August US Rig Counts Go Up Again, but Marcellus Continues to Drop
Oilfield service giant Baker Hughes released their venerable monthly rotary rig count report today for August 2015. The numbers worldwide improved–the international rig count for August was 1,137, up 19 from the 1,118 counted in July. Looking specifically at the U.S., onshore (mostly shale) rig counts climbed from 835 in July to 849 in August, up 14. It does indeed seem as if we’ve turned a corner. This is the second month in a row that U.S. land-based rigs increased month over month (see Baker Hughes July Rig Counts – U.S. May have Bottomed, but Not NE). However, the rig count in the Marcellus/Utica did not improve. It got worse…
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More than 3 1/2 years ago (in January 2012) MDN told you about a plan in West Virginia to use a process patented by Union Carbide in the 1970s to build an ethane cracker plant on the cheap–much less than the typical “world scale” crackers announced by Shell, Odebrecht and others since that time (see 

As we told you yesterday, Ohio Gov. John Kasich horned in on a visit by Thailand-based PTT Global CEO Supattanapong Punmeechaow to Belmont County where Punmeechaow announced his company will spend $100 million over the next 9-12 months on a potential ethane cracker plant complex (see
Since March MDN has been watching the active number of rigs operated by Patterson-UTI Energy as a proxy for whether or not we’ve “turned the corner” on falling rig counts in the Marcellus/Utica. Patterson is a major drilling contractor with operations in the Marcellus/Utica region. We won’t recount all of the numbers here, for that you can read our story from July (see
The Federal Energy Regulatory Commission (FERC) has buckled to pressure from politicians to schedule yet another scoping hearing in New Hampshire (the third such hearing in tiny NH, the 14th overall), and extend the period for public comments, for the Kinder Morgan Northeast Energy Direct pipeline project that would bring much-needed supplies of abundant, cheap and clean-burning Marcellus/Utica Shale gas to New England (see
PennEast Pipeline, the $1 billion, 118-mile, 36-inch diameter pipeline that will deliver 1 billion cubic feet of natural gas per day from the Marcellus gas fields of northeastern Pennsylvania (in Luzerne County) to southeastern PA and New Jersey (terminating in Mercer County, NJ), has just announced another $50,000 of community grants, bringing the grand total of such grants up to $240,000–so far. The organizations receiving the grants are eminently worthy–mostly fire departments and EMS departments located in both Pennsylvania and New Jersey…
Although anti-fossil fuel nutters in New York State have worked to oppose converting electric generating plants from burning coal to clean-burning natural gas (see
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 for a pipeline project they call Northern Access 2016. The $451 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. We have a full description below for all of the new construction, modifications and add-ons that are part of the Access Northeast 2016 project. The pipeline, when complete, will flow Marcellus Shale natural gas from Pennsylvania northward to New York and on into Canada. Although NFG has bent backwards, forwards and has contorted itself into just about every yoga position there is to accommodate residents around Pendleton, nearby residents are still opposed to NFG building a new compressor station anywhere near them…
Last October MDN told you about an exciting project from Boardwalk Pipeline Partners’ Texas Gas Transmission pipeline that will reverse the flow from the Louisiana Gulf Coast all the way to Ohio (see
Weeping. Wailing. Gnashing of teeth. Ripping clothes and sitting in sackcloth and ashes. That’s some of the reaction from lunatic anti-fossil fuelers in Massachusetts after the Mass. Dept. of Public Utilities (DPU) approved long-term contracts for three utilities–Berkshire Gas, National Grid and Columbia Gas–to buy natural gas supplies from the hated, evil Kinder Morgan Northeast Energy Direct pipeline. That is, the three utilities will buy more gas from Kinder IF the pipeline ever gets built. We’re still a long way from backhoes digging up ground to lay new pipeline, but we’ve just taken a big step forward with this decision by the DPU. What’s next for the loons of Mass? Yep–you guessed it. They’re planning to take the DPU to court…
Hats off to Dominion, a major natural gas utility and midstream (i.e. pipeline) company operating in Connecticut, Maryland, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Virginia, West Virginia and the District of Columbia–essentially operating in the Marcellus/Utica region. We’ve noted on a number of occasions the generosity of Dominion with their philanthropy (see
A dozen aging protesters (some of them former hippies) paced back and forth with apparently with nothing better to do, in front of an office building in Pittsfield, Massachusetts where Kinder Morgan has a small office. The protesters were there to demand that New Englanders continue to pay 4x what everyone else across the country pays for electricity, and to protest in favor of rolling blackouts in New England when electricity supplies dip because of high demand and lack of generating capacity, and to protest the availability of abundant, cheap, and clean-burning natural gas to heat their homes. Yep, they are stark, raving mad–and taken seriously by the liberal media in Massachusetts which covers this tiny minority of wackos as if they represent “everybody” in New England. The protesters, in their own words, told reporters why they oppose Kinder Morgan’s Northeast Energy Direct pipeline that will bring cheap, abundant and clean-burning Marcellus Shale gas to Massachusetts and other New England states: because they hate all fossil fuels, including clean-burning natural gas…