Industrywide Issues

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…
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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…
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Anti-Drilling/Fossil Fuel | Crime | Industrywide Issues | Pennsylvania | Statewide PA

Anti-Drillers Don’t Like Being Considered Suspects in Crimes
February 9, 2015February 9, 2015

Some children are never taught the life lesson that actions have consequences–and that you have to take responsibility for your actions. Some of those children grow into adulthood never learning that lesson. If you belong to groups that engage in “peaceful” blockades of fracking facilities or drill sites or pipeline sites, while shouting and screaming like you’re possessed, you might end up on a “watch list” by law enforcement. Why? Because some who act the very same way you’re acting tilt over into acts of lawlessness–sabotage and breaking things. It’s only prudent to keep an eye on groups of people who might be prone to such actions. But if you’re a spoiled child who grew up to be a spoiled adult, you take offense at being held to account for your actions because, well because YOUR actions shouldn’t have consequences. Your actions never had consequences when you were growing up–why should they now? We’re speaking about those who don’t like the fact that law enforcement–and yes, the drilling industry–keeps an eye on people who may be prone to breaking the law…
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Guernsey County | Industrywide Issues | Ohio | Statewide OH | Supply Chain | Utica Shale

Small Fracking Co Leaving OH Utica, Heading South of the Border
February 9, 2015February 9, 2015

It hardly seems worth mentioning, but we will anyway. Oilfield services company GoFrac LLC once had great hopes for the Utica Shale. GoFrac does frack jobs. Think of the company as a very (very) small Halliburton or Schlumberger. The company is based in Texas but a few years ago bought 90 acres in Cambridge (Guernsey County), OH with high hopes of hiring 250 people to work in the fracking fields of the Ohio Utica. No more. The company is closing up whatever presence they have had and leaving the northeast. Apparently, from their website (with a copyright of 2012 on it), they plan to go frack in Central and South America instead…
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Anti-Drilling/Fossil Fuel | Crime | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Transco | Williams

Convicted Lancaster Protesters Taunt Williams After Court Date
February 9, 2015February 9, 2015

It’s kind of funny how eight anti-drillers can conflate themselves to seem as if they represent untold thousands. They get themselves arrested for a lawless act and they’re actually proud of it–like they’ve accomplished something with their lives. We’ve been following the somewhat bizarre story of the “Conestoga 8” in Lancaster County, PA who are trying to stop the Williams Atlantic Sunrise Pipeline project. One of the eight is supposedly a Native American (i.e. Indian) who goes by the name of Chief Carlos Whitewolf (see Indians on the War Path Against Pipeline in Lancaster County, PA and Indians on the Anti-Pipeline War Path – Part 2). Except his last name isn’t really Whitewolf–it’s Rivera. Huh. A “Native American” with a very Hispanic first and last name. That’s a new one. Anywho, Chief Whitewolf-Rivera is protesting on behalf of the Conestoga people–who have been extinct for generations. He’s asking the United Nations to step in and stop the pipeline, on behalf of the long-dead Conestogas (see Lancaster, PA Antis Request United Nations Interfere in Pipeline). Chief Whitewolf-Rivera and the other small band of ne’er do wells had their day in court, and then they went on a field trip to the local Williams office straight from court to see if they could get arrested again…
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Coshocton County | Industrywide Issues | Ohio | Statewide OH | Wastewater

Coshocton County, OH #1 in Frack Wastewater Injection Volume
February 9, 2015February 9, 2015

The amount of wastewater, both flowback and brine going down Ohio’s injection wells increased by a full third (35% actually) in 2014, according to research by Bob Downing at the Akron Beacon Journal. Wastewater in-state (produced in Ohio) jumped 32% while wastewater from out of state (Pennsylvania and West Virginia) jumped 37% in 2014. Here’s some statistics…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | New York | Research | Statewide NY

Anti-Drillers Try to Ban Drill Cuttings from PA in NY Landfills
February 9, 2015February 9, 2015

The anti-drilling group Environmental Advocates of New York has just published a 24-page “report” that claims drill cuttings–leftover rock and dirt from drilling a hole in the ground–that are being landfilled in New York State are radioactive and will make us New Yorkers all glow in the dark. Any day now. The report is titled “License to Dump” (full copy embedded below). Since anti-drillers successfully cowed the impotent Gov. Andrew Cuomo once, well, it ought to work again, right? Ban those drill cuttings Andy! Right now!! This is 24 pages of “notoriously toxic and radioactive” garbage…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

GreenHunter/Coast Guard War of Words — MDN Explains It
February 6, 2015February 6, 2015

MDN now believes we have the full story, and a proper understanding, for the current war of words between GreenHunter and the U.S. Coast Guard over the issue of barging produced water, sometimes referred to as brine, on the Ohio River and other inland waterways. On Wednesday MDN brought the news that GreenHunter claimed the Coast Guard has given the all clear to begin barge shipments of brine (see US Coast Guard Approves Brine Shipping via Barge on Ohio River). Yesterday we reported a response from the Coast Guard saying no, they haven’t decided and haven’t given clearance (see Breaking: Coast Guard Says They Did NOT Grant Barge Permission to GreenHunter). Yesterday GreenHunter, a publicly traded company, filed a statement with the Securities and Exchange Commission (SEC) challenging the Coast Guard’s statement. It all comes down to semantics. MDN has spoken with a barge operator, has read the GreenHunter SEC statement (below), and we now think we know what is happening…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Philly State Senators Want to Slap Marcellus Industry with 9.9% Tax
February 6, 2015February 6, 2015

We seriously wonder if some of the legislators that serve in the Pennsylvania State Legislature are on drugs. Seriously. What else can explain comments like those from Pennsylvania State Senator Vincent Hughes (Democrat from Philadelphia) in saying the Marcellus Shale industry currently pays no taxes, that the drilling industry is making PA children “suffer,” and he thinks the industry should be hit with a new 8% severance tax PLUS another 1.9% impact fee. It’s absolutely mind-blowing–like psychedelic mind blowing. Does Hughes live in an alternate universe? Oh that’s right, he’s in the back pocket of teacher$’ union$ and is $imply their tool…
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Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County

More on that Range Rig Fire in Washington County, PA
February 6, 2015February 6, 2015

Range Resources dodged a bullet with the fire at a well pad in North Strabane (Washington County, PA) on Wednesday. We now know that a hydraulic line leaked oil and that’s what started the fire. Personnel on site tried to extinguish it but enough oil spread on the rubber well pad liner that the liner itself caught fire–essentially like a huge tire burning. Which is what caused the billowing black smoke in the area. The fire spread and consumed the rig, destroying it, and a couple of trailers parked at the site. Range was in the beginning stages of drilling the well. The bullet they dodged is that no one was injured. Equipment can be replaced–people can’t…
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Economic Impact | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Pipelines | Research | Statewide PA | Sunoco Logistics

New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA
February 6, 2015February 6, 2015

Sunoco Logistics has an important new tool in its fight to build the Mariner East 1 and Mariner East 2 pipeline projects in Pennsylvania. Mariner East 1 is already partially up and running but needs the final leg completed that will connect it to the Marcus Hook refinery near Philadelphia (see Range Cuts 2015 Drilling Budget 33%; Mariner East Up & Running!). Mariner East 2 is still on the drawing board. It will be a new 350-mile pipeline, most of it laid next to Mariner East 1 (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). The new tool? Sunoco hired Econsult Solutions Inc. to do a proper, independent, rigorous and accurate study of the potential economic impact from the two projects on the PA economy. The study, titled “The Economic Impact of Sunoco Logistics’ Mariner East Projects in Pennsylvania” (full copy embedded below), says the two projects will add $4.2 billion to Pennsylvania’s economy, support more than 30,000 jobs during the construction period, and create 300-400 permanent jobs…
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Energy Companies | EQT Corp | Industrywide Issues | Reserves (Proved and Unproved)

EQT Proved Reserves Up 29% in 2014, EURs Up 10%
February 6, 2015February 6, 2015

Among the mountain of news pushed out yesterday by EQT is a rundown on the company’s proved reserves, which rose 29% in 2014 to a whopping 10.7 trillion cubic feet equivalent (Tcfe). In their announcement about reserves, EQT mentions that estimated ultimate recoveries (EUR) per well are even higher than they hoped for: EUR of proved Marcellus wells drilled in 2014 averaged 7.9 billion cubic feet equivalent (Bcfe) as opposed to Marcellus wells drilled in 2013, which were estimated at an average of 7.2 Bcfe (up 10%) per well. EUR means the total amount of gas a well is expected to pump over its lifetime. Here’s a rundown on EQT’s reserve numbers, including 3P numbers (proved, probable and possible)…
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Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy Update on Active Projects in the Northeast
February 6, 2015February 6, 2015

On Wednesday Spectra Energy provided their 2014 financial and operational results. Spectra is a large midstream company (pipelines and processing plants) with a large and growing presence in the Marcellus/Utica. Both revenues and earnings were up for the company in 2014, which is interesting. Our attention, however, is in the updates to various pipeline projects they’re building or soon will be building in our neck of the woods, name updates for the NEXUS pipeline, Ohio Pipeline Energy Network (OPEN), Texas Eastern Appalachian Lease Project and other projects located here in the northeast…
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Deep Well Services | Energy Services | Industrywide Issues | Supply Chain

Marcellus/Utica Supply Chain Firms Being Asked to Trim Prices 10%
February 6, 2015February 6, 2015

Oilfield services companies and other companies in the Marcellus/Utica supply chain are feeling the squeeze. According to an article in the Pittsburgh Business Times, companies in the “supply chain” are being asked to cut their prices by 10% or more. Perhaps “asked” is too gentle a word…
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Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County

Fire at Range Resources Well Pad in Washington County, PA
February 5, 2015February 5, 2015

Photo Credit: NewsChopper 2/KDKA

A “large fire” broke out at a Range Resources well pad in Washington County, PA last night. Fortunately no one was injured. The fire was caused by “equipment failure” according to Range. The fire did not at any time involve the well itself. It was a fire in the machinery on the well pad. The details as we know them…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

Breaking: Coast Guard Says They Did NOT Grant Barge Permission to GreenHunter
February 5, 2015February 5, 2015

Was GreenHunter fibbing when they claimed the U.S. Coast Guard has given them permission to barge produced water down the Ohio River? MDN brought you the news yesterday that parent company MagnumHunter CEO Gary Evans and GreenHunter COO Kirk Trosclair said they have received approval from the U.S. Coast Guard to ship produced water via barge down the Ohio River (see US Coast Guard Approves Brine Shipping via Barge on Ohio River). You can listen to them say it themselves on this analyst phone call. However, according to an article in today’s Pittsburgh Tribune-Review, the Coast Guard is saying that’s not true–they have NOT yet given a final go-ahead to GreenHunter…
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