Shell Pays Varying Amounts for Ethane Pipe Easements – Latest
MDN has been tracking the prices paid by Shell to landowners to run an ethane pipeline under their land to feed the might cracker plant the company is just now beginning to build in Beaver County, PA. Why? So landowners in Beaver (and other locations) have a useful metric for judging the offers they receive. To be fair, a company that wants to run a local gathering pipeline across someone’s land will pay a lot less than Shell is willing to pay–given you can’t move the cracker plant. Interstate pipelines will likely pay something less too. But still, we find it interesting and useful to know what Shell is up to in Beaver. We don’t have a lot of data points, yet. In June, we learned that Shell paid roughly $75 per foot for 3,138 linear feet of pipeline space in Greene Township (see New Easement for Shell Ethane Cracker Pipeline Reveals Price Paid). In July, Shell paid ~$43/foot for 2,675 linear feet of pipeline space (see Latest Amount Shell Paid for Ethane Pipeline Easements Goes Down). We now have two more data price points to share with you…
Read More “Shell Pays Varying Amounts for Ethane Pipe Easements – Latest”
The CORNballs of Ohio are not happy campers in their quest to try and shut down the $2 billion, 255-mile NEXUS interstate natural gas pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. CORN stands for Coalition to Reroute NEXUS. CORNballs is what we affectionately call the group–as a way of pointing out their nutty real purpose, which is to try and shut the NEXUS project down. Their aim has nothing to do with “rerouting” and everything to do with shutting it down. In May 2017, the CORNballs revealed their true colors when they filed a lawsuit in federal court in Akron, OH (see 
We’re starting to see more and more news about natural gas-fired microgrids, used for “peaking”. Microgrids are small electric generating plants, most often powered by natural gas. They usually produce a few megawatts of electricity. The concept of “peaking” means that during times of high electricity demand, these small microgrids kick on and produce electricity to help meet the demand. Although New York Gov. Andrew Cuomo doesn’t want fracking in the Empire State, he’s in the midst of paying for 11 microgrids throughout the state–all of them using natural gas, mostly fracked gas from Pennsylvania (see 
It looks like the trouble Vienna Investments tried to make for Clean Energy Future in wanting to build a second natural gas-fired electric generating plant in the same office park where the first is being built (near a building owned by Vienna) has amounted to nothing. Bupkis. The Ohio Power Siting Board (OPSB) held a public hearing at the local high school in July, to accept public comments on the second power plant (see 
MDN has covered the ongoing budget debate in Pennsylvania for months. The PA Senate and House are controlled by Republican majorities–but not necessarily conservative majorities. The Republicans fell into a trap set by the Democrats. They passed a ~$32 billion budget with only enough revenue to pay for $30 billion–meaning there’s a $2 billion gap that needs to be filled. Instead of doing the adult thing–cut spending–they decided to allow more spending and figure out how to pay for it “later on.” Later on came, and of course pressure intensified to punish a single industry–natural gas–in order to make up the shortfall. At the end of July MDN brought you the sad news that Republicans in the Senate sold out and voted for a severance tax (see 
EXCO Resources was once a sizable player in the Marcellus. They still have 184,000 net acres in the Marcellus, with 124 horizontal Marcellus wells drilled and in production. However, EXCO, as we pointed out a year ago, has abandoned the Marcellus at this point (see 
Everyone wants to know where the price of natural gas will go in the future. Ask one analyst, and he/she will tell you it’s going lower. Another? Staying where it is–for a long time. And yet another will tell you the price just HAS to go higher. Of course “the price” of natural gas is not just one price. Most people refer to the benchmark Henry Hub price, used for trading futures contracts on the NYMEX exchange. All other prices where gas is bought and sold are somehow compared to or even connected with the price of gas at the Henry Hub. We spotted a speculative post on the Seeking Alpha investor’s website from someone we often read, Andrew Hecht, muses that he thinks the price of natgas is heading higher. He makes a convincing case. We boil it down and simplify it to this: an increase in LNG exports, of which we wrote about yesterday (see US Exports Now 2.4% of NatGas Production, Heading for 11% in 2019 //marcellusdrilling.com/2017/08/us-exports-now-2-4-of-natgas-production-heading-for-11-in-2019/), plus scads of new natgas-fired electric plants coming online, which we write about all the time, plus a cold snap across the country, but particularly in the northeast, would necessarily drive natural gas prices at the Henry Hub and other locations MUCH higher. Is he right?…
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Will shareholders vote ‘yes’ on EQT/Rice merger?; no drilling mud reached Canton, OH water supply; Utica Shale counties show highest income growth in OH; Bowling Green charter amendment to ban fossil fuel infrastructure in trouble; judge tells Vermont AG to hand over email in anti-Exxon case; Indians want Dakota pipeline shut down; EPA casts doubt on climate change threat; NYT admits faking climate change article; cronyism rampant in Obama Energy Dept.; shale oil breakeven price is $50; ‘Keep it in the Ground’ is not the green option; and more!