Carroll County, Ohio is starting to feel the negative effects of Chesapeake Energy’s troubles, as noted in a story yesterday in the Cleveland Plain Dealer. Because of recent revelations of debt financing, private hedge funds and other practices by Chesapeake CEO Aubrey McClendon, and a resulting fall in Chesapeake’s stock price and credit rating, drilling industry activity in Carroll County has slowed down—a lot.
It seems a lot of today’s news is about fracking, so here’s one more story about fracking—not Marcellus or Utica related—but important all the same. Our ultra-environmentally conscious friends from across the pond have decided that fracking is a safe technology. Take note Vermont!
From a press release issued by British Gas:
In contrast to closed-minded Vermont (see this MDN story), North Carolina and its Democrat governor are also considering adopting new legislation with regard to hydraulic fracturing—but North Carolina’s legislation would make fracking legal, not ban it.
In a purely symbolic gesture, Vermont has become the first (and likely only) state in union to ban hydraulic fracturing. Gov. Peter Shumlin signed the law yesterday with a crowd of grade school students from Twinfield Union School who have been brainwashed by their teachers into thinking fossil fuels are evil. The ban is symbolic because there is no oil or gas underneath Vermont to drill for.
A new study released by the accounting firm Ernst & Young says that even if Ohio Gov. John Kasich gets his way and boosts the severance tax in the state on oil and gas drilling, Ohio’s severance tax rate would still be less than other states. Kasich wants to rob Peter to pay Paul, taking even more money from energy companies and landowners in the form of higher severance taxes in order to reduce the state income tax for everyone.
Apparently the Ohio Business Roundtable is in Kasich’s hip pocket because they are the ones who commissioned the study. This is the first time MDN has ever heard of a “business group” who wanted higher taxes.
Canadian mutual fund giant NEI Investments has joined the Investor Environmental Mafia Health Network (IEHN) of activist investors calling on drillers to adopt “industry-wide standards for shale gas drilling.” (See this MDN story for a background on the IEHN.)
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
This is technically not a story about the Marcellus or the Utica Shale. But it’s just as critical. North Dakota has just officially become the number two producer of oil in the United States, displacing Alaska for that spot. Texas still leads with the most oil production.
How on earth as ND become number two? It’s simple: shale and the miracle of hydraulic fracturing. What’s even more startling is that as recently as 1999 ND had zero drilling rigs and oil drilling in the state was dead. Just 13 years later, it’s number two in the nation. The importance of this cannot be overstated.
A peer-reviewed 52-page study released yesterday by the new natural gas institute at SUNY University at Buffalo (UB) finds that environmental problems caused by Marcellus Shale gas drilling in Pennsylvania were isolated, mostly minor and on the decline (a copy of the full study is embedded below).
The study analyzes the data from more than 3,533 Marcellus wells drilled since 2008 in PA by over 100 drilling rigs. The study makes the following conclusions, including assigning a percentage probability for how likely it is for a major environmental event to occur:
Antero Resources released its first quarter financials and operating results earlier this week. Antero reports their net production of natural gas was up 83 percent when compared to the first quarter of 2011 because of new wells in the Marcellus Shale and the Piceance Basin (Colorado). They also report that the Marcellus Shale is where they will keep their focus with seven drilling rigs and some 233,000 leased acres as compared to two rigs for the Piceance (63,000 acres) and no rigs in the other shale plays where they operate.
The relevant portion of the Antero press release:
Siena College Research Institute runs regular polls of New Yorkers to gage their opinion on a variety of topics. One of the long-running topics they poll on is whether or not New York should allow hydraulic fracturing to move forward. The latest Siena poll was just released today. The full breakout is embedded below. Here’s how Siena interpreted the results in their press announcement:
The anti-drilling American Rivers, an organization with a lofty Americana name but with a hard left environmentalist agenda, issues their “top 10” most endangered rivers list each year about this time. It’s an amusing exercise because the list rarely contains any of the same rivers on it from year to year. This year’s list is no different—and of course one of the targets of the list is shale gas drilling.
Loading ...
