The Landman Cometh – Sunoco Seeks Easements for Mariner East 2

The Iceman ComethLandmen for Sunoco Logistics have begun knocking on doors and talking to residents in nine municipalities in Chester County and six in Delaware County (Philadelphia area) to sign easements to allow the Mariner East 2 pipeline to be built through their property. Sunoco wants to begin construction in early 2016. Meetings have cropped up for landowners to hear information about the project, and get information about what their rights are and what terms they should seek before signing an easement. What is Sunoco offering in the way of compensation? It varies from landowner to landowner, depending on where the land is located and how much land they must cross. We do know how much the company offered one resident, in Uwchlan Township (Chester County)…
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Dueling Rallies in Harrisburg, PA Over Severance Tax Turn Nasty

An interesting contrast in rallies yesterday in Harrisburg, PA. As the July 1 deadline quickly approaches for Pennsylvania to approve a budget, there were two rallies at the state Capitol. The first was held by life’s producers–the people who actually create wealth in this country. It was populated by business leaders and those who work for businesses that support the Marcellus Shale industry. They were there to protest against PA Gov. Wolf’s 17.3% severance tax (often mischaracterized by Wolf and a sycophantic press as a “5% tax” on Marcellus gas). Businesses know that such a tax will effectively kill the industry and the jobs and economic impact that go with it, in the Keystone State. Then there was a second rally that followed the business/anti-tax rally. The second rally was held by the life’s takers–those who suck money from the producers. That is, teachers’ unions and their flacks who bleat and blat that stealing money from businesses “is for the children”–to justify their voracious appetite for other people’s money. The second group was there to protest in favor of a money-sucking, Marcellus-killing severance tax. Guess which crowd behaved like adults, and which crowd behaved like ill-tempered and undisciplined children, shouting down the other rally? No, you don’t really have to guess, do you?…
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Radicalized Ohio U Students Vandalize Pipeline Construction Site

Here is another story in our ongoing series of how people have become radicalized by the Big Green movement, turning into law-breakers in the name of saving Mother Earth. This latest story comes from a hotbed of radicalization–Athens, Ohio–where a small group of Ohio University students, complete with orange T-shirts with the slogan “OU Green Energy NOW!” on them, shoveled dirt back into a trench dug to lay a natural gas pipeline. They also wrapped construction equipment at the site with caution tape and plastered stickers on building materials at the site with labels saying “Recalled Due to Improper Energy Policy”. Once again we see a bunch of (in this case) mis-educated Ohio University students who grew up watching Captain Planet reruns, listening to liberal college professors, and believing every word of what they saw on Saturday morning cartoons and what they hear in the lecture hall–that mom and dad and Big Oil companies are destroying Mom Earth and the polar bears. That is, they’ve been brainwashed and now radicalized…
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FirstEnergy Confirms Their Site is Future Home of OH Cracker

More cracker plant talk. Yesterday we told you that Shell has received the air quality permit they need from the PA Dept. of Environmental Protection (see Shell Receives Air Quality Permit from PA DEP for Cracker Plant), moving that ethane cracker plant project significantly closer to reality. We also told you that the president and CEO of Odebrecht, the Brazilian company planning to build a cracker plant in WV, has been arrested in a bribery scandal (see Odebrecht CEO Arrested; What Does it Mean for WV Cracker Plant?), making that ethane cracker project less likely, in our humble opinion. The third major ethane cracker in the Marcellus/Utica is planned for Belmont County, OH. PTT Global Chemical, Thailand’s largest integrated petrochemical and refining company, with financial backing from Marubeni Corporation, a Japan-based company conglomerate, plans to build a cracker plant complex in Ohio (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). It has been an “open secret” the site for the plant would be at FirstEnergy Corp’s R.E. Burger power plant site along the banks of the Ohio River. FirstEnergy has, until now, denied they are selling the site. But a FirstEnergy official in a round-about way has just confirmed that yes, IF the cracker plant project gets built, it likely will get built at the R.E. Burger site…
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Q: Why is ETE Making a Play to Buy Williams? A: Marcellus/Utica

On Monday, MDN brought you what has to be the biggest midstream news in the Marcellus/Utica for 2015: a proposed hostile takeover of Williams by Energy Transfer Equity (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). We’re a bit dubious about the benefits of a proposed takeover/merger because the market loses competition with such mega mergers. But Wall Street loves these kinds of deals. We see jobs lost due to consolidation and price increases due to less competition. Wall Street sees fatter profits from “economies of scale” and other euphemisms they use for lost jobs and less competition. We spotted a Reuters article that evaluates the proposed ETE deal from the perspective of what it means (for ETE) in the Marcellus/Utica. The story says the primary motivator on the part of ETE in pursuing a takeover/merger with Williams is that it would give ETE a “dominant position” in the Marcellus/Utica…
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Mass. DPU Rejects Anti Group’s Request to Join Pipeline Hearing

ENOUGH of these anti-pipeline, anti-drilling, dump-all-fossil fuels protesters and their strategies to stop pipelines in New England. That’s essentially what the Massachusetts Department of Public Utilities (DPU) said in refusing to allow the anti-pipeline group Pipeline Awareness Network for the Northeast (PLAN-NE) “full intervenor status” at a series of hearings the DPU will hold today, tomorrow and Friday to consider whether the contracts sought by the local gas distribution companies (local gas utilities) who want to get cheap, abundant and clean-burning Marcellus natural gas from Kinder Morgan’s proposed Northeast Energy Direct pipeline, are in the public interest. The DPU wants to concentrate on the real issues at hand and not be distracted and derailed by the antics of anti-pipeliners, so the DPU turned down PLAN-NE’s request…
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EIA: Oil & Gas Jobs Plunge 6 Months After Oil Price Plunge

Our favorite government agency, the U.S. Energy Information Administration, has authored an excellent article about how jobs in the oil and gas sector lag behind oil price gyrations. That is, once the price of oil drops to a certain level, it takes a while before jobs in the sector start to disappear. Which makes sense. Oil (and gas) prices are cyclical–they go up, they down, they go up again. It’s always been that way. When prices tank, companies don’t immediately layoff people–it take a few months of wait and see to see if prices will recover. If they don’t recover within a few months? That’s when layoffs start to happen, and the statistics show it. A startling statistic included in the EIA story below: on-shore rig counts hit a new low for the week ending June 19–54% below the same point a year ago. It’s the lowest rig count level in nearly six years. While you can’t say “half the rigs, half the number of jobs,” you can say “half the rigs means a whole lotta jobs are now, 12 months later, gone”…
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API Study Shows Energy Regulations are Killing Jobs & Economy

The American Petroleum Institute (API) released a new study yesterday authored by Wood Mackenzie, a global research firm, which compares government policies that promote the growth of the energy industry with government policies that stifle energy growth. The study, titled “A Comparison of US Oil and Natural Gas Policies: Pro-development Policies vs. Proposed Regulatory Constraints” (full copy embedded below) finds that the study found that unnecessarily restrictive energy and environmental regulations proposed by the Obama administration will lead to 830,000 lost jobs and a decrease of $133 billion per year in the U.S. economy. In other words, Obama is ruining this country with his energy/environmental policies…
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Important MDN Housekeeping Notices

important announcementA few, short housekeeping notices for the Marcellus Drilling News service. First, for our paying subscribers, my web host tells me that tonight, Wednesday, June 24, starting around 10 pm and lasting through 2 am the server that MDN is hosted on is getting an upgrade and will be “off the air” at various points. Just a heads up if you read the site late at night.

Second, as of right now, the MDN Facebook page has exactly 9,999 “likes”. By the time you read this it may be 10,000! If not, perhaps you would consider visiting our Facebook page and “liking” it to push us over the 10K mark? https://www.facebook.com/MarcellusDrilling

Thanks!
Jim Willis, Editor