Beaver County | Energy Companies | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Regulation | Shell
PHMSA Issues Warning Letter to Shell re Falcon Ethane Pipeline
The federal Pipeline and Hazardous Materials Safety Administration (PHMSA) recently issued a “warning letter” to Shell concerning the company’s ethane pipeline, called the Falcon Pipeline. PHMSA claims the pipeline committed two “probable violations” by failing to place pipeline sections at a construction site in Beaver County on protective padding. PHMSA told Shell to fix it, or else.
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Yesterday the Pennsylvania Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for April through June 2021 (full copy below). It’s sort of a mixed bag with some good and some not-so-good. In 2Q21 the number of wells spud (begun to be drilled) was 120 new shale wells, up from the 113 spud in 2Q20, which was the point when the pandemic began to take hold in a big way. Sadly, gas production slipped in 2Q over the previous quarter, but not by much. It was still the second-highest quarterly production in the state for all time.
Something unthinkable is now being thought. Since the beginning of the shale revolution, Texas has been the country’s number one producer of not only crude oil, but also natural gas. Why? Because when you drill for oil you also get natural gas. Because of “associated gas” production, Texas has held the #1 natgas slot for years. However, Pennsylvania may actually have a shot at taking the #1 slot for natgas production.
Have you ever noticed how politicians like to “study” things? Why is that? We suppose the results of all those studies gives them political cover to make unpopular votes on key issues. The U.S. Department of Energy’s Office of Fossil Energy and Carbon Management is in the process of conducting a study on the prospects for a petrochemical industry in the Marcellus/Utica. As part of that study, DOE held an online/virtual hearing yesterday to elicit comments on the environmental, health and community impacts of the petrochemical industry from ethane crackers and pipelines. In what appears to be a put-up job, a dog and pony show, the hearing was packed with radical anti-fossil fuel nuts who bashed away at the shale industry.
When the executive branch of the federal government operates outside the law and nobody holds them to account, we have a lawless country. Under federal, established law, states have a maximum of one year to review applications for pipeline permits under Section 401 of the Clean Water Act. Yet now the Biden administration and its rogue EPA is telling states they can take all the time they want to review these permits, instructing “co-regulators” like the Federal Energy Regulatory Commission (FERC) it’s OK if states go beyond one year. What a disaster. This is yet one more way Biden gets around the law in his mission to destroy the fossil fuel sector.
Last week both Pennsylvania and West Virginia issued permits to drill new shale wells. Ohio remained skunked for a fifth week in a row. PA issued 18 new shale permits, mainly in the western part of the state (a few in the northeast). WV issued 7 new shale permits, all of them for the same pad being drilled by EQT in Wetzel County. This is the second week in a row EQT scored all of WV’s new permits, and the second week in a row they were all in Wetzel County.
NATIONAL: USA holds largest oil reserves sale in 7 years; House passes $3.5T Biden blueprint after deal with moderates; INTERNATIONAL: Russia is pumping a lot less natural gas to Europe all of a sudden — and it is not clear why.