Industrywide Issues

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    Koch Brothers ‘Roll Out’ Nylon Pipeline Aimed at Shale Industry

    An interesting development in the midstream (pipeline) business. Yesterday INVISTA, a subsidiary of Koch Industries, introduced a new nylon pipe aimed squarely at use in the oilfield–to flow both oil and natural gas (and NGLs). They call the new pipeline Raptorâ„¢ and claim it outperforms pipelines made of steel, composites and polyethylene. The maximum pressure the pipe can handle is 500 pounds per square inch (psi), which means it likely won’t be used for interstate pipelines. However, it’s perfect for local gathering pipelines because it’s quick and easy to install–saving time and money for drillers and midstream companies…
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    Research for Hire: Anti Groups Sponsor Latest Yale Frack “Study”

    researchThe next round in so-called anti-drilling research into the “health impacts” from fracking have arrived in the form of a study about to be published in the National Institutes of Health journal Environmental Health Perspectives. Titled “Proximity to Natural Gas Wells and Reported Health Status: Results of a Household Survey in Washington County, Pennsylvania” (full copy embedded below), this latest salvo in the fracking wars is DOA. Why? The anti-drilling Heinz Endowments, led by Mamma Teresa Heinz-Kerry, the Schmidt Family Foundation, founded by former Google CEO (and big-time anti-driller) Eric Schmidt, and the Philadelphia-area Claneil Foundation, funder of many anti-drilling “studies” are the main sponsors of this latest “study” that tabulates self-reported ailments of skin rashes and coughing from 492 people (in 180 families) living in Washington County, PA. Guess what they found? If you read the USA Today headline, they found “People near ‘fracking’ wells report health woes,” to which we say, those who don’t live near fracking wells report health woes too! The study itself says this: “…these results should be viewed as hypothesis generating…proximity of natural gas wells may be (emphasis added) associated with the prevalence of health symptoms including dermal and respiratory 3 conditions in residents living near natural gas extraction activities. Further study of these associations, including the role of specific air and water exposures, is warranted.” That is, nothing conclusive was found from this small sample of 180 households in a single county. But let’s not let “nothing conclusive” get in the way of spinning yet another tall tale that fracking causes health problems. Crank up the media lie machine…
    Read More “Research for Hire: Anti Groups Sponsor Latest Yale Frack “Study””

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    NY Gov Cuomo Comments on Fracking, Hounding by Protesters

    He speaks! The man-child Andrew Cuomo, erstwhile (and rumored) Governor of New York, someone who has a problem making decisions (should I wear the black tie or the blue tie?), had to run a small gauntlet of anti-drilling protesters to cast his ballot in yesterday’s statewide primary. Cuomo, as we’ve chronicled for years, refuses to allow fracking in New York ahead of this November’s election. The betting money is that he will allow it after the election. When asked about the anti-drilling protesters outside the polling place, Cuomo uttered an entire paragraph on the topic–more than he’s said in a year…
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    New Transportation Hub for Drillers Coming to Eastern Ohio

    A new tri-modal (rail/truck/barge) logistics and transportation hub serving the Ohio, Pennsylvania and West Virginia shale drilling is coming to the former Ohio Cold Rolling Company steel finishing mill in Yorkville, Ohio, located on the border of Belmont and Jefferson counties–right in the thick of where shale drilling has recently heated up. Esmark, Inc., which purchased the old Ohio Cold Rolling Company two years ago, recently announced that they will close the mill. However, in its place they will create a new transportation hub where products like frack sand, steel pipes, heavy equipment and other goods used for Utica and Marcellus drilling will be loaded and unloaded and reloaded, heading to various destinations. Esmark is converting the 1 million square foot plant into a rail/truck/barge complex called the Yorkville Energy Services Terminal. Among the many services at the new facility will be sucking 3 million gallons of fresh water per day from the Ohio River–to be used in drilling and fracking…
    Read More “New Transportation Hub for Drillers Coming to Eastern Ohio”

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    API Research/List of Shale Supply Chain Companies for PA/OH/WV

    Important new research has just been released by the American Petroleum Institute on the role of supply chain businesses in oil and gas. In particular, not only how many such businesses exist–but who they are, by name. MDN has glanced through the report and has pulled the writeups for Pennyslvania, Ohio and West Virginia (all three below). The research shows that the oil & gas industry in PA is contributing $34.7 billion to the economy each year–a staggering number. The average salary for a PA worker is $48,785–but the average salary for o&g workers in PA is $78,898 per year. Similar numbers are found for both OH and WV as well…
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    WV PSC Gets Fed Money to Increase Truck Inspections Near Drilling

    Truck drivers in West Virginia–particularly in areas where there’s a lot of Marcellus Shale drilling activity–you’ve been put on notice by the WV Public Service Commission (PSC) that they’re stepping up the frequency of inspections. The WV PSC has received a $180,000 grant from the U.S. Department of Transportation Federal Motor Carrier Safety Administration (FMCSA) that allows them to pay for overtime for officers to step up the number of truck inspections. Regular patrols will continue, however, the grant money allows the PSC to increase patrols in certain areas, which will include…
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    NY’s Steingraber to Keynote Lafayette College Anti-Frack Festival

    Lafayette College will hold an anti-fracking event under the very thin veneer of coming together to “examine the issue from all sides” at a two-day symposium next week in Easton, PA. Lafayette College’s 2014 Roethke Festival will be held Sept. 19-20 and the keynote address will be delivered by none other than New York’s own queen anti-fossil fuel advocate, Sandra Steingraber (see Sandra Steingraber’s Big Gaffe at You Defend It Debate). MDN has heard Steingraber in person a couple of times. She actually believes we could (in NY anyway) shut off all fossil fuels–today–and rely totally on so-called alternative sources of energy like wind and solar. How? If only we had the “political will” to, you know, turn our thermostats down to 50 degrees in the winter, go back to using horse and buggy and otherwise go back to living like folks did in the 19th century. In our book she’s certifiably nuts. Another headliner at the Lafayette anti-fracking fest will be little known anti-drilling author Lamar Herrin who wrote a novel about fracking creatively titled “Fractures.” He’s going to read from his book (yawn). A token pro-driller will be on one panel–the always excellent David Yoxtheimer from Penn State. If we were you, we’d give this “coming together” a big, fat pass and instead head off to a good music festival somewhere…
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    Hilcorp has 2 Accidents (in 3 Weeks) in Mercer County, PA

    bad luckHilcorp is having some bad luck in Mercer County, PA. Three weeks ago two storage tanks at a Hilcorp well pad caught fire and exploded–no one injured. Then, this past Saturday (three weeks later), a separator caught fire at a well pad. No big explosions this time–at least none that were heard. However, up to 20 homes had to be evacuated while the fire was extinguished. Once again, no injuries…
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    Marcellus Caught in Crossfire of Philly Port Leasing Controversy

    Hatfields & McCoysOnce again the Marcellus is in the middle of what appears to be a Democrat vs. Republican fight–this time over who will control prime riverfront port facility property in the Delaware River in Philadelphia. Here is our understanding of the situation: the Philadelphia Regional Port Authority (PRPA) is in talks to lease 200 acres at the Southport facility to Philadelphia Energy Solutions (PES)–operator of the former Sunoco Inc. refinery in South Philadelphia–who would then turn around and find an operator for the terminal itself. PES wants to ship Marcellus Shale gas from the port facility location after piping it there from other parts of PA. But a bigtime Philly Democrat, John Brown Jr., president of Penn Warehousing and Distribution Inc. (a paper-import company) wants to lease the port facility for himself and the operations of his company. So Brown hired former State Senator Vincent J. Fumo (Democrat with a lot of influence) to pull strings and hose the deal developing between PRPA and PES…
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    EIA Drilling Productivity Report Shows Marcellus Passing 16 Bcf/d

    Yesterday the U.S. Energy Information Administration (EIA) released the latest monthly Drilling Productivity Report (DPR). To the ongoing consternation of peak oil & gas theorists that the shale oil/gas bubble is gonna burst “any day now,” the numbers continue to blow everyone away. The mighty Marcellus continues to roar: In October the EIA projects the Marcellus will pass 16 billion cubic feet (Bcf) of natgas production each and every day. Astonishing! Meanwhile, the Utica Shale will hit almost 1.5 Bcf/d in October, which (for the first time) surpasses the natgas output of the Bakken Shale play. Granted, the Bakken is primarily an oil play. Here’s the full rundown of the latest DPR…
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    Latest OH Production Numbers: Utica Wells Change the Picture

    Yesterday, to much fanfare, the Ohio Dept. of Natural Resources (ODNR) announced the results of Ohio’s second quarter oil and natural gas production for unconventional (mostly Utica Shale) wells. During 2Q14 Ohio’s oil wells produced 2.5 million barrels of oil and Ohio’s gas wells produced 88 billion cubic feet of natgas. The ODNR press release also includes a few other bits of trivia like average well production numbers. Below is the trumpet blowing (deservedly so) from the ODNR on the latest round of numbers. They point out that “Horizontal wells [i.e. Utica wells] produced more gas in 3 months than all Ohio wells produced in 2012.” How cool is that?!…
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    Univ of Mich Polls PA & NY on Fracking Views – Paradox in Results

    The University of Michigan is fresh out with the results of a poll they conducted in April and May of both New Yorkers and Pennsylvanians and their attitudes on the issue of Marcellus Shale drilling and fracking. We’re not quite sure if the results can be relied on simply because of the small number polled–just 405 New Yorkers and 411 Pennsylvanians. However, the results are interesting nonetheless. If you drill down to the actual questions asked, and the responses (full copy below), you’ll find that in both NY and PA when asked how much the respondent has heard (knows) about fracking–a lot, a little, or never heard of it before–more than half said they’ve heard “a little” about it: 55% in NY and 52% in PA. Even more shocking is that 11% in NY and 10% in PA had “never heard” of fracking before. Add the numbers up and it equals 66% of NY residents and 62% of PA residents that know little to nothing about fracking–which is a huge opportunity for those of us with the truth about this miracle to communicate our message to them and educate them on the benefits of fracking…
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    Is There a Link Between Fracking & STDs in Ohio?

    Does fracking cause sexually transmitted diseases (STDs)? It may sound like the beginning of a laugh line, but dedicated anti-drillers are deadly serious about trying to link an influx of “foreigners” (as OH Gov. John Kasich calls them) from other states into Ohio counties with shale drilling and a rise in STD rates in those counties. The theory goes that as these traveling workers arrive–something akin to carnival workers in anti-drilling lore–they bring with them STDs and they sleep around–a lot (according to the mythology). And they spread their nasty diseases everywhere they go. Reporters feed these myths with careless references to places like Carroll County, OH having a “spike” in STDs. Just one problem–when you dig into the evidence, it doesn’t back up the claim…
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    Gates Mills, OH Caves – Anti-Frack Measure on Nov. Ballot

    The very exclusive and uppity Cleveland suburb of Gates Mills, OH is the latest community to fall prey to the misnamed, so-called community bill of rights that seeks to ban all drilling on, under or near property in the community. We’ve written about Gates Mills before (see these MDN stories). We originally chided Gates Mills Mayor Shawn Riley for concocting a plan that we thought would prevent drilling in the community (a community that already has some conventional wells in it). We were contacted by an MDN reader and by Mayor Riley to correct us: His intent is to pool landowners together and together (somewhat akin to a landowner coalition) to develop a contract that would strictly control how, when and where any Utica drilling would be done. He’s not anti-drilling–just really really careful and infrequent drilling. But there are a number of anti-drillers in town who want nothing to do with it whatsoever–and they want to force their preferences on their neighbors too. That’s what a “community bill of rights” does–it forces anti-drilling regulations down everyone’s throat. That’s what will be on the ballot in November in Gates Mills…
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    MSC Video Tells the Truth About Marcellus Industry & Taxes

    Somehow Pennyslvania’s Democrats (and anti-drillers) have been successful in planting the mind virus that the Marcellus drilling industry “isn’t paying it’s fair share” and needs to be taxed even more than it’s already taxed. MDN has pointed out the fallacy of this lie numerous times. The facts are: PA has a corporate income tax and also has an “impact fee” (a tax in our book) that taxes drillers in PA at rates comparable or higher than states like Texas that do have a so-called severance tax. In fact, over the past three years PA drillers have paid out $630 million in impact fees that have benefited all Pennsylvanians. That’s the point the Marcellus Shale Coalition (MSC) makes with a short video just out…
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    ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake

    earthquakeOn Sunday, August 31 at 5:45 pm, there was an earthquake in the vicinity of Weathersfield (Trumbull County), OH. However, no one felt it. The only way anyone knew there was a quake was because of monitoring by the U.S. Geological Survey. The Ohio Dept. of Natural Resources (ODNR) is investigating whether or not two wastewater injection wells, operated by American Water Management Services (AWMS), was the cause of that low-level quake that no one felt. According to the ODNR, from an “abundance of caution” they asked AWMS to shut down operations at those two wells while they investigate, which has now been done…
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