Energy Services

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…
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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”
Energy Services | Industrywide Issues | Lackawanna County | Lebanon County | Monroe County | Pennsylvania | Pipelines | Regulation | Transco | Williams

PA Game Commission Cuts ROW Deal with Atlantic Sunrise Pipeline
July 21, 2016July 21, 2016

Atlantic Sunrise Pipeline map – click for larger version

More progress for the Williams Atlantic Sunrise Pipeline project. Atlantic Sunrise is a $3 billion, 198-mile project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. It is a much-needed pipeline to move more Marcellus gas south, to new markets. The progress is this: the Pennsylvania Game Commission has cut a right-of-way deal to allow the pipeline to traverse game lands in northern Lebanon County–including a crossing of the Appalachian Trail. But have no fear, Williams plans to drill under the Trail and not disturb the surface. In return for the right to cross a few acres of certain state-owned game lands in Lebanon County, the state is picking up a whopping 285 acres owned by Williams in Monroe and Lackawanna counties…
Read More “PA Game Commission Cuts ROW Deal with Atlantic Sunrise Pipeline”
Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Regulation | Statewide NY | Williams

Constitution Pipeline Gets a Little (Court) Help from Its Friends
July 21, 2016July 21, 2016

Constitution Pipeline map – click for larger version

In perhaps the sleaziest of sleazy political moves, New York Gov. Andrew Cuomo made the non-science-based political decision to deny the Constitution Pipeline stream crossing permits in April (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The man is a menace to all New Yorkers. He caves to his radical, fringe left on a regular basis, as he did with his decision to deny the Constitution Pipeline. Williams, Cabot and the other partners in the project aren’t taking it laying down. They sued New York State in federal court with the very real possibility that the court will neuter NY’s decision-making role in the project (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). The Constitution doesn’t stand alone. A number of national industry organizations are coming to the Constitution’s defense. On Tuesday the Natural Gas Supply Association (NGSA) and other groups together filed an amicus curiae brief with the U.S. Circuit Court of Appeals for the Second Circuit. “Amicus curiae” means “friend of the court” in Latin. The brief (full copy below) makes the point that states should not be the tail that wags the federal-oversight-of-such-projects dog. That is, the New York Dept. of Environmental Conservation (DEC) is preventing the Federal Energy Regulatory Commission (FERC) from doing its job. One government entity (especially a state) cannot block the power and authority of another government entity (in particular the federal government)…
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Energy Services | Halliburton

Halliburton 2Q16: $3.2B Loss, Lays Off Another 5K, Thx to Obama DOJ
July 21, 2016July 21, 2016

The second-largest oilfield services company in the world, Halliburton (once run by the evil puppet-master himself, Dick Cheney) issued their second quarter 2016 financial and operating update yesterday. The company reports losing $3.2 billion during 2Q16, largely because the Obama Dept. of Justice nixed a buyout of Baker Hughes by Halliburton, which triggered a $3.5 billion payment from Halliburton to BH (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated” and The Road Ahead for Baker Hughes – Post Halliburton Deal). Halliburton also reports revenue fell 15% and they laid off another 5,000 workers during the quarter. Here’s the update…
Read More “Halliburton 2Q16: $3.2B Loss, Lays Off Another 5K, Thx to Obama DOJ”
Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

Spectra’s Access Northeast Pipe Wins Important Approval in Maine
July 20, 2016July 20, 2016

Click for larger version

In July 2014 Spectra Energy unveiled plans to deliver an extra 1 billion cubic feet of natural gas per day to New England and beyond by expanding the existing Algonquin and Maritimes pipeline systems (see Spectra Energy to the Rescue! New England Pipeline Expansion). That project was eventually named the Access Northeast Project, a direct competitor to Kinder Morgan’s proposed Northeast Energy Direct (NED) project. In February of 2015 we observed and asked the question, is Spectra’s project pulling ahead of Kinder Morgan’s project (see Access Northeast Pipeline — Pulling Ahead of Kinder’s NED Project?). It was our observation at the time that Kinder Morgan’s project is mostly “greenfield”–meaning they have to dig new trenches and lay new pipe in places where no pipeline currently exists–was vehemently opposed by antis, while Spectra’s project which lays new loops of pipe next to existing pipes in existing trenches was opposed, but with less vehemence. It seems our observation was prescient, as Kinder later canceled its project (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Make no mistake, Spectra Energy still faces a steep uphill battle–but they are making progress. Evidence of that came yesterday when regulators in the state of Maine approved Spectra’s plan in their state. Or more accurately, they approved passing along some of the cost of Spectra’s proposed expansion to Maine electric rate payers, who would see far lower electric rates if the pipeline gets built (it will feed natgas-fired electric generating plants in the state)…
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Anti-Drilling/Fossil Fuel | Duke Energy | Energy Services | Industrywide Issues | M&A

Rabid Anti-Fossil Fuelers Object to Duke-Piedmont Merger
July 20, 2016July 20, 2016

When will anti-fossil fuel madness that seems to spread like the Zika virus begin to subside? Anti-fossil fuel madness is just as destructive as Zika for those it infects. Take the case of the proposed merger/buyout of Piedmont Natural Gas by utility powerhouse Duke Energy for $6.7 billion (see Duke Energy Buys Piedmont NatGas for $6.7B, Marcellus Connection). Rabid anti-fossil fuelers object to the deal because, well, because they’re idiots and they don’t want a single molecule more of natgas used to power electric plants–even though it’s cleaner than coal and even though without electricity these ignoramuses wouldn’t be able to exist. Why? Because natgas is a hated fossil fuel and burning fossil fuels, according to the nuttiest of the nutters, is catastrophically heating up ol’ Mom Earth. Therefore Duke shouldn’t buy Piedmont. That’s the twisted thinking process going on in their heads…
Read More “Rabid Anti-Fossil Fuelers Object to Duke-Piedmont Merger”
Energy Companies | Energy Corporation of America | Energy Services | Industrywide Issues | Jobs | Statewide WV | Weatherford Intl | West Virginia

Heartbreak: Weatherford, ECA Lay Off Combined 175 Jobs in WV
July 19, 2016July 19, 2016

A pair of companies operating in the Marcellus Shale announced late last week that they are laying off a collective 175 jobs in West Virginia between them . Energy Corporation of America (ECA), which ranked 20th for most production in the Marcellus Shale in 2015 according to NGI’s 2016 Shale & Resource Plays Factbook, announced last Thursday they will lay off 51 positions (28 of them in WV). Oilfield services company Weatherford International has a branch office in Buckhannon, WV. Weatherford announced last week that it will lay of 147 positions in the Buckhannon office by the end of August. The announcement hit the local community hard…
Read More “Heartbreak: Weatherford, ECA Lay Off Combined 175 Jobs in WV”
Crime | Doddridge County | Energy Services | FirstEnergy | Harrison County | Industrywide Issues | West Virginia

Marcellus Electric Line Vandalized in WV – $20K Reward Offered
July 19, 2016July 19, 2016

FirstEnergy is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy loves the shale industry. In April, MDN reported that FirstEnergy’s construction crews had begun erecting steel poles for a new 18-mile high voltage power line that will run through Harrison and Doddridge counties in WV (see FirstEnergy Installs $92M Electric Line in WV for Shale Industry). The new $92 million power line project will help power both processing plants and compressor stations that flow Marcellus and Utica Shale gas. In what appears to be an act of environmental vandalism (terrorism?) somebody used a cutting torch to destroy 28 anchor bolts on a foundation, preventing FirstEnergy from proceeding with their work on the project. FirstEnergy is offering a $20,000 reward to catch the sleazebag that did the deed…
Read More “Marcellus Electric Line Vandalized in WV – $20K Reward Offered”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Processing Plants | Regulation | Statewide MD

Radical Enviro Groups Suffer Big Court Defeat re Cove Point LNG
July 18, 2016July 18, 2016

Anti-drilling zealots attempting to stop the Cove Point, Maryland LNG (liquefied natural gas) from going online have failed in court, again. And they failed big time. MDN reported in April that a group of Big Green groups, including the Sierra Club, the Chesapeake Climate Action Network, the Patuxent Riverkeeper, EarthReports Inc. and Earthjustice colluded together to sue in federal appeals court to try and stop the project (see Green Groups Ask DC Judge to Stop Construction at Cove Point LNG). On Friday the U.S. Court of Appeals for the District of Columbia ruled against the groups. The argument they raised (and keep raising) is that the Federal Energy Regulatory Commission (FERC) did not take into account so-called cumulative effects in permissioning such a facility. That is, because there is an export facility, that means there will be more drilling and fracking, and that means more air pollution, etc. The court rejected that claim and said in their decision (full copy below) that FERC is not required to consider such cumulative affects. Indeed, FERC’s charter prohibits them from considering such effects. This is a crushing defeat for Big Green–people and corporations who seek to profit from uneconomical solar and wind projects by unfairly crushing the competition (natgas)…
Read More “Radical Enviro Groups Suffer Big Court Defeat re Cove Point LNG”
Energy Services | Fairmount Santrol | Industrywide Issues | Sand/Proppant

Crack of Light – OH Sand Producer Says Market Turning Around
July 18, 2016July 18, 2016

Fairmount Santrol, an Ohio-based sand producer that sells sand as a proppant for use in Utica and Marcellus Shale drilling, released their preliminary second quarter 2016 results last week. Although the company expects to lose between $91-$93 million for the quarter (compared to a profit of $14.1 million a year ago), things are not all bad. Yes, it’s been tough for Fairmount and other companies in the oil and gas industry. Really tough. But Fairmount’s CEO Jenniffer Deckard, said this: “…we are also encouraged by the early signs of improvement we are seeing in the proppant market.” In other words, a crack of light is peeking through the door and we’re beginning to see the great slowdown in drilling come to an end…
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