Energy Transfer 3Q18: Mariner East 2 Pipeline Online by Christmas

Yesterday the muckety-mucks from Energy Transfer (ET) held a conference call with Wall Street analysts to discuss the company’s third quarter 2018 update. Inevitably on such calls there’s talk about what’s coming up in addition to what happened in the previous quarter. ET is a big midstream (pipeline) company. Among their projects are the mighty Rover Pipeline, which reaches from Pennsylvania, West Virgina, and eastern Ohio all the way into Michigan, and the Mariner East 2 Pipeline, which runs from eastern Ohio all the way through Pennsylvania to the Philadelphia area. Rover flows natural gas, ME2 (and ME2X) will flow NGLs, mainly ethane and propane. According to Tom Long, ET’s Chief Financial Officer, ME2 will be up and running sometime this quarter. Since the end of this quarter is around Christmastime, we prefer to think of ME2 as a Christmas present for Marcellus/Utica drillers.
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MarkWest 3Q18: Gathered Volumes and Profits Soar, M-U Expanding

Last week MPLX (i.e. MarkWest Energy) issued its third quarter 2018 update. MarkWest, since merging into Marathon Petroleum, has become a big, major player in a number of shale plays across the country. Our interest and focus is, of course, on the Marcellus/Utica. Did this recent update yield any interesting insights? It sure did! Gathered and processed volumes in the Marcellus/Utica are up, significantly, for MarkWest. The amount of gas (and NGLs) gathered in the M-U was up a huge 35% from the same period last year (3.1 Bcf/d), and processed volumes at MarkWest plants was up 10% year over year (5.5 Bcf/d). Here’s a look behind the curtain at MarkWest/MPLX.
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PA DEP Spends $2.6M for “Clean Energy Vehicles” – Mostly NatGas

It must really grate on Big Green supporters that their hero, lib Dem Tom Wolf (who just won reelection as governor of PA), continues to support fossil fuel projects. It must doubly grate on them that Wolf’s Dept. of Environmental Protection, when funding such projects, calls them “clean energy.” We love it! The PA DEP announced yesterday, two days after the big election, that they’ve just awarded $2.6 million in grants to 16 different “clean energy vehicle” projects. When you look at the list, all but $32,077 of that amount is going to fund either CNG or propane-powered vehicles. That is, fossil fuel-powered vehicles (mostly buses and trucks). And the DEP has the *audacity* (in the opinion of Big Green nuts) to call all of these projects “clean energy”! We’re laughing our considerable rear-end off.
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MVP, ACP Pipes Receive Very Few Violation Notices in WV

It would be great when you are drilling a well, or building a pipeline, that when a state government inspector swings by to check up on the project, they don’t spot any problems. Especially for big projects like pipelines that run hundreds of miles. It would be nice, but not reality. Something always happens here and there. Unforeseen. Like weather with torrential rain, resulting in runoff from a ditch you just dug. The inspector swings by the next day and notices water and dirt where it’s not supposed to be, and voila, a “notice of violation” (NOV) is issued. It happens. That’s the way the world works. For Mountain Valley Pipeline (MVP) and Atlantic Coast Pipeline (ACP), both with segments in West Virginia, NOVs have been and no doubt will continue to be issued. How many NOVs would you imagine have already been issued for each project in WV? How many is “too many” and indicates the project builders are being sloppy?
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9th Circuit Temporarily Halts Global Warming Lawsuit by 21 Kids

Last Friday the supremely disappointing U.S. Supreme Court refused to stop a lawsuit brought by lawyers (ab)using a group of 21 children against the United States for not doing enough about mythical man-made global warming (see U.S. Supreme Court Allows Climate Lawsuit by 21 Kids to Proceed). Both the Obama and Trump Dept. of Justice have asked various courts to stop this lunacy. The lawsuit aims to force the end of using all fossil fuels in the United States, to address so called man-made global warming. It would plunge our country back into the Stone Age, with people living short, brutish lives, should such a thing occur. But we digress. That case survived numerous challenges and was set to go to trial Oct. 29 in U.S. District Court for the District of Oregon when it was briefly paused by the Supremes. The case, as of last Friday, was back on. But now this: The Ninth Circuit Court of Appeals has stepped in and temporarily stopped the lawsuit again–for the next 15 days.
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House Flipping Democrat Portends Trouble for O&G Industry

The results of Tuesday’s elections, with the House of Representatives flipping to Democrat control, is a disaster. That is our considered opinion. And not just because we’re died-in-the-wool conservatives and believe in freedom and the rule of law. But for what it portends for the oil and gas industry. Some on our side, the pro-fossil fuel side, think everything’s just fine with Dems in control of the House. They say the oil and gas industry likes “divided government” because it ensures any changes that happen will happen slowly. We’re not convinced. Why? We look at the actual words of those seizing (and we use that word intentionally) power come January. The House, under Democrat tyranny, is gearing up to hold hearings on everything, including so-called “climate change” and Trump’s efforts to roll back egregious Obama regulations related to “climate change.” Dems plan to use the power of subpoena to try and stop efforts to right-size and eliminate unnecessary regulations in agencies like the EPA. We think the oil and gas industry, whether they admit it or not, is in for the fight of its life come January 1. We hope we’re wrong. We fear we are not.
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Eni’s World Oil, Gas and Renewables Review – Download

Eni, an Italian oil and gas company (11th largest in the world), recently issued Volume 2 of its annual Global Energy Outlook. It’s titled “World Gas and Renewables Review” (full copy below) and it’s full of interesting statistics about natural gas and the U.S.’s role in producing it. For example, when it comes to estimated reserves–how much natural gas is in the ground that we might conceivably be able to extract–Russia, Iran, Qatar and Turkmenistan (!) all have more natural gas reserves than the U.S. We’re #5 down the list, after Turkmenistan. And yet, when it comes to production, the U.S. is #1. The difference is, of course, fracking.
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Energy Stories of Interest: Fri, Nov 9, 2018

The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Democrat Senate gives fresh energy to environmental advocates in NY; Keystone XL Pipeline project blocked by Obama judge in Montana; More coal-fired power plants closing on uncompetitive economics; LNG carrier attacked off Nigeria; Poland signs deal for long-term natural gas deliveries from Louisiana, Texas; Armenian government seeks cuts in gas prices from Russia; Higgs government looking to partially lift fracking moratorium; As renewables drive up energy prices, voters in U.S., Asia & Europe are opting for nuclear power.
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