New Research: US/Canada Need $30B/Year on Midstream Investment

billions and billionsIn September 2013 MDN published Vol. 2 of the 2013 Marcellus and Utica Shale Databook series. In that volume we included a comprehensive list of 111 announced infrastructure (pipeline related) projects for the northeast. When we tallied it all up, the numbers were that projects in our neck of the woods will result in about $40 billion being spent over the next five years or so (see MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects). The INGAA Foundation (Interstate Natural Gas Association of America) and ANGA (America’s Natural Gas Alliance) yesterday released a study they commissioned that tops our estimates–by a lot. The study is titled, “North America Midstream Infrastructure through 2035: Capitalizing on Our Energy Abundance” (full copy embedded below). Researched and prepared by ICF International, the new study shows that the U.S. and Canada together will need to spend $30 billion per year from now until 2035 on pipelines and related infrastructure just to keep pace with shale development.

ICF’s numbers add up to $641 billion in 2012 dollars over 22 years. But get this: $70 billion of that $641 will be spent in the Marcellus, according to the study. Nationwide the new spending will generate more than 432,000 jobs, add approximately $885 billion to U.S. and Canadian economies, and bring in over $300 billion in federal, state/provincial and local taxes. Truly staggering numbers. Immediately below we have the quick hit, bulleted conclusions of the report, for the time-pressed, so you can scan it. Below that the press release announcing the new study–and finally, a full copy of the study with some great charts and graphs (be sure to check out their Henry Hub price forecast through 2035 on page 24)…
Continue reading

OH State Geologist Predicts 19K New Utica Wells in Next 19 Years

The Ohio State Geologist, Mike McCormac, predicts that 19,000 new Utica Shale wells will be drilled in Ohio in the next 19 years. Which sounds a bit ambitious to us–but then he’s the geologist and expert and we are not. We did, however, check the most recent available ODNR numbers and as of last Friday there have been 770 Utica wells drilled–in the last 3+ years. Hmmm. A thousand wells a year for 19 years?

McCormac has drafted a new report with his predictions. It’s not been released to the public–yet. But apparently a copy was released to the Akron Beacon Journal. Intrepid reporter Bob Downing files this report, with a number of other interesting predictions and observations:
Continue reading

Leatherstocking to Tap Constitution Pipeline for Local Deliveries

Rural residents (and an aerospace manufacturer) located in New York’s Southern Tier and Central New York areas have a lot to be thankful for with the upcoming Constitution Pipeline–a natural gas pipeline that will deliver natural gas from the Marcellus Shale gas fields of Susquehanna County, PA all the way to two major interstate pipelines near Schoharie, NY (see New Marcellus Constitution Pipeline Announces “Final” Route). Williams is building the 124-mile pipeline with backing from Cabot Oil & Gas, whose gas will flow through it.

However, a regional gas pipeline company (think gas utility) founded just a few years, Leatherstocking Gas, will tap into the Constitution at (so far) four different locations along the pipeline so they can deliver that homegrown Marcellus gas to rural customers who are not being served by the big utilities like New York State Electric & Gas (NYSEG, owned by Iberdrola). Yesterday Williams and Leatherstocking announced the deal to tap into the Constitution Pipeline in four locations…
Continue reading

Penn Virginia the Latest Plaything for Billionaire George Soros

Penn Virginia is an interesting company. They are an independent E&P (exploration and production) company incorporated in Virginia in 1882–but their headquarters is in Radnor, PA (near Philly). They drill for oil, NGLs and natural gas mostly in…Texas and Oklahoma! They also have operations and acreage in the Mid-Continent, Mississippi and last (and sorta least)–the Marcellus Shale. According to NGI’s Shale Play Factbook, Penn Virginia has leased 38,000 in the Marcellus. According to the latest MDN Databook, Penn Virginia has received permits for two well sites in the past two years–precisely squat. We don’t think they’ve actually drilled a single well in the Marcellus.

Why are we going on about who Penn Virginia since (so far) they are a bit player in the Marcellus? Because yesterday liberal Democrat billionaire George Soros got his claws into the company. Why did he invest? To instill good LibDem values like lifetime employment, free condoms, etc. in the capitalist heathens at the company? Nope. Soros invested $29.1 million in Penn Virginia, grabbing a 9.1% ownership, so he can force them to sell themselves…
Continue reading

Small Marcellus Drill Cuttings Company Gobbled Up by Bigger Fish

A small and rapidly growing company–Susquehanna Services, Inc.–uses a special process to safely process and dispose of drill cuttings (leftover rock and dirt) from shale drilling in the Marcellus, Utica and Green River (WY) shale plays. The company was founded in 2010 (near Scranton, PA) and it’s been nothing but rapid expansion ever since. The founder and president of Susquehanna Services, John Yarosz, has just realized his American Dream. His company was bought out by a bigger fish: Specialty Waste Operating Partners. Yarosz will stay on as president and continue to run the operation day to day–at least for now.

Here’s the press release announcing the deal:
Continue reading

PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684

The Pennsylvania chapter of the National Association of Royalty Owners (NARO) sent out a flash alert email yesterday asking members to contact their state representatives to encourage a “yes” vote on House Bill (HB) 1684–the Guaranteed Minimum Royalty Act. This bill is partially in response to the apparent gouging Chesapeake Energy has done with respect to royalty payments. A vote may come as early as TODAY.

Here is the text of the email from PA NARO president Jackie Root:
Continue reading

Marcellus Midstreamers Turn to Calif. Company for Compressor Power

Even companies as far away as California are successfully selling their manufactured products to the Marcellus and Utica Shale industry–albeit the products they manufacture are pretty specialized. Capstone Turbine Corporation of Chatsworth, CA issued a press release yesterday to announce three midstream operators in the Marcellus/Utica have placed orders with the company for power plants that will power multiple compressor stations and pipeline interconnections. Captstone doesn’t name the customers, but we can certainly guess who they may be (although we won’t).

To be honest, this is pretty obscure (i.e. uninteresting) stuff for most. Our point? Big supply chain bucks (millions) have just been spent–and it’s money that could potentially be spent with manufacturers closer to home, if those manufacturers exist, and if they get plugged into the northeast shale supply chain. So pay attention companies that manufacture power plants! Here’s the Capstone press release with a few more details…
Continue reading

Chesapeake Climate Action Asks Obama to Nix Cove Point LNG Exports

The unreasonable (not able to be reasoned with) and irrational (incapable of rational thought) fossil fuel-haters of the Chesapeake Climate Action Network (CCAN) and other similar-minded groups sent President Obama a letter requesting that he should (surprise!) slow down/reconsider/kill exports of liquefied natural gas (LNG) from Dominion’s planned Cove Point, MD LNG export facility (see Celebrate! Dominion Wins DOE Approval for MD LNG Export Facility). Why? Global warming, of course.

Yes boys and girls, so-called environmentalist organizations like CCAN, 350.org, the Sierra Clubers and other unheard of groups just blame it all on global warming. Drill in shale deposits? Nope–too much global warming. Encourage electric generating facilities to convert from polluting coal to cleaner-burning natgas? Nope. That’ll lead to global warming. Build new pipelines to New England to relieve sky high natgas prices for consumers? Nope–global warming. Export some of our huge abundance of natgas to places like India and Japan (U.S. allies) who desperately need it? Nope! That will increase global warming too. You see just how unreasonable and irrational they really are. Below is the press release and letter from the unreasonable and irrational who oppose Cove Point…
Continue reading

RIT Professor Says Jail Those Who Don’t Believe in Global Warming

This is not out of the Spanish Inquisition folks–this is today. Now. A so-called professor of philosophy at the Rochester Institute of Technology says people like MDN editor Jim Willis should go to jail because we’re not Kool Aid drinkers who believe in the myth of man-made global warming. First Amendment free speech? Nah, that Constitution is just a musty old document. Time to leave it behind. All men are created equal and have certain inalienable rights like liberty? What a fanciful, outdated notion.

When the high priests of Science declare “the time for debate is over, the SCIENCE is settled”–by God, it’s over. So says RIT prof Lawrence Torcello. You disagree? Off to jail with you, you heretic! Next step is “Off with their heads,” or maybe, “Burn them at the stake.” You think we’re joking?…
Continue reading