Energy Services

Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA | Washington County

EQT Midstream Building $250 Million Pipeline – for Range Resources!
July 24, 2015July 24, 2015

In a show of “coopetition” or cooperative competition, EQT Midstream, a division of major Marcellus/Utica driller EQT Corporation, is going to build a $250 million, 32-mile “header pipeline” for arch-rival Range Resources in southwestern Pennsylvania to “support Range’s dry Marcellus and Utica development.” The new pipeline, which will be built in two phases in 2016 and 2017, will provide Range with more than half a billion cubic feet of natural capacity per day…
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Energy Services | Patterson-UTI

Tough Times: Patterson-UTI’s Net Income Drops 135% in 1 Year
July 24, 2015July 24, 2015

Not that we need it, but we have evidence of more tough times in the oilfield services business. We previously reported on tough times for Halliburton (see Tough Times: Halliburton’s Net Income Drops 93% in 1 Year) and Baker Hughes (see Tough Times: Baker Hughes Net Income Drops 153% in 1 Year). They are some of the largest oilfield services companies in the world–both operating in the Marcellus/Utica region. Patterson-UTI Energy is another Marcellus/Utica oilfield services firm, although much smaller than Halliburton and BH. Sometimes being smaller means being more maneuverable–fleet of foot–able to adapt quicker. Being smaller has not, however, shielded Patterson from the current downturn. Patterson reports revenue for 2Q14 (a year ago) was $757.3 million. Revenue for 2Q15 was $472.8 million–a drop of 38% year over year. When you add in expenses of all types, the picture is dismal: In 2Q14 Patterson’s net income was $54.3 million. In 2Q15 it was minus $19.0 million, or $19M in the hole–which is a 135% drop year over year. Patterson’s ratios similar to both Halliburton and BH…
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Energy Services | Industrywide Issues | Luzerne County | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

PennEast Pipeline Offers Spirited Defense, Counters False Claims
July 24, 2015July 24, 2015

How do you break through the ongoing misinformation pumped out by mainstream media and lying environmental organizations like the Sierra Club and THE Delaware Riverkeeper when it comes to the necessity, wholesomeness and righteousness of pipeline projects like the PennEast Pipeline planned to run from the Wilkes-Barre, PA area to the Trenton, NJ area? Peter Terranova, chairman of the PennEast Pipeline Board of Managers, is taking his message about the PennEast directly to the citizens by publishing a guest viewpoint in Wilkes-Barre’s The Citizens’ Voice newspaper. In his column Terranova lays out the case for the PennEast–and addresses some of the lies being spread by ne’er-do-well “environmental” organizations…
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Columbia Pipeline Group | Energy Services | Pennsylvania | Washington County

Columbia Midstream Donates $20K to Washington County, PA Fire Dept
July 24, 2015July 24, 2015

Columbia Midstream, an affiliate of Columbia Pipeline Group, Inc., presented a $20,000 grant to the West Finley Volunteer Fire Company on Tuesday to aid the funding of a new fire truck for the township. The check presentation took place at the West Finley (Washington County), PA fire station, where Steve Emery, West Finley Fire Chief, accepted the check on behalf of the fire company…
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Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Washington County

MarkWest Energy Takes Cecil, PA Back to Court over Compressor Stn
July 23, 2015July 22, 2015

As we noted in June, after more than four years of resisting, Cecil Township, PA–under court order–finally approved a compressor station proposed by MarkWest Energy (see Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions). We also noted that Cecil pulled a fast one with their so-called approval. The reason they got away with violating the court ordered deadline was because they were supposedly bargaining in good faith with MarkWest–nailing down final details both sides could live with. But it wasn’t good faith on the part of Cecil. At the last minute, Cecil tacked on 26 “conditions” making it all but sure that MarkWest would not agree to the plan. And sure enough, MarkWest has had to take Cecil, one of seven selfish towns that sued to overturn the Act 13 law, back to court yet again. Perhaps the judge should just remove the town supervisors this time since they habitually refuse to obey the law?…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline

Minor Speed Bumps for PennEast Pipeline in NJ
July 23, 2015July 22, 2015

New Jersey residents who are somewhat ignorant, being stoked with fear by Big Green groups like the NJ chapter of the Sierra Club and THE Delaware Riverkeeper, are not allowing access to surveyors of the PennEast Pipeline. Because of it, the NJ Dept. of Environmental Protection refuses to issue permits for the pipeline stating they don’t have enough information to make a determination–because PennEast can’t provide it because irrational residents are not allowing them on their property because their fears are being fed by Big Green/Sierra Clubbers/Riverkeeper. So anti-fossil fuelers are claiming victory and believe they have vanquished the evil pipleine. PennEast is saying (yawn) knock yourselves out. The Federal Energy Regulatory Commission (FERC) will make the decision anyway and your silly little protests will ultimately mean nothing…
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Baker Hughes | Energy Services

Tough Times: Baker Hughes Net Income Drops 153% in 1 Year
July 22, 2015July 22, 2015

Yesterday MDN told you about the tough times in the oil patch for Halliburton, the second largest oilfield services company in the world (see Tough Times: Halliburton’s Net Income Drops 93% in 1 Year). Today, the “other shoe” drops. Halliburton, you may recall, is buying out the fifth largest oilfield services company in the world (and the third largest in the U.S.)–Baker Hughes (see Halliburton & Baker Hughes Announce a December Wedding Date). Baker Hughes released their second quarter financial and operating results yesterday and the picture is even bleaker than it was for Halliburton. Baker Hughes’ revenue for 2Q14 (a year ago) was $5.935 billion. Revenue for 2Q15 was $3.968 billion–a drop of 33% year over year. When you add in expenses of all types, the picture is apocalyptic: In 2Q14 Baker Hughes’ net income was $359 million. In 2Q15 it was minus $190 million, or $190M in the hole–which is a 153% drop year over year. Not pretty! The company predicts “unfavorable market conditions to continue across all segments” for the balance of 2015…
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Industrywide Issues | Kinder Morgan | Pipelines | Research | Spectra Energy | Transco

Report Says New England Pipelines Not Cost Effective for Maine
July 22, 2015July 22, 2015

A disappointing report was recently delivered to the Maine Public Utility Commission (PUC) that may result in Maine sticking its head in the proverbial sand along its lovely coastline and miss out on cheap, abundant, clean-burning natural gas. In an effort to lower electric power prices, in 2013 the Maine Legislature authorized the PUC to spend up to $75 million a year to buy up to 200 million cubic feet per day of natural gas through an “energy cost reduction contract” (ECRC) that would be paid for by electric ratepayers if it is cost effective. Three companies provided proposals to the PUC: Spectra Energy, Tennessee Gas Pipeline and Portland Natural Gas Transmission System. The PUC hired the Boston-based London Economics International (LEI) to evaluate the proposals and the report is in (full redacted copy below). LEI says none of the three proposals provide enough cost savings to Maine consumers to make them worthwhile…
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Energy Companies | Energy Services | Equinor/Statoil | GE Oil & Gas | Industrywide Issues | Research | Sand/Proppant

GE/Statoil Announce Winners of Sand-Alternatives Contest
July 22, 2015July 22, 2015

Quick–what two things do you need in abundance in order to horizontally drill and frack a well? Yep–water and sand. The two together make up 99.5% of what goes down the borehole to drill and frack a shale well. Water is used to fracture or break open the rock and deliver the sand, which is called a proppant because some of it stays behind and “props open” the fractures in the rock, allowing gas and oil to escape into the borehole. The vast majority of truck trips to a well pad are to deliver water and sand. GE and Norwegian giant Statoil have teamed up to run an “Open Invitation Challenge” which is a contest for technology innovators to propose alternatives to water and sand, to reduce the amount of each and therefore reduce truck trips to and from well pads. The results are in for the sand challenge and five winners will each take home a check for $25,000. The winners have some fascinating technologies and if they meet certain other criteria are eligible for more money to develop and commercialize their technologies. And what are some of these interesting bits of tech? How about a polymer that swells to 10 times its initial size when liquid is added. Or a ceramic proppant that’s shapped in the form of an X acting like a tiny steel girder to keep rock fractures propped open. This is truly creative and potentially industry changing stuff…
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Energy Services | Halliburton

Tough Times: Halliburton’s Net Income Drops 93% in 1 Year
July 21, 2015July 21, 2015

It’s tough times in the oil patch. Halliburton, the world’s second largest oilfield services company, posted second quarter financial results yesterday. While the marketers and bean counters do their best to put a happy face on the results, there’s no papering over the fact that Halliburton and other oilfield services companies have been hammered hard by the downturn in oil and natural gas prices and the rapid decline in drilling, as evidenced by lower rig counts. Halliburton’s revenue for 2Q14 (a year ago) was $8.051 billion. Revenue for 2Q15 was $5.919 billion–a drop of 26% year over year. When you add in expenses of all types, the picture becomes even clearer–and bloodier. In 2Q14 Halliburton’s net income was $775 million. In 2Q15 it was $53 million–which is a 93% drop year over year. It’s clear that oilfield services companies like Halliburton are being asked to discount their prices by producers and consequently they bear the brunt of the downturn…
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Electrical Generation | Energy Services | Industrywide Issues | Talen Energy

Talen Energy Picks Up Gas-Fired Electric Plants – Marcellus in View
July 21, 2015July 21, 2015

An electric generation company based in Allentown, PA–Talen Energy–has just cut a deal to acquire MACH Gen, LLC, the owner of three natural gas-fired electric generating plants. One of those plants is located in upstate New York and is likely to begin using cheap, abundant, clean-burning natural gas from the gas fields of Susquehanna County, PA once the Constitution Pipeline is built. Another of the three MACH electric generating plants is located in Massachusetts and also likely (in our opinion) to burn Marcellus Shale gas. Below is the announcement from Talen followed by two articles that reference the NY and MA plants as likely candidates to use Marcellus Shale gas…
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Energy Services | Industrywide Issues | M&A | Marathon Petroleum | MarkWest Energy

Marathon Outlines Strategy for Buying MarkWest in PPT Presentation
July 21, 2015July 21, 2015

Seemingly out of the blue, last week Marathon Petroleum’s midstream division, MPLX, announced they had reached an agreement with arguably THE premier Marcellus/Utica midstream company, MarkWest Energy, to buy out MarkWest and make it a division of MPLX–essentially a division of Marathon Petroleum (see Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum). We speculated at the time that MarkWest didn’t want to become a Williams–the target of a hostile takeover by someone they don’t want to own them. So MarkWest went and found a suitable suitor and sold themselves. Marathon has provided a bit more of their thinking about why they think MarkWest will make a great addition to MPLX and how it all works in the organization chart by issuing a useful PowerPoint presentation of “supplemental information.” We have that PowerPoint for you below…
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Energy Services | Industrywide Issues | Litigation | Lorain County | Medina County | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH | Wood County (OH)

NEXUS Pipeline Sues for Survey Access, Wins Most of the Time
July 20, 2015July 20, 2015

An update on a story we brought you one week ago. Last Monday MDN told you that the NEXUS pipeline, primarily a project of Spectra Energy, sued four Medina County, OH landowners who refuse NEXUS surveyors access to their property (see NEXUS Pipeline Sues 4 Medina County Landowners for Survey Access). On Friday, a Medina County Common Pleas judge rejected NEXUS’ request for a restraining order that would allow them access. The case goes to trial on September 24. But lest we leave the wrong impression, judges in just about every other Ohio county where NEXUS has had to sue for survey access have granted NEXUS the restraining orders they were seeking…
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Columbia Pipeline Group | Energy Services | Kanawha County | West Virginia

Columbia Pipeline Worker Risks His Life to Save a Stranger in WV
July 20, 2015July 20, 2015

Countless times we’ve seen the oil and gas industry demonized by people who hold to strange philosophies–like oil and gas are fossil fuels and fossil fuels threaten the climate of Mother Earth and the use of said fossil fuels must be ended. It’s a cockamamie and frankly false philosophy–but it motivates many to demonize not only the industry, but those who work in it (or support it). Sometimes it helps to put a face on people who work in the industry. Like Michael Marques, who works for Columbia Pipeline Group–a major pipeline company headquartered in Houston, TX but with a major presence in the Appalachian (Marcellus/Utica) region. Marques was on his way to a service call in Kanawha County, WV when he noticed a local resident caught in the Pocatalico River during a flash flood. Without hesitating, Marques jumped in, risking his own life, to save the life of a man he didn’t know. That’s the kind of salt-of-the-earth people who work in the oil and gas industry. Here’s the story of Michael Marques–a hero–and his action to save local resident Bobby Lawson…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

KM Board Approves Scaled-Back New England Pipeline for $3.3B
July 17, 2015July 17, 2015

Yesterday the board of directors for Kinder Morgan approved a $3.3 billion investment in the company’s proposed Northeast Energy Direct pipeline project–a huge project that includes a new supply pipeline from Susquehanna County, PA to Schoharie County, NY, and a new market delivery pipeline from Schoharie County, NY to Dracut, MA. It is the market delivery pipeline as it passes through both Massachusetts, into New Hampshire and then back into Massachusetts that seems to be stirring up the most controversy that the board approved yesterday with a price tag of $3.3B. But beneath the headline news that the board has given the OK to spend big money is the “real” story–which is that KM has chosen to build a smaller 30-inch pipeline rather than the pre-filed 36-inch pipeline they had hoped to build. Why? Because they haven’t gotten any major new customers to sign on for capacity in the pipeline since the initial open season (see Kinder Morgan Fails to Sign Up New NED Customers in Last 8 Mos). The smaller pipeline means smaller compressor stations. It also means a little less disruption when it’s built as KM will need less space to store pipes. But the more modest environmental impacts don’t assuage anti-fossil fuelers who want to eliminate all fossil fuels and, we suppose, go back to the stone ages with camp fires and animal skins for clothes…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation | Tennessee Gas Pipeline

NH Gov Hassan Asks FERC to Schedule More Hearings for KM Pipeline
July 17, 2015July 17, 2015

New Hampshire Gov. Maggie Hassan seems to be playing both sides of the fence in the debate to bring cheap, abundant Marcellus Shale gas to New England to help relieve sky-high electric and natural gas prices in the region–particularly in the winter months. Hassan is one of six New England governors who previously backed the concept of a new natural gas pipeline to the region (see Blue State Blues: 6 New England States Want New Natgas Pipeline). Yet lately, Hassan, one of the five Democrat governors supporting a pipeline, seems to be backing away from the concept and calling on Kinder Morgan with its proposed Northeast Energy Direct (NED) pipeline plan to bend over backwards, sideways and any which way it can to please her lib constituents. The latest in her escalating rhetoric is a letter sent Wednesday to the Federal Energy Regulatory Commission (FERC) asking them to schedule more than just three scoping hearings. As we’ve often commented, anti-drilling nutters need cameras and open forums to feel good about themselves. They parade and preen and behave in the wackiest ways when they know a camera and microphone are present. Hassan wants to provide more such opportunities for her supporters…
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