Energy Services

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    ENSERVCO Starting Up Water Transfer Service in Marcellus

    ENSERVCO is an oilfield services company headquartered in Denver, CO. ENSERVCO’s services include: hot oiling, acidizing, frac water heating, water transfer, bacteria and scaling treatment, water hauling and oilfield support equipment rental. The company says it serves customers in various shale basins across the country, and in states including Colorado, Kansas, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming and West Virginia. So yeah, they have customers in the Marcellus/Utica. Yesterday ENSERVCO issued an update for first quarter 2017–preliminary financials and an operational update. The thing that caught our eye was this statement: “We’re also moving forward with plans to begin offering water transfer in the Marcellus Shale, where we’re hiring staff and gearing up our marketing plans.” We’re not quite sure what they mean. Yet another trucking outfit with a parade of tankers trundling down the road (like we saw last weekend when visiting Hop Bottom, PA, in Susquehanna County). Or water pipelines? Or both?…
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    Anti-Govt Radicals Begin 24/7 Tree Sit in PA to Block ME2 Pipe

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    A group of radical (we’d call them criminal) environmentalists–some of the same ones who broke the law in North Dakota while “protesting” the Dakota Access Pipeline (DAPL)–are now trying to replicate the DAPL “protest” (i.e. illegal action) against Sunoco Logistics’ Mariner East 2 pipeline in Pennsylvania. The radical group Earth First! recently issued a “call to action”–their version of ringing the dinner bell for hungry dogs to come running from all other the country (even from other countries). The “call to action” invites hippies and hippie wannabes (those who can put down their bongs for five minutes) to come to Huntingdon County, PA–to Camp White Pine–to stretch wires and ropes from tree to tree and sit, suspended, to prevent crews from clearing trees in the path of the pipeline. According to Mob Rule Now! (aka Democracy Now!), the nutters have now “launched ongoing 24-hour tree-sits” to stop Mariner East 2…
    Read More “Anti-Govt Radicals Begin 24/7 Tree Sit in PA to Block ME2 Pipe”

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    PR Campaign Gets Atlantic Sunrise Pipe to Change Course in PA

    Nesbitt Memorial Hospital – click for larger version

    If you’re a landowner and want to dissuade a pipeline, like, say, the Atlantic Sunrise Pipeline, from crossing your property–what can you do? It helps if your property belongs to one of the local dynasties (i.e. BIG money) and if you can hire high-priced lawyers and issue a blizzard of press releases via Business Wire at $500 a pop. Apparently that’s what it takes to convince a pipeline company to change its course. At least, that’s the lesson we take away from Geraldine Nesbitt, landowner of The Nesbitt Parcel in Dallas Township (Luzerne County, near Wilkes-Barre), PA. Nesbitt has been 100% against the Atlantic Sunrise project since learning its proposed route would cross her big-monied estate. Nesbitt’s heir, Abram Nesbitt, once built a hospital in Kingston, PA that reminds of Downton Abbey (see the picture). Atlantic Sunrise is a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. In February the Federal Energy Regulatory Commission (FERC) gave its final seal of approval for the project (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). After FERC’s approval, Ms. Nesbitt’s lawyers began an aggressive publicity campaign to try and convince FERC to stop the project. Last week Williams (builder of Atlantic Sunrise) filed a request with FERC to adopt an alternative route around the Nesbitt estate–and all of a sudden Ms. Nesbitt “has never been opposed to natural gas pipelines.” What disgusting hypocrisy. If Joe Farmer wants the pipeline rerouted around his prized hay field–good luck with that. But if an old-line establishment family with BIG MONEY like the Nesbitts wants a reroute, they get it. We don’t like it…
    Read More “PR Campaign Gets Atlantic Sunrise Pipe to Change Course in PA”

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    New 3.5 Mile Pipeline Project to Drill Under the Potomac River

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    Columbia Pipeline, now owned by TransCanada, recently (in March) filed an application with the Federal Energy Regulatory Commission (FERC) to build a 3.5 mile, 8-inch pipeline that will carry natural gas from Pennsylvania to connect the Mountaineer Gas system in West Virginia with the Columbia Gas Pipeline in Pennsylvania. The purpose of the Eastern Panhandle Expansion project is to deliver natural gas via local distribution channels to a new industrial facility in Berkeley County, WV (scheduled to open in Fall 2017), and to provide gas to other local businesses and residents in the Tri-State area. Most of the pipeline crosses through a tiny sliver of Washington County, Maryland. The main issue with the project is that the pipeline will be drilled underneath the Potomac River, which serves as the border between WV and MD. That has antis in an uproar. The good news is that FERC has agreed to prepare an environmental assessment (EA) for the project. That is, this is now a real project with a high degree of likelihood it will get built…
    Read More “New 3.5 Mile Pipeline Project to Drill Under the Potomac River”

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    NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection

    Earlier this month MDN brought you the sad (and angering) news that once again Gov. Andrew Cuomo has caved to political pressure from environmental Nazis and instructed the now-corrupted Dept. of Environmental Conservation (DEC) to deny stream crossing permits for National Fuel Gas Company’s (NFG) Northern Access Pipeline project (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). A few days later, NFG issued a statement to say their proposed pipeline project would have FAR LESS impact on the environment “than either exploding an entire bridge structure and dropping it into Cattaraugus Creek (Route 219) or developing and continuously operating a massive construction zone in the middle of the Hudson River (Tappan Zee Bridge) for a minimum of five years” (see NFG Calls Cuomo DEC Denial of Northern Access Pipe “Troubling”). Both of those projects were reviewed and approved by Cuomo’s DEC, yet the DEC rejected a benign pipeline project. At the time we said this: “While there is no mention of a lawsuit against the DEC, you can bet your bottom dollar such a suit is coming.” Once again, we were right. Last Friday NFG sued the DEC in federal court, asking the court to review the DEC’s action in rejecting permits for the federally-approved project…
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    Antero Midstream Launches IPO – Hopes to Raise $930M

    We should have known. Last week MDN brought you the news that former MarkWest chief John Mollenkopf has just joined the board at Antero Midstream (see Former MarkWest Chief John Mollenkopf Joins Board of Antero Midstream). Mollenkopf helped architect the December 2015 Marathon Petroleum buyout of MarkWest. After the buyout, Mollenkopf was named executive vice president and chief operating officer for the new MarkWest unit–the guy running it. In August 2016, Marathon announced that Mollenkopf would ride off into the sunset as a very rich man (i.e. retiring), and that Gregory Floerke would take the reigns (see Senior Management Change at Marathon’s MarkWest Subsidiary). Last week we noted that Mollenkopf had joined the board of Antero Midstream (see Former MarkWest Chief John Mollenkopf Joins Board of Antero Midstream). Which makes sense. In February, Antero formed a joint venture with MarkWest in West Virginia (see Antero Forms JV with MarkWest to Service Combined 360K WV Acres). Mollenkopf has uncanny timing–turning up when there are “significant liquidity events.” So we should have known that Antero Midstream was about to launch an initial public offering. Yesterday, Antero Midstream announced an IPO of 37.2 million shares of stock, hoping to raise more than $900 million…
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    TGP’s Extraordinary Security to Build 2-Mile Pipeline in Mass.

    In March 2016–more than a year ago–the Federal Energy Regulatory Commission (FERC) approved Tennessee Gas Pipeline’s (TGP) $86 million Connecticut Expansion project (see FERC Approves TGP Connecticut Expansion Pipeline Project). The project includes building 13.42 miles of new pipeline loops in three states: Connecticut, Massachusetts and New York. When completed, the new looping will serve an additional 72,100 dekatherms of (mostly) Marcellus Shale gas to three utility companies in Connecticut. A pretty low-key project overall with just 13.42 miles of new pipeline. But anti-fossil fuel kooks object to very square inch of new pipelines–no matter where they are constructed. (Perhaps if pipelines flowed marijuana instead of fossil fuels, they’d feel differently about them? But we digress.) The State of Massachusetts did its best to block construction there, but eventually lost and was forced to grant an easement for a lousy 2 miles of pipeline. And now, more than a year after getting a green light from FERC, TGP is finally beginning construction. The security they must maintain to construct a lousy 2-mile pipeline is, in a word, extraordinary…
    Read More “TGP’s Extraordinary Security to Build 2-Mile Pipeline in Mass.”

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    Kinder Morgan 1Q17: Profit Up 45%, M-U Projects Online in ’17

    Last week Kinder Morgan, the largest midstream (i.e. pipeline) company in the U.S., filed its first quarter 2017 update. 1Q17 saw a profit of $401 million, up $125 million (45%) from 1Q16. Revenue was up $229 million (7%) to $3.4 billion. And costs rose just $65 million (3%) to $2.4 billion. All in all a good start to 2017. However, as always, what we’re interested in is an update on key projects that Kinder Morgan is working on–projects that are located in or close to (with an impact on) the Marcellus/Utica region. Projects like the Utopia Pipeline in Ohio, the Elba Island LNG export facility in Georgia, the Orion Project in northeast PA, and the Louisiana pipeline project, going bi-directional to move our gas to the southwest. There were plenty of updates about projects of interest to the Marcellus/Utica (particularly those coming online in 2017) in the latest quarterly report…
    Read More “Kinder Morgan 1Q17: Profit Up 45%, M-U Projects Online in ’17”

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    Mariner East 1 Sprang a Small NGL Leak Near Philly, on Apr 1

    Mariner East Pipeline Project map – click for larger version

    The Mariner East 1 pipeline sprung a small leak and spilled 20 barrels (~840 gallons) of ethane and propane in Berks County, near Philadelphia, on April 1. Sunoco Logistics Partners, builder and maintainer of the pipeline, shut it down and fixed it over the next several days. The entire episode, which happened 20 days ago, is only now coming to light. Sunoco is being criticized by antis for not taking out a major advertising campaign to announce the leak. Sunoco says they alerted the National Response Center (NRC), the proper federal authority (a program of the U.S. Coast Guard). Apparently it is the job of the NRC to alert the public. Although this was a small leak which was quickly contained and with no long-term effects, Sunoco seems to have missed an important life lesson: He who gets there with the bad news first, wins. Sunoco LP should have (in our opinion) been more proactive in publicly announcing the leak and the steps taken to contain and fix it–and to reassure folks that measures will be taken to prevent any such leaks in the future. There would have been a day or two of hit pieces by “mainstream” media, and then the story would have disappeared. Now, the story will linger and be used against the company should any more minor spills happen…
    Read More “Mariner East 1 Sprang a Small NGL Leak Near Philly, on Apr 1”

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    Rover Update: Half of 15K Workers Now Hired, 2% Pipeline Laid

    Two weeks MDN brought you the news that Energy Transfer’s $3.7 billion, 711-mile Rover Pipeline needs up to 15,000 workers to build it. At the time, it was reported they currently have ~4,500 workers. And they want to complete the first stage of the pipeline by July (see Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!). MDN’s story went viral. It has, so far, been read over 18,000 times on the MDN website–a new record for an MDN story just two weeks old. The headline and blurb we posted on Facebook has been seen by over 75,000 people! The result was that we were flooded with this simple question: Where do I sign up to work on the pipeline? The answer, unfortunately, is not straightforward. We reached out to Energy Transfer multiple times and got less-than-satisfactory answers. Energy Transfer’s answer to the question is this: If you are a contractor or want to try your hand at becoming a contractor, you can try applying via Rover’s contractor online application process. However, most people are not interested in that route. They just want to sign up and begin working. For those folks, Rover responded, “Rover is committed to utilizing Union labor 100% for this project. Laborers looking for work, can contact their local union halls.” No help with identifying those local union halls. So MDN provided a list (see How to Apply for one of the 15K Jobs Building the Rover Pipeline). Perhaps MDN had a hand in a flood of new recruits, because as of a construction report filed by Rover with the Federal Energy Regulatory Commission earlier this week, they now have 7,570 people working on the pipeline. It’s an interesting update (full copy below). Rover includes a table for how much of each phase the pipeline is complete. Tree felling? 100% done. Tree clearing? For the mainline, 51% done. How much of the main pipeline is now laid and ready for welding? Just 2%. Also interesting is a brief note that back on April 7, there was a small spill of bentonite drilling mud into a swap…
    Read More “Rover Update: Half of 15K Workers Now Hired, 2% Pipeline Laid”

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    Patterson-UTI Energy Completes Merger with Seventy Seven Energy

    As MDN told you last November, Patterson-UTI Energy, an oilfield services company with major operations in the northeast, is buying out and merging in Seventy Seven Energy (SSE) in an all-stock deal worth $1.76 billion (see Seventy Seven Energy Throws in the Towel, Sells to Paterson-UTI). SSE is the former Chesapeake Oilfield Operating company, the oilfield services subsidiary of Chesapeake Energy that Chessy spun out into its own company in July 2014 after it couldn’t find anyone to buy it (see Long Labor & Delivery: Seventy Seven Energy Born Yesterday). It was an ill-fated venture from the beginning. SSE never turned a profit after becoming its own company. In June 2016, SSE, which has major operations in the Marcellus/Utica, filed for bankruptcy, then emerged from bankruptcy two months later borrowing $100 million (see Seventy Seven Energy Pops Out of Chapter 11 Bankruptcy in 2 Mos.). With Patterson is buying it, they are on the hook for SSE’s debts. So even though the deal to buy SSE is a no-cash stock swap, Patterson still needs a boatload of cash to pay off SSE’s debts. So Patterson floating 15.8 million shares of stock at $26.45 per share to raise $418 million in order to pay off SSE’s debts (see Patterson-UTI Floats $418M of New Stock to Pay Off SSE’s Debts). The day has finally arrived. Yesterday Patterson closed on the deal and now SSE, nee Chesapeake Oilfield Operating, is no more…
    Read More “Patterson-UTI Energy Completes Merger with Seventy Seven Energy”

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    Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp

    We suppose it was bound to happen, but fervently wish it hadn’t. In the process of drilling underneath the Tuscarawas River (in Stark County) one week ago, on April 13, Rover workers experienced an “inadvertent return” of “horizontal directional drilling fluid.” That is, they sprung a leak and spilled nearly 2 million gallons of drilling fluid. Not, thank God, into the Tuscarawas River, but into a swamp (i.e. “wetland”) next to the river. Fortunately the primary component of said drilling fluid is nontoxic bentonite–the same ingredient used to make shampoo, deodorant, toothpaste and kitty litter. We’ve covered other such nontoxic spills in the past (see our bentonite stories here). The biggest threat to aquatic life in the river is if large quantities of bentonite get into the river and smother the little fishies and salamanders–from lack of oxygen. A second spill happened while drilling horizontally under another swamp the very next day–in Richland County. Rover workers spilled 50,000 gallons of drilling fluid there. Both spills were immediately reported to the Ohio Environmental Protection Agency, which is on the job, monitoring cleanup efforts. A whopping fine is sure to follow…
    Read More “Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp”

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    Marcellus/Utica Gas Soon Heading to Florida Penninsula via Sabal Trail

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    Spectra Energy (and partners NextEra Energy and Duke Energy) are building a $3.2 billion, 515-mile interstate natural gas pipeline in Florida, Georgia and Alabama to deliver Marcellus gas to the southeast. The project, called Sabal Trail Transmission, has been underway for the past three+ years and is due to be completed and online in June–two months from now. Sabal Trail will connect to Williams’ Hillabee Expansion Project, which is a new pipeline spur built off the huge Transco pipeline system (see Williams Building Alabama Pipeline with Marcellus Connection). Williams is reversing a portion of the Transco to bring Marcellus gas south. RBN Energy provides a comprehensive update Sabal Trail and Florida’s “gas thirsty peninsula” that it will serve. RBN says one of the main users of Marcellus gas in Florida will be (yep) electric power generating plants…
    Read More “Marcellus/Utica Gas Soon Heading to Florida Penninsula via Sabal Trail”

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    Former MarkWest Chief John Mollenkopf Joins Board of Antero Midstream

    John Mollenkopf

    In December of 2015, one of the biggest and brightest stars in the midstream firmament for the Marcellus/Utica, MarkWest Energy, sold itself to Marathon Petroleum (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). As we pointed out at the time, the sale lined the pockets of investors and MarkWest’s top management (see Golden Parachutes Pop Open for MarkWest Top Management/Board). Two of the people in top management who benefited were John Mollenkopf, who was named executive vice president and chief operating officer for the new MarkWest unit (essentially taking over running MarkWest) and Gregory Floerke, who was named executive vice president and chief commercial officer of the new MarkWest unit. In August 2016, Marathon announced that Mollenkopf would ride off into the sunset as a very rich man (i.e. retiring), and that Floerke would take the reigns (see Senior Management Change at Marathon’s MarkWest Subsidiary). Apparently Mollenkopf is tired of twiddling his thumbs and wants back in the game–at least part-time. He’s just ridden back from the sunset to join the board of Antero Midstream…
    Read More “Former MarkWest Chief John Mollenkopf Joins Board of Antero Midstream”

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    Hearings Scheduled for Proposed Duke Pipeline in Cincinnati

    Duke Energy Ohio, an LDC or “local distribution company” serves some half a million customers with natural gas in Ohio. The company has a 12-mile pipeline to flow the gas it needs, to move it from one point to another in Hamilton County (Cincinnati), in the southwest corner of the state. The Duke pipeline has been in service since the 1950s. Duke needs to replace that pipe or some of those half million Duke customers won’t get natural gas any more. Because anything to do with “fracking” or “pipelines” has been so thoroughly bastardized by the media and anti-fossil fuel protesters, there has been, of course, opposition to Duke’s plan. So Duke “listened” and has scaled back their plans. Instead of building a 30-inch gas pipeline running at 600 psi (pounds per square inch), the revised plan calls for a 20-inch pipeline running at 400 psi (see Duke Energy Modifies/Scales Back Plan for SW OH Pipeline). Duke proposed two potential routes, both of which are opposed by antis, including a group calling themselves NOPE–Neighbors Opposing Pipeline Extension. We call them DOPEs–Dummies Opposing Pipeline Extensions. Will the DOPErs volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built? Not on your life! Two public hearings have now been scheduled–one for June 15 and the other July 12. The DOPErs are gearing up to fight…
    Read More “Hearings Scheduled for Proposed Duke Pipeline in Cincinnati”

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    Nuverra Environmental 2016 Update – Red Ink Slows, Some

    Nuverra Environmental Solutions is one of the largest companies in the United States that handles transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. In January the company, going through tough economic times, was de-listed from the New York Stock Exchange (see Nuverra Environmental Delisted from NYSE, Now a Penny Stock). At last check-in in December, we noted that the company continues to struggle (see Nuverra Environmental Line of Credit Expanded, Payback Extended). Although it’s a bit later than others, Nuverra has just released its full year 2016 update. What do the numbers show? While Nuverra lost $195 million in 2015, it narrowed the loss in 2016–losing “only” $169 million for the year. Still not great, but better than it was. Here’s the update…
    Read More “Nuverra Environmental 2016 Update – Red Ink Slows, Some”