Industrywide Issues

Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Counties Line Up Against Wolf Severance Tax, Distrust Assurances
March 26, 2015March 26, 2015

Pennsylvania counties are saying “no thanks” to PA Gov. Tom Wolf’s severance tax plan. They don’t believe (justifiably so) that they’ll make out just as well under a severance tax as they have under an impact fee. They’re not falling for Wolf’s “just trust me, ya’ll will be just fine” routine. Wolf is not in a political pickle because the County Commissioners Association of Pennsylvania is lining up against his high severance tax proposal. Wolf tells counties they’ll still get what they were getting under the impact fee. They’re telling him, politely, that he’s full of beans…
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Bradford County | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Susquehanna County | Tioga County (PA)

PA DEP Issues Drought Watch in 27 Counties, Including Marcellus
March 26, 2015March 26, 2015

Yesterday the Pennsylvania Dept. of Environmental Protection issued a drought watch for 27 counties in the state, including some of the most heavily drilled Marcellus Shale well counties–including Susquehanna, Bradford and Tioga counties. A drought watch is, according to the DEP, the first and least-severe level of the state’s three drought classifications and calls for water users to voluntarily conserve 5% of the water they have been using…
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CNG/LNG | Dominion Energy | Economic Impact | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Dominion Needles Anti-Drillers by Throwing Party for Cove Point LNG
March 26, 2015March 26, 2015

Dominion hosted a party yesterday and anti-drillers weren’t invited. Dominion’s party sported the Japanese ambassador the U.S., Maryland Gov. Larry Hogan and other dignitaries–international, state and local–to celebrate the fact that the Cove Point LNG export facility is now under construction. Japan and India have together spoken for 100% of all the natural gas that can be liquefied and pumped through the new facility once it’s built and begins operations in 2017 (see Dominion’s Cove Point LNG Facility Achieves Important Milestones). As near as we can tell this was a party just to have a party. That is, there was no particular portion of the project completed or other “milestone” reason to celebrate. They just wanted to celebrate and (judging from the language in the announcement below) needle anti-drillers (the “doubters” who said it couldn’t be done) to point out that Dominion has won–and they have lost–despite their best efforts to scuttle the project…
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Anti-Drilling/Fossil Fuel | Industrywide Issues

Bonnie Raitt Gives Them Something to Talk About – Stupidity
March 26, 2015March 26, 2015

Bonnie Raitt has decided she’s going to give them something to talk about–and it’s not love. Raitt is the latest celebrity to mouth lies about fracking. She’s donating a couple of songs to a new album due out in June called “Buy This Fracking Album”–an attempt to fundraise for a losing effort. Raitt, whose musical talents cannot be denied (which makes this story so sad and painful to write), is regurgitating lies she’s been told. Raitt actually said fracking “destroys our water, our communities and our planet.” It’s just a shame that such a talent is so ignorant of the facts. The only way to get the attention of Raitt and the others contributing to the album is to never again buy a ticket to one of her concerts, never spend a penny on another song she sings, and deny her any kind of revenue. Money talks and it’s about the only language people like Raitt listen to, so let’s make sure she gets the message loud and clear…
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CNG/LNG | Industrywide Issues | New York | Regulation | Statewide NY

Liberty Says “Non-Fracked” Trinidad Gas Better than Marcellus Gas
March 26, 2015March 26, 2015

For some time a controversy has been brewing in (where else?) New York State. But this controversy isn’t about fracking–at least not directly. Liberty Natural Gas filed a plan back in 2010, prior to the Marcellus Shale revolution, to construct an off-shore LNG import (not export) facility off the coast of New York and New Jersey–in the ocean. A floating LNG facility. A pipeline would run from the off-shore terminal to Jones Beach, NY and from there would connect to a Transco pipeline lateral. But something happened on the way to the forum–the Marcellus Shale boom. There is no longer a need for the terminal. Anti-drillers (anti-fossil fuelers, really) are dead set against it. The Marcellus revolution caught a lot of people by surprise, including Liberty. So did Liberty acknowledge the project is no longer needed? Nope. They’re trying to convince anti-drillers the project is still needed because it will bring in “non-fracked” gas from places like Trinidad. That is, they’re shooting the very industry they belong to right in the head, and attempting to appease the nutters on the other side that will never be appeased. Not a very smart move by Liberty…
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Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Prof. Engineers Likely Need Contractor License to Keep Working
March 26, 2015March 26, 2015

If you’re a professional engineer (PE) working in the Marcellus/Utica Shale in West Virginia, listen up. You may (probably will) be required to become a licensed contractor in the State of West Virginia. It’s a bit convoluted under what circumstance you do and do not need a contractor’s license. This is how law firm Steptoe & Johnson (who just won the “Law Firm of the Year” award at the Oil & Gas Awards for the Northeast, congrats!) explains it…
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Chevron | Crime | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

Man Confesses, Admits Why He Vandalized Chevron Well in SWPA
March 25, 2015March 25, 2015

Two weeks ago MDN told you about two men who had been indicted by a federal grand jury on felony charges of damaging a shale well (or wells) on Chevron’s Burchianti Pad in Greene County, PA in March 2014 (see 2 Men Indicted by Feds for Vandalizing Chevron Wells in SWPA). At the time we said it was too early to speculate what they were up to and why. Those words were prescient. We wondered if it was environmentalism gone amok. Or perhaps previous employees with an ax to grind. Or maybe a drunken stunt. It was none of those things. As it turns out, it was plain old, garden variety theft–of copper wire…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Marcellus Industry to DEP Tech Advisory Bd: You’re Out of Order!
March 25, 2015March 25, 2015

The Marcellus industry in Pennsylvania is none too happy with the performance thus far of Acting Secretary of the Dept. of Environmental Protection, John Quigley. As MDN has noted, Quigley first fired the members of the DEP’s Oil & Gas Technical Advisory Board (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?), then he pulled a fast one, changing up revised drilling rules that were already done and ready to go under Tom Corbett’s administration (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Needless to say, Quigley isn’t impressing anyone so far. The reporters at Marcellus.com have noticed and selected out some choice comments by the industry, illustrating their frustration with the new regime. One comment even channels Al Pacino…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Maryland’s Democrat House & Senate Pass Anti-Fracking Bills
March 25, 2015March 25, 2015

On his way out the door of the governor’s mansion in Maryland, then-Gov. Martin O’Malley decided to issue new rules to allow fracking (see Maryland Gets Ready to Frack! Gov O’Malley Files New Regulations). Which at the time we thought was really odd. O’Malley is an anti-drilling Democrat who obstructed fracking for the past four years he was in office. Why the change of heart on his way out the door? Now we know. He wants to run for president–and no one can run for president on a platform of stopping shale drilling. No matter what his motivation–what counts is that Maryland is seeing movement toward using the miracle of fracking. Except now both the Maryland House and Senate have just passed anti-fracking bills, one of which would slap a new moratorium on fracking for yet another three years. The good news is that Maryland’s new governor, Republican Larry Hogan, is pro-fracking and sure to veto any such nonsense…
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CNG/LNG | Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | Millennium Stimulation

GASFRAC Bankruptcy Dims LPG Waterless Fracking; LNG Fracking Debuts
March 25, 2015March 25, 2015

In an effort to minimize the impact of shale drilling on the environment, perhaps the biggest prize of all is to figure out a viable alternative to using water in fracking. As MDN has pointed out numerous times–there’s nothing wrong with using water, as long as you recycle it and/or properly dispose of it. Water is used because it’s economical to do so, and it’s one of the best fluids to get the fracking job done. But still, there are locations, like the western part of the country, that are water-constrained. Plus, it would sure be nice to reduce all of those truck trips to the well pad. One technology that seemed to hold promise was liquefied petroleum gas (LPG) fracking, pioneered by Canadian company GASFRAC. The problem is, GASFRAC is close to the end of being sold off in bankruptcy court (see Bankrupt Waterless Fracking Co GASFRAC Sold to “Third Party”). Does the end of GASFRAC also mean the end of waterless fracking? Perhaps not. An intriguing new LNG (liquefied natural gas) fracking technology is now on the horizon…
Read More “GASFRAC Bankruptcy Dims LPG Waterless Fracking; LNG Fracking Debuts”
Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Even with Capex Budgets/Jobs Slashed, NE Production Still Rising
March 25, 2015March 25, 2015

Capital expenditure budgets slashed 20%, 30%, 40% and more. Mass firings in the thousands by oilfield services companies. The mad dash to raise cash to keep going. Shutting in wells to slow or stop production. Some days it seems like the news is all doom and gloom. But what’s this? Even though rig counts are down, capex is slashed and jobs are dwindling, production in the Marcellus/Utica will continue to go UP in 2015. You read that right. How can that be? According to some excellent research published by NGI’s Shale Daily, production will continue to go up because “efficiencies in drilling techniques and low operating costs are overcoming the energy industry downturn.” That is, good old American ingenuity is once again figuring out how to do more with less. What did the ace reporters at Shale Daily discover when they dug down into the data?…
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Economic Impact | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Research | Statewide PA

New Study Finds PennEast Pipeline to Save PA & NJ Residents $900M
March 25, 2015March 25, 2015

Concentric Energy Advisors Inc., an independent management consulting and financial advisory firm focused on the North American energy industry, has just published a new report that shows the economic impact from the PennEast Pipeline will be huge for both Pennsylvania and New Jersey residents. The study, titled “Estimated Energy Market Savings From Additional Pipeline Infrastructure Serving Eastern Pennsylvania And New Jersey” (full copy embedded below) finds that PA electric and natural gas customers will see a combined savings of over $500 million, while NJ electric and gas customers will see a combined savings of nearly $400 million…
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Industrywide Issues | Research | Weather

Marcellus/Utica 3-Month Temp Forecast: Cold, Warm, Warm
March 25, 2015March 25, 2015

Every now and again we check in on the weather forecast–the long range forecast–from Weather Services International. Why? Because the weather has a great deal to do with the price of natural gas, and the price of natural gas has a great deal to do with whether or not drillers are willing to drill for it. Forthwith, here is the temperature forecast for the next three months across the U.S., by region (the Marcellus/Utica is, of course, in the Northeast)…
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Dominion Energy | Education | Energy Services | Industrywide Issues

Dominion to Issue $1.5M in Education Grants in Energy, Environment
March 25, 2015March 25, 2015

Dominion, a major natural gas utility and midstream company operating in Connecticut, Maryland, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Virginia, West Virginia and the District of Columbia is looking to give away $1.5 million. But not just to anyone. Yesterday Dominion announced they will issue grants that focus on energy, environment and workforce development in the states and areas where they operate. ThepProgram awards up to $50,000 for higher education projects and up to $10,000 for K-12. But, you have to fill out an application and the application must be filed no later than May 15. What are you waiting for! Here’s the details from Dominion…
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Statewide PA | Washington County

Range Resource Secret to Drilling More Productive Wells for Less $
March 24, 2015March 24, 2015

Every year drillers get better at what they do. They experiment, they learn, they grow. Here’s an example from Range Resources. Range went back to a well pad they previously drilled with five wells and drilled two more. The two new wells used a different technique. Comparing the first year of production from the new wells with the first year of the original wells, the two new wells produced 53% more natural gas (per well) than the old wells did. Tell us again, peak oil/gas theorists, how the shale boom is just a flash in the pan and will be all gone by the end of this decade. Here’s more details on how Range increased production by 53%–what their “secret” is to drilling more productive wells using LESS money per well…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov Wolf Digs In Like a Chigger with Severance Tax Plan
March 24, 2015March 24, 2015

Newly elected Pennsylvania Gov. Tom Wolf, whose administration is filled with Ed Rendell retreads, remains “dug in” when it comes to a severance tax. One of the Rendell retreads (with ties to the anti-drilling PennFuture) is John Hanger, former Secretary of the Dept. of Environmental Protection under Rendell. Hanger is Wolf’s Secretary of Planning and Policy (see PA Gov-Elect Wolf Appoints John Hanger Secretary of High Taxes). Hanger ran against Wolf and Wolf’s (now) chief of staff, Katie McGinty, who is herself another Rendell retread, before dropping out of the governor race last year (see Pass One Last Joint for John Hanger). True to his far-left lib Dem roots, Hanger (as Wolf’s mouthpiece on this issue) is saying we need those high severance taxes and we need them now. Squishy RINO Republicans, like Senator Joe Scarnati, will consider adopting the severance tax–but only after ~~being bribed enough~~, er, ah, pension reform is dealt with first…
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