Williams Sues NY Over Constitution Pipe – DEC May Lose Authority
Three cheers for Williams. Hip hip horray! Williams announced yesterday a two-pronged legal challenge against New York State and its decision to deny stream crossing permits for the federally-approved Constitution Pipeline project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The first prong is a lawsuit filed in the U.S. Circuit Court of Appeals for the Second Circuit–challenging the decision itself as “arbitrary and capricious.” The second prong is a lawsuit filed in the U.S. District Court for the Northern District of New York–seeking recognition by the court that New York doesn’t even have jurisdiction over the project. It is this second case that should have Cuomo, the DEC and the antis VERY worried. If the case goes against them, it means that New York will forever be cut out of decision-making with regard to any FERC-approved projects. Properly so. NY has shown itself to be motivated by politics and not by science and certainly not by common sense. It’s time to remove NY from the equation. Staffers at the state Dept. of Environmental Conservation (DEC) feared this might happen and counseled Cuomo to approve the Constitution project–sage advice he ignored…
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The Constitution Pipleine from northeastern Pennsylvania into east-central New York State is not the only pipeline project to get delayed. It is one of five highly important projects for drillers in the Marcellus/Utica region that are either delayed–or even canceled. What are the other four projects? Read on…
What will it take for drillers to begin drilling again? That’s a question getting asked frequently by analysts on quarterly earnings calls with Marcellus/Utica drillers. The short answer is for the price of natural gas to go up and stay up. How high? Here’s some interesting economics from Southwestern Energy CEO Bill Way: every time the price of natural gas increases another quarter ($0.25), it translates into $185 million in cash flow for his company. If the price went up 50 cents, Southwestern would reactivate two drilling rigs. Another key factor in when drillers will start drilling again are DUCs–drilled but uncompleted wells. The DUC inventory is going down–but many drillers still have a year’s worth of DUCs they can leverage before they have to sink new holes…
Yesterday MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Our first interesting observation from the May report: The EIA projects that in June (the report is a forecast looking forward) that once again the Utica Shale will be the only play out of the seven major plays that will continue to produce more natural gas than it did the month before. In April the EIA said the Utica would produce 1 million cubic feet per day (Mmcf/d) of natural gas above what it did the month before, and this report says the Utica will produce 4 Mmcf/d more than it did last month. Second interesting observation: Production in the Marcellus Shale, while it continues to produce each month than it did the month before, is slowing down. That is, the rate of decline is slowing, which means we may be getting close to the point when Marcellus production begins to pick up again. Keep a close eye on Marcellus production, because it’s the largest producing shale play in the country…
We’ve heard of microwaving popcorn (one of our favorite things to microwave), but we’ve never heard of microwaving “nanoribbons.” We suspect you haven’t either. All’s it takes is a 30-watt microwave to nuke nanoribbons and voila–drillers have a new, cheap and better way to seal up tiny fractures in wellbores. Researchers at Rice University have discovered wellbores drilled to extract oil and gas can be “dramatically reinforced” with a small amount of modified graphene nanoribbons–added to a polymer and microwaved. Think of it as nuking a tiny bit of plastic over a rock and the plastic melts into and firms up the rock. It’s quite possible there will be a microwave coming to a well pad near you!…
You may recall a few months back when President Barack Hussein Obama signed the Paris climate treaty, referred to as COP21. As we wrote at the time, the treaty is not binding on the U.S. because it’s not been ratified by the Senate (see 
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Columbia files app with FERC for Mountaineer, Gulf XPress pipelines; anti-oil protest in Albany rail yard fizzles; court won’t dismiss class action by PA landowners against XTO Energy in royalty case; surviving the slump in natgas industry; Trump appoints ND Congressman as energy advisor; EPA violating Supreme Court; Chesapeake pushes a boulder up a hill; and more!