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Long-Dead Wheeling Steel Plant Roars Back to Life Thx to Marcellus

Benwood WVIt’s not all doom and gloom in the Marcellus/Utica. Seems like for the best part of a year we’ve only heard about layoffs and companies filing for bankruptcy, due to the major slowdown in drilling in our neck of the woods. But that’s not an accurate picture. Take an old steel plant in the Wheeling, WV area that had been closed for 30 years. A new business now occupies the old Wheeling-Pittsburgh Steel Corp. plant in Benwood, WV. JLE Industries has set up shop in the old plant with (so far) 25 full-time workers to inspect and repair metal tubes used in shale drilling. Chris Harris, the owner/operator, believes the company will continue to grow…
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US Rig Count Up by 9 in June, Marcellus/Utica Holds Even at 36

Baker Hughes logoWe’re starting to crack a smile of hope that drilling has once again picked up. Our first bit of evidence that the tide is turning came last week when we reported that Patterson-UTI Energy’s rig count had gone up by two in June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). We now have further evidence. Baker Hughes is fresh out with their broad-based rig count numbers. For June, the U.S. active rig count increased by nine! In the Marcellus/Utica, the rig count month over month remained the same. It was 36 active rigs in May, and once again 36 active rigs in June. Have we FINALLY hit bottom? We sure hope so…
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Statoil Completes Sale of WV Marcellus Assets to EQT

StatoilIn May MDN told you that EQT, a major Marcellus (and Utica) driller based in Pittsburgh, had cut a deal to purchase all of Norwegian Statoil’s Marcellus assets in West Virginia (see EQT Buying 62.5K “Core” WV Marcellus Acres from Statoil for $407M). The deal gives EQT another 62,500 net acres and 50 million cubic feet per day (50 Mcf/d) of natgas production for $407 million. The acreage is located in Wetzel, Tyler and Harrison counties in WV. The deal includes 31 Marcellus wells and ~500 drilling locations. It bumps up EQT’s available drilling locations by a big 29% and shows the company’s continued commitment to the mighty Marcellus Shale. Statoil reports the deal closed last Friday…
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Analysts Speculate on Future of Williams, Post-ETE Merger Debacle

Williams logoAre we finally, blessedly “done” with the ongoing soap opera that was the proposed takeover/merger of midstream giant Williams by fellow midstream giant Energy Transfer Equity? Can Williams now go back to its “considerable pile of knitting” (that pile meaning some 16 expansion projects)? Well, in a word, yes! Except….except if another suitor comes along who wants to buy Williams, which is a very real possibility. A couple of analysts mull over the possibilities now that the ETE plan to buy Williams is dead…
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Report: Energy-Related Job Cuts Jump 28% in 1H16 over 1H15

cutting jobsOutplacement firm Challenger, Gray & Christmas is out with their Mid-Year Job Cut Report (full copy below). Overall, across all sectors, it seems that job cuts are slowing down–a good sign to be sure. But what about job cuts in the energy industry? The news there is mixed. While the pace of job cuts in the energy industry is slowing as the year progresses (a good sign), if you look at the raw numbers for the first six months of 2016 versus 2015, the news is not so good. For the first six months of 2015 the energy industry cut 60,500 jobs. For the same period in 2016, the number of jobs cut was 77,211, a 28% increase this year over last. Oy vey! Will the cuts never stop?…
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WVONGA Executive Director Corky DeMarco Dead at 68

Corky DeMarcoWe have sad news to report. Late last week Corky DeMarco, the well-loved executive director of the West Virginia Oil & Natural Gas Association (WVONGA) died of an apparent heart attack. Corky was just 68 years old. Corky took up the leadership of WVONGA in November 2002 and guided (and grew) the organization through the turbulent shale years. Needless to say, he will be greatly missed…
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Marcellus & Utica Shale Story Links: Mon, Jul 11, 2016

best of the restThe “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Baker Hughes Marcellus/Utica rig count steady; Willbros expands Marcellus Shale business dev team; PA Gov Wolf to allow PA budget to become law w/o severance tax; pipeline protesters in RI; VA Supreme Court rules natgas used to generate electricity tax free; powergen projects in the southeast; wet gas boosts local economy; and more!
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Ohio Air “Study” Near Frack Sites Retracted for Basic Math Error

retractedIn May 2015 MDN brought you news of a then-newly released “study” from “scientists” at Oregon State University and the University of Cincinnati that reportedly found people living near fracking sites in Ohio were being exposed to “deadly” air pollution (see Sham Air Study: “Unsafe Exposure” for Those Near OH Frack Sites). The so-called study used the dreaded “c” word–cancer–implying those who live close to fracking operations “may have” an increased chance of getting cancer. The published paper was titled “Impact of Natural Gas Extraction on PAH Levels in Ambient Air” and published in the peer reviewed journal Environmental Science & Technology. At the time, left-leaning mainstream media had a hay day, trumpeting the study as yet more proof that fracking is not only evil–it kills ya. We pointed out all of the problems with this so-called scientific research: a very small number of air samples, taken from “non-random” (i.e. cherry-picked) locations, with untrained homeowner “volunteers” collecting the samples and shipping them to Oregon for study. In news that no mainstream outlets are reporting, the authors of the study have retracted it because (a) they used a wrong value for a gas constant, and (b) they screwed up an Excel spreadsheet link/formula. That threw off the entire outcome. In other words, the air near fracking sites is just fine–nothing to see here folks–just move along and ignore our previous 5-alarm study…
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NJ Judge Dismisses Trespassing Lawsuit Against PennEast Pipeline

Gavel-falling.jpgIn May MDN told you about a sham lawsuit brought by two radical environmental groups–Homeowners Against Land Taking – PennEast Inc. (HALT PennEast) and the New Jersey Conservation Foundation–against the PennEast Pipeline (see PennEast Responds to Sham NJ Lawsuit Re Surveying w/o Permission). The lawsuit falsely claimed PennEast was surveying on New Jersey landowners’ property without permission. PennEast has responded that the claims of trespassing to survey are (our words) horse manure. PennEast checks carefully before entering a property to survey. So the company mounted a “vigorous defense.” A New Jersey State Superior Court judge yesterday tossed the HALT lawsuit…
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Velocys Puts Ashtabula, OH Gas-to-Liquids Plant Put on Hold

on holdIt’s been some time since we’ve heard anything about/from the Ashtabula Gas-to-Liquids (GTL) plant project that Velocys says it will build in Ashtabula, Ohio. As a quick tutorial for those who may not know, GTL converts natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and (for Ashtabula) waxes. An abundance of cheap natural gas in the Marcellus/Utica is one of the prime motivators for establishing a GTL plant in the area. But although we’ve heard plenty of talk about such plants, none of them seem to get built–including the Ashtabula plant. There has been progress on the Ashtabula project. Early in 2015 Velocys filed for a permit, which was subsequently granted (see Ohio EPA Issues Final Permit for Ashtabula GTL Plant). Late last year Velocys announced the successful completion of pilot plant tests (see Velocys Makes Progress with Tech Used in Ashtabula GTL Plant). Since that time, we’ve heard nothing. Until now. Buried at the very end of a press release issued yesterday, Velocys said it has put the Ashtabula project “on hold” because they can’t get investors to pony up money for the project. Below is the Velocys announcement, followed by some analysis of what may really be going on…
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Smoking Gun: AGs Signed Pact to Keep Exxon Documents Secret

smoking-gun.jpgEmails recently obtained through Freedom of Information Act (FOIA) requests provide proof that New York Attorney General, Eric Schneiderman, along with Democrat AGs from a number of other states, pre-planned an attack on Exxon Mobil, not only colluding with each other, but with also with radical environmental groups. And they tried to keep it all secret. AG Schneiderman’s office circulated a “Common Interest Agreement” to the other AGs–a pact he wanted them to sign that they would not release any documents about their colluding schemes to smear Exxon–BEFORE they launched the attack. We honestly wonder if what they did is criminal. We sincerely hope Exxon is pushing for an FBI investigation into this bunch of sleazy AGs–which include not only Schneiderman, but also the AGs from the Virgin Islands, Rhode Island, and Massachusetts…
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Delaware Riverkeeper “Intervenes” to Protect its Patsy – the DRBC

Wayne Count PAIn May MDN reported the great news that the Wayne Land and Mineral Group has filed a lawsuit against the Delaware River Basin Commission (DRBC) to contest the DRBC’s ongoing blockade of shale drilling in Wayne (and Pike) counties in Pennsylvania (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). The DRBC has blocked drilling since it considered rules for drilling in 2010, when it put a “temporary” ban in place. The Wayne Land and Mineral Group argues in its lawsuit that oil and gas wells, under the DRBC’s charter, do not constitute a “project” that is regulated by the DRBC and therefore are exempt from oversight from the DRBC. A brilliant legal move! The DRBC has become little more than a patsy for radicalized Big Green Groups, including THE Delaware Riverkeeper. The DRBC inevitably does the bidding of Riverkeeper, and Riverkeeper is strongly anti-drilling. So it was no surprise for us to learn that THE Delaware Riverkeeper has filed to intervene and indeed has joined the lawsuit, to defend their patsy…
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Federal EPA Continues to Fuss over Atlantic Sunrise Route in PA

EPA-logo.jpgThe federal Environmental Protection Agency (EPA) filed a lengthy comment with the Federal Energy Regulatory Commission (FERC) last week regarding the Williams Atlantic Sunrise Pipeline project (full copy below). The EPA said, in a nutshell, that more studies should be done. The EPA said the pipeline could have “significant adverse environmental impacts.” They also said alternate routes should be considered. A few things to know about the EPA’s filing: First and foremost, the EPA is treated like any other individual or organization who files comments on a project with FERC. That is, the EPA’s comments will receive no special treatment or consideration. Second, the only value in EPA’s comments is publicity for anti-pipeline nutters. Third, the “alternate routes” the EPA professes to prefer have already been considered, thoroughly, and discarded by FERC. So this is a lot of smoke and noise and mirrors–and nothing else…
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NY Lawmakers Ask Gov. Cuomo to Ban New Fossil Fuel Infrastructure

Barbara Lifton
Barbara Lifton

Barbara Lifton is a dangerously stupid person. Dangerous because she happens to be an elected member of the New York State Assembly–representing the ultra-liberal bastion of Ithaca, NY. Lifton has long opposed shale drilling in the state, but her hatred of shale drilling has now spilled over and metastasized into a full-blown, irrational hatred of all fossil fuels. Lifton and 21 other energy no-nothings in the NY state legislature sent a signed letter to Gov. Andrew “man-child” Cuomo asking him to halt all state approvals of pipelines, compressor stations, power plants, and gas storage facilities. Essentially–stop any more development of energy that comes from fossil fuels. Even though, as we reported Wednesday, last year 81.5% of all energy used in this country (and in New York State) came from fossil fuels (see Last Year Fossil Fuels Provided 81.5% of All Energy Used in U.S.). That’s the stupid part. Lifton and her cronies are advocating that we dump the source of 81.5% of our energy. Let’s play a “what if?” game. If such a thing were done, if we stopped using fossil fuels in New York State, we would be instantly transported back to the Stone Ages, complete with mass death and disease. Ninety percent or more of the population would either have to move, or die. Here’s the humorous part: The letter Lifton signed requesting an energy holocaust was produced on a computer made from plastics (i.e. fossil fuels) and powered with electricity from fossil fuels. The clothes she wore at a rally in Binghamton to announce this lunacy were made from plastic fibers (i.e. fossil fuels), and she got to the rally from Ithaca in a vehicle powered by fossil fuels, riding in a vehicle and on tires made from fossil fuels. You get our drift. Pure insanity. Here’s a report about the letter, the rally, and the dangerously stupid Barbara Lifton…
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