As Oil Prices Fall an Update on Pennsylvania Fracking and Natural Gas Drilling

Date: February 2, 2015
Posted In: DLP Law

As we reported previously, the sudden and somewhat unexpected drop in oil prices has taken the energy industry by storm.  This drop is having significant effect on the natural gas industry in Pennsylvania.

Shell Oil is a big player in the natural gas industry.  Shell announced several years ago that it would build a multi-billion dollar ethane cracker plant in Western Pennsylvania in Monaca Township.  Then Governor Tom Corbett announced the project with hopes of thousands of jobs being created through construction and operation of the plant.  Now Shell has announced that it is trimming $15 billion in spending over the next three years.  One senses that this cutback will have a significant effect of the cracker plant moving forward.

Chevron Oil and Gas is also a big Marcellus Shale player.  Chevron announced recently that it continues to shed Marcellus Shale holdings.  It currently is selling 17 thousand shale acres in Western Pennsylvania.

Other gas drilling companies are cutting back.  Reports note that small player Gastar Exploration is ceasing all drilling operations in Pennsylvania and elsewhere as it waits out the energy price decreases.

In other Pennsylvania fracking news, Governor Tom Wolf made good on his campaign promise when he signed an executive order rescinding prior approvals by his predecessor Tom Corbett expanding fracking under state game lands and forests.  Governor Wolf’s order places a moratorium on any future drilling of new wells for the time being.

Finally, the public continues to express great interest in learning more about fracking and the natural gas drilling industry.  To accommodate this desire for information, Penn State University Announced that it is hosting Marcellus Shale classes in Lancaster.

Joe Price
Attorney Joe Price is a seasoned Trial Lawyer serving Northeast, Central and Southeast Pennsylvania for the past forty (40) years. He has handled serious personal injury cases in courts throughout the Federal system including New Jersey and New York. Attorney Price is A.V. Rated by Martindale Hubble. He is Board Certified in Civil Practice by the National Board of Trial Advocacy since 1996.