Industrywide Issues

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    Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?

    Last year the owner of Youngstown area Hardrock Excavating and its sister company D&L Energy, Ben Lupo, allegedly instructed one of his employees who hauled frack wastewater (through the Hardrock company) to dump the wastewater down a drain–at night so no one would notice. And it wasn’t just one or two times (see Youngstown, OH Illegal Wastewater Dumping Happened “At Least” 24X). The employee and Lupo were eventually caught. After both businesses were effectively closed down by the Ohio Dept. of Natural Resources, the assets were eventually auctioned off (see Denver Co Buys OH Wastewater Polluter D&L Energy for $20.7M).

    The employee plead guilty and will be sentenced tomorrow. Until now Lupo has maintained innocence. However, the judge in the case has scheduled a “change of plea” hearing for Lupo next Monday in Cleveland. That almost always means the defendant is changing his plea to guilty. To which we say, it’s about time…
    Read More “Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?”

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    PA State Treasurer Rob McCord Unveils Gas Death Plan

    Poor old “Pass a Joint for John” Hanger dropped out of the race to be the Democrat nominee for governor in PA. Who will be next? Apparently not State Treasurer Rob McCord. Get this, he’s just released an utterly brilliant natural gas plan–tax the whole darned thing 10%…on everything produced. According to McCord, that will raise $1.63 billion for the state in just the first year.

    Of course the plan is, in reality, utterly brain dead and moronic. If such a plan were ever to see the light of day it would effectively kill all shale drilling in the state. Done. Finished. Over. And then instead of the $200 million+ PA now extracts in a reasonable impact fee–they would get nothing. How on earth do these people keep getting elected to office? Here’s more of the moronic McCord gas death plan:
    Read More “PA State Treasurer Rob McCord Unveils Gas Death Plan”

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    Childlike Green Groups Continue Letter Writing Campaign to Feds

    A handful of loud-mouthed anti-drillers with printed letterhead, pretending to represent a popular uprising–a veritable horde–sent yet another ninny nanny letter to Obama’s Secretary of Energy Ernest Moniz–because they’re not getting invited to private talks about methane pollution.

    Here’s what petulant, ill-raised children grow up to do:
    Read More “Childlike Green Groups Continue Letter Writing Campaign to Feds”

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    New Research: US/Canada Need $30B/Year on Midstream Investment

    billions and billionsIn September 2013 MDN published Vol. 2 of the 2013 Marcellus and Utica Shale Databook series. In that volume we included a comprehensive list of 111 announced infrastructure (pipeline related) projects for the northeast. When we tallied it all up, the numbers were that projects in our neck of the woods will result in about $40 billion being spent over the next five years or so (see MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects). The INGAA Foundation (Interstate Natural Gas Association of America) and ANGA (America’s Natural Gas Alliance) yesterday released a study they commissioned that tops our estimates–by a lot. The study is titled, “North America Midstream Infrastructure through 2035: Capitalizing on Our Energy Abundance” (full copy embedded below). Researched and prepared by ICF International, the new study shows that the U.S. and Canada together will need to spend $30 billion per year from now until 2035 on pipelines and related infrastructure just to keep pace with shale development.

    ICF’s numbers add up to $641 billion in 2012 dollars over 22 years. But get this: $70 billion of that $641 will be spent in the Marcellus, according to the study. Nationwide the new spending will generate more than 432,000 jobs, add approximately $885 billion to U.S. and Canadian economies, and bring in over $300 billion in federal, state/provincial and local taxes. Truly staggering numbers. Immediately below we have the quick hit, bulleted conclusions of the report, for the time-pressed, so you can scan it. Below that the press release announcing the new study–and finally, a full copy of the study with some great charts and graphs (be sure to check out their Henry Hub price forecast through 2035 on page 24)…
    Read More “New Research: US/Canada Need $30B/Year on Midstream Investment”

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    Leatherstocking to Tap Constitution Pipeline for Local Deliveries

    Rural residents (and an aerospace manufacturer) located in New York’s Southern Tier and Central New York areas have a lot to be thankful for with the upcoming Constitution Pipeline–a natural gas pipeline that will deliver natural gas from the Marcellus Shale gas fields of Susquehanna County, PA all the way to two major interstate pipelines near Schoharie, NY (see New Marcellus Constitution Pipeline Announces “Final” Route). Williams is building the 124-mile pipeline with backing from Cabot Oil & Gas, whose gas will flow through it.

    However, a regional gas pipeline company (think gas utility) founded just a few years, Leatherstocking Gas, will tap into the Constitution at (so far) four different locations along the pipeline so they can deliver that homegrown Marcellus gas to rural customers who are not being served by the big utilities like New York State Electric & Gas (NYSEG, owned by Iberdrola). Yesterday Williams and Leatherstocking announced the deal to tap into the Constitution Pipeline in four locations…
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    Small Marcellus Drill Cuttings Company Gobbled Up by Bigger Fish

    A small and rapidly growing company–Susquehanna Services, Inc.–uses a special process to safely process and dispose of drill cuttings (leftover rock and dirt) from shale drilling in the Marcellus, Utica and Green River (WY) shale plays. The company was founded in 2010 (near Scranton, PA) and it’s been nothing but rapid expansion ever since. The founder and president of Susquehanna Services, John Yarosz, has just realized his American Dream. His company was bought out by a bigger fish: Specialty Waste Operating Partners. Yarosz will stay on as president and continue to run the operation day to day–at least for now.

    Here’s the press release announcing the deal:
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    PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684

    The Pennsylvania chapter of the National Association of Royalty Owners (NARO) sent out a flash alert email yesterday asking members to contact their state representatives to encourage a “yes” vote on House Bill (HB) 1684–the Guaranteed Minimum Royalty Act. This bill is partially in response to the apparent gouging Chesapeake Energy has done with respect to royalty payments. A vote may come as early as TODAY.

    Here is the text of the email from PA NARO president Jackie Root:
    Read More “PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684”

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    Marcellus Midstreamers Turn to Calif. Company for Compressor Power

    Even companies as far away as California are successfully selling their manufactured products to the Marcellus and Utica Shale industry–albeit the products they manufacture are pretty specialized. Capstone Turbine Corporation of Chatsworth, CA issued a press release yesterday to announce three midstream operators in the Marcellus/Utica have placed orders with the company for power plants that will power multiple compressor stations and pipeline interconnections. Captstone doesn’t name the customers, but we can certainly guess who they may be (although we won’t).

    To be honest, this is pretty obscure (i.e. uninteresting) stuff for most. Our point? Big supply chain bucks (millions) have just been spent–and it’s money that could potentially be spent with manufacturers closer to home, if those manufacturers exist, and if they get plugged into the northeast shale supply chain. So pay attention companies that manufacture power plants! Here’s the Capstone press release with a few more details…
    Read More “Marcellus Midstreamers Turn to Calif. Company for Compressor Power”

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    Chesapeake Climate Action Asks Obama to Nix Cove Point LNG Exports

    The unreasonable (not able to be reasoned with) and irrational (incapable of rational thought) fossil fuel-haters of the Chesapeake Climate Action Network (CCAN) and other similar-minded groups sent President Obama a letter requesting that he should (surprise!) slow down/reconsider/kill exports of liquefied natural gas (LNG) from Dominion’s planned Cove Point, MD LNG export facility (see Celebrate! Dominion Wins DOE Approval for MD LNG Export Facility). Why? Global warming, of course.

    Yes boys and girls, so-called environmentalist organizations like CCAN, 350.org, the Sierra Clubers and other unheard of groups just blame it all on global warming. Drill in shale deposits? Nope–too much global warming. Encourage electric generating facilities to convert from polluting coal to cleaner-burning natgas? Nope. That’ll lead to global warming. Build new pipelines to New England to relieve sky high natgas prices for consumers? Nope–global warming. Export some of our huge abundance of natgas to places like India and Japan (U.S. allies) who desperately need it? Nope! That will increase global warming too. You see just how unreasonable and irrational they really are. Below is the press release and letter from the unreasonable and irrational who oppose Cove Point…
    Read More “Chesapeake Climate Action Asks Obama to Nix Cove Point LNG Exports”

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    RIT Professor Says Jail Those Who Don’t Believe in Global Warming

    This is not out of the Spanish Inquisition folks–this is today. Now. A so-called professor of philosophy at the Rochester Institute of Technology says people like MDN editor Jim Willis should go to jail because we’re not Kool Aid drinkers who believe in the myth of man-made global warming. First Amendment free speech? Nah, that Constitution is just a musty old document. Time to leave it behind. All men are created equal and have certain inalienable rights like liberty? What a fanciful, outdated notion.

    When the high priests of Science declare “the time for debate is over, the SCIENCE is settled”–by God, it’s over. So says RIT prof Lawrence Torcello. You disagree? Off to jail with you, you heretic! Next step is “Off with their heads,” or maybe, “Burn them at the stake.” You think we’re joking?…
    Read More “RIT Professor Says Jail Those Who Don’t Believe in Global Warming”

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    Pittsburgh TODAY’s CSSD Propaganda Piece – Gag Me with a Spoon

    like gag me with a spoonA masterful piece of propaganda written by Pittsburgh TODAY appears on the Washington Observer-Reporter website promoting the so-far underwhelming Center for Sustainable Shale Development (CSSD). The CSSD, announced exactly one year ago this week, is a joint effort between a few big drilling industry players and a few environmentalist organizations–an uneasy partnership created to make shale drilling palatable to crazy anti-drillers (see Important: Drillers & Enviros Form New Group, Launch Cert Program). If we might summarize, the article about the CSSD on the anniversary of its debutante ball adopts the the classic “against all odds” storytelling formula.

    According to PT, the CSSD is the story of a (very few) brave men and women who dared to buck the odds and sit down at the table to discuss their differences on shale drilling–people from both the industry and (more importantly of course) from environmentalist wacko groups. These brave men and women faced challenges, both internal (they agonized in their souls, am I selling out?) and external (they fought their own organizations and their brethren in other companies/green organizations). Against all odds, they stuck to it, found “common ground” (i.e. industry caved), and in the end, they “hammered out” 15 standards that if adopted (at extreme cost by the industry) will mean precious Mother Earth will survive this nasty, filthy activity called shale drilling after all. The End.
    Read More “Pittsburgh TODAY’s CSSD Propaganda Piece – Gag Me with a Spoon”

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    Happy 65th Birthday…Fracking!

    happy birthdayIf it were a person, fracking would now be eligible to start receiving Social Security checks. According to the American Petroleum Institute, what MDN calls the miracle of hydraulic fracturing (fracking for short) turned 65 years old yesterday. And we celebrate it. We are jumping up and down and hollering. Way to go! Glad you were born! We hope you’re around another 65 years!!

    Regardless of the constant lies from anti-drillers like Josh Fox and his fictional Gasland flicks, the loony left has not been able to fully demonize fracking (partially, but not fully). The process of fracking a well is actually a very small part of shale drilling–but because the word itself sounds so naughty it’s used as a proxy to mean all of the shale drilling process. (As an aside, anti-drillers have never been able to successfully demonize “horizontal drilling” the way they have fracking. We tried to help them out. See our story MDN Proposes a New Phrase for Anti-Drillers to Use, sure to give you a smile.) Here’s the birthday announcement from API for our beloved fracking…
    Read More “Happy 65th Birthday…Fracking!”

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    NatGas Replaces Coal to Generate Electricity in Steamtown USA

    Coal has been a fixture in the Scranton/Wilkes-Barre area for generations. It is so much a part of the fabric of the community that there is a National Park smack in the middle of downtown Scranton called Steamtown National Historic Site. Railroad engines used to run on coal back in the day–so it figures Scranton was a major nexus for trains–the city was really the coal capital of the northeast. So when natural gas displaced coal at a 50 year-old coal-powered electrical generating plant south of Wilkes-Barre a few years ago, that was interesting and noteworthy. The Hunlock plant was converted to run on natural gas by installing two new turbines. The waste heat from the new turbines now powers the old/original turbine once powered by heat from burning coal. It’s called “combined cycle” electric generation and it’s happening across the United States.

    The Obama EPA has demonized coal to the point that electric generating plants are switching (by necessity) to natural gas in large numbers. Hey, *something* has to create electricity–a very small scintilla of electricity comes from so-called alternative sources like wind and solar. Fossil fuels will, for generations to come, bear most of the burden when it comes to creating the electricity that powers your smart phone, lights, and your (*cough*) electric car. That’s the stark reality. The following article is an intriguing look at how utilities convert aging coal-fired electric plants into less-polluting, more efficient natgas-fired plants–in this case plants that run on Marcellus Shale gas…
    Read More “NatGas Replaces Coal to Generate Electricity in Steamtown USA”

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    PA Dems: No Leg to Stand on Criticizing $75M Forest Drilling Plan

    Another hypocritical PA House Democrat takes a potshot at the sitting Republican governor over the issue of drilling in PA state forests. As you may recall, Gov. Tom Corbett included a plan to raise $75 million for the state budget by allowing a bit more drilling than there already is in state forests (see PA Gov. Corbett’s Bold Plan for More Drilling in State Forests). The $75 million he would raise is out of a $29.4 BILLION budget–or exactly 0.00255 of the budget. Essentially a rounding error. And yet, hypocritical Democrats like State Rep. Greg Vitali (Delaware County, PA) chairman of the Pennsylvania House Environmental Resources and Energy Committee, continue to heckle Corbett over that $75 million (see his letter below).

    Here’s the hypocrisy that needs to be thrown right back in Vitali’s face: His committee previously approved plans that allowed then-Gov. Ed “Fast Eddie” Rendell (a Democrat) to raise $444 MILLION from doing the very same thing! It was only after Fast Eddie had his cash that he closed down drilling in state forests with an executive order. Corbett had the guts to lift that order and ask for another $75 million on non-invasive, under the ground (not on the surface) drilling to raise some more money for the budget, and the Dems throw a hypocritical cow. Shame on them…
    Read More “PA Dems: No Leg to Stand on Criticizing $75M Forest Drilling Plan”

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    Shell Using GTL Technology to Convert Natural Gas to Motor Oil

    What if a company perfected a method to convert natural gas into motor oil–a motor oil extremely pure and high quality, because there are no impurities associated with using crude oil? Shell has already done it–is doing it at their massive gas-to-liquids (GTL) plant in Qatar. Shell issued a press release last week to make sure everyone knows they are (so far) the only company that converts natural gas to motor oil on a full production scale. The oil they produce is used in their premium brands: Pennzoil Platinum® and Pennzoil Ultra® Platinum Full Synthetic.

    So far no American shale gas is being used in Shell’s Middle Eastern GTL operations. Perhaps with abundant, cheap natural gas here at home Shell will consider setting up an operation somewhere on American shores? Here is the very interesting technology Shell is using, that may one day arrive here commercially…
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    Odebrecht’s WV Ethane Cracker has The Big Mo–Momentum

    the big moThe Shell ethane cracker plant announced for Beaver County, PA has been a roller coaster ride about whether or not it will ever get built over the past two years since it was announced. Just last week the pendulum swung again and the mood turned decidedly gloomy (see Shell’s Shale Pessimism Signals Worry for Some re PA Cracker). In stark contrast to the Shell cracker, the cracker announced late last year by Odebrecht–to be built in Parkersburg, WV–seems to have an air of optimism and inevitability (see WV Ethane Cracker – Cautious Optimism in the Mountain State). Odebrecht officials are careful to say it’s not a 100% done deal yet and that we are “very early” in the process of making this multi-billion dollar project a reality. But what MDN notices about the Odebrecht cracker is forward momentum. Rapid progress. Enthusiasm. It just “feels” like the Odebrecht project is going to happen.

    Here is an update on the progress made to date on Odebrecht’s planned ethane cracker complex in Parkersburg, and what will happen next…
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