Here’s a contrary view if ever we’ve seen one: Bill Powers, editor and writer of the Powers Energy Investor newsletter and someone who has sat on the board of three oil and gas companies and has been an active investor for 25 years, says shale gas supplies in the U.S. have been vastly overhyped. Over the past three years Powers researched and next spring will publish a new book called: Cold, Hungry and in the Dark: Exploding the Natural Gas Supply Myth. In the book he argues that contrary to the popular belief that the U.S. has a 100-year supply of natural gas due to shale gas fracking, he believes it’s more on the order of 5-7 years. Say what??
Powers was interviewed by The Energy Report and the interview was posted on the Seeking Alpha website. Here’s a brief excerpt:
Not long after Michael Krancer was appointed Secretary of the Pennsylvania Dept. of Environmental Protection, he “requested” (which was more order than request) that municipal sewage treatment plants still accepting and processing Marcellus drilling wastewater stop the practice. At the time there were 15 plants accepting Marcellus wastewater. Under pressure from Krancer, they ended the practice in May of last year (see this MDN story).
The reason Krancer wanted the practice to end was because the plants were discharging wastewater with high concentrations of bromides which, when combined with chlorine, can produce harmful compounds. It looks like Krancer’s directive has worked. Bromide levels in the Monongahela River have come down:
Norse Energy is the plucky drilling company still holding on in New York State. MDN has written quite a bit about Norse. They rolled the dice and bet on acreage in New York State (brave people). Norse currently holds some 130,000 acres of leased land in New York. Problem is, there’s no shale gas drilling in New York and there hasn’t been for 4 1/2 years. All of which has caused Norse to do everything but sell off the kitchen table in an effort to “hang in there” until the day New York does finally allow drilling.
Yesterday Norse released their third quarter financial and operational update. Oil and gas revenue for Norse was down 33% from one year ago. The company says they produced less gas, and the gas they did produce was sold for less money (due to the low commodity price) than gas from a year ago, which led to the decrease in revenue.
Broadview Heights, OH (Cuyahoga County) voters passed a measure on Tuesday that bans any further oil and gas drilling in the city limits. There are currently 90 oil and gas wells drilled in Broadview Heights. Problem is, the new measure, which becomes part of the city’s charter, is in violation of Ohio law which states only the Ohio Dept. of Natural Resources (ODNR)can regulate oil and gas drilling.
ESI Enviro wants to build a new $5 million Utica and Marcellus Shale wastewater treatment facility in Campbell, Ohio, along the Mahoning River. The mayor of Campbell, Bill Vansuch, is in favor it. The city has been under water financially (in receivership) since 2004 and the revenue from the plant would be a big boost in revenue for the city.