Marcellus & Utica Shale Story Links: Fri, Jul 19, 2013

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

New York

Imagine There’s No Fracking
Natural Gas Now
John Lennon’s 1971 song Imagine is rated as the seventh most popular song of all time. Described as “the most influential song of our century” it is a phenomenally good melody combined with a set of vapid lyrics that was well-suited to its times. The song is undeniably beautiful and still stirs the heart. Moreover, Lennon’s interpretation of the lyrics is much more charitable toward religion and less socialistic than some others might like to think he meant. He was justifiably proud of the song and made it his last one in what turned out to be his final performance. Unfortunately, his widow, Yoko, and wannabe son, Sean, have politicized this great piece of music; using it in their campaign against natural gas development.


Oil and gas industry impact discussed
Warren Tribune Chronicle
Area residents were updated Wednesday on how the oil and gas industry has impacted Jefferson County. The public forum, held at Eastern Gateway Community College and hosted by the GO Jefferson County gas and oil committee, featured presentations by industry professionals as well as committee members and public officials. County Engineer Jim Branagan told the group the innovative road-use agreement they negotiated requires the oil and gas industry to do soil borings and other tests, then upgrade them beforehand to ensure the roads they’ll be using can handle the heavy rig traffic.


EQT Proposes Compressor Station to Relieve Marcellus Constraint
NGI’s Shale Daily (paid or free trial access required)
EQT Gathering LLC has filed an application to build and operate the Derry Compressor Station in Westmoreland, PA, and other compression facilities to move natural gas from the Marcellus Shale region to interstate markets. The Derry facilities would consist of a compressor station with three compressor engines totaling 14,205 hp. Initially, the facilities would receive locally produced pipeline-quality unprocessed gas from EQT Gathering’s Three Rivers gathering system in Pennsylvania; would dehydrate the gas; and then discharge the gas via a 200-foot discharge line into the Texas Eastern Transmission LP (Tetco) system.

Ten States Producing Most of the Nation’s Energy
24/7 Wall St
Of the 10 states that produced the most natural gas in the country in 2011, eight were also among the 10 that produced the most total energy. The three states that produced the most natural gas — Texas, Louisiana and Wyoming — also were the top three for total energy generation. Those three states were responsible for more than half of the country’s natural gas production. The increasing production of natural gas has been in part the result of the popularization of hydraulic fracking. In Pennsylvania, where the procedure has been heavily used to exploit the Marcellus Shale, natural gas production has increased from 139 trillion BTUs in 2001 to 1.37 quadrillion BTUs by 2011.

Pa. laws on mineral rights complicate land-use issues
Pittsburgh Business Times
As the Marcellus and Utica shale plays have developed in Pennsylvania and surrounding states, there are clear legal differences in how oil and gas matters are dealt with. One major difference between Pennsylvania and other states is the Dunham Rule, which states oil and gas rights in the commonwealth are not included in general mineral rights. Oil and gas rights must be specifically spelled out.


Oil, Gas Sector Silent on McCarthy Confirmation
NGI’s Shale Daily (paid or free trial access required)
Environmental groups, the Edison Electric Institute and large natural gas end-users were quick to commend the Senate’s confirmation Thursday of Gina McCarthy as head the Environmental Protection Agency (EPA), but oil and natural gas companies were apparently following the rule, “if you can’t say anything nice, don’t say anything at all.” McCarthy has been a major critic of some of the industry’s practices, particularly hydraulic fracturing (fracking). The agency currently is studying the potential impacts of fracking on drinking water resources; a report likely will be finalized in 2016. She has been at the center of the “draconian” rules affecting the energy industry, said Sen. David Vitter (R-LA).

Fracking Companies Up Recycled Water Use
Environmental Leader
Halliburton, Baker Hughes and FTS International are among the oil and gas companies increasingly using recycled water in hydraulic fracturing. Most fracking to extract shale gas is happening in water-stressed regions of the US, such as Texas and Colorado, both of which are in the midst of prolonged drought conditions.

Report: Shale energy could add 2% to 4% to GDP by 2020
Pittsburgh Business Times
It’s not a surprise to anyone around here that oil and gas production boosted by the ramp of activity in shale development can have a profound effect on the economy. The region’s manufacturers are pointing to the resulting cheaper energy as a foundation for what could be a resurgence of domestic manufacturing and the oil and gas activity has been cited as why the Pittsburgh region fared in the Great Recession better than other areas. But there is potential for more. According to a new McKinsey Global Institute report, energy — specifically oil and gas production — is one of five “game-changing” opportunities that offer the biggest potential for U.S. economic growth.


U.K. to Cut Tax on Shale Gas Production by Half
The U.K. government plans the world’s “most generous” tax system for shale gas to encourage development of a resource that may meet national demand for almost five decades. Britain proposed a tax rate on shale production income of 30 percent, compared with the current 62 percent rate on oil and gas extraction, the Treasury said today in a statement. “Shale gas is a resource with huge potential to broaden the U.K.’s energy mix,” Chancellor of the Exchequer George Osborne said. “This new tax regime, which I want to make the most generous for shale in the world, will contribute to that.”

More Than a Feeling? Is Canada’s LNG Export Plan a Pipe Dream?
RBN Energy
Canada enjoys vast natural gas resources and domestic demand for its gas is growing. But Canadian gas exports to the U.S. are plummeting, and it seems the only way to avoid a major gas glut north of the border will be to export large volumes of LNG to the Pacific Rim. The catch is, there’s a lot of competition out there, both from reigning LNG export giants like Australia and prospective players like the U.S. And Canada has its own issues with environmental concerns and permitting for natural gas pipelines and LNG terminals. What happens if Canada’s LNG export initiatives don’t happen? In this, the first part of our two-part series, we examine how Canada’s long-standing role as a marginal gas supplier to the Lower 48 has been up-ended by increasing U.S. gas self-sufficiency.