Energy Services

Braskem | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

First Cloud Appears for Odebrect WV Ethane Cracker Plant Project
February 18, 2015February 18, 2015

Hmmm. Is there a cloud on the horizon over the Odebrecht ethane cracker project proposed for Parkersburg, WV? Until now every single thing we’ve read or heard (or discussions we’ve had with David Peebles from Odebrecht) have indicated the WV ethane cracker project is full speed ahead, pedal to the metal. It was only at the tail end of 2013 that the project was announced (see WV Announces Brazilian Company to Build Ethane Cracker Complex). The $4 billion project will construct not only an ethane cracker, but several petrochemical plants as well (see Odebrect Cracker Aims to Attract Chemical/Plastics Manufacturing). In fairness, Odebrecht has said a final decision won’t be made until later this year (see Odebrecht WV Cracker Plant Decision “By End of 2015?). And until now, it certainly seemed like this project, even more than the Shell cracker in Pennsylvania, has had the momentum. Then we read this…
Read More “First Cloud Appears for Odebrect WV Ethane Cracker Plant Project”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Snyder County | UGI Energy Services

UGI Building 35-Mile Pipeline for Panda Power Electric Plant
February 18, 2015February 18, 2015

Panda Power announced yesterday that they will build a new 1,000-megawatt electric generating plant powered by Marcellus Shale gas in Snyder County, PA (see today’s companion story). In order to get Marcellus gas to the plant site, a 35-mile pipeline is needed. Enter UGI, one of Pennsylvania’s largest utility companies with a midstream subsidiary that builds pipelines. UGI has committed $160 million to build the 20-inch pipeline needed to supply the plant…
Read More “UGI Building 35-Mile Pipeline for Panda Power Electric Plant”
DTE Energy | Energy Services | Industrywide Issues | Pipelines

DTE Energy Analyst Call: Utica/Marcellus Big Part of Co’s Future
February 16, 2015February 16, 2015

DTE Energy is a major utility and midstream company headquartered in Detroit, MI. DTE is part owner of the Millennium Pipeline across NY, sole owner of the Bluestone Gathering system in Susquehanna County, PA, and partner in the NEXUS Pipeline planned to cross OH. DTE is also the part owner of the Vector Pipeline, a pipeline that until recently has moved gas from Chicago (coming from Canada) to storage facilities in Michigan. A number of shippers have stopped using Vector for that purpose and it will now be used to flow Utica Shale gas, delivering it to both the NEXUS Pipeline and to Energy Transfer Partners’ ET Rover pipeline. According to DTE officials on an analyst call last Friday, the Utica and Marcellus Shale play a big role in the company’s future. Below we’ve extracted the juicy bits from the analyst call touching on the Utica/Marcellus, NEXUS and Vector pipelines, and how company officials say it all ties together…
Read More “DTE Energy Analyst Call: Utica/Marcellus Big Part of Co’s Future”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Conway MA Offers Lame Excuses to Oppose Tenn Gas Pipeline
February 16, 2015February 16, 2015

If it wasn’t so tragic, it would be funny. Otherwise “intelligent” people in the Massachusetts town of Conway have concocted an ominous “report” on the proposed Kinder Morgan expansion of the existing Tennessee Gas Pipeline through their area. Since there are no real negatives to building the pipeline (it IS a pipeline, it gets buried in the ground never to be seen or heard from again)–they have to invent negatives to oppose it. Here’s how the lie goes: shale gas has a lot of radon in it (it doesn’t), and the gas traveling through the pipeline will be shale gas with radon, and EVERYONE knows those pipelines leak like sieves (it’s a wonder any gas actually makes it to market through those pipelines), and that leaking, nasty, fracked shale gas with radon will leak out and cause cancer. Just one teeny, tiny problem with that particular lie. How do you mitigate radon? Anyone? That’s right: You vent it into the air where it dissipates immediately…
Read More “Conway MA Offers Lame Excuses to Oppose Tenn Gas Pipeline”
Accidents | Brooke County | Energy Services | Enterprise Products Partners | Industrywide Issues | Pipelines | West Virginia

ATEX Express Ethane Pipeline Now Fixed, 100% Back Online Today
February 13, 2015February 13, 2015

Sometime today, the Appalachia-to-Texas Express (ATEX) ethane pipeline will once again be fully operational. On January 26 a section of the pipeline in Brooke County, WV ruptured and caught fire (see ATEX Ethane Pipeline Explodes, Burns in Brooke County, WV). The Pipeline and Hazardous Materials Safety Administration (PHMSA) is investigating but so far they don’t have a final determination. When that section of the pipeline went offline, two of four processing facilities that feed ethane to the line we bumped off. Starting today, all four processing plants will once again be flowing ethane through the ATEX…
Read More “ATEX Express Ethane Pipeline Now Fixed, 100% Back Online Today”
Carbon County | Energy Services | Industrywide Issues | Luzerne County | PennEast Pipeline | Pennsylvania | Pipelines | Regulation

More Silly Antics from Antis at FERC PennEast Pipeline Hearing
February 13, 2015February 13, 2015

We’ve been to a number of Federal Energy Regulatory Commission (FERC) scoping hearings, as well as hearings by the New York Dept. of Environmental Conservation. Whether it’s a hearing on pipelines, compressor stations or shale drilling, anti-fossil fuel nutters always show up and it seems as if they read from the same script every time. The latest example of that comes from Carbon County, PA where the silly antics of antis was on full display once again, this time at a FERC hearing on the PennEast Pipeline. Example: One anti-pipeline nutter used part of her 3 minutes of talk time to read the lyrics from a Disney movie (boggles the mind)…
Read More “More Silly Antics from Antis at FERC PennEast Pipeline Hearing”
Energy Services | Industrywide Issues | Pipelines | Williams

Williams CEO Says Pipeline Opposition Equals More Coal Use
February 13, 2015February 13, 2015

In a recent interview, the CEO of Williams, Alan Armstrong, was quite candid: The problem slowing natural gas pipeline development is not the low price of oil and gas–it’s politics. Armstrong says he would prefer federal oversight, by FERC, shutting out “local voices” that muck up the works. We’re not sure we totally agree with that viewpoint. Freedom and liberty are messy things, but we understand his sentiment. Armstrong points out there’s no one “who’s in charge” when it comes to pipelines, and process which makes for endless debates and trying to reconcile innumerable opinions…
Read More “Williams CEO Says Pipeline Opposition Equals More Coal Use”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Jobs

Halliburton Laying Off Up to 6,400, Says Baker Hughes Not a Factor
February 13, 2015February 13, 2015

Halliburton, the county’s second largest oilfield services company, announced earlier this week they’re laying off some 6.5% to 8% of their 80,000 employees, which translates to 5,000 to 6,500 jobs. The company Halliburton is buying, Baker Hughes, announced in January they are laying off 11% of their workforce (see Baker Hughes Announces 7,000 Layoffs Due to Low Oil Price). Also in January, the country’s (and world’s) largest oilfield services company, Schlumberger, laid of 9,000 workers (see Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices”). To which we say, it’s getting ugly out there…
Read More “Halliburton Laying Off Up to 6,400, Says Baker Hughes Not a Factor”
Energy Services | FMC Technologies

FMC Technologies Axing 2,000 Jobs, Some in the Marcellus/Utica
February 12, 2015February 12, 2015

FMC Technologies is a subsea oil-field equipment manufacturer and supplier of hydraulic fracturing technology and other wellhead services in North America–including a large presence in the Marcellus/Utica region. The company, based in Texas, employs 20,000 people worldwide. Yesterday FMC became the latest big oil and gas industry firm to announce job cutbacks due to low oil prices. FMC said it will trim (more like ax) 10% of its workforce, some 2,000 people, most of them in North America and located “outside of Houston.” One can deduce that some number of those lost jobs will be in the Marcellus/Utica…
Read More “FMC Technologies Axing 2,000 Jobs, Some in the Marcellus/Utica”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation | Tennessee Gas Pipeline

Anti Groups Beat Export Drum in Opposing MA Pipeline
February 11, 2015February 11, 2015

Anti-fossil fuelers continue to try and make the case that the Federal Energy Regulatory Commission should not allow Kinder Morgan to build an extension to the Tennessee Gas Pipeline through Massachusetts, called the Northeast Energy Direct project. Their favorite tactic is to find an issue that they believe will resonate with the general population and push for all it’s worth on that issue–with the gleeful help of mainstream (or “drive-by”) media. The latest wedge issue they’re harping on is that natural gas flowing through the pipe will get exported–implying that none of the gas flowing through the pipeline will benefit New Englanders. We previously dealt with the complex issues behind exporting (see Canadian LNG Exports, New England Pipelines & the Marcellus). Will some of the gas flowing through the TGP pipeline get exported to Canada and liquefied into LNG and exported across the ocean? No doubt. Will most of it get exported? No…
Read More “Anti Groups Beat Export Drum in Opposing MA Pipeline”
Crawford County | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Supply Chain | Universal Well

Universal Well Services Closes PA Facility, Lays Off Some Workers
February 11, 2015February 11, 2015

It wasn’t so long ago that MDN told you about the “feel good” story of Universal Well Services, a Meadville (Crawford County), PA company specializing in pressure-pumping wells, cementing well pads and other well services (see Marcellus Supply Chain Success Story: Universal Well Services). Universal is a subsidiary of Patterson-UGI Energy, Inc.–a large oilfield services company. The company had grown from 200 to more than 1,000 employees in 10 years. But that was before the price of oil and gas went into the basement. Now they’re laying off employees…
Read More “Universal Well Services Closes PA Facility, Lays Off Some Workers”
Energy Services | Harrison County | Industrywide Issues | Marathon Petroleum | Ohio | Pipelines | Statewide OH

Marathon Announces Open Season on New Wet Gas Pipelines
February 10, 2015February 10, 2015

Marathon Pipe Line and Ohio River Pipeline, both subsidiaries of Marathon Petroleum Corp., announced binding open seasons on two new pipeline projects in Ohio and beyond. The first is called Cornerstone Pipeline is a 16-inch pipeline for condensate, natural gasoline, diluent and butaine (NGLs) that will begin in Harrison County, OH and run for about 50 miles to Marathon’s refinery in Canton, OH. Along the way it has the potential to connect various processing facilities. The second project is something they’re calling the Utica Build-Out Projects–a pipeline or pipelines that will carry product beyond Canton to other Midwest refineries, reaching Chicago and even into Canada…
Read More “Marathon Announces Open Season on New Wet Gas Pipelines”
Belmont County | Energy Companies | Energy Services | Industrywide Issues | Jobs | Monroe County | Ohio | Pipelines | Rice Energy | Rice Midstream

Rice Midstream Building New “Zeus” Pipeline in Belmont/Monroe OH
February 10, 2015February 10, 2015

MDN picked up on a bit of news we had not previously heard about. Rice Midstream, the newly formed subsidiary of Rice Energy launched in December (see Rice Midstream IPO Falls Short of Goal by Approx. $134M), is busy at work. They are building eight miles of 30-inch pipeline through portions of Belmont and Monroe counties (in Ohio) as part of their “Zeus” project. This is the first time we’d heard of Zeus (the pipeline). The project will last four months and employ 350 temporary union workers–welders and construction workers…
Read More “Rice Midstream Building New “Zeus” Pipeline in Belmont/Monroe OH”
Columbia Pipeline Group | Energy Services | Industrywide Issues | NiSource | Pipelines

Columbia Pipeline IPO Blows By Rosiest Expectations, Nets $1.1B
February 10, 2015February 10, 2015

Last week MDN told you that NiSource was launching an initial public offering (IPO) and spinning off its Columbia Pipeline Group subsidiary into its own subsidiary. NiSource and Columbia were hoping to raise upward of a huge $1 billion (see Columbia Pipeline Floats IPO, Hopes for Upward of $1B). Guess what? They got MORE than $1B! They ended up netting $1.1 billion after pricing units at $23 each (their target was $19-$21). When the units started to trade, they hit $28.01 per unit for a time before falling back to $26.79. How did Columbia’s IPO measure up with some other recent northeast midstream IPOs, like CONSOL, Rice Energy and Antero Resources?…
Read More “Columbia Pipeline IPO Blows By Rosiest Expectations, Nets $1.1B”
Energy Services | Industrywide Issues | Jobs | Mahoning County | Ohio | Supply Chain | Vallourec

Vallourec Star Pipeline Plant in OH Shutting Down for 3 Weeks
February 10, 2015February 10, 2015

Vallourec Star, a steel pipe manufacturer in Youngstown, OH, has had more business than it knows what to do with since it opened in 2012. That is, until recently. With the plunging price of oil and gas comes scaled back budgets for drilling in 2015. Vallourec Star has been experiencing a slow down. In anticipation of even more slowing down, they’ve announced a three week shut down of the plant, meaning hundreds of families will have a big hole in their family budgets. For those that can do without a paycheck for a while, the company is also offering a 6-month voluntary layoff, which signals they think the “slow down” may be with us for while…
Read More “Vallourec Star Pipeline Plant in OH Shutting Down for 3 Weeks”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

GreenHunter to Coast Guard, We’re Barging While You Fiddle Around
February 9, 2015February 9, 2015

As MDN chronicled on Friday, there is a dispute between GreenHunter Resources and the U.S. Coast Guard (USCG) over what, exactly, constitutes “oil field waste” (see GreenHunter/Coast Guard War of Words — MDN Explains It). If we might toot our own horn for a moment, we were the first to understand and share that understanding of the key issue, which is whether or not produced water (“brine”) from horizontal wells is essentially the same chemically as produced water from vertical-only wells. That is what GreenHunter and the USCG disagree about. GreenHunter says it is the same thing, and the USCG isn’t so sure. On Saturday, our interpretation of that key issue was confirmed by USCG statements–they remain concerned that low levels of radiation, which may or may not be present in produced water from horizontal wells, DOES make shale well produced water potentially different from regular old produced water from vertical wells…
Read More “GreenHunter to Coast Guard, We’re Barging While You Fiddle Around”