Energy Services

Baker Hughes | Energy Services

Baker Hughes Laid Off 3K in 2Q16, No Drilling Recovery in 2016
July 29, 2016July 29, 2016

Once the Obama Dept. of Justice burst the dream of merging with Halliburton (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”), Baker Hughes set out to right the ship and deal with the most serious down market in a generation. BH issued their second quarter 2016 update yesterday and held a conference call with analysts. Among the measure BH took in 2Q16 to righ the ship was laying off another 3,000 workers (always a sad thing). BH used $1.5 billion of a $3.5 billion break-up fee they collected from Halliburton to buy back outstanding debt. Perhaps the most ominous news coming from yesterday’s update is that BH believes drilling in North America is unlikely to rebound for the rest of the year. We had hoped the corner has already been turned (see Crack of Light – OH Sand Producer Says Market Turning Around). According to BH, such is not the case…
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CARBO Ceramics | Energy Services | Industrywide Issues | Sand/Proppant

CARBO Says 2Q16 “Likely” the Bottom for Proppant Market
July 29, 2016July 29, 2016

Contrary to the BH view that drilling will remain in the crapper for the rest of 2016 (see Baker Hughes Laid Off 3K in 2Q16, No Drilling Recovery in 2016), CARBO Ceramics, a company that supplies sand and ceramic beads used in fracking, was more upbeat about the rest of the year in their second quarter 2016 update. CARBO’s CEO Gary Kolstad said, “…the second quarter likely marked the bottom for activity levels as both oil and natural gas commodity prices and the North American rig count started to recover,” and “Sales volumes began to improve as the quarter progressed. In addition, with the increasing commodity prices, we have received increasing customer inquiries about procuring ceramic proppant for completions in the second half of 2016.” In other words, things are beginning to look up–at least according to CARBO. Their own numbers don’t seem to reflect that optimism. Total proppant sales (as measured in millions of pounds sold) were down an astonishing 75% year over year: 448 million pounds sold in 2Q15 vs. 112 million pounds sold in 2Q16. Here’s the CARBO upbeat 2Q16 update…
Read More “CARBO Says 2Q16 “Likely” the Bottom for Proppant Market”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

FERC Agrees to Consider Hearing on Need for PennEast Pipe in NJ
July 28, 2016July 28, 2016

We’re not sure how important (or not) this news is, but it’s certainly worth reporting. Yesterday the Federal Energy Regulatory Commission (FERC) announced it will “consider” a motion for an evidentiary hearing on PennEast Pipeline’s application about whether or not the pipeline is needed in New Jersey. Last month radicals at the Eastern Environmental Law Clinic (EELC) on behalf of enviro-Nazis at the New Jersey Conservation Foundation (NJ Conservation) and Stony Brook – Millstone Watershed Association (SBMWA), filed a motion requesting FERC conduct a hearing to assess whether there evidence of public need in New Jersey for the proposed PennEast Pipeline. Yesterday FERC said they’ll consider a hearing–FERC has not (yet) said it would actually conduct such a hearing. Here’s the news as sent to us from the radicals…
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Empire Pipeline | Energy Companies | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Regulation | Seneca Resources | Statewide NY | Statewide PA

NFG’s Northern Access Pipeline Gets Favorable FERC Review
July 28, 2016July 28, 2016

National Fuel Gas (NFG), the Buffalo-based utility giant with both a drilling subsidiary (Seneca Resources) and a midstream/pipeline subsidiary (Empire Pipeline) filed an application with the Federal Energy Regulatory Commission (FERC) in March 2015 for a pipeline project they call Northern Access 2016 (later renamed to simply Northern Access Project, dropping the “2016” part). The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton (see NFG’s Marcellus Pipeline from NWPA to NY Hits Resistence). Although the project has faced some resistance from anti-fossil fuelers, FERC has just issued a favorable Environmental Assessment (EA), which means the project is on track for full FERC approval…
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Energy Services | Patterson-UTI

Patterson-UTI 2Q16: $86M Loss, “Well Positioned” for a Recovery
July 28, 2016July 28, 2016

Each month MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). After more than a year, Patterson’s June report finally showed a small turnaround (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). But what about Patterson’s financial health? The company released their second quarter 2016 update earlier today. Patterson reports losing $86 million in 2Q16, versus losing $19 million in 2Q15. The reason for the drop: Patterson averaged 55 operating rigs in 2Q16 versus an average of 71 rigs operating in 1Q16. According to comments by the company’s top brass, they are doing everything they can to make it through the downturn and believe they are “well positioned for a recovery.” If things have truly turned around and drilling is back, hopefully Patterson will come roaring back. The Marcellus/Utica is counting on it!…
Read More “Patterson-UTI 2Q16: $86M Loss, “Well Positioned” for a Recovery”
Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Regulation | Spectra Energy

Pot Shot: PennEast Partner Seeks to Stop New England Pipeline
July 27, 2016July 27, 2016

In September 2014, PSEG (Public Service Enterprise Group) Power–New Jersey’s largest utility company–became the fifth company to become a partner in the much-needed PennEast Pipeline, the $1 billion pipeline project that would flow cheap, abundant and clean-burning Marcellus Shale gas from northeast Pennsylvania all the way to Trenton, New Jersey (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). You know the travails PennEast has had in trying to get the project approved. Nutjobs like THE Delaware Riverkeeper, funded by the William Penn Foundation, Heinz Endowments and others, has continually harassed and sued PennEast. One of Riverkeeper’s favorite tactics is to write gajillions of letters to the Federal Energy Regulatory Commission telling FERC that PennEast isn’t needed and isn’t wanted. So we found it a tad hypocritical to read that PSEG Power has turned around and filed their own letter with FERC–telling FERC another pipeline project, Spectra Energy’s much-needed Access Northeast pipeline which will bring more Marcellus gas to New England, isn’t needed and isn’t wanted…
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Anti-Drilling/Fossil Fuel | Energy Services | Exporting | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Statewide PA

Group of Protesting/Ignorant Kids Briefly Block Philly Refinery
July 27, 2016July 27, 2016

A small group of ignorant children (look the photo) preened and pretended to actually know something when they marched outside of the Philadelphia Energy Solutions (PES) refinery in South Philly where PES would like to expand by leasing an extra 200 acres at the Southport facility. The children blocked traffic causing a backup, making drivers unhappy. The kids also prevented trucks from entering and exiting the facility–for about 10 minutes. Philly police watched and did nothing. Sycophantic media (StateImpact) claimed there were “around 100” but a picture of the event shows nine (that we can see), none of whom appear to be old enough to drink beer. PES is pushing the concept of making Philadelphia an “energy hub” and they (PES) want to ship Marcellus Shale gas from the Southport facility location after piping it there from other parts of PA. A number of people are bidding on the property and it’s not at all a foregone conclusion that PES will get it (see Marcellus Caught in Crossfire of Philly Port Leasing Controversy). Apparently the subtleties of who may one day lease and operate the site were completely lost on the ignorant kids running around behaving badly…
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Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

FERC Grants Williams Constitution Pipeline a 2-Year Extension
July 27, 2016July 27, 2016

As we reported yesterday, last Friday Williams and the Constitution Pipeline filed a request with the Federal Energy Regulatory Commission (FERC) to extend their application to build the Constitution Pipeline from Susquehanna County, PA to Schoharie County, NY (see Constitution Pipeline Requests 2-Year Extension from FERC). New York’s corrupt governor, Andrew Cuomo, is trying to stop the project (apparently his hands didn’t get greased enough). It didn’t take long. FERC granted Constitution’s request yesterday…
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Dominion Energy | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Statewide WV | West Virginia

FERC Grants Dominion Clarington Project a 1-Year Extension
July 27, 2016July 27, 2016

In June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to construct and operate new compression facilities at existing compressor stations in Marshall County, WV and Monroe County, OH, and certain other facilities, collectively called the Clarington Project (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The Clarington project, costing a modest $76.5 million, will allow Dominion to provide 250,000 dekatherms (Dth) per day of firm transportation service for CNX Gas, otherwise known as CONSOL Energy. Last August, FERC approved Dominion’s request (see FERC Approves Dominion WV/OH Compressor Project, Rips Anti Group). FERC gave Dominion a year to complete the project, but Dominion filed a request last Friday requesting more time. FERC agreed and has extended the project completion date an extra year…
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Energy Companies | Energy Services | Stone Energy | Williams

Stone Energy Update on Marcellus Gathering Deal with Williams
July 26, 2016July 26, 2016

Stone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has a presence in the Marcellus/Utica Shale with 75,000 acres of leases. Last year Stone quit drilling in the northeast and actually shut-in part of their production due to low prices (see Stone Energy 3Q15: Shut Down 110 Mmcfe/d of Marcellus Production). As we pointed out in April, the company is in financial trouble and inching toward bankruptcy (see Stone Energy Appoints Special Liaison, Inches Toward Bankruptcy?). However, Stone has not, like some others, tipped into bankruptcy. Yet. And perhaps things are beginning to turn around for Stone. In June Stone cut a new midstream gathering agreement with Williams to return some of their shut-in Marcellus wells to full production (see Stone Energy Opens Marcellus Spigots Again; New Midstream Deal). Stone issued a production update yesterday. Part of the update addresses the Williams midstream deal–how it’s doing so far, and what to expect…
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Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Constitution Pipeline Requests 2-Year Extension from FERC
July 26, 2016July 26, 2016

Constitution Pipeline map – click for larger version

For years now, MDN has tracked the ongoing sad, maddening, tragic saga of the Constitution Pipeline–a $683 million, 124-mile pipeline due to run from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas (see our stories here). The pipeline is full reviewed and authorized by the Federal Energy Regulatory Commission–it has been since 2014. The only thing left is a permit from the New York State Dept. of Environmental Conservation (DEC) to issue stream crossing permits. The DEC has, however, been corrupted by our corrupt governor, Andrew Cuomo. The Constitution worked with the DEC to meet ALL of their requirements, and in fact did meet all of their requirements, and in the end Cuomo said “nyet” and the servile “leaders” at the DEC did their master’s bidding and turned down the Constitution (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). So the Constitution sued (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). However, the FERC clock is ticking. The Constitution has until the end of this year to get the pipeline built. With the glacial pace of the courts, that ain’t gonna happen. So the Constitution (i.e. Williams), last Friday, filed a request with FERC to extend the certificate to build by an additional two years…
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Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

Major Step Forward – FERC Issues Favorable DEIS for PennEast Pipe
July 25, 2016July 25, 2016

PennEast Pipeline Route Map – click for larger version

THE Delaware Riverkeeper, Maya van Rossum, is “spitting” mad. Why? Because the Federal Energy Regulatory Commission (FERC) has signaled it will approve the PennEast Pipeline, a $1.2 billion, 119-mile desperately-needed natural gas pipeline from Luzerne County, PA to Mercer County, NJ that will haul Marcellus Shale gas from northern PA to markets in southeastern PA and NJ. On Friday FERC issued a Draft Environmental Impact Statement (DEIS) that finds while there are a few things to fix in the PennEast plan before the pipeline gets built, they are fixable and the pipeline won’t have significant environmental impacts. van Rossum, upon learning of the favorable DEIS, said “The deadline for comments is an offensive abuse of power and spit in the face of all the communities that will be so deeply harmed by this project.” Needless to say, FERC’s decision put a smile on our face. PennEast calls it a “major step forward.” Indeed. It all but assures that this project will get approved and built…
Read More “Major Step Forward – FERC Issues Favorable DEIS for PennEast Pipe”
Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

TransCanada’s Plan to Undercut/Displace Gas from the Marcellus
July 25, 2016July 25, 2016

One of the important new markets that Marcellus and Utica Shale drillers have been salivating over is Canada. Indeed, flows of natural gas, via pipelines, have increased to Canada over the past several years (see Marcellus/Utica Gas Increasingly Heads to Canada via Pipeline). One of the promising new markets for Marcellus gas is Canadian LNG exports (see List of LNG Export Projects for Marcellus/Utica Shale Gas). However, Canada is feeling a bit PO’d (personally offended) with the U.S., especially since Lord Obama rejected the Keystone XL oil pipeline from Canada. Along has come a bold new proposal from TransCanada, which recently bought the U.S.-based Columbia Pipeline Group, to use existing pipelines from Western Canada to Eastern Canada–from Alberta to Toronto–to ship more natgas. The aim is to make is less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. Should Marcellus drillers be concerned? Maybe. TransCanada is about to launch an open season for their bold, new plan to undercut the Marcellus…
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Chesapeake Utilities | Energy Services | Industrywide Issues | Pipelines | Regulation

600 Days & Counting to Build a 7-Mile NatGas Pipeline in PA-DE
July 22, 2016July 22, 2016

A Bloomberg article takes a look at the ongoing and unnecessary delays companies face in building new pipelines–particularly in the Marcellus/Utica region. The Eastern Shore Natural Gas (ESNG) company, serving the Delmarva Peninsula (includes most of Delaware and portions of Maryland and Virginia), filed an application to build a measly 7 miles on Nov. 21, 2014. The $29.8 million pipeline project, called the White Oak Mainline Expansion Project, will “ease bottlenecks in transporting gas from the Marcellus shale formation” from Pennsylvania into Delaware. Why the horrific delays? Mostly because of opposition from insane anti-fossil fuelers who flood the Federal Energy Regulatory Commission (FERC) with comments, protest meetings, launch lawsuits and in general attempt to slow or stop FERC authorizations. ESNG’s projects aren’t the only ones stretching out to years before authorization is granted…
Read More “600 Days & Counting to Build a 7-Mile NatGas Pipeline in PA-DE”
Energy Services | Schlumberger

Schlumberger 2Q16: The Worst is Over, Drilling on the Upswing
July 22, 2016July 22, 2016

Earlier this week MDN brought you the second quarter update from Halliburton, the world’s second largest oilfield services company (see Halliburton 2Q16: $3.2B Loss, Lays Off Another 5K, Thx to Obama DOJ). One of the (many) things said by Halliburton in their update is that it appears to them that the worst is now over–that drillers are beginning to drill again. Yesterday the worlds largest oilfield services company, Schlumberger, agreed. Sclumberger issued their 2Q16 update. The big news is that both Schlumberger and Halliburton have “called the bottom” of the oil and gas market. When they both agree, it’s a sure thing. Like Halliburton, Schlumberger also lost big money in 2Q16–$2.16 billion (vs. a $3.2 billion loss for Halliburton). In 2Q15 Schlumberger made $1.12 billion in profit. What a difference a year makes! At least we’re now turning it around. Here’s the Schlumberger 2Q16 update…
Read More “Schlumberger 2Q16: The Worst is Over, Drilling on the Upswing”
Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Spectra Energy | Westmoreland County

Feds Find More Corrosion, Issue Order re Exploded TETCO Pipe in PA
July 21, 2016July 21, 2016

An update on Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months. One of the four lines that was offline (Line 19) was examined and certified by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in early May to go back online (see TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident). However, the other three lines have remained idle pending further investigation and won’t be online again until at least November (see Ruptured TETCO Pipeline in PA Offline Until November). In an order issued on Tuesday, federal regulators with the Pipeline and Hazardous Materials Safety Administration (PHMSA) are requiring Spectra Energy to perform more testing and take corrective actions on the remaining three lines. Although the cause of the explosion is still not 100% verified, it’s still thought to be corrosion around welded pipe joints, i.e. bad pipe tape…
Read More “Feds Find More Corrosion, Issue Order re Exploded TETCO Pipe in PA”