Successful 2015 DUG East Conference Shows Oil and Gas Industry's Resilience
Hart Energy's 7th annual DUG East conference and exhibition (@HartEnergyConf #DUGEast) delivered on its theme, "Resource Resilience." The energy market's downturn did not hamper attendance; more than 2,800 oil and gas professionals gathered June 23-25 at the David L. Lawrence Convention Center in Pittsburgh, PA. The agenda provided candid discussions about how producers are remaining flexible to operate efficiently throughout the Marcellus and Utica formations. The networking luncheon featured Pulitzer Prize-winning political columnist Dr. Charles Krauthammer.
"What a treat for attendees to hear from Dr. Krauthammer prior to the upcoming election," said Barry Haest, Hart Energy Vice President of Events. "The conference featured more than 20 executive-level presenters. From the beautiful weather, perfect for enjoying local baseball games, to the bustling exhibit floor, DUG East was a great show with a strong turnout of leaders and decision-makers."
Other notable speakers included Eclipse Resources CEO Ben Hulburt. He told attendees his company, along with Chesapeake Energy, has the fastest and most efficient drillers in the Utica play. To date, Eclipse has participated in drilling 187 gross Utica wells, including 70 operated wells. Also, Kathryn Downey Miller, a managing director for BTU Analytics, stated operators with firm takeaway capacity have been the real winners over the past couple of years but, as production is tempered by demand, it's going to come down to who has the best acreage and who can best manage their costs.
Mark your calendars for next year's DUG East conference and exhibition set for June 21-23, 2016 in Pittsburgh, PA.
Chairman, President and CEO Range Resources Corp.
Benjamin W. Hulburt
CEO, President and Chairman of the Board of Directors, Eclipse Resources Corp.
Gary C. Evans
Chairman and CEO, Magnum Hunter Resources/Eureka Hunter
Managing Partner Ponderosa Advisors LLC
Stimulation Domain Manager, U.S. North Schlumberger
Consultant Wrightstone Energy Consulting
Vice President, Appalachia South BU Chesapeake Energy Corporation
Joseph H. Frantz, Jr.
Vice President, Engineering Technology Range Resources Corp.
Dr. Charles Krauthammer
Columnist, Author and Pulitzer Prize Winner
Founder and Chairman Petrie Partners LLC
Senior Vice President for Northeast Gathering & Processing, Williams
Director, Energy Research ITG Investment Research
Kathryn Miller, CFA
Managing Director of Analytics BTU Analytics, LLC
Michael D. Frederick
Vice President, LNG Operations Dominion Resources
Executive Director of Upstream Stratas Advisors
Executive Vice President, Exploration Rice Energy
Vice President of Operations, CONSOL Energy Inc.
Vice President, Appalachia North Chesapeake Energy Corporation
Business Development Technology Manager, Halliburton
Chairman and CEO, Howard Energy Partners
Utica Asset Director, Hess Corp.
Team Leader, Exploration and Production Team, Energy Information Administration
Contractors Scramble To Retain Crews, Find Work Demand for workover services in the traditional dry gas basins is slowing once again.
Equipment continues to stack out for lack of demand. Meanwhile, expectations are that demand will drift lower yet among workover contractors participating in the Hart Energy survey.
The mix of jobs in the Fayetteville, Barnett and Haynesville reflects trends in other parts of the country and sort out to about 60% routine maintenance and 20% completions.
Hourly rates are down 25% for the benchmark 500 series rig since the last dry gas basin survey in April 2015 to just more than $300 per hour. At the same time, workover rigs continue to stack out. Those rigs that keep working are employed on minor jobs or routine maintenance.
A couple contractors, who have been through several downturns dating back 40 years, say this one is the worst they have seen.
Watch for the next traditional dry gas basin report on workover activity in the Fayetteville, Barnett and Haynesville shale plays in April 2016.