EnLink Takes Ownership of Henry Hub from Chevron
Technically this is not a Marcellus or Utica story–but it does has implications for the Marcellus/Utica region. If you’re around the natural gas marketplace in the United States for any amount of time, you will soon run into this strange-sounding price point called “the Henry Hub.” The HH is a market point where natural gas is bought and sold in southern Louisiana. Once upon a time, because of the pipelines running through the Gulf Coast (many of them from off-shore), some 20% of all natural gas flowed through the HH, making it the “benchmark” or best average price for natural gas–used for futures contracts and by NYMEX in commodity trading. All natural gas prices quoted at other sales locations use the HH as its benchmark or “basis” and compare themselves with the HH price. It’s been that way for two decades. The new news is that EnLink Midstream (the former Crosstex Energy and Devon Energy midstream units merged together) has just taken ownership of the pipeline system that includes the HH…
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In March 2013, the Center for Sustainable Shale Development (CSSD) burst onto the scene. It had been a closely guarded secret, the creation of a few hand-picked people from both industry and the environmental movement working together to see if there is any common ground on which both sides can agree that shale development would be safe, sustainable AND affordable. They worked hard for over a year and finally hammered out a set of 15 standards that if a driller (or midstream company or contractor) would meet, it would get a stamp of approval from both the industry and environmental groups as being a good goobie–a safe driller. We were somewhat skeptical from the start (see
In early February, a well already drilled and completed by Chevron in Greene County, PA was in the process of being connected to a pipeline system. The well caught fire and exploded, eventually spreading to a second well close by (see
Unfortunately our worst fears were realized when PA State Police announced yesterday they had removed “what appear to be” the remains of Ian McKee, 27, a Cameron International contractor working at the Chevron Marcellus well site in Greene County. A warning folks, this is a bit gruesome. Apparently they found some bones but no body. It is a heart-rending story. No matter who it would have been, it’s a tragedy. In the case of Ian, he was young, living with his fiance with a baby on the way. Please say a prayer for his family and friends–they will need it in the coming days as they deal with this.