| | | | | | |

World’s Top 10 Natural Gas Producers

top-10.jpgWe sometimes run Top 10 lists for the Marcellus/Utica, or even the U.S., but what about a Top 10 list of natural gas producers in the entire world? We spotted an article on the Forbes magazine website that lists the Top 10 natgas producers for the entire world. By our count, eight of the ten have major or minor operations in the Marcellus/Utica. Cool! Here’s the list…
Continue reading

| | |

WellDog Launches Shale SweetSpotter After Successful Marcellus Test

welldogWellDog (what a great name!) announced on Monday the launch of a new service called Shale SweetSpotter (another great name!). Clever marketing folks at WellDog, we’ll grant them that. Shale SweetSpotter is “the first commercial reservoir-evaluation analysis technology specific to unconventional natural gas.” In English please! “We’ve just developed a way to tell drillers where oil and gas is locked away in shale layers in the acreage they’ve leased.” Apparently it’s pretty darned good. WellDog partnered up with Shell to test their service in the Marcellus and the field trials were declared “successful”…
Continue reading

| | | | | | | | |

PA Gov Wolf: PAers Will Build the Cracker, Unless They’re Stoned

are you on drugsAlthough he still wants to tax the Marcellus Shale industry out of his state, Pennsylvania Gov. Tom Wolf (with the dubious title of “most liberal governor in the U.S.,” see PA Gov Tom “Severance Tax” Wolf: America’s Most Liberal Governor) couldn’t resist jumping on the bandwagon to take some credit for what his predecessor, Gov. Tom Corbett, actually accomplished: luring Shell to build a multi-billion dollar ethane cracker facility in the state (see PA Gov Wolf Attempts to Take Credit for Shell Cracker Decision). Since the Shell cracker is already a done deal and will create oodles of jobs, Wolf is now conveniently “for” the project. He made a visit to Beaver County, PA last week, where the cracker plant will get built, for a roundtable discussion with local leaders. Wolf told them local leaders he wants to ensure it’s Pennsylvanians who fill the ~6,000 construction jobs required to build the plant. His only concern? PA residents may be too stoned to pass a drug test…
Continue reading

| | | | | |

Shell Cracker May Spur $2.3B Upgrade of Locks/Dams on Ohio River

Ohio River Montgomery lock and dam
Ohio River Montgomery lock and dam – click for larger version

You may not think barging on the Ohio River has much to do with Shell’s plan to build an ethane cracker in Monaca (Beaver County), PA–but you would be wrong. The river has a great deal to do with that cracker plant, and Shell’s decision to build its plant in Monaca. For one thing, Shell plans to (already has) built two barge docks and has barged materials into the site for use in constructing the plant. For another, numerous manufacturing plants are expected to spring up around the cracker, like little satellites circling a planet, because they will use the ethylene and other materials produced by the cracker plant. Those manufacturers will also need cheap barge transportation for their products. The problem is, the locks and dams along the Ohio were built in the early Twentieth Century (between 1922-1936). They were updated in the 1980s and 1990s, but truth be told, the infrastructure is past its life expectancy already. If barge traffic picks up dramatically, that old infrastructure will show its age. Since 2003 the U.S. Army Corp of Engineers (USACE) has had a potential project on the books to study and upgrade the Ohio’s infrastructure. Shell’s announcement may be the impetus to get the USACE to launch its already pre-planned $2.3 billion lock and dam project for the Ohio River…
Continue reading

| | | | | | | | |

Shell Cracker will “Rebirth” Pennsylvania Manufacturing Base

PMACan a single petrochemical facility, like Shell’s proposed ethane cracker plant in Beaver County, “rebirth” all of Pennsylvania’s moribund manufacturing base? That would be a resounding “Yes!” according to Marcellus Shale Coalition president Dave Spigelmyer and Pennsylvania Manufacturers’ Association president Dave Taylor. Writing a column in the Harrisburg Patriot-News, the two Daves make the case for just how big a hairy deal the coming Shell cracker in PA really is…
Continue reading

| | | | | | |

Shell Exec Shares Inside Story of Why They Chose PA for Cracker

Ate-Visser
Ate Visser – Shell Chemical

Yesterday was the second and final day of the Northeast U.S. & Canada Petrochemical Construction Conference being held in Pittsburgh. And boy oh boy what a day it was! Ate Visser, vice president of Appalachia petrochemicals at Shell Chemical took to the stage and shared with attendees the behind-the-scenes reasons for why Shell elected to build a cracker plant in Pennsylvania. There were three reasons: (1) cheap ethane from the Marcellus/Utica; (2) close to major northeastern markets; (3) tax breaks offered by PA. Here’s comments made by Visser, as reported from several journalists in the audience…
Continue reading

| | | | | | | | | | | | | | |

Event Speakers Say More Crackers on the Way in the Northeast

North-East-US-Petrochemical (1)There was lots of cracker talk at the first Northeast U.S. & Canada Petrochemical Construction Conference & Exhibition in Pittsburgh yesterday. According to NGI’s ace reporter for Shale Daily, Jamison Cocklin, excitement over the Shell cracker announcement from a few weeks ago was “palpable” at yesterday’s event. There was plenty of talk about the Shell cracker–but the talk coming from the event that interests MDN is talk about both the PTT Global Chemical cracker planned for Ohio, AND the Braskem cracker planned for West Virginia. These other two world class cracker plants (similar in size and scope to Shell’s project) “remain on track.” Now that is news!…
Continue reading

| | | | | |

Prepping a Work Force to Build & Operate the Shell Cracker

new-jobs_thumb.jpgThe coming Shell ethane cracker plant complex in Monaca (Beaver County), PA, will create a lot of jobs–some in the near-term, but many in the medium-to-longer term. The plant won’t be complete for another five years. Between now and then it will take 6,000 temporary workers to build it. Once built, the plant will take 600 permanent employees to run it. Is Beaver County and the greater Pittsburgh region ready for that kind of jobs challenge? As of today, the answer would be “no.” But leaders in the area are working on it…
Continue reading

|

Flaky Shell in Love with Shale Again – “Heart of Growth Plans”

flakyShell has long mystified us when it comes to shale. Shell has been involved in the Marcellus Shale for years with its SWEPI (Shell Western E&P) division–at one time with 900,000 acres under lease. But in 2014 Shell took an ax to its Marcellus drilling program (see Cuts Coming to Shell’s Marcellus Shale Operations). Then our heads started to spin. Shell sold 208,000 Marcellus acres to Rex Energy (see Rex Energy Takes Shell to the Cleaners – Picks up 208K Acres), and then they turned around and bought another 155,000 acres from Ultra Petroleum (see After Selling 208K Marcellus Acres, Shell “Buys” 155K More Acres!). In January of this year, Shell said they were exiting shale drilling following the merger with BG (see Shell to Cut 10,000 Jobs After Buying BG; Exiting Shale Drilling). In March, the company announced it was merger the conventional and unconventional (shale) divisions into a single division (see Shell Giving Up on Shale? Merges Unconventional with Conventional). Which brings us to a Reuters story from yesterday. Shell now says they are putting unconventional (i.e. shale) “at the heart of its growth plans.” Can anyone say “flaky”?…
Continue reading

| | | | | | | |

WV is “Major Winner” from Shell PA Cracker Plant

winnerThe good vibes are still reverberating following Shell’s announcement that they will move forward with building a $3+ billion ethane cracker in Monaca, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). It’s fantastic news for Beaver County, PA, and in fact all of PA. We’ve seen immediate positive effects, particularly in the local real estate market with announcement after announcement of new deals being done. However, the location of the cracker will be near both the borders of Ohio and West Virginia. Former state senator and current West Virginia Public Service Commissioner Brooks McCabe says the PA cracker is as good news for WV as it is for PA. He says WV is “a major winner” with the Shell PA cracker announcement. Here’s why…
Continue reading

| | | |

Shell’s PA Cracker Plant Will Increase Shale Drilling in Region

Shell ChemicalsThe euphoria over Shell’s announcement last week committing to building a multi-billion dollar ethane cracker plant in Monaca (Beaver County), PA still hasn’t subsided (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). Although the plant won’t be ready for five years–it takes that long to build one–already the plant has been a shot in the arm. As we noted on Friday, commercial real estate is taking off in the region (see Shell Cracker Plant Will Spur Real Estate Deals 150 Miles Away). However, there is another reason the Shell cracker is good for PA and for the shale industry: it will encourage more shale drilling. Currently Marcellus and Utica drillers have very limited options when it comes to selling ethane. Ethane is an NGL (natural gas liquid) that comes out of the borehole along with methane and other hydrocarbons. Some estimates say in the NGL-rich area of southwestern PA and eastern OH, some 20% of what comes out of the ground is ethane–at least for some wells. Right now most drillers have to dispose of that ethane–it’s an expense! When the cracker starts up operations, that ethane can be sold to Shell, helping the balance sheet of drillers. If you can get more money from what you’re getting out of the ground, you’ll do more drilling. Pretty basic common sense. In anticipation, CONSOL Energy already has a contract to sell Shell some of its ethane…
Continue reading

| | | | | | | |

How Republican Tom Corbett Convinced Shell to Locate Cracker in PA

Gov-Tom-Corbett.jpg
Former Gov. Tom Corbett

There’s no question that Tom Corbett was ten times the governor that Tom Wolf is now. Wolf is an undisputed disaster. Good thing Corbett is the one who brokered the deal to get Shell to select Pennsylvania as the location for its multi-billion dollar ethane cracker plant. A big tax incentive helped lure Shell to the Keystone State, no question about it. But that’s not the only reason the company decided on PA. When it comes to business and sales, there are a couple of tried-and-true axioms. One of those axioms is that people do business with people–not companies. Another is this: people buy from people they know, like and trust. Take any one of those elements away, and you don’t make a sale. So how did Tom Corbett “sell” Shell on PA as the location? There were a number of factors, but one way that stands out as a shining example: Corbett treated the Shell execs to a Pittsburgh Steelers game…
Continue reading

| | | | | | | | | | |

Shell Cracker Plant Will Spur Real Estate Deals 150 Miles Away

Shell ChemicalsGentlemen, start your engines! Your economic engines, that is. The news earlier this week that Shell has made the commitment to move ahead and build an ethane cracker plant in Monaca, PA has, as we knew it would, set the region buzzing (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go! and Shell PA Cracker Plant Project a Lot Bigger Than First Thought). With the decision now made, those in the real estate community are salivating over how that decision will reverberate throughout the region. There is now an effort underway to lure manufacturers in Texas and along the Gulf Coast area to consider setting up in the western PA (and eastern OH and northern WV) area instead–to take advantage of being that much closer to the biggest market in the country–the East Coast. One real estate pro says commercial real estate for up to 150 miles away is likely to be impacted by the decision to build the cracker plant in Monaca…
Continue reading

| | | | | | | | |

Shell PA Cracker Plant Project a Lot Bigger Than First Thought

Artist's rendering of Shell Monaca Ethane Complex
Artist’s rendering of Shell Monaca Ethane Complex – click for larger version

Yesterday MDN was one of the first to bring you the fantastic news that Shell has decided to move forward with building their multi-billion dollar ethane cracker plant (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). Shell mentioned their positive final investment decision (FID) as part of a larger, wide-ranging announcement on their plans for the next few years and beyond. They were slow off the mark, but Shell finally issued a separate press release about the FID for the Monaca, PA ethane cracker plant complex. As usually happens with a story this big, more details have come out after the initial announcement. For example: Shell’s initial estimate for the cost of the project, more than four years ago, was “$2-$3 billion.” Now? They won’t say. But some news sources are reporting it will be closer to a $6 billion investment. One even goes as high as $11 billion! What Shell *is* saying is that construction on the main part of the facility will begin in 18 months, with production expected to flow beginning “early in the next decade”–which we take to mean sometime around 2020 or 2021. Shell says the project will provide work for 6,000 temporary construction workers while it’s being built, and 600 permanent, full-time employees to operate the facility once it is built. Needless to say, local economic and government leaders in the Pittsburgh region are ecstatic with the news. Here’s more details about the Shell ethane cracker coming to PA, along with select reaction and comments…
Continue reading

| | | | | | |

PA Gov Wolf Attempts to Take Credit for Shell Cracker Decision

Gov-Tom-Corbett.jpg
Former PA Gov. Tom Corbett – the reason Shell decided to build a cracker

You know what’s really sleazy about politicians? When they take credit for something they had NOTHING to do with. Like Pennsylvania Gov. Wolf is doing with the fantastic news that Shell will build an ethane cracker plant in the state (see yesterday and today’s stories). The reason Shell even considered PA in the first place is because of Wolf’s far more able and talented predecessor, Gov. Tom Corbett. Corbett fought tooth and nail to get Shell to locate the cracker in the Keystone state. Part of Corbett’s fight included getting $1.7 billion in tax breaks approved, to lure the plant to PA (see Gov. Corbett’s PR Campaign for $1.7B Cracker Plant Tax Break). The cracker decision kept getting delayed during Corbett’s tenure, something he took a lot of heat over. If Shell had committed sooner, PA may have had a different election result (re-electing Corbett instead of the disastrous Wolf). Anywho, that was yesteryear, and today, Tom Wolf is taking credit for something Tom Corbett did. Typical…
Continue reading

| | | | | |

Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!

stoppress.jpgThis is the biggest of big news. We’ve been waiting for this day a LONG time. Earlier today Shell held a “Capital Markets Day” (in the Netherlands) and provided an extensive update on “reshaping” the company–for 2020 and beyond. As part of the update, hidden part of the way through their press release, we get this statement from Shell: “In Chemicals, the company already has brownfield growth projects underway on the US Gulf Coast and in China. Today we are announcing the final investment decision on a new, 1.5 million tonnes per annum (mtpa) cracker and polyethylene plant in Pennsylvania, USA, which will use natural gas from shales production as its feedstock. Once these projects are on stream, early in the next decade, Shell’s ethylene capacity should reach around 8 mtpa, compared with 6.2 mtpa today.” The implication is that the FID (final investment decision) is “yes, we’re building it” as evidenced by the phrase “once these projects are on stream…” MDN predicted it (see More Evidence that the Shell Ethane Cracker Plant in PA is a Go). You don’t spend half a billion (out of $2-$3 billion) and not move forward. Still, it’s fantastic to have Shell finally, after five years, say “Yes, we’re building it.” Another fascinating bit of news from today: Shell says shale will be very important to the future of the company, after 2020…
Continue reading