Industrywide Issues

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    Sen. Inhofe Outsmarts Democrats, Votes to Say Climate Change is Real!

    Sen. Jim Inhofe from Okalhoma, Chairman of the Senate Committee on Environment and Public Works, has changed the debate on man-made global warming once again, much to the consternation of the wacko left. We saw a press release from Inhofe’s office yesterday (below) saying that Sen. Inhofe and virtually every other Republican in the Senate had just joined the Democrats in voting 98-1 in favor of an amendment on the Keystone XL Pipeline bill that says “climate change is real and it is not a hoax.” We did a double-take. Really? Inhofe says he now believes in climate change?! Then we read further. In the next breath, Inhofe said: “How arrogant is it for people to say that man can do something about changing the climate?” Inhofe, by co-sponsoring and voting for the amendment, is pointing out the corrosion of our language…
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    Quirky Friday: What’s the Main Selling Point of Erie, PA Trailer Park?

    It’s Friday and sometimes the impending weekend puts us in a quirky mood. And then we notice something that strikes us as quirky or interesting–and we pass it along. Such is the case with this story. UMH Properties, Inc. is a real estate investment trust (REIT) that owns and operates manufactured home communities in seven states throughout the northeast–trailer parks and modular home communities. UMH issued a press release yesterday to crow about buying yet another trailer park in Erie, PA for $3.8 million. Stick with us, there is a point. The main advantage/reason that UMH purchased this particular trailer park to add to their growing portfolio? It’s located in the Marcellus/Utica region, and because it’s located in prime shale country, they figure occupancy rates will remain high…
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    Antero Resources Slashes 2015 CapEx Budget 41%, Reduces Rig Count

    budget cutsEarlier this month, Antero Resources, one of the largest leaseholders and drillers in the Marcellus/Utica, announced they are laying off 250 landmen in WV, OH and PA because of low oil and gas prices (see Antero Resources Lays Off 250 Landmen, Blames Low Oil Prices). Seems it was an omen. On Tuesday, the company released details of their 2015 capital budget–and it’s not pretty. Antero is slashing their capital expenditure budget in the Marcellus/Utica by 41% over what they spent in 2014–$1.8 billion in 2015 compared to $3.05 billion in 2014. Ouch. They’ll operate an average of 14 drilling rigs in 2015 compared to the average of 21 they were operating by the end of last year. Ouch. They predict they will complete 130 Marcellus & Utica wells this year, down from 179 completed last year. Ouch. About the only bright spot is that production is predicted to increase, from an average of 1 billion cubic feet per day (Bcf/d) in 2014 to 1.4 Bcf/d in 2015. Why the big cuts? Yes because of the low commodity price for natural gas, but when you dig, you find the price for natgas in the northeast is lower than other areas of the country because of the lack of pipelines…
    Read More “Antero Resources Slashes 2015 CapEx Budget 41%, Reduces Rig Count”

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    PA Senate Reintroduces Two Marcellus Royalty Bills, SB 147 & 148

    The “funny business” of shorting royalty checks in Pennsylvania–particularly by Chesapeake Energy–may soon come to an end. A pair of bills that didn’t make it past the House last session have been re-introduced in the Senate and both have already passed the Senate Environmental Resources and Energy Committee unanimously. State Sen. Gene Yaw, Republican from northeast Pennsylvania, re-introduced Senate Bills (SB) 147 & 148. SB 147 allows landowners the right to review drilling company records to verify proper royalty payment. It also requires drillers to pay royalties within 90 days of production. SB 148 prohibits drillers from “retaliating” against a landowner who questions royalty payments by canceling the lease or stopping drilling activity. Both bills are embraced by the Pennsylvania chapter of the National Association of Royalty Owners (NARO)…
    Read More “PA Senate Reintroduces Two Marcellus Royalty Bills, SB 147 & 148”

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    Magnum Hunter Drilled 24 NE Wells in 2014, Proved Reserves Up 25%

    Yesterday Magnum Hunter Resources, a growing driller in the Marcellus/Utica region, announced their “proved” reserves have jumped a healthy 25% by the end December 2014 over a year earlier. Proved reserves are defined as the estimated quantities of oil and gas which geological and engineering data demonstrate with reasonable certainty (90% or more certainty) to be recoverable in future years from known reservoirs under current economic and operating conditions. Magnum Hunter’s estimated total proved reserves increased in 2014 to 83.8 million barrels of equivalent (or MMboe), compared to 67.3 MMboe at the end of 2013. They reckon it breaks down as 70% natural gas and the rest natural gas liquids, condensate and oil. Magnum Hunter’s acreage in the Marcellus and Utica is impressive: they now own 80,000 net acres in the Marcellus and 125,000 net acres in the Utica. Last year they drilled 24 wells in the Marcellus/Utica. They have their eye on a potential future 1,000 more drilling locations in WV and OH…
    Read More “Magnum Hunter Drilled 24 NE Wells in 2014, Proved Reserves Up 25%”

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    Kinder Morgan NE Projects Update – Filing with FERC for Broad Run

    Kinder Morgan, the largest midstream company in the U.S., issued a press release yesterday nominally to say they’ve raised the quarterly dividend by 10% or $0.45 per share because they had a great year last year, despite the low price of oil and the gyrations in the market. But as part of that update, if you put on your hip boots on and wade through all of the tiny print, you find some interesting nuggets and updates. For example, we get an important update on their Northeast Energy Direct project–an extension of the Tennessee Gas Pipeline through Massachusetts and New Hampshire. We also learn that Kinder is ready to file with FERC–this month–to move forward with the Broad Run Flexibility and Broad Run Expansion projects that will flow Marcellus and Utica Shale gas from West Virginia to delivery points in Mississippi and Louisiana. All (100%) of the capacity for the the Broad Run pipelines is already spoken for, by Antero Resources…
    Read More “Kinder Morgan NE Projects Update – Filing with FERC for Broad Run”

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    Pro-Drilling New Yorkers Protest Gov. Cuomo During State of State

    You want to know how biased local liberal media can be? Get this: Yesterday, on the day that New York Gov. Andrew Cuomo delivered his Santa Claus impersonation, er, State of the State address, more than 70 pro-drillers gathered outside the State Office Building in downtown Binghamton, NY for an hour during the middle of the work day to protest Gov. Cuomo’s decision to ban fracking. The only daily newspaper in Broome County, the local newspaper of record, the Press & Sun-Bulletin–didn’t carry a single word about the protest. Not one word. That’s how biased (and frankly censored) the Press & Sun-Bulletin is. Fortunately, three local television stations did cover the protest. The “new news” from the protest, aside from the fact that 70+ people took time out of their busy work days (yes, pro-drillers actually have jobs and pay taxes, unlike anti-drillers), is that the Joint Landowners Coalition of New York (JLCNY) is actively pursuing “options” to have the federal government intervene in New York’s frack ban. This issue is FAR from over–our side has just begun to fight…
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    VA May Repeal Law Allowing Pipelines Access without Permission

    Accessing a landowner’s property without permission, and later (potentially) forcing that landowner to allow a pipeline across the property via eminent domain have never been supported by MDN. Neither, it seems, is it supported by other pro-drillers, especially those in Virginia. State Sen. Emmett Hanger from Augusta County, VA (located in the Shenandoah Valley on the western edge of VA) is a conservative, business-friendly and pro-drilling Republican. Hanger, like MDN, supports Dominion’s $5 billion Atlantic Coast Pipeline (see Enormous Benefits for All Virginians from Atlantic Coast Pipeline). But Hanger, also like MDN, is not in favor of access without permission. Hanger is attempting to get a 2004 Virginia law repealed that allows access to private property without permission so Dominion (and others) can survey the property for pipeline routes. As Hanger points out, that kind of behavior is working against them in terms of community goodwill…
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    Important Expose on John Quigley, Nominee to Head PA DEP

    MDN friend Tom Shepstone, who writes the excellent Natural Gas Now blog site, has just posted a must-read article on John Quigley, PA Gov. Tom Wolf’s choice to lead the Dept. of Environmental Protection. Tom does some real investigative journalism–something you won’t read in the Harrisburg Patriot-News, the Philadelphia Inquirer, or Democrat Party satellite publications like StateImpact Pennsylvania. You certainly won’t read anything detailed about Quigley in the Scranton Times-Tribune! Real investigative journalism has gone out of vogue in those publications. But not with Tom. Rather than copy his excellent work here, we’ll ask you to click on the link below and take time to educate yourself on the “real” John Quigley.

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    Rumor Mill: Indian Oil Co Wants to Buy Chesapeake Energy

    rumor millCarl Ichan, corporate raider and puppet master at Chesapeake Energy, must be rubbing his hands together in glee. The rumor mill is buzzing that Oil & Natural Gas Corporation Limited (ONGC), the state-run national oil company of India, is “aggressively” pursuing Chesapeake–to buy it. It appears ONGC wants to buy the whole company, although we don’t know that for sure. The ONGC/Chessy buzz has Chessy’s stock trading higher, which delights Mr. Ichan. Here’s what we’re able to find about this latest rumor…
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    Baker Hughes Announces 7,000 Layoffs Due to Low Oil Price

    Although Baker Hughes, one of the largest oilfield services companies in the United States, had “record high” revenue in 2014 ($24.6 billion for the year), the company announced yesterday that they will lay off 7,000 employees in the first three months of 2015. This comes on the heals of Sclumberger’s announcement that they will lay off 9,000 (see Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices”). Both companies have a major presence in the Marcellus/Utica and both blame low oil prices for the layoffs. Their customers (exploration and production companies) are scaling back and not drilling as much, and for what drilling they do they are now squeezing oilfield services companies like crazy to lower costs. It certainly makes sense, on paper, for these companies to take drastic actions like this. But that’s not much comfort for the 7,000 families who are losing the jobs. Baker Hughes employs 62,000 people. The 7,000 jobs cut represent 11% of their workforce. Baker Hughes CEO Martin Craighead called the coming layoffs the “crappy part” of his job and the thing he really “hates” about the drilling industry…
    Read More “Baker Hughes Announces 7,000 Layoffs Due to Low Oil Price”

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    Anti-Fracking Protesters Spoil PA Governor Inauguration Ceremony

    Yesterday, Democrat anti-drilling protesters spoiled the inauguration of one of their own–Pennsylvania Gov. Tom Wolf (Democrat, wants to tax the shale drilling industry into oblivion). There were “more than 100” very loud demonstrators outside of the inauguration according to the AP, which in partisan liberal math translates into “several hundred” protesters for PBS’s StateImpact Pennsylvania. Eight of these ill-behaved children adults were were so loud and obnoxious Pennsylvania State Police arrested and removed them. Two of them stood up during the inauguration speech hollering “ban fracking now” and were removed by State Police. The “ban fracking now” chant could be heard throughout the inauguration–spoiling the ceremony for everyone. According to those who organized this shameful performance, they were emboldened by New York’s recent ban–hoping if they can make enough noise and throw enough temper tantrums, they’ll get PA to ban it too. (Hey, it worked for them when they were children, why wouldn’t it work now?)…
    Read More “Anti-Fracking Protesters Spoil PA Governor Inauguration Ceremony”

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    Poll: Majority of NYers Support Cuomo’s Frack Ban – Or Do They?

    Results of a new statewide poll for New York were released yesterday by Siena College. Siena provides one of the leading polls of political issues and politicians in the state. We’ve covered their polls many times. The media coverage of this latest poll is a meme that Siena themselves are pushing: there is “overwhelming support” for Gov. Andrew Cuomo’s ban on fracking in the state–both Upstate and Downstate. That’s the meme, that’s the template/narrative they want you to believe. However, when we look at the poll numbers, we find a lot that Andrew Cuomo should be VERY concerned about. For example, how does he launch a legitimate campaign for president when nearly half of all New Yorkers (40%) either have an “unfavorable” opinion or indicate they have “no opinion” of him? Nearly half! There’s no way you win a national election when the voters in your own state don’t like you. Let’s dig in to the numbers and see what the real story of this poll tells us…
    Read More “Poll: Majority of NYers Support Cuomo’s Frack Ban – Or Do They?”

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    Obama’s Faint Praise of Natgas in State of Union, Inhofe’s Rebuttal

    Last night was the second-to-last State of the Union speech to be given by our Dear Leader, Barack Hussein Obama (hallelujah!). While Obama gave credit to the oil and gas industry for generating most of the jobs created during his pathetic presidency, he also said he wants to regulate it more. Typical. He persists in calling carbon, the stuff you breathe out with every breath, “pollution” and he’s hellbent on regulating it–even though at the same time he admits we’re producing less of it! Go figure. Below we have the section of Obama’s speech where he talks about energy, including shale gas, along with the response from Sen. Jim Inhofe, the chairman of the Senate Environment and Public Works Committee. We love Inhofe–he doesn’t suffer fools well and he minces no words about Obama’s out-of-control regulatory mandates. We like Inhofe’s take: Americans are resilient. Together we can survive the Obama Administration…
    Read More “Obama’s Faint Praise of Natgas in State of Union, Inhofe’s Rebuttal”

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    Top Marcellus Shale Attorney Michael Joy Heads West

    BakerHostetler, one of the country’s top energy law firms, has lured MDN friend Michael Joy away from the Marcellus/Utica region to the sunnier mile-high climes of Denver, Colorado. Michael is an attorney with a long and distinguished resume. He also has a Ph.D. in geology. Michael once taught oil and gas law in the only program that teaches it in New York State (University at Buffalo). He later joined the Reed Smith law firm in Pittsburgh, practicing oil and gas law with the firm. Now he’s heading west, to help BakerHostetler with clients interested in expanding into the Marcellus/Utica. Our first memory of Michael was hearing him present at a Binghamton landowners meeting back in March 2011 (see Sizable Crowd Gathers in Binghamton to Hear Hear Expert Panel Discuss Marcellus Drilling’s Potential Impact on New York). We’ll never forget, at that meeting he answered the question, “If NY opens the door to drilling now, would anyone bother to show up and drill?” (see Audience Q&A About Marcellus Shale Drilling at Recent Landowner Meeting in Binghamton, NY). We wish Michael the very best in his new move. Here’s more about that move and Michael’s distinguished background…
    Read More “Top Marcellus Shale Attorney Michael Joy Heads West”

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    In His Own Words: Quigley’s Positions on Fracking, NY Ban, Etc.

    Digging for the TruthMDN has done some more digging on Pennsylvania Gov. Tom Wolf’s choice to run the all-important (for Marcellus Shale drilling) Dept. of Environmental Protection (DEP), John Quigley. As it turns out, we didn’t have to dig very far. Quigley himself writes a blog site called “John Quigley’s A Green Thing blog.” The name about says it all. We went looking through his previous statements and found more that concerns us about his impending stewardship of the greatest economic miracle to hit PA in more than 100 years. One of the things Quigley repeatedly lobbies for is a rapid transition from water-based fracking to waterless fracking, something that isn’t remotely possible in the next 10 years…
    Read More “In His Own Words: Quigley’s Positions on Fracking, NY Ban, Etc.”