Cabot Oil & Gas, one of our favorite Marcellus drillers, continues to amaze and astound just about everyone. Last Friday (a week ago) the company issued a new “guidance” or “this is our best, educated guess” as to how much natural gas production the company will end up producing for 2013, and how much they believe it will grow in 2014. Given Cabot is already the number one natural gas producer in PA and the first member of what MDN calls the “billion cubic feet per day” club (see Who’s a Member of the Marcellus “1 Bcf/d” Club?), it’s amazing that in 2014 they predict production will be up another 30-50% over this year. Wow!
Something just as startling and no doubt the envy of all their competitors, Cabot CEO Dan Dinges tips their hand as to what the breakeven price is at which the company starts to make money. It’s a LOT lower than even we thought is was… Continue reading
My how times change. A year ago the then-Sunoco Philadelphia refinery was set to close its doors with a loss of 850 jobs. But something happened on the way to closing down: shale. Shale oil, in particular. Today, the refinery is called Philadelphia Energy Solutions (PES), a joint venture between the Carlyle Group and Sunoco (Sunoco merged with and is now known as Energy Transfer Partners). As MDN chronicled in July 2012, three shale plays will ultimately play an important role for the refinery–the Bakken, the Marcellus and the Utica (see Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery). However, PES is also eyeing other shale plays, like oil from the Permian Basin (in Texas). That would be a hoot–Pennsylvania refining Texas oil!
More than half of the refinery’s 350,000 barrel per day capacity now comes from the Bakken Shale in North Dakota. How? Mostly by railroad, with the rest by barge. According to PA Gov. Tom Corbett, on hand for a ribbon-cutting ceremony at the refinery earlier this week, the Marcellus and Utica will soon play a role at the refinery too: “There’s a pipeline coming over here soon that’s going to be bringing natural gas over. You’re using natural gas now to fuel some of your efforts here but also to create a propane and ethane facility here”… Continue reading
The Millennium Pipeline is a major northeastern natural gas transmission pipeline that starts in Steuben County, NY, runs along the center/bottom of the state (an area called New York’s Southern Tier) and angles down through the Catskill Mountains toward New York City, ending in Rockland County, NY. If you know anything about the geography of New York, it roughly parallels State Route 17 (in parts now called Interstate 86). The Millennium runs close to where MDN sits, not far from Binghamton. It handles an increasing amount of Marcellus Shale gas and is one of the important ways Marcellus gas gets to market.
Just down the road about 33 miles from MDN is a little town called Hancock, NY–in Delaware County. The Millennium runs by Hancock. The company previously filed a request with the Federal Energy Regulatory Commission (FERC) to build a new compressor plant near Hancock, at a location called Hungry Hill. The Millennium wants to install a single 15,900 horsepower compressor engine to increase pressure and throughput of gas in the pipeline as it flows through Delaware County. A compressor at Hungry Hill would add 107,500 thousand cubic feet per day of additional capacity to the pipeline. FERC has just green lighted the project… Continue reading
The companies remain at a 2/3 merger–at this stage. However, they have announced the composition of the boards of directors (plural) for Inergy. There is Inergy GP the parent/umbrella company, and Inergy Midstream GP, which will merge with Crestwood. Both boards of directors (see below) contain Crestwood people on them starting next week. So it appears the consummation of this merger marriage will happen soon… Continue reading
Williams and Boardwalk Pipeline Partners announced in March they will build a natural gas liquids (NGL) pipeline that would run from the Marcellus/Utica region all the way to the Gulf Coast. They dubbed the new pipeline the Bluegrass Pipeline (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline). But where would the new pipeline connect to along the Gulf Coast to process the NGLs? In July, we heard rumors that Williams and Boardwalk were considering building a new LPG export facility to process and export the Marcellus/Utica NGLs (see Bluegrass NGL Pipeline Recap, Builders Eye LNG Exports Too).
Anti-drilling nutters in Massachusetts have introduced legislation to ban fracking in the state, even though there’s no frackable shale to be found. Why do it? To make a political statement, of course. Symbolism over substance reigns supreme in the Bay State controlled by you-know-which political party.
So, you might expect the following editorial that strongly criticizes said politicians for proposing a frack ban bill, and criticizing the state for supporting alternative energy sources only (sources that require huge infusions of taxpayer money to make them work), to be an editorial penned by MDN. Or perhaps from a Tea Party organization. But, you would be wrong. The strongly-worded editorial below is from none other than the editors of the Boston Herald… Continue reading
MDN welcomes a new advertiser to our website this week. United Country Real Estate sought out opportunities to make know an upcoming auction of Marcellus acreage and MDN fit the bill–we thank them! (See their ad on the right side of any page.) The auction, which many MDN readers will be interested in, is for 435 acres of land, including mineral rights, in northeast PA. The seven separate tracts of land up for auction are located in prime Marcellus Shale country–in Bradford and Susquehanna counties. This is a court-ordered land sale. The auction will take place on October 30 at the Fairfield Inn & Suites by Marriott in Wysox, PA.