Energy Services

Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Ethane Cracker – Cautious Optimism in the Mountain State
March 3, 2014March 3, 2014

The editors at the Charleston Gazette have penned an editorial about their “cautious hope” that the ethane cracker plant announced by Odebrecht for Parkersburg, WV will become a reality. As they note, coal is descending in the state, and natural gas is ascending. If the cracker plant is built–complete with environmental safeguards–it will be a huge economic bonanza for the state. Although the editors are a tad skeptical about the “drill drill drill” attitude from Gov. Earl Ray Tomblin and his administration (a Democrat, which is noteworthy), they’re willing to suspend the usual knee-jerk reaction against such projects and allow hope to bloom on the editorial page. A good sign!

From the Gazette:
Read More “WV Ethane Cracker – Cautious Optimism in the Mountain State”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

The Radicals Behind Efforts to Stop Cove Point, MD LNG Plant
March 3, 2014March 3, 2014

The group 350.org, a rabidly anti-drilling group that has adopted the same tactics used by the Ku Klux Klan complete with face masks and burning torches (see Wackadoodle 350.org protesters disappear their KKK moment), is behind the movement to stop the XL Keystone oil pipeline from Canada to the Gulf Coast. They are also behind an effort to stop the LNG (liquefied natural gas) export terminal in Cove Point, MD. The Chesapeake Climate Action Network has enlisted the help of 350.org in their effort to stop Cove Point. We wonder, are torches and bed sheets coming to Maryland now? Shame on the Climate Action Network for hooking up with these radicals–but then, perhaps they’re just as radical?

Here’s an update on the ongoing effort to stop what, frankly, can’t be stopped: the permitting of a new export facility in Cove Point that will liquefy and send some of our cheap, abundant Marcellus Shale gas to India and Japan where they need it badly…
Read More “The Radicals Behind Efforts to Stop Cove Point, MD LNG Plant”
Energy Services | MarkWest Energy

MarkWest PowerPoint Preso – Really Cool Slides, Worth Your Time
February 28, 2014February 28, 2014

Yesterday MDN highlighted the official financial and operating update from MarkWest for 2013 (see MarkWest’s Banner 2013, Plans for 2014). Also happening yesterday that we’re reporting on today, was the inevitable investor phone call with top MarkWest management. In the past MarkWest has produced some great PowerPoint presentations, loaded with useful information. They didn’t disappoint this time around either. Below is a copy of the newest PowerPoint slide deck from yesterday’s investor call, along with a transcript of MarkWest CEO Frank Semple talking his way through the slides.

Although you’ll want to review the entire slide deck, here are our favorite slides…
Read More “MarkWest PowerPoint Preso – Really Cool Slides, Worth Your Time”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Wastewater | West Virginia

What’s the Holdup at GreenHunter Wheeling Frack Wastewater Plant?
February 28, 2014February 28, 2014

After hitting a few rough patches with Wheeling, WV Planning Commission, GreenHunter Water finally received a green light to proceed with a frack wastewater recycling facility in Wheeling, along the shore of the Ohio River. Even though one Planning Commission member, Gloria Delbrugge, keeps a firmly closed mind about the facility (see Wheeling Councilwoman Will Shun GreenHunter Ribbon Cutting). Anti-drillers often have closed minds. All seemed fine with the Commission’s approval in hand and GreenHunter was on track to open the facility by the end of last year. But it still hasn’t happened. Why?

The main reason is that they’re still waiting on permission from the Coast Guard to move frack waste water by barge down the Ohio to points where GreenHunter owns some injection wells where they plan to dispose of some of the wastewater (see Coast Guard Wants Frack Wastewater Barges Tested – Every Load). There’s also the matter of receiving permits for trucks entering and exiting the facility (see GreenHunter’s Wheeling Frack Wastewater Facility Hits a Snag). And they’ll permits for the barges when/if the Coast Guard finally approves the barging plan. Oy vey! Regardless, GreenHunter remains laser focused on the Marcellus/Utica and is committed to bringing this (and other) facilities online. Here’s an update:
Read More “What’s the Holdup at GreenHunter Wheeling Frack Wastewater Plant?”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues | M&A

Crosstex, Devon Name Names of Board & Leaders for New EnLink
February 28, 2014February 28, 2014

MDN has chronicled the marriage of Crosstex Energy (a midstream company) and Devon Energy’s midstream division (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds). The new entity will take on the name EnLink Midstream and will continue to have major operations in the Marcellus/Utica region. Not every t has been crossed and i dotted, yet. The two are close to tying the knot–the shareholders of both companies need to approve the deal. But it’s a foregone conclusion that the deal is happening and will happen very soon.

It comes as no surprise that the two companies have today announced who will be on the board of directors for the new EnLink operation, and who will lead it as executive management. Here is the announcement that names names for the coming EnLink when the merger is finalized:
Read More “Crosstex, Devon Name Names of Board & Leaders for New EnLink”
Access Midstream Partners | Chemung County | Economic Impact | Energy Services | Industrywide Issues | Jobs | New York | Pipelines | Processing Plants

MDN Plants a Big Fat Kiss on Access Midstream
February 28, 2014February 28, 2014

Because it’s Friday and we’re in a jovial mood, we’ve decided to award an “at-a-boy/girl” award today, to… Access Midstream. A few years ago Chesapeake Midstream was spun off into it’s own company and later renamed Access (see Chesapeake Midstream Changes Name to Access Midstream). Access has a serious presence in the Marcellus and Utica Shale region, among other shale basins across the country.

So why the recognition today? Because even though New York politicians like Gov. Andrew “can’t-make-a-decision” Cuomo have obstinately refused to allow shale drilling in the state, Access is building a new office building in Big Flats, NY, near Corning/Elmira. The location happens to be close to the PA border and of course Access will use the office as a regional HQ for its operations in northeastern PA. Access already has a presence in the Big Flats area and has had for several years. They’ve decided it’s time to build a new regional HQ and consolidate several locations into one. The point is, Access could just as easily have built their new building a few miles away in PA, which is what 99.9999999% of other industry-related companies have done (NY is the BIGGEST loser). However, Access decided to throw us NYers a bone and build their facility, employing 135 people, in our high tax, business-unfriendly and drilling hostile state. And so we say, thank you! And, are you crazy?!…
Read More “MDN Plants a Big Fat Kiss on Access Midstream”
Energy Services | MarkWest Energy

MarkWest’s Banner 2013, Plans for 2014
February 27, 2014February 27, 2014

MarkWest Energy, as we’ve noted many times before, is probably the biggest midstream company in the Marcellus and Utica Shale. It’s always a contest between MarkWest and Williams, but if we’d have to choose one, we’d say MarkWest is has more of a presence in the northeast. Yesterday the company issued their fourth quarter and full year results for 2013 (in the ongoing parade of such announcements). The company notes that with the completion of several important new processing plants they now are processing over 2.8 billion cubic feet per day (Bcf/d) of dry and wet gas throughout the Marcellus and Utica Shale region. In addition to the facilities already built, MarkWest has an eye-popping 19 additional major processing and fractionation facilities under construction in the Northeast. They are pouring billions each year into the Marcellus/Utica.

Here is MarkWest’s look back at an incredible 2013, and a look forward to some of the good things coming in 2014…
Read More “MarkWest’s Banner 2013, Plans for 2014”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Pipelines

Serious Concerns about Boardwalk Pipeline Partners Continue
February 27, 2014February 27, 2014

Two weeks ago MDN told you about the developing story that Boardwalk Pipeline Partners has hit a serious rough patch and their stock price was plummeting (see Boardwalk’s Stock Drops Like a Rock – Trouble in Midstreamland?). The situation has not improved and their stock price is down nearly 50% from where it was just a short time ago. Why do we care?

Boardwalk is in a joint venture with Williams to build the Bluegrass NGL pipeline from the Marcellus/Utica all the way to the Gulf Coast. The Bluegrass has hit trouble, ironically, in the Bluegrass state of Kentucky with anti-drillers opposing it every step of the way (see the list of MDN’s Bluegrass pipeline trouble stories here). With one of the two Bluegrass pipeline partners in financial straights, what does that mean for the pipeline project? Especially since they have competition and it’s a horse race with a Kinder Morgan/MarkWest joint venture (see “Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?). Here’s the latest analysis of how, and why, Boardwalk finds itself in the position they are now in…
Read More “Serious Concerns about Boardwalk Pipeline Partners Continue”
Calfrac | Energy Services

Calfrac Talks About Marcellus & Its Importance for the Company
February 27, 2014February 27, 2014

Across the United States and indeed around the world, when it comes time to do the actual fracking of a shale well (which is a very small part of drilling a well), there are only a handful of companies that get contracted to do the work. One of those companies is Calfrac Well Services. The company’s bigwigs held an analyst phone call yesterday (most public companies do the same) to discuss fourth quarter and fiscal year 2013 results. These calls are typically done to impress and reassure investors that their money is well-invested in the company–and perhaps attract new investment. The quarterly analyst phone call dance is something they all do–a part of capitalism, the best economic system ever devised by man.

MDN sometimes brings you excerpts from these phone calls, as we are today, because we find interesting tidbits. From Calfrac, we bring you the prepared comments portion of the call that happens at the beginning. Why? Because Calfrac’s top management mentions the Marcellus Shale play–and it’s importance to Calfrac–a number of times…
Read More “Calfrac Talks About Marcellus & Its Importance for the Company”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Mass. Anti-Drillers Finally Wake Up, Begin Opposing TGP Project
February 27, 2014February 27, 2014

About a month ago MDN noted, with some shock, that townships across Massachusetts were reacting to overtures by Kinder Morgan to expand the Tennessee Gas Pipeline across the state (to bring in more abundant, cheap Marcellus Shale gas) with reasonableness and an open mind (see Reaction to TGP’s Planned Pipeline Across Massachusetts). We always thought Massachusetts residents as a whole were slightly left of Vlad Putin. But we were (happily) wrong! We observed it’s funny how a 10x price jump in natural gas had turned New Englanders into a more reasoned, considered bunch.

However, some of the nutty bugs have now come crawling out of the woodwork to oppose the pipeline because it will bring that filthy, nasty “fracked” natural gas into the state. It just took them a little longer to come out of their fugue and get organized, but now they have–at least a small handful of them…
Read More “Mass. Anti-Drillers Finally Wake Up, Begin Opposing TGP Project”
Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Research | Statewide WV | West Virginia | Wood County

Economist Releases Report on WV Cracker Plant’s Economic Impact
February 26, 2014February 26, 2014

West Virginia’s coming ethane cracker plant continues to generate positive economic news. Yesterday the former director of West Virginia University’s Bureau of Business and Economic Research and professor emeritus at WVU, Tom Witt, released a study he conducted on behalf of Braskem America (i.e. Odebrecht, the company building the cracker). The new study details specifics for how many jobs and how much money the proposed cracker and associated petrochemical plants will generate. And it’s truly astonishing.

Here’s an overview of the economic miracle about to hit WV (and beyond)…
Read More “Economist Releases Report on WV Cracker Plant’s Economic Impact”
eCORP International | eCORP Stimulation Technologies | Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues

Checking in on ecorpStim’s 100% Waterless Fracking, New Video
February 25, 2014February 25, 2014

ecorpStim has poked their heads up again to try and catch a bit of attention for their innovative waterless fracking solution. A press release issued yesterday by the company (full copy below) touts a new short video about their technology and promises that their “non-flammable propane stimulation” solution, developed in “2013,” will roll out in field demonstrations by “the end of this year.” We gave the video a watch a liked it (see it below).

MDN has had our eye on eCORP, ecorpStim’s parent company, since 2012 when they attempted but ultimately failed to cut a deal with landowners in Tioga County, NY to lease a large swath of land and potentially use a waterless fracking technology (from Canadian GASFRAC) to avoid New York’s ongoing moratorium (see Tioga County, NY Lease Deal with eCORP Falls Apart). It was after the wheels came off that deal that ecorpStim changed gears to develop their own waterless fracking solution.
Read More “Checking in on ecorpStim’s 100% Waterless Fracking, New Video”
Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already
February 24, 2014February 24, 2014

Amidst the bad news for Williams last week that the company is being targeted by corporate raiders (see Evil Corporate Raiders Double Investment (& Control) in Williams), was a little bright spot of good news. The company announced they plan to expand the Transco pipeline carrying cheap Marcellus Shale gas (mostly from PA) to the Eastern Seaboard–what they call the Atlantic Sunrise Expansion of the Transco. The good news is that nine drillers have signed binding contracts, already sopping up 100% of the planned 1.7 million dekatherms of expansion. The new customers were not named in the announcement.

Williams plans to spend $2.1 billion on the expansion. They will file a request with the Federal Energy Regulatory Commission (FERC) in March to get permission to…file a pre-filing. Yeah, it’s complicated–but that’s life in the midstream. Here’s the announcement from Williams:
Read More “Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines

NGPL Launches Open Season to Expand, Carry NE Gas South
February 21, 2014February 21, 2014

Two days ago Natural Gas Pipeline Company of America LLC (NGPL), a division of America’s largest midstream company Kinder Morgan, announced a 14-day non-binding open season to gauge interest in the potential expansion of its Gulf Coast mainline system. The expansion would increase NGPL’s flow capability up to 750,000 dekatherms per day of incremental volume from the Rockies Express Pipeline (REX) interconnection at Moultrie, IL. I would reverse the flow at several compressor stations, sending Marcellus and Utica Shale gas south on its pipeline system to Texas and Louisiana.

Here’s Kinder Morgan’s announcement of the NGPL open season, which runs through March 4th:
Read More “NGPL Launches Open Season to Expand, Carry NE Gas South”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream

EnLink’s 2014 Crystal Ball: $525M Revenue, $430M Capex
February 20, 2014February 20, 2014

Stockholders will soon vote on the previously announced merger between midstream company Crosstex Energy and driller Devon Energy (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds). There’s no reason to think the merger will not proceed smoothly. Both companies have operations in the Marcellus and Utica Shale region. The name of the new Devon subsidiary will be EnLink Midstream. As we previously mentioned, Barry Davis, CEO of Crosstex will become (or remain) CEO of EnLink. For us this is a feel-good merger–no one loses their job and Davis, by all accounts, is a really nice guy to work for (see A Peek Behind the Curtain of Crosstex/Devon Midstream Marriage).

Yesterday Crosstex issued their “best guess” as to what revenues and expenses will be for the company for 2014–something financial types call “guidance.” Here is Crosstex/EnLink’s best stab at peering into the crystal ball for 2014…
Read More “EnLink’s 2014 Crystal Ball: $525M Revenue, $430M Capex”
Access Midstream Partners | Energy Services

Access Midstream Execs Tout the Marcellus/Utica on Analyst Call
February 20, 2014February 20, 2014

MDN told you yesterday that Access Midstream had a really good year in 2013, thanks in part to the Marcellus and Utica Shale (see Access Midstream Has a Good Year: Revenue Up 80% for 2013). The executive team for Access held a conference call with analysts yesterday and (no surprise) a lot of the talk revolved around the Marcellus and Utica. We thought it was interesting and thought you might too:
Read More “Access Midstream Execs Tout the Marcellus/Utica on Analyst Call”