:25am

Being in the industry I am so happy to see the POSITIVE reactions to this post. So many times people are very rude when anything new in the industry is even rumored to be moving into their area. PA has the most stringent regulations when it comes to this industry and anyone that doesn't believe that needs to look at the regs for other states. Everything was new once - just remember that! Educate yourself and just because you read it online doesn't mean it's true! Research and look at both sides to the story. O & G companies are becomig very transparent.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on March 20, 2012 at 1:57pm
Permalink Reply by Trapper on August 28, 2013 at 10:25am

Hard to believe no one has commented on Shell's news today pertaining to shopping for ethane in the tri-state area. I think doubts about their plans should be diminishing. At least that's what I read into it.

Permalink Reply by Trapper on August 29, 2013 at 2:25am
A confidentiality agreement will reveal shells plans to producers who bid. Will be telling of the fate of any lines proposed to the gulf......interesting development!
Permalink Reply by H Bale on August 29, 2013 at 3:48am

This article (from AP wire) appeared in the Akron Beacon Journal a couple of days ago

http://www.ohio.com/news/break-news/shell-seeks-ethane-suppliers-fo...

IMO it makes more sense to just move feed stock for a cracker plant a couple hundred mile rather than shipping it half way across the U.S. or into Canada and then turn around and ship output from the cracker back toward the East coast.

Permalink Reply by Trapper on August 29, 2013 at 4:33am
Precisely. I read into the announcement for bids that Shell may be trying to stopproducers from ccommitting to distant plants and jeopardizing their supply. I believe they have decided to build and this is a measure taken to assure their plans are not spoiled.
Permalink Reply by Jim Litwinowicz on August 29, 2013 at 6:31am

I think that Shell is leaning towards building the plant but wants to be sure they have enough ethane committed to the plant before they commit to build. This bidding process will give them a more accurate assessment of both the Utica and Marcellus and what other companies are expecting to produce. All these companies hold their cards pretty close to their chests and it is difficult to be precise on what they have found and expect to produce. Getting them to bid on supply contracts will be the most accurate way to get solid numbers from them.

Shell has put a lot of time and money into researching this. The more time and money they spend the more likely it is they will build it. All JMO

Permalink Reply by Trapper on August 29, 2013 at 2:00pm

Shell has also put alot of money into drilling and leasing here in Lawrence,Butler,and Venango counties. I would have to say they already know what is available. My hunch is they want to lure producers away from contracting with these other companies wishing to pipe our riches to Canada and the coasts. The Post Gazette article states that anyone submitting bids to Shell can be privy to their plans , after signing a non disclosure agreement. We will see how many drillers still seek other contracts after October. Just may be an interesting turn of events. Possibly the biggest news yet. We shall see.

Permalink Reply by Trapper on September 1, 2013 at 2:30am

Jim, I see on the PADEP reporting site that Sell has two wells putting out some CONDENSATE in Butler County:

PURYEAR J2069 6HM @523.61bbl / 90 days (Cherry twp.)

WILLIAMS S2062 6HM @1,849bbl. / 90 days (Slippery Rock twp.)

I believe these are on the same pad as the lat. & long. are decimals apart. Must straddle twp. line.

Like I said before , They know what is down there alright.

As an interesting sidenote: No gas is reported , just condensate.

Permalink Reply by Oliver Perry on September 1, 2013 at 3:00am

Trapper, 

In the interest of accuracy, the Puryear and Williams wells are on different pads and are actually 5.7 miles apart. No gas was reported because they are awaiting pipeline construction. The condensate was hauled away by truck.

Permalink Reply by Trapper on September 1, 2013 at 3:16am

Thanks Oliver. The coordinates were so close , I made an assumption.

Would you know where the condensate was hauled to , or who purchased it?

Permalink Reply by Jim Litwinowicz on September 1, 2013 at 4:47am

Trapper, Oliver; I know that both Shell and Rex have drilled horizontals into the Upper Devonian in Butler County and both are reporting good wet gas production. Are these wells UP, Marcellus, or Utica?

This area may be blessed with at least three productive strata. Will be many years before we know just how good this could be.

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