Industrywide Issues

Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

Chevron Well Fire Update: 2nd Well Capped, Work on 7 Wells Stopped
February 26, 2014February 26, 2014

We’ve been monitoring the tragic well fire in Greene County, PA that claimed the life of one contract worker. On Sunday afternoon Chevron reports the original well to explode and catch fire, the Lanco 7H, was capped (see Greene County Chevron Well Fire: 7H Well Capped, 6H in Few Days). Chevron now reports the second well to catch fire from the first, the Lanco 6H, is also capped as of yesterday afternoon (see the announcement below). What we somehow missed in the coverage was the fallout from the fire. Last week the PA Dept. of Environmental Protection asked Chevron to suspend drilling operations at other wells in the area pending a review. Chevron responded they had already stopped drilling operations at 7 nearby wells.

Here’s the latest official announcement from Chevron (that does not mention shutting down operations on other wells), along with a story from last week about the DEP’s tete-a-tete with Chevron:
Read More “Chevron Well Fire Update: 2nd Well Capped, Work on 7 Wells Stopped”
Economic Impact | Hydraulic Fracturing | Industrialization | Industrywide Issues | Jobs | Ohio | Public Opinion | Research | Statewide OH | Utica Shale

Survey Says! OU Survey of Local OH Officials on Utica’s Impacts
February 26, 2014February 26, 2014

Two days ago the Ohio University Voinovich School of Leadership and Public Affairs released the findings of its much anticipated Ohio Shale Development Community Impact Survey. During summer of 2013, the Voinovich School distributed more than 500 surveys to local elected officials across 17 counties experiencing the majority of shale activity and development in Ohio. The survey assesses the impact of shale development within 17 counties in eastern Ohio, with a focus on population, housing, public safety, infrastructure, environment, local employment, area business activity, and economic development. Some 200 of those surveys were returned and the data tabulated.

What did the survey find? Ohio’s local elected officials say Utica Shale drilling has caused an marked increase in jobs and the occupancy rate at hotels. But Utica drilling has also caused some pollution issues and a big increase in the demand for water supplies. This is a very interesting study (full copy embedded below)…
Read More “Survey Says! OU Survey of Local OH Officials on Utica’s Impacts”
Anti-Drilling/Fossil Fuel | Dauphin County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Latest Hypocritical Protest of PA’s State Forest Drilling Plan
February 26, 2014February 26, 2014

A handful of anti-drilling nutters–mostly washed up hippies from the 60s–held a protest rally in Harrisburg at the PA State Capitol yesterday to object to the very thing one of their icons, Ed Rendell (and his DEP Secretary John Hanger) themselves did: allow a little bit of drilling under (not on) state forests for natural gas. The hypocrisy was on full display as a small group, inflated by media reports as some sort of huge, massive movement thing, gathered to get their photo op before retiring to the nearest Starbucks to sip coffee created by machines operating on natural gas in a shop heated with natural gas to discuss how great it feels to relive the good ole days of protesting.

Here’s how the reliably anti-drilling StateImpact Pennsylvania reported the so-called “rally”…
Read More “Latest Hypocritical Protest of PA’s State Forest Drilling Plan”
eCORP International | eCORP Stimulation Technologies | Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues

Checking in on ecorpStim’s 100% Waterless Fracking, New Video
February 25, 2014February 25, 2014

ecorpStim has poked their heads up again to try and catch a bit of attention for their innovative waterless fracking solution. A press release issued yesterday by the company (full copy below) touts a new short video about their technology and promises that their “non-flammable propane stimulation” solution, developed in “2013,” will roll out in field demonstrations by “the end of this year.” We gave the video a watch a liked it (see it below).

MDN has had our eye on eCORP, ecorpStim’s parent company, since 2012 when they attempted but ultimately failed to cut a deal with landowners in Tioga County, NY to lease a large swath of land and potentially use a waterless fracking technology (from Canadian GASFRAC) to avoid New York’s ongoing moratorium (see Tioga County, NY Lease Deal with eCORP Falls Apart). It was after the wheels came off that deal that ecorpStim changed gears to develop their own waterless fracking solution.
Read More “Checking in on ecorpStim’s 100% Waterless Fracking, New Video”
Anti-Drilling/Fossil Fuel | Broome County | Hydraulic Fracturing | Industrywide Issues | New York

Fracking Debate at Binghamton U: Holko vs Steingraber
February 25, 2014February 25, 2014

Last night MDN editor Jim Willis attended a “You Defend It” debate at Binghamton University between pro-driller John Holko, president of Lanape Resources (Buffalo area), and anti-driller Sandra Steingraber, a so-called “scholar in residence” at Ithaca College and founder of New Yorkers Against Fracking. The debate was on the topic of whether or not New York should allow high volume hydraulic fracturing (shale fracking). The format was interesting and refreshing–NO audience participation allowed. No cat calls or clapping or hooting characteristic of hippie anti-drillers was allowed. Also, the debaters were not allowed to question each other or respond to the other’s arguments. It was the moderator (Binghamton attorney Rob Kilmer) asking them questions in turn–and that’s it. The audience, which MDN would estimate at 250-300 people, heard the best pro and con arguments from both sides. Refreshing. And, enlightening.

If we could step back and make an observation about the poise and demeanor of the debaters, John Holko was relaxed and worked from no notes. Sandra Steingraber, whom we have perhaps uncharitably called nutty, was nuttier than ever. She looked tense and had many notes and every response to a question started and ended with how fracking leads to an environmental holocaust that’s killing Mother Earth. When grilled by Kilmer as to why fracking doesn’t seem to be creating widespread damage in Pennsylvania the way she portrays it would in New York, she responded (amazingly) it really is. Steingraber maintains “everyone” is hushed up by legal gag orders in PA that don’t allow residents to tell the truth of what’s happening. So you see, she was simply off the rails–yet again…
Read More “Fracking Debate at Binghamton U: Holko vs Steingraber”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

3 Anti-Drilling MD Commissioners Want Fracking Delayed…Surprise!
February 25, 2014February 25, 2014

It’s been a loooong road in Maryland, evaluating whether or not they should, and if so how, to move forward with hydraulic fracturing of shale in two counties in the state. Failed Gov. Martin O’Malley appointed a commission nearly three years ago to study it. A couple of studies have been created with two more still to go–due by August 1st of this year. The two remaining studies are nebulous “heath effects” (sound familiar?) and economic impacts from drilling. MDN has always joked that Maryland was the only state more dysfunctional than New York when it comes to shale drilling. We were wrong–New York is at the bottom of the heap. We think Maryland could actually beat us to the drill bit. Maybe.

However, we noticed an op-ed written by three members of the Maryland Safe-Drilling Advisory Commission, all three anti-drilling, that argues Maryland should be *more* like New York and delay. They say, in essence, “Ain’t no way those two studies can done in time.” So the answer? Delay. Hey, the delay strategy has worked in spades for NY–why not try it in MD? Here’s the op-ed (and what you get when you appoint anti-drillers to a drilling commission)…
Read More “3 Anti-Drilling MD Commissioners Want Fracking Delayed…Surprise!”
Centre County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

State College Teens Help Out with Shale Network Water Sampling
February 25, 2014February 25, 2014

Penn State and other organizations sponsor an initiative called the Shale Network. The Shale Network is a group of volunteers who sample local rivers and streams to ensure Marcellus drilling is not having a negative effect on local waterways. So far, we’ve not heard of a single instance where the testing has turned up a problem.

Part of the Shale Network is the Teen Shale Network, which involves local high school students from the State College, PA area to help with the testing–as a way to educate them on field science. To which we say, great! The kids were out freezing their derriere’s off recently, taking samples in Black Moshannon State Park…
Read More “State College Teens Help Out with Shale Network Water Sampling”
CONSOL Energy | Energy Companies | Ethane | Exporting | Industrywide Issues | Pipelines | Statewide WV | West Virginia

CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends
February 24, 2014February 24, 2014

CONSOL Energy’s CEO Brett Harvey must be getting some heat over the company’s recent announcement that they have signed an agreement to export ethane from the Marcellus to Europe (see CONSOL to Begin Ethane Shipments Next Year–to Europe?!). Why would we say CONSOL is getting blowback? Because Harvey penned an op-ed that appears in The Intelligencer/Wheeling News-Register giving a spirited defense of their decision. The gist of Harvey’s points, if we might summarize, is this: CONSOL has deep roots and is committed to WV; there’s plenty of ethane to go around, including for exports (and exports bring money into WV); CONSOL is also going to sell ethane to the Odebrecht ethane cracker when/if it gets built; in the meantime, selling ethane to Europe means CONSOL will have more money to invest in WV.

Here’s Harvey’s “it’s OK” op-ed:
Read More “CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends”
Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already
February 24, 2014February 24, 2014

Amidst the bad news for Williams last week that the company is being targeted by corporate raiders (see Evil Corporate Raiders Double Investment (& Control) in Williams), was a little bright spot of good news. The company announced they plan to expand the Transco pipeline carrying cheap Marcellus Shale gas (mostly from PA) to the Eastern Seaboard–what they call the Atlantic Sunrise Expansion of the Transco. The good news is that nine drillers have signed binding contracts, already sopping up 100% of the planned 1.7 million dekatherms of expansion. The new customers were not named in the announcement.

Williams plans to spend $2.1 billion on the expansion. They will file a request with the Federal Energy Regulatory Commission (FERC) in March to get permission to…file a pre-filing. Yeah, it’s complicated–but that’s life in the midstream. Here’s the announcement from Williams:
Read More “Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Expect “Frackgate” to be an Issue in Ohio for a While
February 24, 2014February 24, 2014

Anti-drillers in Ohio, like the Sierra Club, have dubbed the “revelation” that the Ohio Dept. of Natural Resources (ODNR) once crafted a communications plan to deal with nutjobs (like them) a scandal, so they’ve take to calling it “frackgate” (see ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan). Relatedly, we also told you about Gov. John Kasich already throwing in the towel and admitting defeat on the matter of drilling in a single state forest and two state parks (see The Disgusting PR Mess in Ohio – No One Smells Pretty).

You can expect “frackgate” to continue to be an issue in Ohio for a while because of the upcoming governor’s race. As we previously pointed out, the liberal Dems never let a good manufactured controversy (or crisis) go to waste. They’re now whispering about Kasich’s “enemies list” from the ODNR plan (even though Kasich had nothing to do with authoring the PR plan). By the way–they are enemies–of truth and common sense and reasonableness. Being good libdems, they will continue to harp on the “frackgate” issue, using a sycophantic press. Here’s the latest example of an article with absolutely no new information, the only purpose of which is to keep the story alive and in the minds of voters:
Read More “Expect “Frackgate” to be an Issue in Ohio for a While”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt
February 24, 2014February 24, 2014

The Pennsylvania Supreme Court continues their lunacy. On Friday they obstinately said they would not revisit their decision on the Act 13 Marcellus drilling law passed in early 2012 (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). PA Gov. Tom Corbett asked them to reconsider but the haughty response is a big “no way.” And so the very real possibility that the Supreme Court has just shut off the spigot to $200 million+ per year in impact fees. The Supremes vacated large sections of the Act 13 law that involve the collection and distribution of the Act 13 impact fee, a fee that has benefited countless communities around the state–particularly those where drilling’s impact is felt the most (hence the name). Now? Screw you seems to be the attitude of the justices.

And so we hope the seven “brave” townships that sued and kept suing are happy that they’ve just hosed the entire state with their actions–spoiling it for everyone. Congratulations…
Read More “PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt”
Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

Greene County Chevron Well Fire: 7H Well Capped, 6H in Few Days
February 24, 2014February 24, 2014

Chevron reports that as of yesterday (Sunday) afternoon, Wild Well Control has successfully capped one of two leaking gas wells in Dunkard Township, Greene County, PA. The well capped was the Lanco 7H. However, work to cap the second well at the pad, the 6H, is up next and expected to take “several days” to complete. These are the wells that caught fire after an explosion occurred as workers were completing a hook-up of the 7H (see Explosion & Fire at Chevron Well in SWPA – 1 Person Missing). Unfortunately the explosion and fire took the life of one contract worker (see Remains of Chevron Contractor Found at Greene County Well Site).

The latest couple of updates from Chevron about the accident, the fire and capping of the wells:
Read More “Greene County Chevron Well Fire: 7H Well Capped, 6H in Few Days”
Allegheny County | Economic Impact | Industrywide Issues | Pennsylvania | Supply Chain

Pittsburgh Co Figures Out How to Tap Marcellus Supply Chain
February 24, 2014February 24, 2014

The article below is of the kind that fascinates MDN. It’s about a small tool and die manufacturer in Pittsburgh chasing new business in the Marcellus (and Utica) Shale industry. There are some important lessons learned by the manufacturer: it’s not easy and it’s not quick to plug in to the Marcellus supply chain. Certifications make it easier–but depending on the cert, it costs big money and takes time. Bottom line: There is no quick and easy route to getting your piece of the Marcellus pie. You’re going to have to work and work hard–but then, that’s the way business has always been!

Here’s an instructive tale of hope, determination and ultimately success in plugging in to the Marcellus supply chain:
Read More “Pittsburgh Co Figures Out How to Tap Marcellus Supply Chain”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New Staffers on Way at PA DEP O&G Courtesy Higher Permit Fees
February 24, 2014February 24, 2014

PA’s Secretary of the Dept. of Environmental Protection, Chris Abruzzo, told lawmakers last week that he plans to hire “several dozen” new staffers in the oil and gas regulation area of the DEP by using new money from a bump up in well permitting fees. Abruzzo said the current 83 inspectors in the field are enough to get the job done, but what they do need is extra help back in the office–support staff.

MDN told you last September that well permit fees are set to go up 56%–from $3,200 per horizontal well to $5,000 (see Coming Soon: PA Drillers to Pay 56% More for Marcellus Permits). The new fee was approved by the DEP’s Environmental Quality Board but needs several more approvals before going into effect (expected soon). Once it does, the help wanted ads will begin to run…
Read More “New Staffers on Way at PA DEP O&G Courtesy Higher Permit Fees”
Commodity Price | Industrywide Issues | Utica Shale

How the Marcellus & Utica Affects the Price of Natgas
February 24, 2014February 24, 2014

A blogger writing on the Seeking Alpha investor’s website recently published a lengthy (and excellent) article listing 12 reasons why he believes the current price level of $6+ per thousand cubic feet (Mcf) for natural gas won’t last long. The article’s aim is to warn investors not to get caught up in an irrational exuberance and belief that higher gas prices are here to stay. As we’ve commented before, the commodity price for natural gas is of concern to everyone–from landowners to drillers to midstreamers to traders and buyers–the entire gas ecosystem.

The reason we highlight the SA article is two-fold: One is he makes some great points about what influences the price of gas, and second, two of his points concern the Marcellus and Utica…
Read More “How the Marcellus & Utica Affects the Price of Natgas”
Economic Impact | Industrywide Issues | Jobs | Processing Plants

ACC Says $100B of New Shale-Related Petrochemical Spending on Way
February 24, 2014February 24, 2014

The American Chemistry Council trade group last week announced that shale gas in the U.S. is having an incredible economic impact on the chemical industry. According to the ACC, who keeps track of these things, 148 shale-related chemical industry projects, valued at $100.2 billion, have been announced–so far. These projects include new factories, expansions and process changes to increase capacity. The ACC says the new spending could lead to $81 billion per year in new chemical industry output and 637,000 permanent new jobs by 2023. Astonishing. More than half of the investment is by firms based outside the United States.

Here’s the ACC announcement from last week:
Read More “ACC Says $100B of New Shale-Related Petrochemical Spending on Way”