Posts

Updated PA Data and Trends

By Matt Kelso, Manager of Data and Technology

The FracTracker Alliance periodically takes a deeper look into the unconventional oil and gas data in Pennsylvania, in order to provide updates for some frequently requested statistics on the industry. Here we provide updated PA data and trends as of December 4, 2014. Since unconventional drilling began in the Commonwealth permits have been issued to drill 15,573 unconventional wells, according to data from the Pennsylvania DEP. Many – 8,696 (56%) – of those permits have actually been drilled. In terms of violations, there have been 5,983 entries on the statewide Compliance Report for unconventional wells throughout the state, which are attributed to 1,790 distinct wells.

Pennsylvania Shale Viewer Map


Please click here for the full screen version, with additional map tools and controls.

Additional Stats

The number of permits, wells, and violations vary significantly from month to month, but each category is well off of its peak. The largest number of unconventional permits issued in a single month was 402, which was in December 2010, more than twice as many as were issued last month. In that year, there were six months with 300 or more permits issued, whereas there has only been one such month to date in 2014.

PA unconventional O&G activity per month from Jan. 2009 to Nov. 2014.  Source:  PADEP

PA unconventional O&G activity per month from Jan. 2009 to Nov. 2014. Source: PADEP

The 210 wells spudded (drilled) in August 2011 represents the high water mark, and is more than two times the amount of wells drilled last month. In the 28 months between March 2010 and June 2012, the industry failed to spud 100 wells only once, reaching 98 in April 2011. In the first 11 months of 2014, that plateau was missed three times, with a low of 58 spuds in February.

There was a significant spike in violations appearing on the compliance report from December 2009 through August 2011. More than 100 violations were issued in 17 out of 21 months, including 196 in March 2010. The number of violations issued has slowed down considerably since then, with November 2014 being the 34th straight month with fewer than 100 violations. Only 14 violations were issued in June 2014.

Violations per Well (VpW)

Unconventional violations per well by county in PA, showing the 10 counties with the largest number of violations.  Counties with an above average Violations per Well (VpW) score are highlighted in red.

Unconventional violations per well by county in PA, showing the 10 counties with the largest number of violations. Counties with an above average Violations per Well (VpW) score are highlighted in red.

We often ask whether drilling is more problematic in some areas than others. Since the number of wells varies depending upon the location, we must approach this question by looking at the number of violations issued per well drilled (VpW). However, there is an important caveat to consider. Put simply, what is a violation? The Pennsylvania DEP publishes a Compliance Report for unconventional wells, which has 5,983 incidents listed from 2000 through December 4, 2014. However, it used to be common for the DEP to lump several incidents into the same Violation ID number, although this is not the case for more recent infractions. When the DEP counts violations issued, they look at the total number of unique Violation ID numbers that have been issued, not the total number of incidents on the report. Here, we include the more inclusive list of items on the compliance report.

Of the 10 counties with the largest number of violations issued, only 3 counties have a violations per well mark below the statewide average. Notably, each of those three counties are located in Southwestern Pennsylvania. It is unclear from these numbers what is going on in Potter County, but clearly there is a significant problem in that location – with almost three violations issued per well drilled, Potter County has a VpW score 4.3 times the statewide average.

Operator Trends

Before we look at the operators with the most violations, there is an additional caveat to consider: It is relatively common for wells to change hands over their operational lifetimes. This characteristic could be due to one company buying another out, or simply transferring some of their assets. Still, wells changing from one operator to another is a normal aspect of the oil and gas industry. Such a fact matters for this analysis because while violations issued always stick with the responsible party in the DEP data, the name of the operator changes on the Spud Report to the current operator.

Unconventional violations per well by operator in PA, showing the 10 operators with the largest number of violations.  Operators with an above average Violations per Well (VpW) score are highlighted in red.

Unconventional violations per well by operator in PA, showing the 10 operators with the largest number of violations. Operators with an above average Violations per Well (VpW) score are highlighted in red.

Because of how these datasets are maintained, we see that East Resources has 261 violations for zero wells, which is of course an impossibly large ratio. That is because East sold off its stake in the Marcellus to Royal Dutch Shell, which does business as SWEPI in Pennsylvania. SWEPI, by the way, is 13th on the list of violations in its own right, with 154 violations for 675 wells, resulting in a 0.23 VpW. If the legacy violations for the old East wells were included, the result would be a 0.61 ViW score, which is almost three times as high, but still below the statewide average. FracTracker doesn’t do the analysis that way, both because it is unfair to the new operator to charge them with violations that they had nothing to do with, as well as being nearly impossible to keep track of the various transactions that result in wells changing hands over the years.


Cover image by Pete Stern, 2013.

Violations per Well Among PA Operators

Note

This post has been archived. It is provided here for informational purposes only.

People often want to know which operators perform the best (or worst) among their peers in terms of adhering to the laws set forth in a given state. In principle, the easiest metric for determining this is to look at the ratio of violations issued per well, or VpW.

However, in order to make that analysis, we would obviously need to have violations data. Unfortunately, out of the twenty states that we have shale viewers for on FracMapper, we only have violations data for Arkansas, Colorado, and Pennsylvania, with the latter being far and away more robust and complete when compared to the other two. We have been told that the data is also available for North Dakota as well, if we are willing to pay for it, so we might be able to perform a VpW analysis for the Peace Garden State in the near future.

Then, of course, there is the realization that, “What is a violation?” is actually somewhat of a philosophical question in Pennsylvania.  In the past, I’ve determined that the Pennsylvania Department of Environmental Protection (PADEP) uses the number of unique violation ID numbers issued to calculate their totals. However, historically, the department would often lump several issues that showed up on the Compliance Report together under the same violation ID.  Others have taken to looking at Notices of Violations (NOV’s), which are more limited in number.  Still others exclude any violations marked as being administrative in nature, an idea that makes sense superficially, but a closer look at the data shows that the label is extremely misleading.  For example, “Pits and tanks not constructed with sufficient capacity to contain pollutional substances” is an administrative violation, as is, “Improper casing to protect fresh groundwater”.

In addition to all of that, the cast of operators is constantly shifting as new operators come on board, old ones get bought out by rivals, joint ventures are formed between them, and the like.  Sometimes a parent company will shift the active operator status to one of its subsidiaries, so wells that were originally Consol will then be listed under CNX, for example.

In terms of violations per well, there is a further complication, in that all of the drilled wells data reflect the current custodians of the wells, whereas the violations data reflect those that received the violations.  The result is that there are records issued for Turm Oil (really!) for wells where Chesapeake is now listed as the operator.  In some respects, this makes sense:  why should Chesapeake carry the burden of the legacy mistakes of Turm in their compliance record?

But it does make analysis somewhat tricky.  My approach has been to combine operators that are obviously the same parent company, and to do the analysis in several different ways, and over different time frames.  Who’s ready for some numbers?

Violations per Well (VpW) for operators of unconventional wells in Pennsylvania with 50 or more wells. Those operators with scores higher than the average of their peers are highlighted in pink.

Violations per Well (VpW) for operators of unconventional wells in Pennsylvania with 50 or more wells. Those operators with scores higher than the average of their peers are highlighted in pink.

Here, violations per well are based on the number of violation ID’s issued, where as NOVpW is based on the number of Notices of Violations.  The date range for this table is from January 1, 2000 through October 21, 2013, and please note that the totals represent those that are included on the chart, not statewide totals.  A lot of violations are lost of the shuffle when we look at only the largest current operators, but it also helps eliminate some of the noise that can be generated with small sample sizes, as well as with the inconsistencies described above.  Here’s a look at data from this year:

Violations per Well (VpW) for operators with unconventional wells in Pennsylvania in 2013, through October 21. Those operators with scores higher than the average of their peers are highlighted in pink.

Violations per Well (VpW) for operators with unconventional wells in Pennsylvania in 2013, through October 21. Those operators with scores higher than on violation per well or NOV per well are highlighted in pink.

Notice that the highest violations per well and notices of violations per well scores are much higher than the data aggregated since 2000, whereas the statewide averages of the two scores are actually much lower.  The former is almost certainly attributable to having a smaller sample size, but there is something else at play with the latter:

Violations per well of Pennsylvania's unconventional wells. 2013 data through 10/21/2013.

Violations per well of Pennsylvania’s unconventional wells. 2013 data through 10/21/2013.

The number of violations per well drilled has been steadily decreasing since 2009, and it is now down to an average of less than one violation issued per every two wells.  There is nothing in the data that indicates why this is the case, however.

Note:  This post was edited on 12/18/2013.  The table showing operators violations per well and NOV’s per well in 2013 originally stated that that values higher than the average of their peers are highlighted in pink.  In fact, only those with values of 1.00 or higher are highlighted in that fashion.

DEP = Department of…Economic Promotion?

In today’s Post-Gazette, Laura Olson quotes the DEP Deputy Secretary of Oil and Gas Management Scott Perry refuting the notion that hydraulic fracturing is an unregulated process, saying:

“It’s important to point this out, because I think if the public loses confidence in the department’s ability to manage this industry, it’s going to have some consequences and perhaps some unfortunate policy decisions will be made. It ultimately will result in less opportunities for everyone.”

In times like these, isn’t it nice to know that even the Department of Environmental Protection has the economy foremost on their minds?

“I feel like I’m trying to convince the public that Sasquatch doesn’t exist.”

Hasn’t anyone told him? There have been 951 confirmed Sasquatch sightings in the Marcellus Shale portion of the Commonwealth so far this year.

Even if I’m taking this quote of Perry slightly out of context, the point remains valid: The DEP stands for the Department of Environmental Protection. That’s what they should talk about, and denying that there are problems doesn’t make it seem like they are paying any attention to their own data.

DEP Calls on Natural Gas Drillers to Stop Giving Treatment Facilities Wastewater

Reposted from the Department of Environmental Protection website:

HARRISBURG — At the direction of Governor Tom Corbett, acting Department of Environmental Protection Secretary Michael Krancer today called on all Marcellus Shale natural gas drilling operators to cease by May 19 delivering wastewater from shale gas extraction to 15 facilities that currently accept it under special provisions of last year’s Total Dissolved Solids (TDS) regulations.

“While the prior administration allowed certain facilities to continue to take this wastewater, conditions have changed since the implementation of the TDS regulations,” Krancer said. “We now have more definitive scientific data, improved technology and increased voluntary wastewater recycling by industry. We used to have 27 grandfathered facilities; but over the last year, many have voluntarily decided to stop taking the wastewater and we are now down to only 15. More than half of those facilities are now up for permit renewal. Now is the time to take action to end this practice.”

Read the full article»

Below is a snapshot creating by John Detwiler using FracTracker’s DataTool. It shows the wastewater treatment facilities mentioned in DEP’s ‘voluntary’ advisory of April 19, 2011. The larger the star, the greater the facility’s permitted wastewater flow (mgd).

To close the legend on the left, click the compass.